The Federal R&D Budget: Process and Perspectives Matt Hourihan September 3, 2015 For the AAAS Policy Fellows AAAS R&D Budget and Policy Program http://www.aaas.org/program/rd-budget-and-policy-program
The Federal Budget is Kind Of a Big Deal “Politics is who gets what, when, and how.” - Harold Lasswell “Budgeting is about values, and it’s about choices.” – Rep. Rosa DeLauro Every dollar in the budget has its claimants! Negotiation between competing interests (and their proxies) in a decentralized system Major impact for R&D and innovation: most basic research, and most university research, is federally funded
Broad Qualities of the System Decentralization “Embeddedness” Incrementalism
Two Spending Categories: Discretionary vs. Mandatory Mandatory Spending (aka Direct Spending) Mostly entitlements, mostly on “autopilot” Potential for high political sensitivity = “third rail” Discretionary Spending: Adjusted annually Easy (nondefense) targets? i.e. Sequestration Vast majority of federal R&D is discretionary
The Federal Budget Cycle Phase 3: Congress gets involved Receives and reacts to President’s budget, holds hearings IN THEORY: Approves budget resolution (simple majority) 302(b) allocations to the 12 appropriations subcommittees
The Budget Resolution Overall spending framework Discretionary spending figure is divvied up by appropriations committees Budget resolution is a political document (which is why they can’t seem to pass one?) Reconciliation instructions?
The Federal Budget Cycle Approps committees write/approve 12 appropriations bills Bills have to pass both chambers Differences are resolved in conference committee Can be filibustered “President proposes, Congress disposes”
Congressional Budget Decisions “All politics is local” Member interests Distributed responsibility: Nine subcommittees responsible for at least $1 billion of R&D No concerted assessment of full R&D portfolio Limited avenues for formal S&T advice Concerns over balance, duplication, competitiveness, role of government, broader fiscal context Reactive; incrementalism? The “Annual Miracle”
Where Are We in Appropriations? House and Senate Committees Approved? House floor approved? Senate floor approved? Defense X Labor-HHS Energy and Water Commerce, Justice, Science Agriculture Interior and Environment Transportation Homeland Security Veterans
Looking ahead… Budget deal(s)? Shutdown? Planned Parenthood? Sequestration? Size and composition of the discretionary budget? Can R&D stay ahead of the curve? Deficits have fallen, but big-picture fiscal challenges remain largely unchanged Debt limit, entitlement growth
The Federal Budget Cycle Gov’t is working on 3 budgets at any given time. Right now: FY15 coming to close FY16 approps on hold FY17: agencies preparing OMB submissions
For more info… mhouriha@aaas.org 202-326-6607 http://www.aaas.org/program/rd-budget-and-policy-program