Smithsonian: Background, Funding, and Policy Issues

CRS Report for Congress
Smithsonian:
Background, Funding, and Policy Issues
Updated July 27, 2006
Susan Boren
Specialist in Social Legislation
Domestic Social Policy Division


Congressional Research Service ˜ The Library of Congress

Smithsonian: Background, Funding, and Policy Issues
Summary
The Smithsonian Institution (SI) is a museum, education, and research complex
comprised of 19 museums and galleries, the National Zoo, and 9 research facilities
throughout the United States and around the world. In addition, there are 144
affiliated museums. The Smithsonian Institution is estimated to be 75 to 80 percent
federally funded, and also is supported by private donations, and trust funds.
The Organic Act of 1846 established the Smithsonian Institution in response to
James Smithson’s will and gift. Increases in federal support for the Smithsonian
have developed through the years as a result of adding authority for multiple
museums to the jurisdiction of the Smithsonian Institution. The idea of 19 museums
did not necessarily originate with the Smithsonian. The range of legislation enacted
shows the increasing control of the federal government over the shape of the
Smithsonian Institution and the subsequent justification for increased appropriations.
The Federal commitment in terms of funding for the Smithsonian Institution
appears extensive. Congressional appropriations for the Salaries and Expenses of the
Smithsonian have grown exponentially from $18.5 million in FY1966 to $516.6
million in FY2006. Private trust funds also help sustain the Smithsonian Institution.
In FY2006, trust funds totaled $274 million. In spite of private trust funds, Congress
and the courts tend to characterize the Smithsonian primarily as a federal entity.
A recent contract between the Smithsonian Institution and CBS/Showtime for
a new cable programming service called “Smithsonian on Demand” has called into
question the decision of the Secretary of the Smithsonian and the SI’s Board of
Regents. This issue has captured considerable media attention. Judging from the
vote of the House Members on the FY2007 Interior appropriations bill, the full
House and the Senate Appropriations Committee have differing views on the
Showtime issue.
There are, in addition, other issues of importance concerning the Smithsonian
Institution, including appropriate levels of funding for all Smithsonian research
facilties and museums, and the issue of maintenance and preservation of Smithsonian
buildings. According to Government Accountability Office (GAO), many years of
insufficient investment in “Facilities Capital” and maintenance have led to the long
term deterioration of the physical plant of the SI.
This report will be updated as congressional action occurs.



Contents
Funding for the Smithsonian Institution................................4
FY2007 Funding for the Smithsonian Institution.........................7
Facilities Capital...............................................8
National Museum of African American History and Culture.............8
National Museum of the American Indian (NMAI)....................8
National Zoo..................................................8
Issues ...........................................................9
Private Versus Federal Designation................................9
Showtime Business Venture....................................11
Smithsonian Institution Buildings:
Maintenance and Preservation...............................12
Appendix A.....................................................15
List of Figures
Figure 1. Sources of SI Support, FY2005...............................5
Figure 2. Smithsonian Institution: Funding for Salaries
and Expenses, FY1966-FY2006..................................6
List of Tables
Table 1. Appropriations for the Smithsonian Institution (SI),
FY1996-FY2006 ..............................................7
Table 2. Appropriations for the Smithsonian Institution,
FY2005-FY2007 ..............................................9



Smithsonian:
Background, Funding, and Policy Issues
This report provides background and legislative history on the Smithsonian
Institution (SI) as well as delineating funding and current policy issues. It begins with
a discussion about the initial acceptance of James Smithson’s will and gift, and
provides legislative history including the final passage and enactment of the Organic
Act of 1846. It details the Smithsonian’s acquisition and creation of other museums
through legislation and explores growing federal government involvement in the
Smithsonian Institution. It also outlines funding levels for the SI museums and
explains the private trust account. Finally, it discusses the policy issue of private
versus federal funding, recent controversies over the Smithsonian’s contract with
CBS/Showtime, and the condition of Smithsonian buildings.
Background
The Smithsonian Institution is a museum, education, and research complex
comprised of 19 museums and galleries, the National Zoo, and 9 research facilities
throughout the United States and around the world. In addition, there are 144
affiliated museums. The SI is responsible for more than 400 buildings with an
estimated 8 million plus square feet of space. There were more than 24 million
visitors to SI museums last year, a 24% increase over FY2004. The Smithsonian
Institution is estimated to be 75% to 80% federally funded, and also is supported by
private donations, and trust funds.
The Organic Act was enacted in response to the Smithson will and gift, twenty
years from the date of the will of James Smithson, and eight years from the date of
initial consideration by Congress of a bill to establish the Smithsonian Institution.
The Organic Act, “An Act to Establish the Smithsonian Institution for the Increase
and Diffusion of Knowledge among Men” was passed by Congress and enacted on
August 10, 1846.
In his message to Congress in December 1835, President Andrew Jackson
announced the Smithson will and gift, but added that there was no precedent for this,
and that he had no authority to accept it. A lengthy debate occurred in Congress
concerning the acceptance of the bequest and what shape it would take. The matter
was referred to the Senate Committee on the Judiciary on May 2, 1836 and the
resolution to accept the will and gift passed the Senate. The House explored
legislation to accept the Smithson gift and with the help of Representative and former
President John Quincy Adams, the House and Senate agreement passed in 1836
authorizing the acceptance of the claim to the will and gift and an appropriation of



$10,000 to cover the costs.1 This was an acceptance of the Smithson will and fund
only, not establishment of the Smithsonian Institution. In December 1838, President
Martin Van Buren announced that the fund of about $500,000 had been received in
the Treasury, and reminded the Congress of its obligation to fulfill the object of the
bequest — i.e., to establish the Smithsonian Institution. There was no precedent for
dealing with bequests of this nature, and there were very few scientific foundations
that could be used as models.2
The final law, the Organic Act of 1846, established the Smithsonian Institution.
It created the Smithsonian Board of Regents, which to this day appears to have
considerable power; it provided for an Executive Committee and Secretary of the
Smithsonian. In addition, it authorized construction of a Smithsonian building; it
provided for the transfer of the collections of James Smithson, and delineated the
duties of the Secretary including providing employment. It provided an appropriation
not to exceed $25,000 a year from the interest of the Smithsonian endowment fund
for operations.3 It authorized the managers of the Smithsonian Institution to spend
income according to “the purposes” set forth by James Smithson; and it reserved the
right of Congress to alter, amend, and repeal any of the provisions of the act.4
Smithsonian Board of Regents
The governing body of the Smithsonian Institution includes the Secretary of the
Smithsonian and its Board of Regents, currently composed of 17 members.5 Eight
of the Regents are United States officials, including the Vice President, the Chief
Justice, three Members of the Senate (appointed by the President of the Senate), and
three Members of the House of Representatives (appointed by the Speaker of the
House). The remaining nine Regents are private citizens, i.e., individuals “other than
Members of Congress,” and are appointed by joint resolution of Congress.6 The
Board of Regents elects an Executive Committee and Secretary as specified by the
Charter. In accordance with the policies established by the Board of Regents, the
Secretary may accept or receive gifts, grants, bequests, and other transfers of property
for the Smithsonian Institution. The Secretary and the Regents provide supervisory
power over the Smithsonian Institution.
Through the years, there have been joint resolutions of Congress to appoint
Members of the Smithsonian’s Board of Regents. For example, in the 103rd Congress
H.J.Res. 105/S.J.Res. 37 provided for the appointment of Hanna Gray (President
Emeritus of the University of Chicago) as a citizen Regent of the Smithsonian (P.L.


1 Further legislative history appears in Paul Oehser’s book, The Smithsonian Institution
(New York: Praeger, 1970), pp. 16-25.
2 Ibid.
3 Ibid.
4 Ibid., p.255.
5 20 U.S.C. § 42-44; Bylaws of the Board of Regents and Charter Provisions of the
Smithsonian, SI, Washington, DC, 1995.
6 20 U.S.C. § 43.

103-19). In the 104th Congress, H.J.Res. 110 provided for the appointment of
Howard H. Baker Jr. (Former Senator from Tennessee) as citizen Regent (P.L. 104-
82). In the 109th Congress, H.J.Res 19 provided for the appointment of Shirley Ann
Jackson as a citizen regent of the Board of Regents of the Smithsonian Institution
(P.L. 109-11), and H.J.Res 82 provided for the reappointment of Alan G. Spoon as
a citizen regent of the Board of Regents of the Smithsonian Institution (P.L.109-217).
Statutory Authority of the Smithsonian
Increases in federal support for the Smithsonian have developed as a result of
adding authority for multiple museums to the jurisdiction of the institution. The idea
of 19 museums did not necessarily originate with the Smithsonian — in many
instances the Smithsonian was not the initiator of the concept of additional museums,
but rather these were placed under the jurisdiction of the Smithsonian through acts
of Congress, thus, adding responsibility to the institution, and with it, the need for
additional appropriations.
Statutory authority for the Smithsonian Institution has been amended and added
to by numerous acts over time. The range of legislation enacted shows the increasing
control of the federal government over the shape of the Smithsonian Institution and
the subsequent justification for increased congressional appropriations. Some
examples are listed here:
!Incorporation of the Institute: August 10, 1846, c. 178, 9 Stat. 102,
amended; March 20, 1871, 17 Stat. 1, amended March 12, 1894, 28
Stat. 41.
!National Zoo — placed under the authority of the Regents of the
Smithsonian April 30, 1890, 26 Stat. 78, amended by P.L. 87-360,

75 Stat. 779.


!National Gallery of Art, March 24, 1937, 50 Stat. 51; acceptance of
the Mellon Educational and Charitable Trust by the Smithsonian.
!Establishment of the National Portrait Gallery, March 28, 1958, 72
Stat. 68, P.L. 87-443, amended April 27, 1962, 76 Stat. 62, P.L. 94-

209; February 5, 1976.


!Joseph H. Hirshhorn Museum and Sculpture Garden, P.L. 89-788,
November 7, 1966, 80 Stat. 1403.
!National Museum of the American Indian, P.L. 101-185, November

28, 1989, 103 Stat. 1336.


!Authorize construction of the Smithsonian Institution’s National Air
and Space Museum extension at Dulles Center Oct 1, 1996, 110
Stat. 3025, P.L.104-222.
!To establish within the Smithsonian the National Museum of
African American History and Culture, P.L. 108-184, 117 Stat 2676,
December 16, 2003. (A precursor to this act was P.L. 107-106).



Funding for the Smithsonian Institution
The federal commitment in terms of funding for the Smithsonian Institution
appears extensive. The chart below (see Figure 1) shows that Congressional
appropriations combined with government grants and contracts from federal agencies
provide the largest share of support for the Smithsonian, totaling an estimated 74%
of the total Smithsonian budget.
The Private Smithsonian — Trust Funds
In addition to congressional appropriations, the Smithsonian Institution
receives income from trust funds to expand its programs. The SI trust fund account
includes three types of funds: general trust funds, contributions from private sources
or donor designated funds, and federal government grants and contracts from other
agencies. General trust funds include but are not limited to investment income from
the endowment, earnings from unrestricted endowments, proceeds from the museum
shops, SI books and publications sales, and membership programs such as
Smithsonian Resident Associates. For FY2006 (the most recent estimate available),
the total Trust funds available for operations were estimated at $274.0 million,
comprised of $59.0 million from general trust funds, $109.0 million from
government grants and contracts from federal agencies, and $106.0 million from
donor-designated funds. The chart (Figure 1) below is based on actual FY2005
dollars from trust funds and from Congressional appropriations.



Figure 1. Sources of SI Support, FY2005


(FY2005 Actual Dollars in Millions)
$615.2 m 62%
$203.0 m 20%
$120.0 m 12%$60.0 m 6%
Congressional Appropriations
Government Grants and Contracts
General Trust Funds
Donor Designated Funds
Source: Smithsonian Budget Justification to Congress, FY2007.
The Smithsonian was created by the instrumentality of a private trust, and is
sustained by a private endowment, the income from which is in the general trust and
is always kept separate from federal funding in terms of accounting.7 In addition,
there is no restriction or limitation on the power of the Smithsonian to “receive
money or other property by gift, bequest, or devise, and to hold and dispose of the
same in promotion of the purposes thereof.”8
Congress recently expressed concern over the extent to which the SI’s financial
managers are investing in “hedge funds,” i.e., higher risk funds, to boost the
endowment. The SI has tried to assure the Congress that it is not reducing the
endowment from these investments.
7 20 U.S.C. §54.
8 20 U.S.C. §55.

Appropriations for the Smithsonian Institution
Congressional appropriations for the Smithsonian Institution are provided
through the Interior, Environment and Related Agencies appropriations bills. This
funding reinforces the concept that the Smithsoinan is a “federal entity.” Through
these appropriations, the funding for the Smithsonian’s Salaries and Expenses have
grown exponentially from a total of $18.5 million in FY1966 to $516.6 million in
FY2006. (See Figure 2.)
Figure 2. Smithsonian Institution: Funding for Salaries and
Expenses, FY1966-FY2006


($ in millions)
600
516 .6500
400
308 .2300
200
169 .4
100
77. 8
18. 50
1966 1976 1986 1996 2006
Salaries and Expenses
Source: Smithsonian budget office (excerpted from unpublished tables).
Salaries and Expenses cover administration of all of the museums and research
institutions that are part of the SI. (See Appendix A.) Total appropriations for the
Smithsonian (which includes Facilities Capital/Construction plus Salaries and
Expenses) have grown dramatically as well from $373.1 million in FY1996 to $615.1
million in FY2006. (See Table 1.) Both Salaries and Expenses and Total
appropriations for the SI are indicators of a substantial federal commitment to the
Smithsonian Institution.

Table 1. Appropriations for the Smithsonian Institution (SI),
FY1996-FY2006
Fiscal yearSalaries and ExpensesTotal SI appropriations
1996 $308,188,000 $376,092,000
1997 $318,492,000 $371,342,000
1998 $333,408,000 $402,258,000
1999 $351,854,000 $412,254,000
2000 $371,230,000 $438,130,000
2001 $386,902,000 $453,854,000
2002 $420,960,000 $518,860,000
2003 $446,096,000 $554,875,000
2004 $488,652,000 $596,279,000
2005 $489,035,000 $615,158,000
2006 $516,568,000 $615,097,000
Source: Smithsonian Budget Justification to Congress (annual budget documents).
FY2007 Funding for the Smithsonian Institution
FY2007 Actions. For FY2007, the House passed Department of Interior,
Environment, and Related Agencies bill (H.R. 5386) would provide $624.1 million
for the Smithsonian, a decrease of $20.3 million from the Administration’s proposed
$644.4 million for FY2007, but a $9.0 million increase over the enacted FY2006
level ($615.1 million). (See Table 2.) For Salaries and Expenses, the House
approved $517.1 million, a decrease from the Administration’s request of $537.4
million, and a slight increase over the FY2006 amount of $516.6 million. Salaries
and Expenses cover administration of all of the museums and research institutions
that are part of the SI. It also includes program support and outreach, and facilities
services (security and maintenance). The House passed bill cut the Smithsonian’s
Salaries and Expenses funding on the grounds that Congress was not consulted on
the contract that the Smithsonian Institution made with Showtime. (See the
discussion under “Showtime Business Venture.”) During House consideration, an
amendment was adopted to prohibit funds from being used to support activities that
could in any way limit access to SI’s collections and research materials. Currently,
SI’s outreach programs extend to many communities across all states.
For FY2007, the Senate Appropriations Committee-reported bill would provide
$644.4 million for SI, the same as the Administration’s request, an increase of $20.3
million over the House-passed bill ($624.1 million) and an increase of $29.3 million
over the FY2006 level. For Salaries and Expenses, the Senate Appropriations
Committee would provide $537.4 million, the same as the Administration’s request,



$20.8 million above the FY2006 level, and $20.3 million above the House-passed
bill. The Senate Appropriations Committee-reported bill had no punitive
amendments with regard to the Showtime deal, nor did it have any language limiting
the salary of the Secretary of the Smithsonian. (See the later discussion under
“Showtime Business Venture.”)
Facilities Capital. For FY2007, the House and the Senate Appropriations
Committee approved $107.0 million for facilities capital, the same as the
Administration’s budget. This would be an increase over the FY2006 level of $98.5
million. The House-passed bill and the Senate Appropriations Committee-reported
bill provided $91.1 million for revitalization, $5.4 million for construction, and $10.5
million for facilities planning and design. Revitalization funds are for addressing
advanced deterioration in SI buildings, helping with routine maintenance and repair
in SI facilities, and making critical repairs. (See the later discussion on “Smithsonian
Institution Buildings: Maintenance and Preservation.”)
National Museum of African American History and Culture. A new
National Museum of African American History and Culture (NMAAHC) has been
authorized within the Smithsonian Institution through P.L. 108-184. The museum
will collect, preserve, study, and exhibit African American historical and cultural
material and will focus on specific periods of history, including the time of slavery,
Reconstruction, the Harlem Renaissance, and the Civil Rights Movement. For
FY2007, the House-passed bill and the Senate Appropriations Committee-reported
bill supported the Administration’s budget request for $3.0 million, a slight increase
from the FY2006 appropriation of $2.9 million. The funding will cover operating
costs, including personnel for planning, and capital fund raising. Space has been
selected on the Mall near the Washington Monument. Other groups, such as Latinos,
have been seeking museum space on the Mall, and legislation has been introduced
(H.R. 2134, S. 2475) that would appoint a Commission to study the feasibility of an
American Latino museum on the Mall or adjacent to it. The House Appropriations
Committee’s report on FY2006 appropriations stipulated that the SI’s purchase of
any additional buildings would require initial consultation with the House and Senate
Committees on Appropriations.
National Museum of the American Indian (NMAI). The FY2007 House-
passed bill, the Senate Appropriations Committee, and the Administration budget
would provide $31.2 million for operating expenses for the National Museum of the
American Indian. For FY2006, Congress enacted $30.5 million. The estimated total
cost of construction for the NMAI was approximately $219.3 million. The
groundbreaking ceremony for the NMAI took place September 28, 1999, and the
grand opening ceremony was September 21, 2004.
National Zoo. For FY2007, the House-approved and the Senate Appropriations
Committee-reported bill provided $21.4 million for salaries and expenses at the
National Zoo. The Senate Appropriations Committee approved $20.7 million, the
same as the budget request. In the House-passed bill, $1 million is to address critical
infrastructure including fire detection and suppression systems. Recently, Members
of Congress and the public have expressed increased concern about the National Zoo’s
facilities and the care and health of its animals. The Smithsonian Institution has a plan
to revitalize the zoo to make the facilities safer for the public and healthier for the



animals. The Administration’s FY2007 request estimated $13.0 million (under the
Facilities Capital account) to begin Phase II of the Asia Trail and Elephant Trails to
provide ample space for the elephants. It also included renewing facades, roofs, and
skylights at Rock Creek ($2.0 million); and an upgrade of critical infrastructure ($1.0
million), including installing fire protection systems and upgrading utilities. The new
construction and renovation will help the Zoo come into compliance with the
Department of Agriculture and American Zoo and Aquarium Association standards,
and help correct “infrastructure deficiencies” found throughout the National Zoo. The
House agreed to provide the full amount for Facilities Planning and Design, but
asked to review the list of the Zoo’s projects for Facilities Planning and Design before
approval. The Senate Appropriations Committee-reported bill does not contain
similar language.
Table 2 below lists the appropriations for the Smithsonian Institution for FY2005
through FY2007, the FY2007 Administration request, and the House-passed and
Senate Appropriations Committee-reported figures for FY2007.
Table 2. Appropriations for the Smithsonian Institution,
FY2005-FY2007
($ in thousands)
FY2007FY2007
Smithsonian Institution (SI)FY2005Approp.FY2006Approp.FY2007RequestHouseSenate
PassedComm.
Salaries and Expenses$489,035$516,568$537,394$517,094$537,394
Facilities Capital126,12398,529107,000107,000107,000
Total SI Appropriations$615,158$615,097$644,394$624,094$644,394
Source: Compiled by CRS.
Issues
Private Versus Federal Designation
Congress wants to assure greater accountability for the Federal funds expended
by the Smithsonian Institution. Therefore, Congress and the courts are still grappling
with how to characterize the Smithsonian: as primarily an institution governed by a
private trust and therefore a “private trust instrumentality,” or primarily as a “federal9


entity” or “federal agency.”
9 Information on the court cases in this discussion have been provided by Terry Halstead,
Legislative Attorney, American Law Division, CRS.

In 1997, the D.C. Circuit Court held that the Smithsonian was not an executive
branch “agency” (Dong v. Smithsonian Institution) for purposes of the Privacy Act10.
The Privacy Act incorporated the definition of “agency” from the Freedom of
Information Act, which defines “agency” as an “executive department, military
department, Government corporation, Government controlled corporation, or other
establishment in the executive branch of the Government (including the Executive
Office of the President), or any independent regulatory agency.”11 Applying the
Freedom of Information Act definition to the Smithsonian, the court held that the
Smithsonian was not an “establishment in the Executive branch” or a “Government
controlled corporation.” The Smithsonian characterized itself as a “trust
instrumentality of the United States.”12
The unique character of the Smithsonian has featured prominently in other court
cases. It would appear that the Smithsonian is, at a minimum, an “establishment of
the United States.” All moneys received by the Smithsonian are held in the U.S.
Treasury.13 The Smithsonian is required to submit annual reports on its operations to
Congress, and is further audited by the Government Accountability Office.14 If there
is a lawsuit against the Smithsonian, the SI is generally represented by government
attorneys from the Department of Justice.
The aforementioned factors imply “federal” status, and under some federal
statutes the Smithsonian is considered a “federal agency.” For example, in certain
court cases under the Federal Tort Claims Act, the Federal Employment
Compensation Act, and the Inspector General Act, the Smithsonian, for these
purposes, is considered a “federal agency.”15 Several other court cases have
determined that the Smithsonian is at its core a “federal entity” in spite of the
existence of a private funding source.16
However, there is still some reluctance to declare the Smithsonian a “federal
agency” or “federal entity.” The decisions in numerous court cases are based on the
precise language of the “agency” definition in the particular statute being cited in a


10 Dong v. Smithsonian (125 F.3d 877, 883 (D.C. Cir. 1997). There were other court cases
that conflicted with Dong including Cotton v. Adams 798 F. Supp. 22 (D.D.C. 1992).
11 5 U.S.C. §552(f); 5 U.S.C. §552a(a)(1).
12 O’Rourke v. Smithsonian Institution Press, 399 F.3d 113 (2d Cir. 2005)
13 20 U.S.C. §53.
14 20 U.S.C. §49, §§57-58.
15 Expeditions Unlimited Aquatic Enterprises, Inc. v. Smithsonian; Marley v. Ibelli, 203 F.
Supp.2d 302, 308 (S.D.N.Y. 2001); 5 U.S.C.App.3, § 8G(a)(2).
16 Marley v. Ibelli, 203 F. Supp.2d 302, 308 (S.D.N.Y. 2001) There appears to be a
“constitutional” component to the determination that the Smithsonian is a “federal entity.”
SI was created by Congress to further the government’s objective of increasing and diffusing
knowledge. Although not a Smithsonian case, Lebron v. National R. R. Passenger
Corporation, 513 U.S. 374 (1995) provides a precedent in a parallel sense that the
Smithsonian is constitutionally regarded as a “government entity.”

case, as the Department of Justice’s Office of Legal Counsel confirms.17 Therefore,
declaring the Smithsonian a “federal entity” is determined on a case by case basis, but
it appears that the majority of case findings tend to favor the characterization of
“federal entity.” The impact Congress has on the SI is greater if the SI is considered
a federal entity, particularly with regard to the next issue, the Showtime Business
Venture.
Showtime Business Venture
Members of Congress have expressed concern over the new business venture
between the Smithsonian and Showtime. The venture, called “Smithsonian On
Demand,” is a new cable programming service that will offer commercial-free shows
about Smithsonian resources and collections. According to the SI, the Smithsonian
will take advantage of the power of cable television to expand access to objects,
scientists, and scholars in keeping with its mission to “diffuse knowledge.”
Congress’s primary concern is that the national collections of the Smithsonian
might not be available to the public and that access by other film makers could be
limited or restricted completely. The SI asserts that its collections will remain open
to all researchers. Further, according to the SI, it will not limit access to other
producers, and in fact will hire independent film makers to help in production of the
programs for the channel. The SI originally claimed that it did not need to divulge the
terms of its contract with CBS/Showtime, because it was a private business contract
that did not involve federal funds. Some lawmakers asserted that, because of the
substantial federal support of the SI, they had a right to know about this contract,
while others contended that they should have been informed as a courtesy.
To express its disapproval with the Smithsonian over the Showtime business
venture, the House Interior, Environment, and Related Agencies Appropriations
Subcommittee included bill language limiting the Smithsonian’s ability to execute any
contract or legal agreement which could limit access by the public to the Smithsonian
collections.18 This bill language was retained in the House Appropriations
Committee-reported bill and the House-passed bill. The House also reduced funding
below the Administration’s request for the Smithsonian Institution’s Salaries and
Expenses by $20.3 million from $537.4 million to $517.1 million. Additionally, the
House agreed to limit the salary of the Secretary of the Smithsonian to not more than
that of the President of the United States (approximately $400,000) and to reduce the
salaries of any other SI officer or employee now receiving more than the President to
the level of the President. According to the Smithsonian’s most recently available
return, the current Secretary, Lawrence Small, received a salary of $813,000 for the


17 12 Op. A.G. 122, 123-24 (1988).
18 A copy of the letter from the chairman and ranking member of the Subcommittee on
Interior, Environment and Related Agencies Appropriations to the Secretary of the
Smithsonian, Lawrence Small, is available at [http://www.current.org/pbpb/documents/
Smithsonian-l etter-from-house-Ap06.pdf].

2003 tax year.19 Generally, the Secretary and his assistants receive compensation for
their services “as may be allowed by the Board of Regents.”20
On May 25, 2006, the House Administration Committee21 conducted an oversight
hearing on the Smithsonian’s contract with Showtime. Secretary Small testified,
admitting in hindsight that Congress should have been consulted about the 30-year
contract with Showtime. The Secretary indicated that he did not realize the contract
would be so controversial. In the hearing on May 25, 2006 the Secretary did provide
for the Congress details of the 30-year contract with Showtime. There was criticism
of the contract as an instrument with a 30-year term.
On June 29, 2006, the Senate Appropriations Committee reported the Interior
Appropriations bill for FY2007 (S.Rept. 109-275). The Senate Appropriations
Committee expressed concern about the House-passed reduction of SI funds, stating
that the Smithsonian admitted its “missteps” in not consulting Congress in the process
of negotiating with Showtime. The Senate Appropriations Committee stated that the
reduction will not have a noticeable impact on the venture, and that any reduction may
damage “already thin program budgets in each of the institution’s existing museums,
research centers and the National Zoo” (S.Rept. 109-275, p. 110). Finally, the Senate
Appropriations Committee does not believe that the “visiting public would be well-
served by a reduction of the Federal resources required by the Institution to carry out
its mission.” There has been no final action by the Senate on the FY2007 Interior
Appropriations bill.
Smithsonian Institution Buildings:
Maintenance and Preservation
The Facilities Capital program is a vital component of the Smithsonian. It has
as its goal to provide modernized facilities and to preserve the historic structures of
the SI in order to serve the public and preserve collections. According to the SI and
GAO, many years of insufficient investment in both Facilities Capital and
maintenance have led to deterioration of the physical plant of the SI. The Smithsonian
has some buildings that are well over 100 years old. More than half of the buildings,
according to the Smithsonian, have heating, air-conditioning and electrical systems


19 Jacqueline Trescott, “Smithsonian Investigating Its Sales Division’s Salaries,” Washington
Post, p. C1, Apr. 19, 2006.
20 To compare with the salaries of other museum directors, we found that the Director of the
Metropolitan Museum of Art received over $800,000 (including a housing allowance) using
2003 data. The president of the Getty Museum received over $600,000 including a housing
allowance, using 2004 data. The Director of the Guggenheim Museum in New York
received over $600,000 using 2003 data. Both the Director of the Museum of Modern Art
and the Whitney Museum in New York received over $500,000 using 2003 data. The
Director of the Kimball Museum in Dallas, Texas received slightly over $500,000 according
to the Kimball’s press office (2006 data). These are all estimates from consultations with
press offices.
21 The Committee on House Administration can conduct oversight on any activity related
to the operations and activities of Smithsonian Institution, other than construction of its
facilities.

that are well beyond repair and are in need of replacement. A study in 2001 by
professional engineers entitled Smithsonian Institution Museums and Facilities:
Critical Assessment and Improvement Objectives (2001) and another report by the
National Academy of Public Administration (NAPA) indicated that there was at a
minimum $1.5 billion in unmet need for capital revitalization of the Smithsonian over
the next decade as reported in 2001. These reports did not take into consideration any
anti-terrorism modifications needed, since the reports were published prior to 9/11.
Both reports determined that a critical investment was needed to improve and preserve
the Smithsonian’s physical plant for the 21st century.
A later study by the Government Accountability Office22 indicated that SI needs
a substantial investment, for revitalization and construction and maintenance projects,
i.e., $255 million a year for the next nine years totaling $2.3 billion. These estimates
could also grow, as they were only initial estimates and assessments.
The National Zoo is now well over 100 years old, dating back to the 1890’s.
The American Zoo and Aquarium Association states the critical importance of
completing a strategic plan for the zoo, including improvement of structural,
electrical and fire safety systems. The National Academy of Sciences study of Zoo
animal care suggests that plans should move forward expeditiously for the Zoo to
keep the animals from harm. The Asia Trail project will provide a larger expanse for
the Asian elephants. The projected cost for Phase II of the elephant trails is $13.0
million for FY2007. In addition, according to the SI, there is a need for renovating
roofs, facades, and skylights at the Rock Creek facility and upgrading of
infrastructure.
According to NAPA and GAO, concern over asbestos in some storage areas of
the older SI buildings has led to restricted access to some collections. Artifacts such
as historic aircraft have sustained water damage. Maintaining climate control and
desired temperature levels for conserving collections has become a problem in some
of the older buildings.
A new report from the National Trust for Historic Preservation places the
Smithsonian’s 135-year-old Arts and Industries building (constructed between 1879
and 1881) on the most endangered historic sites list. Originally called the “National
Museum,” the building was closed indefinitely in 2004 because of its deteriorating
roof and its infrastructure. It served as the only Smithsonian museum on the Mall
until the completion of the National Museum of Natural History in 1910. The
National Trust for Historic Preservation recommends the creation of an advisory panel
to study how to preserve the building.23
There has been no consensus on how to deal with the long-term deterioration in
the SI buildings or how to fund the Smithsonian Institution’s revitalization and repair.
Appropriations for “Facilities Capital” from the Congress do not appear to meet more


22 GAO, Smithsonian Institution: Facilities Management Reorganization is Progressing, but
Funding remains a Challenge, GAO-050369, Apr. 25, 2005.
23 National Trust for Historic Preservation, America’s 11 Most Endangered Historic Places.

2006.



than a portion of the total estimated need with at least $1.5 billion in maintenance
backlog. Private fund-raising is difficult when it comes to renovation/repair type
funding — repair of leaky pipes, roof repairs, and replacement of heating and air-
conditioning systems are not high profile items for which contributors will readily
donate. Some groups recommend an aggressive fund-raising campaign. Others
suggest entry fees as a solution. However, the Smithsonian prides itself on “free
access” to its collections, without entry fees.24


24 One construction success story is the Old Patent Office Building of 1846, which has been
renovated, and after a six-year project reopened to the public on July 1, 2006, as the
National Portrait Gallery and the Smithsonian Art Museum (at a cost of $298 million).
(Benjamin Forgey, “Museums Reborn: Patently Inspiring,” Washington Post, June 25,
2006.) According to SI, donors were willing to contribute to “enhancements” and did so for
the Portrait Gallery and the Smithsonian Art Museum — contributing, among other
“enhancements,” to the auditorium and the roof over the courtyard.

Appendix A
Museums and Research Centers
Under the Smithsonian’s Jurisdiction
American Museums
Anacostia Museum/Center for African American History and Culture
Arts and Industries building (closed)
Center for Folklife and Cultural Heritage
National Museum of African American History and Culture
National Museum of American History, Behring Center
National Museum of the American Indian
Cultural Resources Center (Suitland Maryland)
George Gustav Heye Center (New York)
National Postal Museum
Ripley Center and Discovery Theater
Art Museums
Archives of American Art
Arthur Sackler Gallery
Freer Gallery of Art
Cooper-Hewitt, National Design Museum
Hirshhorn Museum and Sculpture Garden
National Museum of African Art
National Portrait Gallery
Renwick Gallery
Smithsonian American Art Museum
Science Museums and Research Centers
National Air and Space Museum
& Udvar-Hazy Center & and NASM Silver Hill facility
National Museum of Natural History
National Zoological Park
Smithsonian Astrophysical Observatory
Smithsonian Center for Materials Research and Education
Smithsonian Environment Research Center
Smithsonian Tropical Research Institute