Smithsonian leader faces scrutiny over salaries, film contract

Key lawmakers are turning up the heat on Smithsonian Secretary Lawrence Small over his management of the institution, raising questions over salary issues and Small's judgment in signing a 30-year contract with the Showtime Network to produce Smithsonian films.

"I've heard concerns, and I have my own concerns, so I've got to get some answers," said Sen. Trent Lott, R-Miss., chairman of the Senate Rules Committee, which has jurisdiction over the museum complex.

Lott's comments Tuesday came after Senate Finance Chairman Charles Grassley, R-Iowa, wrote a letter to the Office of Management and Budget last week questioning Small's leadership and asking if the Bush administration still believes Small is "is the appropriate steward" of the organization.

A Finance aide said the committee is getting more questions about the Smithsonian every day "and that obviously leads to Small."

"I think a lot will depend on where the administration comes out," the aide said.

OMB officials have said they are still reviewing Grassley's letter, which also asks that Small be removed from the process of hiring a replacement for the outgoing Smithsonian inspector general. OMB did not respond to questions about whether the administration supports Small.

The House Administration Committee, meanwhile, continues to scrutinize the Showtime contract, which would give the network first option to produce most films and documentaries that use Smithsonian resources and would make those productions available only to cable subscribers.

At a hearing late last month, House Administration Chairman Vernon Ehlers, R-Mich., and other lawmakers sharply questioned the agreement, as well as Small's decision to enter into the contract without first consulting the committee.

Asked Tuesday whether Ehlers shares Grassley's skepticism of Small's leadership, committee spokesman Jon Brandt said he was "not in a position right now to make that kind of a statement, one way or the other ... Certainly there are many concerns that have been raised and we're seeking answers."

Small has maintained that the Showtime agreement is similar to other Smithsonian outreach programs, such as its magazine, aimed at promoting knowledge and education by making Smithsonian museums, experts and other resources more accessible to the public.

A Smithsonian spokeswoman said Tuesday that the institution's board this week reiterated its support for the contract.

Smithsonian officials also have defended their executive salaries by maintaining that the institution must offer competitive salaries to recruit the best people in the field. According to the institution's 2004 IRS filing, Small earned salary and benefits worth $813,065.

Lawmakers showed their disapproval of Smithsonian salaries last month as the House Appropriations Committee approved an Interior spending bill that would cut the institution's spending by $15 million and cap its salaries at the level of the U.S. president, currently $400,000.

The Smithsonian's inspector general also is investigating executive salaries and benefits, as well as accounting practices at Smithsonian Business Ventures, a commercial division of the organization that handled the Showtime contract.

At the same time, Grassley and others are raising new concerns about Small's former role as a Fannie Mae executive during the accounting scandal there.

A recent report from HUD's Office of Federal Housing Enterprise Oversight listed Small as one of the Fannie Mae executives who encouraged employees to hit profit targets so senior managers would earn larger bonuses.

Small is not without support on Capitol Hill, however, with several lawmakers arguing that Smithsonian salaries are on par with other academic organizations or large museums and that spending cuts will only hurt the public.

Senate Appropriations Chairman Thad Cochran, R-Miss., is one of several lawmakers serving on the Smithsonian's board. Asked Tuesday if he agreed with Grassley's concerns about Small, Cochran simply said "no" before walking onto the Senate floor.