September 26, 1991
TO: BOARD OF GOVERNORS NO. 74-91
RE: FY 1991-1992 BUDGET
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The budget proposal for FY 1991-1992 reflects the following
factors:
o In spite of pessimistic predictions prevalent this time
last year, total assets represented by Institute members
continued their steady growth, resulting in an estimated
increase in the dues base of $157.9 billion since last
year. These assets would produce additional dues revenues
in the coming year of nearly $1 million at current rates.
At that rate, the Institute's dues as a contributor to the
industry's expense ratio drops from .149 BP this year to
.138 BP next year.
o While overall growth figures for the industry are favor-
able, prosperity is not evenly distributed throughout the
membership and cost containment remains the watch word
within many fund organizations.
o The demands of members, government, the media and the
public continue at high levels, maintaining constant
pressure on the entire Institute staff for services.
o Although possible resolution of financial services reform
legislation this Fall may ease pressure, repeal of Glass-
Steagall is likely to result in major administrative
rulemaking which will be critical to the industry, and
other important regulatory and legislative matters in the
tax, pension and securities areas will necessitate a
continued substantial commitment to outside legal and
legislative counsel.
o Member interest in and involvement with the work of the
Institute in the Operations, Public Information and