1. 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

2. 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

3. Broad Qualities of the System
Decentralization
“Embeddedness”
Incrementalism

5. 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

9. 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

10. 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?

19. 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”

20. 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”

21. 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

23. 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

24. 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

28. For more info…