The following notice is being sent out by the Rules and Administration Committee to all chiefs of staff, staff directors, administrative managers and committee clerks:

Because of the dire financial condition at the Restaurants and the need to increase revenues to stem the losses, at the direction of the Chairman, the Committee will no longer be granting waivers for outside caterers, except for religious purposes. Additionally, the prices for food and other items may need to be increased at least 25 percent in the coming months.

In fiscal year 2007, the Restaurants lost $1.3 million, and we could easily see losses topping $2 million this year. Since 1993, losses have averaged over $900,000 annually and taxpayers have been required to provide $18.1 million in operational subsidies. In fact, the Senate Restaurants have operated at a loss in 37 of the last 44 years. This summer, just to make payroll, the Rules Committee will be forced to approve a transfer $250,000 from the Reserve Fund in order to meet payroll.

Please feel free to contact the Rules Committee if you have any questions about the steps that are being taken to address these ongoing shortfalls.

Lynden C. Armstrong

Chief Clerk

U.S. Senate Rules and Administration Committee