	Past Work Showed that Smithsonian’s Aging Facilities and Systems Threaten Collections

In our 2005 report, we found that facilities-related problems at the  Smithsonian had resulted in a few building closures and access  restrictions and some cases of damage to the collections. For  example, the 1881 Arts and Industries Building on the National Mall was  closed to the public in 2004 for an indefinite period, pending repair of its  weakened roof panels, renovation of its interior (which had been damaged  by water intrusion), and replacement of aging systems such as heating and  cooling. Currently, this building remains closed. These problems were  indicative of a broad decline in the Smithsonian’s aging facilities and  systems that posed a serious long-term threat to the collections. We also found that the Smithsonian had taken steps to maximize the  effectiveness of its resources for facilities. Preliminary Data Show that the Smithsonian’s Estimated Costs for Facilities Projects through Fiscal Year 2013 Have Increased Since 2005

Preliminary results from our ongoing work show that as of March 30, 2007,  the Smithsonian estimates it will need about $2.5 billion for revitalization,  construction, and maintenance projects identified from fiscal year 2005  through fiscal year 2013, an increase of about $200 million from its 2005  estimate of about $2.3 billion for the same time period. As a result, we recommended that  the Secretary of the Smithsonian establish a process for exploring options  for funding its facilities needs and engaging the key stakeholders—the  Smithsonian Board of Regents, the Administration, and Congress—in the  development and implementation of a strategic funding plan to address  the revitalization, construction, and maintenance projects identified by the  Smithsonian. The Smithsonian Has Taken Some Steps to Address Our Recommendation to Develop and Implement a Funding Strategy

Smithsonian officials told us during our current review that the  Smithsonian Board of Regents —the Smithsonian’s governing body, which  is comprised of both private citizens and members of all three branches of  the federal government—has taken some steps to address our  recommendation. According to Smithsonian officials, after considering these nine proposed  options, the ad-hoc committee decided to request an increase in the  Smithsonian’s annual federal appropriations, specifically deciding to  request an additional $100 million over the Smithsonian’s current  appropriation annually for 10 years, starting in fiscal year 2008, to reach a  total of an additional $1 billion. The President’s fiscal year 2008 budget proposal, published in February  2007, proposed an increase of about $44 million over the Smithsonian’s  fiscal year 2007 appropriation. However, funds in the salaries and  expenses category also support many other activities, such as research,  collections, and exhibitions, and it is not clear how much of the $35  million increase the Smithsonian would use for facilities maintenance. Absent significant changes in the  Smithsonian’s funding strategy or significant increases in funding from  Congress, the Smithsonian faces greater risk to its facilities and  collections over time. Our work is based  on our past report on the Smithsonian’s facilities management and  funding, our review of Smithsonian documents, and interviews with  Smithsonian officials. We are continuing to evaluate the Smithsonian’s efforts to strategically  manage, fund, and secure its real property. We  expect to report on these issues later this year.
Why GAO Did This Study

The Smithsonian Institution (Smithsonian) is the world's largest museum complex and research organization. The age of the Smithsonian's structures, past inattention to maintenance needs, and high visitation levels have left its facilities in need of revitalization and repair. This testimony discusses our prior work on some effects of the condition of the Smithsonian's facilities and whether the Smithsonian has taken steps to maximize facility resources. It also discusses the current estimated costs of the Smithsonian's needed facilities projects. In addition, it describes preliminary results of GAO's ongoing work on the extent to which the Smithsonian developed and implemented strategies to fund these projects, as GAO recommended in prior work. The work for this testimony is based on GAO's 2005 report, Smithsonian Institution: Facilities Management Reorganization Is Progressing, but Funding Remains a Challenge; GAO's review of Smithsonian documents and other pertinent information; and interviews with Smithsonian officials.

What GAO Found

In 2005, GAO reported that facilities-related problems at the Smithsonian had resulted in a few building closures and posed a serious long-term threat to the collections. For example, the 1881 Arts and Industries Building on the National Mall was closed to the public in 2004 for an indefinite period over concern about its deteriorating roof structure. Currently, this building remains closed. GAO also found that the Smithsonian had taken steps to maximize the effectiveness of its existing resources for facilities. Preliminary results of GAO's ongoing work indicate that as of March 30, 2007, the Smithsonian estimated it would need about $2.5 billion for its revitalization, construction, and maintenance projects from fiscal year 2005 through fiscal year 2013, up from an estimate of $2.3 billion in 2005. In 2005, GAO recommended that the Smithsonian develop and implement a strategic funding plan to address its facilities needs. The Smithsonian Board of Regents--the Smithsonian's governing body--has taken some steps to address GAO's recommendation regarding a strategic funding plan. The board created an ad-hoc committee, which, after reviewing nine options, such as establishing a special exhibition fee, decided to request an additional $100 million annually in federal funds for facilities for the next 10 years, for a total of an additional $1 billion. The President's fiscal year 2008 budget proposal, however, proposes an increase of about $44 million over the Smithsonian's fiscal year 2007 appropriation. It is not clear how much of this proposed increase would be used to support facilities, and how Congress will respond to the President's budget request. Absent significant changes in the Smithsonian's funding strategy or significant increases in funding from Congress, the Smithsonian faces greater risk to its facilities and collections over time. GAO is continuing to evaluate the Smithsonian's efforts to strategically manage, fund, and secure its real property. We expect to publish a report on these issues later this year.