Capitol Commentary

Bruce Craig, Director of the National Coordinating Committee for the Promotion of History

Appropriations Outlook Is Good For History. In the opening volley of what promises to be a multi-month battle in Congress over the government's spending plan for FY 2003, on 4 February 2002, President Bush forwarded to Congress a five-inch high stack of budget books wrapped in red-white-and-blue covers depicting the American flag that outlines a $2.13 trillion federal budget. Given the fiscally tight nature of the overall budget, the nation's cultural institutions seem to have fared fairly well. The President's budget is available at: <http://www.whitehouse.gov/omb/budget/index.html>.

Budget Summary

Department of Education: In the Department of Education budget, there was a bit of unexpected good news for the history profession. In conjunction with his recently approved "No Child Left Behind" education bill, Bush allocated $50 million in his FY 2003 budget for the "Teaching American History" initiative. These funds are designed to provide "competitive grants to school districts for activities that promote the teaching of traditional American history." The initiative, which was spearheaded by Senator Robert C. Byrd (D-WV) may see an increase to $100 million--the level appropriated in the FY 2002 federal budget.

Interior and Related Agencies: The budget for the Department of the Interior--which houses several agencies and programs of interest to historians and archivists--is virtually unchanged from a year ago. The Administration is proposing a $10.6 billion budget for Interior including an increase of $107 million for the National Park Service to $2.42 billion with $663 million allocated for continued work on reducing the maintenance backlog at park units. Several important programs, however, face cuts if not total annihilation. While the "Save America's Treasures" program is proposed to be funded at $30 million, the Historic Preservation Fund (HPF) is slotted to take a $5 million cut in grants-in-aid funds to $37 million. The Urban Park and Recreation Fund (UPAR) program is completely zeroed out as is funding for the National Trust For Historic Preservation.

The nation's cultural endowments are also funded through the Interior Department. This year, the president opted not to propose "flat funding"for the endowments, but instead requested $126.89 million for the National Endowment for the Humanities (NEH), a $2 million or a 1.9 percent increase over FY 2002; and $117 million for the National Endowment for the Arts (NEA), a $2 million or a 1.7 percent increase. Of the $126.89 million slotted for the NEH, $89.93 million is for the Endowment's grant programs; $10.44 million for NEH Challenge Grants; $5.69 million to match non-federal contributions to humanities projects supported by the Endowment; and $20.83 million for administrative expenses.

Most of the increases for the Endowments are aimed at funding the full costs associated with accruing employee pensions, retirement/health benefits, and mandated salary increases--program budgets are nearly identical with the present fiscal year. Congress may decide, as it traditionally has done, to give both agencies larger increases. Agency officials reportedly were pleased with the small increases, though John Hammer, director of the National Humanities Alliance (an advocacy group for the NEH), stated, "we're going to try to get it up higher, hopefully to $155 million, but the Administration's request is a good start."

The Administration's budget request for the Smithsonian Institution calls for an increase of $9 million; this figure represents a 1.8 percent increase over the previous year. The $528 million proposal allocates $454.3 million for salaries and expenses. There is clearly also an emphasis in the Smithsonian budget proposal on putting federal dollars into building repairs. To this end, this year's request is for $81.3 million as compared to last year's request of $68 million. In addition, the budget calls for $10 million for construction of the National Museum of the American Indian as well as $5.2 million for staffing and exhibition planning for the new museum. Funding is also proposed to continue the renovation work on the historic Patent Office Building that houses the National Portrait Gallery. There also is $9.7 million for information technology and financial system updates and $12 million for the continuation of security positions.

The Institute of Museum and Library services is slotted for an increase of 8.1 percent to $210.7 million with about $13 million for library programs. This figure includes a request for $10 million under the National Leadership Grants program to recruit and train a new generation of librarians—statistics gathered by a recent study demonstrated that 40 percent of the current library professionals are nearing retirement. The Administration also recommends that the National Commission on Libraries and Information Science be eliminated, thus saving taxpayers $1 million a year.

Department of the Treasury: The Treasury Department proposal encompasses the recommended budget for the National Archives and Records Administration (NARA). Bush is seeking $263.93 million, an unexpected 8.1 percent increase for the agency. Included in this figure is a $4.5 million increase for the electronic records initiative. In addition, the budget proposes $1 million to operate and maintain NARA's Archival Research Catalog, over $3 million for security, and $3.25 million to assist the University of Texas to repair the leaking plaza at the Lyndon Baines Johnson Presidential Library in Austin, Texas.

The National Historical Publications and Records Commission (NHPRC) did not fare nearly as well in the president's budget, allotted only $5 million—a 22 percent cut over last year's congressionally approved appropriation of $6.43 million for competitive grants. To the president's credit, however, the proposal represents a $600,000 increase over the $4.4 million proposed in last year's budget. A concerted effort will be needed this year by the historical and archival community to raise the NHPRC budget up to its fully authorized level of $10 million.

Appropriations Hearings Begin

Shortly after the president submitted his budget proposals, Congress began conducting hearings on the various agency and bureau proposals. On Thursday, 28 February 2002, the House Labor, Health and Human Services and Education Appropriations Subcommittee held a hearing on the FY 2003 appropriation for the Institute for Museum and Library Services (IMLS) and on 6 March, the House Appropriations Subcommittee on Interior and Related Agencies conducted a similar hearing on the funding level for the NEH and the NEA. Later in the month, special hearings were also conducted for the Library of Congress and the Smithsonian.

IMLS Hearing: Robert Martin, Director of the IMLS, testified about his agency's FY 2003 budget request. Martin lauded the increased funding request of $181.72 million for library programs and $29.02 million for museums. He also highlighted the $10 million initiative announced by Laura Bush to stimulate and support education for new librarians.

Representatives of the National Commission on Libraries and Information Science (NCLIS)--which the President seeks to terminate in his budget proposal--testified next. NCLIS Chairperson, Martha Gould claimed that the stated rationale for zeroing out the NCLIS account was totally unsubstantiated. She thanked chairman Regula for funding the "Literacy Through School Libraries" program and cited the NCLIS hearing on school libraries held in Cincinnati, Ohio, last spring as rationale for supporting the legislation. Commissioner Jack Hightower testified that the libraries' role is very important as disseminators of information in a time of crisis.

NEH Hearing: On 6 March 2002, Interior and Related Agencies Appropriations Subcommittee Chairman Joe Skeen (R-NM) welcomed Bruce Cole, the new head of the NEH. Cole explained the Administration's $126.89 million budget request and outlined his vision for the Endowment, especially the crucial role that the NEH plays in the life of the nation and the importance of an "informed citizenry." The hearing also gave Cole an opportunity to discuss his "We the People" initiative, which is designed to encourage scholars to propose programs that advance knowledge of the events, ideas, and principles that define the American nation. Several Democratic members, including Representative Norm Dicks (D-WA) and Maurice Hinchey (D-NY) expressed concern regarding the Bush administration's proposal to delete all funding for regional humanities centers--a special initiative advanced by former NEH head, William R. Ferris Jr.

In an apparent reference to the regional centers, Cole testified that the agency would no longer create "costly special initiatives that function outside the agency's normal grant making process" but rather would focus on "core" NEH programs. Cole did not, however, unilaterally announce the death of the Clinton Administration proposal--instead he stated that the earlier NEH grants "will enable these institutions to move forward with their plans." In addition, he noted, regional centers will be permitted to compete for other NEH grants including challenge grants. Most NEH insiders--as well as several members of the committee--were skeptical, however, admitting that they could not see that "happening at all," foreseeing the eventual death of the regional center initiative.

Cole set forth his priorities in the coming years including the "We the People" initiative; advancing scholarship and research in the humanities; strengthening teaching and learning at all levels of the nation's education system; encouraging the support of the state humanities councils; preserving and increasing accessibility of important cultural and intellectual resources; and supporting quality interpretive programs and projects and encouraging the leveraging of private support in the humanities. Cole envisioned that of the $126.89 million proposal, $89.93 million would go "to the support of high quality education, scholarship, preservation and public programs in the humanities and $16.12 million in matching funds to help the NEH stimulate private giving to humanities projects and institutions." Cole especially emphasized his strong support for the state councils and the need for the NEH to play an "active role" in harnessing digital technologies in the service of the humanities.

Library of Congress Hearing: On 13 March 2002, Librarian of Congress James H. Billington and other members of the Library of Congress's senior staff testified before the Senate Committee on Appropriations, Subcommittee on Legislative Branch Appropriations. The librarian requested a total budget of $572.7 million ($536.1 million in net appropriations and $36.6 million in authority to use receipts) for FY 2003—an increase of $56.3 million or 6.1 percent over authorized FY 2002 levels. The proposed budget would support 4,358 full-time staff.

The librarian's proposed budget is designed to support three continuing priorities: service to Congress; acquisition, security, and preservation of materials; and comprehensive access to collections. To this end, Billington requested an increase of 169 new staff members "largely to support the maintenance and security of the Library's artifactual collections." In addition, Billington sought increased funding for several major initiatives: Digital Futures (increase of $16.5 million and 35 permanent positions); Collections Access, Preservation, and Security (increase of $8.7 million and 118 positions); Infrastructure Support (increases of $5.3 million); Copyright Office's Re-engineering (increases of $1.4 million); and to increasing the capacity of the Congressional Research Service (increases of $1.4 million). For the National Digital Library, Billington requested $12.93 million and twenty-five positions including increase funding of $5.54 million and eight positions to improve access services onsite and for remote library users.

The Librarian also requested funding for several special initiatives including: $789,000 for the Lewis and Clark exhibition; $895,000 for the mass deacidification program; $476,000 to support the Veterans History Project; $504,000 for educational outreach; and $308,000 for safety services modernization and training.

Smithsonian Hearing: On 20 March 2002, Smithsonian Secretary Lawrence Small endured many critical comments from several members of Congress when he testified before a House appropriations subcommittee panel to justify the Smithsonian's budget request for FY 2003. Small summarized aspects of the Administration's request for salaries and expenses of $528 million that represents a 1.8 percent (about $9 million) increase over the current year funding level of $519 million.

Members questioned the proposed spending levels on research programs and criticized the Secretary for his fundraising activities, especially his pursuit of corporate donors. In what was a rather testy hearing at times, Small defended his pursuit of corporate sponsors and the placement of company logos on museum exhibits. He also stated that in the FY 2003 budget, the administration would not seek increased spending on the Institution's research programs.

Several Republican members of the committee stated that they saw benefit from corporate partnerships and showed even less concern about corporate logos. Small also pointed out that fundraising was the way the Smithsonian had operated from the beginning and critics should recognize the fundraising burdens placed on Smithsonian staff. With all the money needed by the Institution over the next decade, Small indicated that partnerships with big donors might become even more critical. But Representative Maurice Hinchey did not accept all of Small's reasoning, stating that private funding makes up only 30 percent of the Smithsonian's budget compared to 70 percent from the public sector.

Lawmakers from both parties questioned Small about the Smithsonian's proposed spending on research programs. Funding would remain level at FY 2002 levels--$73 million for FY 2003--if the administration's proposal is accepted by Congress. Small said he would like to have directed more funds to the research but other needs took priority, especially finishing work on the National Museum of the American Indian and repairing some of the "shabby" aging Smithsonian buildings. Small stated that there were three separate panels assessing the Institution's science programs and that their reviews should be completed later in the year.