QUESTIONS FROM CONGRESSMAN DICKS FY 2003 Budget for Science Programs

Question 75: Does^the

2003

budget provideany significantincrease foryour scienceprogramsbeyond inflation?

Answer: TheFY

2003

budget requestdoesnotincludeanyincreaseforour scienceprograms, other than mandatoryincreasesforpayraises.

We

have hadto focus our requestsforincreases inseveral areasthat requireimmediate attention, such as fundingforreplacementofour inadequatefinancialsystem; funding to preparefortheopening ofthe

two new museums

mandatedby Congressand

now

underconstruction;funding toaddress the backlogoffacilitiesrevitalization needs;

and fundingtoaddress increasedsecurity requirements.

We

are alsowaiting forthe reportofthe independent ScienceCommission, aswellastheseparatestudies underwayby theNational

Academy

of Public Administrationand the National

Academy

ofSciences, before addressing any changestoour science programs.

Private GiftsControversies

Question 76: Mr. Small,I

want

to giveyouachanceto respondto

some

ofthe criticismwhich has

come

your

way

during thelastyear aboutlarge privategiftsto theSmithsonian. Last

month

JoyceAppleby,

who

serveson theSmithsonian Council, wrote aprettytoughpieceforthe Post about thesegifts, inparticularthe Hall ofAchievementgiftfromCatherineReynolds. Let

me

read afewlines from this article:

"Exhibitionsat

museums

can be both popularandentertaining, but theyarenot popular entertainment perse. Theirgoalisnot to please buttocompel attention, invitereflectionand stimulate questions...Failureto appreciate thesecritical distinctionsgoesa long

way

toending theseven

month

association of philanthropist Catherine Reynoldsand LarrySmall, the Secretary.

Museums

do

their best

when

thereisaconsensusabouttheirgoalsand

when

the

way

they operate

meshes

with thesegoals. Both Smalland Reynoldsproceeded withtheirplans asthoughtheSmithsonian

museums

had no procedures, nomission, no cumulative

wisdom

and noexperienceto offer."

What

isyour responsetothiscriticism?

Answer: Fromits inceptionin 1846, theSmithsonian hasbeen ablendof private andpublicfunding, andforthemostpart thisarrangementhasworkedverywell.

Thedebate overprivatefundraisingis goingonthroughout the

museum

world,and

is

much

broaderthanjustthe Smithsonian. Formany,

many

years fundraising at the Smithsonian

was

arelatively passiveaffair, but inthe 1990's

we

beganto increaseouractivityin thisarea, justas cultural institutionsacrossthecountry beganto do. In fiscal year2001, the Institution raised

$179

million.

Theissue that

seems

togetthemostattention isdonorparticipation. Likefund raising itself,this issuehas been aroundforavery longtime. In thecaseofthe Smithsonian,oneoftheearliestissues

we

faced

was

whether theAmerican government would evenaccept Mr. Smithson's bequest, inpart becauseitrequired thatthe Institutionbe

named

forhim. Inthe

same

era,

Andrew

Carnegie

was

very specific intheterms underwhichhegavegenerouslytocitiesandtownsacross the countryto create librariesthat arestill

named

forhim.

TheSmithsonian has not andwillnot deviatefromitslongstanding practice:the

museums

^retaincontrol ofourexhibits. The conceptualizationand execution of first-class

museum

exhibits isalways challenging, and itrequires a great deal of give andtake between donors andcurators.

As

ⁱⁿ allrelationships ofthis nature, it isvery importantthatall partieshavea clear understandingfromthe beginning abouttheirgoals and expectations. Thatisthesurest

way

toachieveasuccessful collaborationand asuccessful exhibition. Butattheend ofthe day,

we owe

itto theAmericanpublic to maintain the highestquality of researchand scholarship as thebasis forallourwork.

The caseofthe Reynolds donationtotheNational

Museum

ofAmerican History is

proofthattheSmithsonian maintains the highest standards. Intheend, the donation

was

withdrawn becausethedonorrequiredmore controlover theexhibit than the

museum

professionalswantedto give. Perhaps with patience and perseverance the

museum

and the donorcould haveagreedonanexhibit meeting the highest scholarlystandardsthatwould have been compellingandstimulating.

It isunfortunatethat theprojectwill not becompleted.

Question 77: This morning, thereis anarticleinthe Postabout therenamingof the Langley Theaterfor Lockheed Martin inexchangefor

$10

million. Can youtell

usexactly

how

this gift

was

vetted with theSmithsoniancommunity both internallyand externally?

Answer: TheNational AirandSpace

Museum's

developmentofficenegotiated the

gift. It

was

discussed by the

Museum's

Director, theUnderSecretaryforAmerican

Museums,

andNational Programs andthe Secretary. The naming ofthetheater hadto beapproved by the Smithsonian Boardof Regents (aswithall namings) and

it

was

approvedatthe Regents' January22,

2002

meeting.

Question 78: Other than thenamingofthetheater, did LockheedMartinreceive anyotheradvantages or rights withintheSmithsonian inexchangefor itsgifts?

Answer: Lockheed Martin received threemoreconsiderations. First,the right, threetimes a year, for agroupof nomorethan

485

Lockheed Martinemployeesto takeaguided tour ofthe National Airand Space

Museum

beforeopening hours;

second, foroneyear,memberships forallregional employeestothe

Museum's

NationalAir and SpaceSociety (NASS) (thisincludes a decal, a membershipcard, a freesubscription toFlyer, a newsletter, and discountstothe theater,shops and audiotourequipment); andthird, for

two

years,

200

guestspacesatthe

Museum's

4'"ofJulyConcert, performedbythe United StatesAirForce Band.

Question 79: WillSamuel Langley behonored withinAirand Space

Museum

ⁱⁿ

some

other

way now

thathis

name

has disappearedfrom thetheater?

Answer: The

museum

isconsidering other

ways

of honoring SecretaryLangley such asaWallofHonorPlaqueorthenamingofanothervenuewithin theNational Airand Space

Museum

^{inhis honor.} TheSmithsonian Institution has already honored Secretary Langleyinseveralways. The LangleyMedal isthe NationalAir and Space

Museum's

highesthonor andis awarded for"especially meritorious investigationsinthe fieldof aerospace science." Secretary Langley'searly planeis

displayedin the Early Flight galleryattheNational AirandSpace

Museum

onthe Mall and another planewillbe displayed atthe Udvar-HazyCenter.

Question 80:

What

isthe currentbalance inthe general trustfund accountor accounts and

how

hasthischangedover thelastseveralyears?

Answer:

As

stated inourannual report, thetotal netassetsin ourtrustfunds were:

FY2001^: $1,032.5million (includes

$657.3

millionoffunds functioning as

endowment

with

most

ofthe balancereflectingfundsthatare restrictedbytheir donorsto specific purposes)

FY 2000: $1,077.1 million(includes $758.3 millionoffunds functioning as

endowment

withmost^ofthe balance^reflectingfundsthat are restrictedbytheir donorsto specificpurposes)

FY 1999: $880.1 million (includes $665.3 million offunds functioning as

endowment

with mostofthe balancereflecting fundsthat are restricted bytheir donorsto specificpurposes)

Thesevaluesareas ofSeptember 30, theendofthe Smithsonian'sfiscalyear.The

Institutionfollows atotalreturnconceptformanaging its

endowment,

and therefore, onlytheannualpayoutisavailableforexpenditure.The FY

2001 endowment

valuereflectsthe sharpdecline inthe financialmarketsexperiencedin

2001.

Question81: Are youontrackintermsofyour

FY 2002

private givinggoals?

Answer:

We

are offto averysolidstartforFY 2002. Inourfirstquarter, October

1 to

December

31,2001,

we

hadextraordinarygifts,thoseof $5millionormore, totaling $25^million. That'scomparedto

$10

millioninextraordinarygifts inthe

same

periodthe yearbefore.

We

havejust finishedthesecondquarter ofourfiscal year2002, andtheyear-to-datetotal is

$103

million, puttingus squarelyontrack.

We

havestaked out ambitious goals fortheremainderoftheyear.

FTE'sandPersonnelCutbacks

Question 82: Mr. Secretary,

we

discussed brieflytheFTEsituationbut I wouldlike tofollowupbriefly. Thejustifications

show

an increaseof

204

FTE's in

2002

and

304

FTE's in

2003

-abouta 12percent increasein staffover

two

years. About

halfofthese

new

FTE'srelateto securitybutthebudget chart also

shows

increasesthroughout the Smithsonian system.

How

doyou explain the

requirementfora hiringfreeze

when

budgetedFTE's areincreasingatadramatic pace?

Answer: InFY 2003,theSmithsonianhasthe challengeof finding

ways

tomeet budgettargetsand provide resourcesforhigh priority initiatives.One, but notthe only, possibilitytomeetthischallengeis a hiringfreeze.

As shown

atthebottomof page 17in ourjustification,

we

expect FY

2002

Salary and Expense funded FTEstobe 4,288. Thisisagrowthofonly32 FTEs overthe actual

FY

2001 level of4,256. This difference largely reflectsyear-to-year fluctuationinthe rate of fillingvacancies.

Withrespectto FTE growthin FY 2003, theincreasein Salariesand Expensesis

295, not 304. The FY

2002

Emergency Supplementalprovided fundingfor 235 additional security officers attheSmithsonian, includingthe NationalZoo. These additional

235

positions are reflected inthe FY

2003

requestand comprisemostof thisincrease.The remaining

new

positionsincludedinthe FY

2003

requestare associated mainlywith preparingforthe openingoftheNational

Museum

ofthe AmericanIndianon theMall (36 FTEs)andthe National Airand Space

Museum

Steven F. Udvar-HazyCenterat Dulles (11 FTEs); and continued ^effortsto replace antiquatedmanagement, financialand

human

resource

management

information systems (14FTEs); Theseare essentialundertakings thatwould havetobe

accommodated

withintheworkingsof anyhiring freeze.

Question 83:

As we

understand thesituation,the proposedfreeze

may

be principallythe resultoftheSmithsonian beingaboveitsauthorized FTEceilings. Is this thecase andifso, canyoutelltheSubcommittee

why

the Smithsonian

was

aboveitsauthorized staffing leveland whatprocedures have been putin placeto better

manage

FTE's?

Answer: In January2000, duetochanges inPanamanianlaborlaws,the SmithsonianTropical ResearchInstitute(STRI) shifted mostlocallyhired contractorsto federal employeestatus. STRI alsoadded

new

hirestoaddress shortfallsin supportafterthe return ofthe Canal Zone^toPanama. These

adjustments werereflected inthe FY 2001 actuals. TheSmithsonian Institutionhas since workedwith

0MB

toadjust theauthorizedceiling level to

accommodate

this change. Withthisoneexception, theSmithsonian has not been,and does not

expectto be, aboveauthorizedstaffinglevels.

To

ensurethisisthe case,the Smithsonian has instituted a recurring reviev\/ processtomonitorFTEusage.

Question 84:

We

understand you have

made

asignificant

number

ofexceptionsto thefreeze.

How many

individualshavebeenhired sofarduringFY

2002

andwhat typesofexceptions haveoccurred under yourfreeze policy?

Answer: Whilethe Smithsonianis consideringthe optionofa hiringfreeze in

FY

2003

tomeet budgettargets, there has thusfar beennofederal or trusthiring freeze in FY 2002.

An

UnderSecretarylevel reviewofalltrustpersonnel actions hasbeeninstitutedto assist ⁱⁿmanagingtheSmithsonian'strustexpensestoavoid deficitspending.

Question 85: Doesthefreeze policy applyto administrative and executivestaff positions?

Answer:

As

stated inthe responsetotheprior question, theInstitutionhas not implemented ahiringfreeze inFY 2002.

Question 86: Couldyoudescribethe reductionsinforce thathavealready occurredand tellus whetherindividuals

who

have been riffed result insignificant costforthe Smithsonian becauseoftermination costs?

Answer: There were97federalpositionsand

209

generalunrestricted trust positionsforatotalof

306

positionsabolishedin FY 2002. Of the 97federal positions,

66

werealreadyvacant, 13retired, 3 werereassigned.4 wereclassified atalower grade and 11 wereseparated. Ofthe

209

generaltrust positions, 116 werealreadyvacant, 6weretemporary employees

whose

appointments werenot extended, 1 resigned, and

86

wereseparated.

Interms ofactualpeopleaffected, therewere 11 federaland

86

trustemployees separated fora total of

97

permanent employeesinvoluntarilyseparated fromthe Institution. Federal separation costsareestimatedtobe $345,000.Trust separation costsareestimatedtobe $2.4 million. Separation costsinclude severance payand annual leavepayouts. Thetotal

amount

inannualleavepayout includespaymentstothoseemployees

who

resignedandretired.

Question 87: Please insertinthe record at thistimeananalysis of the

number

of peoplepaidabovethe

maximum

levelforcareer civilservants withinthe

Smithsonian withcomparisonsofthelevel ofsuch personneloverthelast4years?

Also supply acomprehensivetableshowingfor FiscalYear

2000

through

2003

the numberofSmithsonian employeesineach gradelevel orpay categoryandthe averagesalary forpeopleat eachgradeorpaylevel. This shouldincludeboth federalfundsand trust or private funds.

sa

Answer: Thefollowingreflectsthe

number

ofSmithsonianempioyees

whose

salaryexceedsthecivilservicecap, theaveragesalary ofthoseabovethecap,and thetotal

amount

ofbonuses paid tothoseemployees.Figures donotinclude benefits.

TrustEmployees Paid

Above Maximum

CivilServiceSalary Fiscal

Year

CivilService

Cap

Number

of Employees

AverageSalary

Above Cap

Total Bonuses*

2001

$161,200 29

$203,193

$534,972 2000 $157,000 23 $186,577 $225,515 1999 $151,800

15

$189,666 $263,030 1998 $151,800

12

$175,685 $149,678

* Notethat a largepreponderanceofbonuseswereforSmithsonianBusiness Venturesemployees,whocompeteinthecommercialsector.

Thefollowingtable reflectstheaveragesalaryand countofemployeesineach gradeorpaylevel attheendoffiscalyears

1999

^- 2001 andas of March 2002.

FY

2003

figuresarenotavailableatthistime.

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