SMITHSONIAN INSTITUTION

FY 2005 BUDGET REQUEST SUMMARY

Account

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FY 2004

Appropration1

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FY 2005

Request

Salaries and Expenses
Facilities Capital
Total / $488,652,000
107,627,000
$596,279,000 / $499,125,000
128,900,000
$628,025,000

1 Includes 0.646% rescission contained in the FY 2004 Interior and Related Agencies Appropriations Act and the 0.59% rescission contained in the FY 2004 Omnibus Appropriations Act.

For FY 2005, the Smithsonian’s request for all operating and capital accounts totals $628million, an increase of $31.7million (or 5 percent) above the FY2004 appropriation. The Institution’s FY 2005 request includes $499.1million for Salaries and Expenses and $128.9million for Facilities Capital. A detailed summary of the FY2005 request is provided in the table at the end of this section.

SALARIES AND EXPENSES

Salaries and Related Costs (+$195,000) – The Institution is not requesting increases for mandatory costs such as utilities, rent, and communications. Smithsonian estimates that the full cost in FY 2005 of covering the FY 2003, FY 2004, and FY 2005 pay raises for existing staff totals $15,819,000. Of this, only $195,000 is requested to cover a portion of the pay raises for the NationalZoologicalPark. The balance of the requirement will be met by some combination of delaying new hires, including those vacancies created by the buyout, early retirements, and other cost saving mechanisms. A Reductions-in-Force is possible, but will be utilized only as a last resort.

Partial Restoration of the FY 2004 Rescissions (+2,700,000) – Of the total $6,186,000 FY 2004 across-the-board 0.646 percent rescission in the FY2004 Interior and Related Agencies Appropriations Act and the anticipated 0.59percent rescission in the FY 2004 Omnibus Appropriations Act, $2,700,000 is restored in FY 2005 leaving a continuing reduction of $3,486,000. Continuing this reduction is required in order to fund high priority programs.

Elimination of FY 2004 Undistributed Reduction (+$7,259,000) – This budget request includes funding to restore the $7,259,000 undistributed reduction contained in the FY 2004 appropriation. Details of the distribution of the FY 2004 reduction are provided in the Salaries and Expenses section of the budget.

Utilities, Postage, Communications, and Rent (-$151,000) – The Institution requests a net decrease to its Utilities, Postage, Communications, and Rent accounts for FY 2005. This is a result of efficiency savings of $951,000 in electricity, a $151,000 decreased need in Communications, and an increase in Rent of $951,000. Details are provided in the Utilities, Postage, Communications, and Rent section of this budget.

FY 2005 Program Changes:

The Smithsonian has identified priority program requirements for FY2005 as follows (specific details are included under each line item):

Security (+$2,165,000)– to provide additional security staff and support costs resulting from the increased security and anti-terrorism requirements following the September 11, 2001 attacks and to increase the reliability of the Institution’s information technology security.

Information Technology Improvements (+$5,423,000)– to support improvements to the Smithsonian’s information technology infrastructure, as recommended by the National Academy of Public Administration in its July2001 report. Included are resources to continue implementation of the Institution’s Enterprise Resource Planning System and to provide for an integrated digital infrastructure that will enhance the Institution’s Web presence and management.

National Museum of the American Indian (+$1,841,000)– to provide support for collections management, exhibitions, public programs, education and information technology requirements associated with the opening of the Mall Museum in September 2004, and for central support in the areas of security and maintenance.

National Air and SpaceMuseum (+$1,459,000)– to support operations during the first full operational year at the Udvar-HazyCenter at Dulles. These funds will be used to support education and Web activities, school programs, and expanded public outreach.

NationalMuseum of African American History and Culture ($5,000,000) – to begin preliminary program planning activities, establish a capital campaign office, and initiate site selection.

Science Commission Recommendations (+$1,500,000) – to increase the Institution’s Fellowship and Scholarly Studies programs that are so effective in bringing new research and fresh ideas to the Smithsonian and to provide better care for the Natural History collections including beginning preparations for their move to new storage in Pod 5 in Suitland, Maryland.

NationalZoologicalPark Accreditation (+$827,000) – to provide funds to improve pest management and veterinary care, to provide more animal-friendly exhibits, and to begin development of a modern Zoological Information Management System.

Non-recurring Costs (-$15,045,000)– to reduce funding by $15,045,000 in non-recurring costs associated with the move to the Udvar-Hazy Center; one-time costs of the National Museum of the American Indian Mall Museum; and one-time costs of the implementation of the Enterprise Resource Planning System and consolidation of the Institution’s application servers.

Program Reductions (-$2,700,000)– to reduce base funding for the NationalMuseum of the American Indian’s development efforts (-$700,000), National Museum of Natural History’s Repatriation Program (-$1,000,000), and Major Scientific Instrumentation (-$1,000,000).

CAPITAL PROGRAM

The request for the Facilities Capital program ($128.9million) will help correct the deteriorating condition of some of the oldest buildings at the Smithsonian and maintain the current condition of other Institutional facilities through systematic renewal and repair. For FY2005, this request includes renovations for the Patent Office Building ($44.4million), NationalZoologicalPark ($19.5 million), National Museum of American History ($10 million), and the National Museum of Natural History ($7million). It also included funds to cover most of the costs to close the Arts and Industries Building and relocate staff, collections, and the data center currently located there ($25 million), as well as revitalization of other facilities ($6 million). In addition, the request includes funds to continue construction of a new, code compliant storage facility for Natural History’s highly flammable collections at the Museum Support Center in Suitland, MD ($8 million), construct a control building for VERITAS ($1 million), and to plan and design future projects ($8 million). Specific details of each requirement are provided in the Facilities Capital section of this request.

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