Smithsonian problems include $2.5 billion maintenance, repair list

Scrutiny of spending by the former chief of the Smithsonian Institution has brought new attention to a $2.5 billion backlog in facilities maintenance and repairs at Smithsonian facilities, and has prompted calls for a new governing structure to oversee the organization.

Mark Goldstein, the Government Accountability Office's director of physical infrastructure issues, testified at a Wednesday Senate hearing that serious facilities-related problems described in a 2005 report have not been addressed. He said the institution estimated in 2005 that $2.3 billion would be required to address the problems, but has had to increase that figure by $200 million.

Facilities awaiting repairs include the Arts and Industries Building on the National Mall in Washington, which was closed to the public in 2004 out of concern for the roof structure and remains shut. Items in the museum's collections have suffered water damage, and the Smithsonian Archives alone has had 19 "water emergencies" since June 2002, according to the GAO testimony.

At the hearing, led by Sen. Diane Feinstein, D-Calif., who chairs the Smithsonian's authorization and appropriations committees, lawmakers also questioned the ability of Smithsonian's 17-member board of regents to adequately oversee the institution's wide-ranging collection of museums and research groups. Last year, these received more than $1 billion in funding, about 80 percent from taxpayers and the balance from a trust and private donors.

The board has high-profile members, including the vice president, the chief justice of the Supreme Court and six lawmakers. Sen. Robert Bennett, R-Utah, ranking member of the committee that held the hearing, said former Vice President Al Gore attended just two of the board's quarterly meetings during his White House tenure, while Vice President Dick Cheney has not attended any.

In opening remarks, Feinstein praised the board members for their public service, but noted, "Given their day jobs, I wonder if they can dedicate the time, attention and expertise that are so greatly needed at the Smithsonian at this time."

Since questions have arisen regarding the institution's payments for household expenses of then-Secretary Lawrence Small, regents have taken steps to more actively govern the institution, board members testified. A new independent review committee, made up of people who are not on the board, has started to look into Small's expenses and compensation package, while a new committee on governance has been formed as a standing group to consider governance and oversight of the institution.

Small resigned in March and has been replaced by Cristian Samper, as acting secretary.

Patricia Stonesifer, chairwoman of the governance committee and chief executive officer of the Bill and Melinda Gates Foundation, said the group has met four times since March and will meet weekly over the next two months to consider pressing issues. The committee has developed interim policies on travel, entertainment and other expenses and will consider how other, comparable institutions function to develop recommendations for the Smithsonian, she said.

Feinstein suggested that expanding the board to include experts in subjects like museum management, nonprofit finance and law could be appropriate. Calling Smithsonian "an endangered institution," she urged its board and administrators to address the serious issues it faces, including the facilities maintenance backlog.

Smithsonian had requested an additional $100 million in funding for the fiscal 2008 budget cycle to tackle the backlog, but the president's budget would provide an overall increase of $44 million, only some of which would be available for operations and maintenance.

Feinstein urged the board and administrators to look again at raising private funds to meet the $2.5 billion facilities requirement, rejecting an argument that groups cannot raise funds for facilities projects because donors prefer to underwrite new exhibits and research. Bennett urged the institution to better prioritize its spending, so that leaky roofs are not left until last.

Anne Sprightly Ryan, the Smithsonian's inspector general, testified on problems her office has had in securing attention from the board of regents. Since last summer, the IG has reported directly to the board, rather than to the secretary of the institution. But prior to the change, Ryan said, IG reports were edited before presentation to the board or withheld, and inspectors general were "discouraged" from giving full reports directly to board members.

Ryan said the general counsel had not been permitted to directly contact board members, and was often consulted late or not at all on important policy changes.

"I've had more than one Smithsonian executive tell me that our work is useful, but that it would be better if our findings were kept within the institution," she said, noting that reporting to Congress and the public "is why we exist." She appealed for more funds for the IG office for its work under the new reporting structure.

During the hearing, discussion touched only briefly on a Wednesday report in The Washington Post that Small and Deputy Secretary Sheila Burke each received more than $100,000 last year in compensation for sitting on the board of directors of the Chubb Group. Chubb provides just more than half of the Smithsonian's insurance, according to the Post. The IG said the matter presented at least the appearance of a conflict of interest, and Feinstein said her office would look into it.