REPAIR AND RESTORATION OF BUILDINGS The following charts illustrate the significant progress that could be made in ameliorating the condition of Smithsonian facilities if $50 million were made available annually as recommended by the Commission on the Future of the Smithsonian Institution. CHART 1 shows that 2 museum buildings, the National Museum of Natural History (NMNH) and the American Art and Portrait Gallery building (AAPG), have already fallen below the minimum acceptable performance level. Two more buildings, Arts and Industries and the Smithsonian Institution "Castle" are rapidly nearing that state. CHART 2 projects that all four buildings would be restored to the "Good" range at the end of five years at this funding level. CHART 2: Projected Smithsonian Facilities Conditions in FY 2001 at $50 million annually as recommended by the Commission on the Future of the Smithsonian Institution PRIORITIES FOR INCREASED R&R FUNDING Mr. YATES. The $12 million, then, will almost all go to Natural History? Mr. RICE. If we were to get the incremental amount, yes, sir. Mr. RICE. We have four buildings in trouble. Mr. YATES. Yes. Mr. RICE. But the two Mr. YATES. Which four? Mr. RICE. The Castle, Arts and Industries, Natural History, and the American Art and Portrait Gallery or the Patent Office Building. Of those four, Natural History and the Patent Office Building are our greatest concern. Mr. YATES. Why? Mr. RICE. This is the condition. Of course, in the Patent-they both have water Mr. YATES. The Patent Building Mr. RICE. I'm sorry. Mr. YATES [continuing]. Is the one that has the Portrait Gallery? Mr. RICE. Yes, sir. Mr. HEYMAN. And American art. Mr. YATES. Well, that's a magnificent building. You can't allow that to deteriorate. Mr. RICE. No, sir, that's why we've given it a high priority. Mr. YATES. Well, when you give it a high priority, is $38 million going to take care of it? Your highest priority is Natural History, you said. Mr. RICE. Yes, sir. Mr. YATES. Well, how much-how far down the line is the Patent Office Building? Mr. RICE. It's next. Mr. YATES. This is the building where Abraham Lincoln danced at his second inaugural. Mr. RICE. It is; that's right. Mr. YATES. And, to me, that's the most important building you've got because of its historical connotation. How much do you need to put that in shape? Mr. RICE. Well, we think the total problem is in the order of $40 million. We can't spend it all at once because we can't close the facility down. Mr. YATES. Forty million for this one building? Mr. RICE. Yes, sir. Mr. YATES. And how much have you allocated under the $38 million to this building? Mr. RICE. In 1996, we plan to spend, if we get the 1996 money Mr. REGULA. So, see, you need to vote for it. [Laughter.] Mr. RICE. To keep in perspective, sir, I have less than $24 mil lion right now because I don't Mr. YATES. For that building or Mr. RICE. For the whole program. So I'm very thankful for the support we're getting. [Laughter.] We plan to spend $4 million on the roof. 24-697 96-33 Mr. YATES. You'd be more thankful for more support, wouldn't you? [Laughter.] Mr. RICE. We're starting with the roof, which has serious problems. Mr. YATES. Which building are we on? Mr. RICE. We're in the Patent Office Building Mr. YATES. Okay. All right. Mr. RICE [continuing]. Also known as the American Art and Portrait Gallery. Mr. YATES. Yes. Mr. RICE. That building we plan to spend $4 million on the roof. Mr. YATES. You need $40 million for that? Mr. RICE. No, four; the total requirement is forty. Mr. YATES. Forty, yes. All right. And you plan to spend four? Mr. YATES. Will that take care of the whole roof? Mr. RICE. Yes, sir. Mr. YATES. Okay. Mr. RICE. And then we intend in 1997, with part of the $38 million, to start working on some of the mechanical system deficiencies. I showed you the cooling tower, which is decayed and really needs to be replaced. Mr. YATES. Well, now what happens to the artifacts then? What happens to all these magnificent paintings in the National Portrait Gallery and in the American Art Museum? If your cooling system is on the blink, aren't they likely to deteriorate? Mr. RICE. Yes, sir, we have to maintain proper temperature and humidity standards. Mr. YATES. Are you doing it now? Mr. RICE. Yes, sir, at great expense. I mentioned earlier that the systems are so old Mr. HEYMAN. Yes, let me just give an example. In my office in the Castle, which needs new Mr. YATES. It's a beautiful office. [Laughter.] Mr. HEYMAN. Yes, but the air conditioner isn't a beautiful air conditioner. Mr. YATES. I see. Mr. HEYMAN. So Mr. YATES. Well, we'll get you some fans. [Laughter.] Mr. HEYMAN. This is just an example. So what happens? Five or six times during the summer season, people have to come up and take apart this old air conditioner and then try to fabricate parts and put it back together again. If we had a new air conditioner, we wouldn't have to have those visits. So he's having to spend an awful lot of money maintaining systems that are really too old and too decrepit. And so his own view is, and obviously ours is, that if we can start to replace equipment of this sort on a regular basis, as you would anywhere. It will reduce-it will reduce our entire OPTIMAL R&R FUNDING LEVEL Mr. YATES. How much money do you need for that? Mr. HEYMAN. Oh, well, forever in a way. Mr. YATES. Oh. Mr. HEYMAN. Fifty million dollars a year will bring all of these buildings here that are below the acceptable level up above the acceptable level, and it will start to push all the buildings closer and closer to this end, where you would say the building's in excellent or good shape. Mr. YATES. So you need another $12 million over your $38 million? Mr. REGULA. If you'll yield, Mr. Yates Mr. YATES. Sure. Mr. REGULA. This report of the Commission on the future of the Smithsonian, which was done for the board, is very well done. I think it's a good document. It says a total of $50 million each year for the next decade Mr. YATES. Why don't we give it to them? Mr. REGULA. Well, I'd like to, but then the Secretary's going to have to tell us where he's going to get that extra $12 million out of his budget, because we aren't going to have more money; he'll have to squeeze his budget $12 million somewhere else. Mr. YATES. What happens to your budget if the $12 million goes to construction? Mr. HEYMAN. It obviously depends upon where you would take it out. If you took it out of the construction budget, it would mean that we wouldn't progress on the Indian Museum, because that's the major construction budget item that we have. So I'm saying this off the top of my head. Mr. YATES. How much are you asking for the Indian Museum this year? Mr. HEYMAN. Four million dollars this year for the finishing of the Mr. YATES. How do you get $12 million out of this year's— Mr. YATES. Yes. We're talking about putting another $12 million into his budget. Where are we going to get $12 million? Mr. HEYMAN. I'll have to sit down and try to figure it out. I guess my priority at the moment is pretty much reflected by this budget. FUNDRAISING Mr. YATES. How much have you been raising from private sources? I know that you've been trying to do this for years. Has it been Mr. HEYMAN. We raised $49 million last year, but Mr. YATES. From private sources? Mr. HEYMAN. Yes. Yes. Mr. YATES. That's a lot, isn't it? Mr. HEYMAN. Yes, it would be if it was unrestricted. The problem is that most of it comes in in restricted form, and it's very hard to raise money for renovation and repair. Mr. YATES. I know. Mr. HEYMAN. So it's coming in, and it's coming in at a heightened level. The major source that can be utilized for these purposes-but we've got to get a lot more efficient than we are noware the business enterprises of the Institution. Mr. YATES. Well, what happens if you don't have the money? You don't have exhibitions for your museum? Mr. HEYMAN. Well, I think Mr. YATES. Are they feeling that impact now? You'll have to put up money for exhibitions, won't you, if you Mr. HEYMAN. Oh, the rate of change of exhibitions now at the Smithsonian is less than it used to be because we've got to find 4 percent of our budget in salaries and expenses someplace. Our reaction is to start to say, "Should we continue to do the kinds of long-term, very expensive exhibitions or should we start to doshould we do ones that are less expensive that might, thus, be able to change more often?" And every museum that we have is going through these sets of decisions, but right now the fact is we're putting on fewer new exhibitions than we used to. Mr. YATES. What about your scientific research; has that been cut back? Mr. HEYMAN. What would you say, Dennis, in terms of scientific research? Mr. O'CONNOR. I think it's stabilized. It's not expanding into the areas into which we would really hope to expand over the near future. Mr. YATES. Am I taking too much time? Mr. REGULA. Go ahead and finish. Mr. YATES. I'm sorry. Mr. O'CONNOR. It's stabilized, Congressman Yates. I don't think it is Mr. YATES. At a low level or a higher level? Mr. O'CONNOR. Well, I think my comparison is only over the past couple of years, being relatively new to the Smithsonian. I think it's stabilized over the past couple of years. Mr. YATES. You don't look for new subjects, then, do you? Mr. O'CONNOR. Well, we do, sir, but we have to look for new money to support those new subjects. Mr. YATES. Yes. Okay, thanks, Mr. Chairman. SETTING PRIORITIES Mr. REGULA. Mr. Nethercutt? Mr. NETHERCUTT. Thank you, Mr. Chairman. This is a very interesting discussion. I think Mr. Yates and you, Mr. Chairman, illustrate life in today's world. The Smithsonian's no different. You have a champagne appetite with beer income, and we struggle with that. I wonder if in your quest to maintain what you have, you shouldn't make sure that your priorities are set in that direction and not in the direction of adding $110 million for the Indian Museum. I mean, maybe we just have to face the harsh reality that we have to wait a little bit longer on that one. I know you've raised some money privately, and my sense is that, even under the authorization that the Congress granted last year, you're not restricted to just a third. Mr. O'CONNOR. Oh, that's perfectly true. Mr. NETHERCUTT. You could do it all privately if you had the resources. I'm troubled by the fact that we're not maintaining these buildings the way they ought to be maintained, and it seems to me |