Seizing the Opportunities of Fiscal Retrenchment

As both a trust establishment and a public institution, the Smithsonian Institution is a recipient of both public and private sector funding. This article examines the financial crisis within the Institution that resulted from increasing costs, a weakening economy, and eroding federal support. It further shows how the Institution's senior management recognized the permanence of their economic situation, accepted the structural nature of their fiscal plight, and initiated the downsizing and restructuring of a public institution that, until recently, experienced nothing but growth.