The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, May 20, 1995                 TAG: 9505200315
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY JAMES SCHULTZ, STAFF WRITER 
DATELINE: HAMPTON                            LENGTH: Long  :  139 lines

NASA TO CUT $40 BILLION IN 5 YEARS LANGLEY WILL RETURN TO ITS ROOTS IN AERONAUTIC RESEARCH

Marking the end of a 37-year era of aggressive, open-wallet exploration of space, NASA administrator Daniel S. Goldin on Friday announced sweeping organizational change and drastic budget cutbacks to the agency he oversees.

To meet a five-year, $40 billion reduction mandated by the Clinton administration, Goldin will pare NASA's civil-servant work force nationally by at least 4,000 - to 17,500, a level not seen since the genesis of the space race in the early 1960s. As many as 25,000 independent contractors across the country also could be forced out of work.

Within the next few years, the private sector will take over space shuttle operations, Goldin said. In addition, university consortia or independent foundations will be handed responsibility for much of NASA's basic science research.

And, reversing a policy nearly four decades old, Goldin said no independent contractors will be allowed to conduct or participate in internal NASA science, research or engineering programs. Only civil servants or official employees of the new independent science foundations will have that privilege.

On the Peninsula, NASA Langley Research Center will lose 200 civil servants and 800 independent contractors by the year 2000, Goldin said. The Hampton center's 14 research and support aircraft are slated to be transferred to California, and running of Langley's atmospheric science research will be assigned to a private or quasi-public institute.

Langley will apparently gain, too; not in personnel, but in administrative responsibility.

Goldin said management of all NASA wind tunnels will be shifted to the Hampton facility, as will oversight of contractor proposals for engineering projects related to aeronautics.

``We are at the dawn of a new age,'' Goldin said. ``We're changing our systems. It's a new time. We're getting the agency ready for the 21st century.''

Goldin's speech came a day after the House of Representatives voted for a seven-year, $1.4 trillion federal budget decrease that would eliminate three Cabinet-level agencies and tens of thousands of government jobs, while returning billions of dollars to citizens in the form of tax breaks.

Should such a budget be enacted on top of the reductions detailed Friday, Goldin contended, the effects would put NASA ``on a road to disaster.''

``I'm personally committed to spending every ounce of personal energy to fight this (additional) cut,'' he said. ``. . . We're telling Congress we can't cut any more. We'd have to shut down a combination of enterprises, programs and (research) centers. That would jeopardize our contribution to America's competitiveness and vitality, and America's children.''

When compared with work-force reductions at other NASA centers - some in the 35 percent range - Langley's 21 percent cut appears to leave the center relatively unscathed.

``Langley did exceptionally well. We have the lowest cut of any of the large centers,'' said Langley director Paul F. Holloway. ``I'm happy the way it turned out. We lucked out - based on excellence.''

What the cutbacks would mean to the day-to-day operation of the NASA centers, including Langley, remains unclear. Goldin and Holloway both said the details must be worked out in the coming months.

Even more uncertain is the fate of independent contractors, responsible for everything from grass cutting to wind-tunnel research. Over time, contractors have become an integral part of operations throughout NASA. Redefining their role and pulling them away from key projects may prove to be a managerial nightmare.

At Langley, one of the most difficult challenges is likely to be developing an organization capable of supervising coast-to-coast wind tunnel research.

``We're not going to do anything dumb,'' Holloway said. ``No decision will be made until the end of August, when our budget is submitted. Don't expect lots of changes quick. It's not going to happen.''

Langley employees and contractors alike have been shell-shocked since the beginning of this year by NASA's ongoing restructuring initiatives and an intensive employee buyout pushed to avoid involuntary layoffs. The buyout concluded March 31, as 272 left Langley.

Friday, another milestone was reached as the remaining 4,586 Langley workers finally learned their fate.

Asked about Goldin's remarks, Clarke Morledge, a computer network analyst who works at Langley as an independent contractor, said he would adopt a wait-and-see attitude.

``From what I see, it will be a long time before we figure out what this all means,'' Morledge said. ``They're talking about dropping 800 contractors by the year 2000. The question is how they do it. Right now there's a lot of curiosity about how this will play out.''

Others said they were relieved after a long wait to find out the specifics of the restructuring.

``We've been worried about this for months,'' said Langley atmospheric scientist Jennifer Olson. ``I'm actually more optimistic today. If the cuts are done slowly enough, we'll be able to handle them.''

Founded in 1917 as the nation's first civilian aeronautical laboratory, Langley is the oldest of the NASA centers. In many ways, under the new mandates, it will be returning to its roots, as Langley once again concentrates on basic aeronautical research problems.

Despite the perspective of history, said director Holloway, the years leading to the next century are apt to be trying, if rewarding ones, for those who remain with NASA.

``It's going to be very stressful to get through the year 2000,'' Holloway said. ``There will be a lot of senior people leaving before then. I'm one of them, certainly. But, boy, I would love to be one of the young people who stay. They will have tremendous independence.

``Langley will weather the storm.'' ILLUSTRATION: Graphic

THE HISTORY

1915: National Advisory Committee for Aeronautics formed.

1917: Langley Memorial Aeronautical Laboratory founded.

1948: Name changed to Langley Aeronautical Laboratory.

1958: National Aeronautics and Space Administration founded.

Name changed to Langley Research Center.

THE FACILITY

788 acres, plus another 20 on the grounds of Langley Air Force

Base.

221 buildings (not including power stations or trailers).

40-plus wind tunnels.

$2.1 billion: Estimated replacement value of all buildings,

including wind tunnels.

THE BUDGET

1995 NASA: $14.5 billion

1995 Langley: $637.6 million

THE WORK FORCE: Civil Servants

1990: 3,018

1991: 3,067

1992: 3,090

1993: 3,032

1994: 2,927< 1995: 2,611

THE ECONOMY

1994 contribution to Virginia: $240.2 million

1994 contribution to Hampton Roads

$193.6 million

KEYWORDS: NASA LAYOFFS LANGLEY RESEARCH CENTER by CNB