we ought to really take care of what we have first before we start expanding or trying to expand, even though we want to expand. Mr. HEYMAN. Sure, I understand that. I mean, I don't know what the proportions ought to be, but in the original conception the whole the collections and conservation facility in Suitland-was to be paid by Federal appropriations, and the way it's now worked out, assuming that we get the 1996 budget in an omnibus bill, and we get back to conference level, we're having to pick up $9 million that we hadn't planned on before. And I understand that, and I think those are the kind of compromises that one really has to talk through. And I wouldn't be surprised, if this goes forward on the Mall, that we will have to talk through with the committee staff and with the chairman other ways of adding to what our original expectation was. So I think all of those are really open, at least from my perspective, for conversation. Mr. NETHERCUTT. I heard your testimony with regard to the amount of private donations and funding sources you have. The information I have before me is that you were expecting that you would receive about $119, almost $120 million in nonappropriated funds in 1996. Is that number accurate? Mr. HEYMAN. Oh, well, I see. Putting everything together Mr. HEYMAN [continuing]. First, obviously, we have to net it because, in terms of the museum shops and the catalog sales, and all the rest, it costs us quite a lot of money to make the money. But if you put all that together, plus the advantageous things that are happening this year, like the $40 million that we're getting from the corporate partners of the American-of the show that's traveling around the United States, that figure sounds about right. But some of it is one-time money in terms of raising money or producing money from enterprises. And so I can't rely on that. The hardest figures are really in terms of unrestricted monies, which are the kind of funds that could be devoted to the purposes that we're talking about. The net from the business enterprises is presently around $28 million, and we're trying our very best to edge that up, but it's hard to do anything fast. In terms of donations, of the $49 million that we raised last year, I know that no more than $8 or $9 million of that's unrestricted money. The balance is all restricted money. Mr. NETHERCUTT. Is there utility in having a call to the Nation, whether it's corporate sponsors or individuals like you or me, that says we need $50 million a year to make sure that the national treasures are maintained and the buildings are maintained? Would that be counterproductive or productive? Mr. HEYMAN. Oh, I think it's very productive so long as there's a general agreement between the committee and the Institution that we net that, because if all we're doing is put-and-take money, then it's very hard to raise it. But if you can say to the donors every penny you give is an add-on to what is the base, then you can do pretty well. And it is certainly my intention—and, thus, the intention of the Smithsonian administration-to continue to go higher and higher in terms of what we receive. As a matter of fact, we've just begun the arduous process for a capital campaign for the Smithsonian, something we've never done before. And, of course, all of those things take time. But it is clear-—and the chairman and I have had these conversations, too—it is clear that we are going to have to be more dependent on the private sector in giving and in our business enterprises, and we're taking that very seriously because I know perfectly well, from the point of view of what's happening fiscally, at least presently, that we're going to have to look to the outside for enhancements. CONSERVATION RESEARCH CENTER Mr. NETHERCUTT. Two quick questions, if I may, Mr. Chairman: with regard to your funding and your priorities and your squeezing the budget to get all that you can get out of it. You have the Conservation Research Center at Front Royal, Virginia. It employes about 55 people, and I understand this consumes about a third of the National Zoo's budget. Do you feel that that's still justified, the expenditure for that Conservation Research Center? Can we save any money there? Might you consider-and I know I'm asking multiple questions Mr. HEYMAN. Yes, I'm sorry, I'm just talking Mr. NETHERCUTT. That's all right. Would you consider possible elimination or consolidation of the CRC as a means of getting the extra $12 million, or whatever it might be, to help these buildings Mr. O'CONNOR. We might be able to save at the margin, Congressman, and Mr. HEYMAN. Excuse me just for a second. The operating budget from Federal appropriations, I am told by the Director of that, is $3.5 million a year. Mr. NETHERCUTT. Okay. Mr. HEYMAN. It's not that figure. That place gets an awful lot of grants and private support from a whole host of sources, and they've been very enterprising in being Mr. REGULA. And you supply other zoos? Mr. HEYMAN. Pardon? Mr. REGULA. You supply other zoos with animals Mr. HEYMAN. Yes. Mr. REGULA [continuing]. And you get compensated for that, I assume? Mr. HEYMAN. Yes. It's really a shoestring operation down there. Mr. NETHERCUTT. Okay, I wasn't sure what the net might be insofar as we are trying to explore ways to get you more money. Mr. HEYMAN. Right. SAFETY AT THE NATIONAL ZOOLOGICAL PARK Mr. NETHERCUTT. One final question: in Philadelphia there was a tragic fire that killed some animals. Are you satisfied that there are adequate fire suppression, warning or protection systems in place at the National Zoo or other zoos that will avoid a repeat of that situation? Mr. HEYMAN. I really would like Mike Robinson- Mr. HEYMAN [continuing]. He is the Director of the National Zoological Park, to deal with that. Mr. ROBINSON. Yes, you can never-I'm 99 percent satisfied that that kind of thing can't happen at the Zoo, but our maintenance and restoration program is in the same state as the Smithsonian's is, except for the line item in the budget. One of the items is a complete inspection and revision of our fire prevention facilities. The new buildings are all very up-to-date, and we have the great advantage that at night there is a Zoo police staff patrolling the whole establishment. The one time when a heater short-circuited in the Amazonia exhibit it was detected more or less instantly and caused no damage. But, you know, there is this situation where buildings that are old have the same problems that you've heard about from the Smithsonian's management. Mr. NETHERCUTT. That's all I have at this moment, Mr. Chairman. I sympathize with you, and we struggle with all this. I think all of us are committed to the Smithsonian and to having a strong Institution maintained properly to be enjoyable for everybody in the Nation. It's just figuring out how to get from here to there, and it's a pleasure to see you're at least exploring the possibility of enhanced private contributions. And to the extent that we can help on that, Mr. YATES. Why do you think he looks so haggard? [Laughter.] Mr. NETHERCUTT. Pardon me? Why does he look so haggard? He looks stress-free compared to you and me and the chairman. [Laughter.] Anyway, thanks for your efforts. Thanks, Mr. Chairman. Mr. REGULA. The committee members will have questions to submit for the record. Mr. HEYMAN. Yes, sir. SMITHSONIAN'S NEW GENERAL COUNSEL Mr. YATES. I want to meet Mr. Huerta. Mr. HEYMAN. Oh, the new General Counsel of the Smithsonian Institution, John Huerta. Mr. YATES. Hi, Mr. Huerta. I was just looking through your biography. I thought it was very, very good. Mr. HUERTA. It's a pleasure. Mr. HEYMAN. You saw where he went to law school, didn't you? Mr. YATES. I noticed that, yes. Even with that— [Laughter.] Mr. HEYMAN. Boy, I asked for that one, didn't I? Mr. YATES. I wanted to meet the replacement for Mr. Powers, whom I named "Judge" 20 years ago. I suppose we'll be naming Mr. Huerta the same, "Judge." Thank you, Mr. Chairman. REVENUE GENERATING ACTIVITIES Mr. REGULA. Can you generate any additional income from your concessions operations? Mr. HEYMAN. Well, I hope that we're going to be able to come into you all with a report Mr. YATES. I don't remember any of the museums where they're selling popcorn. [Laughter.] Mr. HEYMAN. We're planning on doing some very considerable reorganization of how we carry on those businesses. And Connie Newman has just gotten a long report from Peat Marwick, and she's starting the consultation-we're all starting the consultation-with each of the museums. The directors would like a larger piece of the action, as you might imagine, and we're prepared to do that. We think that might enhance total receipts, especially in product development. So we're taking that awfully seriously. CHOICES FOR THE FUTURE Mr. REGULA. I was interested in this report of the Commission on the Future of the Smithsonian Institution. Mr. HEYMAN. Yes. n Mr. REGULA. Again, I reiterate it's excellent and I think very pragmatic, and it says in there that the Smithsonian will not be able to do everything we all want to do and that it must "choose between established, even cherished activities and new programs. Now that's a pretty substantial statement, and I guess my question would be: are you looking and contemplating how you're going to meet those challenges? Mr. HEYMAN. Well, yes, of course, we are, but what I've been relying on so far is that most of the museums get enough amounts of money, so that program cessations and efficiencies really can best be decided at that level. We are reviewing with directors where they can reduce expenditures. Mr. YATES. One quick-Mr. Chairman Mr. REGULA. Yes, I'd yield. CENTER FOR AFRICAN-AMERICAN HISTORY AND CULTURE Mr. YATES. What happened to the African-American Museum? It's supposed to go into the Arts and History Building? Mr. HEYMAN. Well, it's sort of-the program is an active program, but the museum Mr. YATES. What does that mean? Mr. HEYMAN. That means that it has traveling exhibitions that come from time to time, and the last one Mr. YATES. Out of what, out of Anacostia? Mr. HEYMAN. No, no, this was one from the High Museum in Atlanta Mr. YATES. Yes. Mr. HEYMAN [continuing]. On equal justice, which was a very good one. And Mr. YATES. Where was it shown? Mr. HEYMAN. In A&I, in the Arts and Industries Building. And it was added to by local artists, so it was enhanced in terms of a local perspective. Mr. YATES. But is that now considered the base for the prospective African-American Museum? Mr. HEYMAN. If one can get established, it would be established in relationship to the original plan, which would be in that building. Mr. YATES. And how much would that cost? Mr. HEYMAN. Oh, I don't-I can't remember any more. Mr. YATES. It would be significant cost? By today's standards? Mr. HEYMAN. Oh, by today's standards, any new venture of that sort would have a considerable cost related to it. Mr. YATES. All right. Mr. HEYMAN. But, from my perspective, what we're doing is we are maintaining the possibility of doing that when the funds are available. And what I mean by that is we have staff. We carry on some exhibitions, and because Anacostia and the project are now merged, the collection, the legality of collecting some artifacts through Anacostia is present. So should the fiscal circumstances change sometime in the future, it won't be rebuilding all of the steps that have gone on to the present. Mr. YATES. Thank you. Mr. REGULA. Do you have any additional questions that you want to ask before we close? Mr. YATES. I'll submit them for the record, Mr. Chairman. CLOSING REMARKS Mr. REGULA. Well, we're going to close because we have another hearing scheduled this afternoon. Let me just say this: that I hope you'll go back on the assumption that we have a flat amount in 1997 in an allocation from our 602(b). Which means that, of course, we're probably going to have to be flat with every agency. On the assumption that we'd like to add to the $38 million, given the fact that R&R becomes a very important way of saving money for the future, we'd like you to go back and examine the priority choices that would have to be made under that scenario. When we know what we will have, we probably will want you to come back and respond on those circumstances. Now I know that's tough medicine, but, frankly, I don't have a lot of optimism that our allocation will increase in 1997 versus what we had in 1996 in this fiscal environment we're in. And we, therefore, in allocating among all the priorities that we have to serve on this subcommittee, will have a tough time taking from anywhere else. Mr. YATES. We'll take it from forest roads, Ralph. [Laughter.] Mr. REGULA. Mr. Nethercutt has not come in with a second on that motion. [Laughter.] We'll have some very difficult choices to make, and I know you've got-what?-built in about a 4 percent increase in your personnel costs because of inflation, mandated inflation, cost-of-living increases, and mandated step increases; is that correct? Mr. HEYMAN. Right. That's right. BUYOUT AUTHORITY Mr. REGULA. So I notice you have not had many, if any, RIFs, and most of the agencies have, reductions in force, for our lay people. Will you be able to do that? Mr. HEYMAN. Well, at the edges there obviously will be some. I would really like to avoid, if I possibly can, massive RIFs; I really would. And that's why I was so pleased, and I keep my fingers crossed, for the buyout authority and for the potential appropriation, because that will save us from having to do that. |