SMITHSONIAN INSTITUTION

     The Smithsonian Institution’s mission is “the increase and diffusion of knowledge.” The Smithsonian fulfills both parts of its mission through scientific research and by operating 15 museums in New York City and Washington, D.C., as well as the National Zoo. More than perhaps any federal establishment, the Smithsonian must maintain its facilities to safeguard the nation’s priceless collections. The Smithsonian receives about two-thirds of its annual operating funds from federal appropriations. The remaining one-third comes from the Smithsonian Trust funds, which include donations, income from the Trust endowment, proceeds from Smithsonian business ventures, grants, and contracts. Over the past five years, federal appropriations have increased 24 percent, providing a total of $2.2 billion. On the Trust side, funding has risen 20 percent, providing a total of $1.1 billion.

Museums

    Overall performance. Smithsonian museums educate and entertain the public. If the number of visits is used as a yardstick for overall performance, the Smithsonian has three of the four top-performing museums in the United States. Five of the Smithsonian museums and facilities—Air and Space, Natural History, American History, the Castle, and the National Zoo—receive over 85 percent of all Smithsonian visitors. The remaining 11 welcome less than 15 percent of the visitors, yet consume over 35 percent of the Smithsonian’s operating costs. Moreover, these museums will require over 50 percent of future capital project costs.

     Just as important as measuring the number of visitors, their enjoyment and learning, is the cost of providing those services. This can be measured by the dollars per visit spent operating the museums. Looking across the Smithsonian’s museums, there are great differences in the efficiency of providing museum services. As the accompanying chart shows, the cost to taxpayers of a visit to a Smithsonian museum ranges from about $2 to nearly $20.

    Improving performance. The Institution will continue to improve efficiency, and will expand its performance data to determine cost per visit at each of its museums in 2003. Beginning in 2003, Institution performance also will be measured by visitor assessments of enjoyment and learning.

Research

Smithsonian researchers utilize the vast collection of fossil plants belonging to the Institution.

    Overall performance. Scientific research at the Smithsonian is as vast and varied as its collections, and ranges from paintings and insects to artifacts to animal reproduction. In addition to its collections-based research, the Smithsonian operates a trio of scientific research centers.

     The Smithsonian recently appointed a commission to review its science programs. The charge to this commission is to answer the question: How should the Smithsonian set priorities for scientific research in the years ahead and, in general, carry out its historic mission more effectively? This commission will provide its report later in 2002.

     In general, a merit-based, competitive process should govern the investment of federal research funds. For decades, the scientific community has agreed that such a process produces the highest quality science and the most innovative research. This approach is consonant with the Administration’s emphasis on better management of federal programs. The President’s Management Agenda, released in August 2001, calls for a results-oriented government that promotes innovation through competition. While most federal research and development agencies allocate at least some of their federal funds through merit-based competition, the Smithsonian does not.

    Improving performance. An outside group will be appointed to recommend how much of the funds directly appropriated to the Smithsonian for scientific research should be awarded competitively. The review will encompass all Smithsonian scientific research. It will focus on enabling Smithsonian scientific research to compete on a level playing field with other potential performers of the research, where that potential exists. Following the review, if appropriate, the Administration will submit its request to transfer necessary amounts from the Smithsonian to the National Science Foundation. Any transferred funds would be available directly to the Smithsonian to ease the transition in 2003 and then made available for competition in future years.

Facilities

The National Museum of the American Indian will occupy the last remaining space along the National Mall in Washington, D.C.

    Overall performance. The Smithsonian must maintain over 400 buildings, and currently has commitments to build two more: the National Museum of the American Indian, and the Udvar-Hazy extension of the Air and Space Museum at Dulles Airport near Washington, D.C. These new buildings will increase the size of the Smithsonian’s museums by nearly 20 percent, from 4.5 million to 5.5 million square feet.

     The Smithsonian has not stayed within cost estimates for significant projects. Estimates for the cost of construction of the American Indian Museum and the restoration of the Patent Office Building (where the American Art Museum and the Portrait Gallery are housed) have nearly doubled since 1999. Substantial improvement in the Smithsonian’s ability to estimate costs is expected from its use of new cost estimating techniques and management controls that were recently endorsed by the National Academy of Public Administration (NAPA). In addition, the Smithsonian has hired new management staff in this area.

     At the same time, deterioration of existing buildings over the past decade at the expense of expansion and new museums has created a huge maintenance and restoration backlog (see accompanying chart). In 1995, the Commission on the Future of the Smithsonian indicated that $50 million per year for the subsequent decade would be needed. After steady budget increases, that level was reached in 2001. However, a new assessment indicates more is needed, due to more deterioration than was previously realized. A recent report from the National Academy of Public Administration estimated the total cost of repair, restoration, and alterations over the next decade at $1.5 billion. Based on these projections, the Smithsonian’s maintenance and restoration budget would need to increase fourfold within five years. Because such massive funding increases will not be possible under current budget constraints, the Smithsonian will set priorities within the Institution for repair and restoration.

    Improving Performance. The 2003 Budget addresses some of the Smithsonian’s most significant performance challenges. The budget increases resources for maintenance, boosting funds to reduce the large backlog of currently identified revitalization needs by six percent from 2001. The budget completes the federal commitment to construct the National Museum of the American Indian and provides funds for the ongoing restoration of the Patent Office Building. The budget addresses physical security for both collections and visitors, correcting currently identified hazardous conditions. In addition, it provides funding for improvements in financial management.

Strengthening Management

     Aggressive implementation of the President’s Management Reform Agenda is central to improving government performance. For each initiative, the scorecard below describes how well the Smithsonian is executing the management initiatives, and where it scored in 2001 against the overall standards for success.