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The Federal R&D Budget: Context, Overview, Outlook Matt Hourihan January 28, 2015 for the AWIS Leadership Series 2015 AAAS R&D Budget and Policy Program http://www.aaas.org/program/rd-budget- and-policy-program http://www.aaas.org/program/rd-budget- and-policy-program
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The Federal Budget Cycle Phase 1: Internal agency discussions and planning Joint guidance from OMB / OSTP on S&T (midsummer) Agencies deliver budget justifications to OMB (early fall)
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The Federal Budget Cycle Phase 2: OMB performs multi-stage review, responds to agencies Budget proposals are finalized in January President presents the proposed budget to Congress early February
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The Federal Budget Cycle Phase 3: Congress gets involved Approves budget resolution: spending targets, reconciliation 302(b) allocations Approps committees write/approve 12 appropriations bills 12 subcommittees: one for each bill “President proposes, Congress disposes”
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That’s How It’s Supposed to Work, Anyway… FY10: Final omnibus in December (~3 months late) FY11: No Budget Res; full-year CR in April (six months late) FY12: No Budget Res; minibus/megabus (2-3 months late) FY13: FISCAL CLIFF; final approps in March (5 months late) FY14: No Budget Res; budget 2 months late; SHUTDOWN; final approps in January FY15: Budget 1 month late; final approps in December
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BCA takes effect: first year of caps
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Sequestration kicks in (delayed and reduced by the American Taxpayer Relief Act)
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Budget warfare resolved by Bipartisan Budget Act (restores some funding in FY14, FY15)
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The Fiscal Context for FY 2015 Congress keeps (partially) restoring funding FY15: 21% reduction in cuts Discretionary spending cap is only 0.2% above FY14 before inflation Very little room for any sort of program growth… …reflected in the President’s budget
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Admin R&D Priorities for FY15 Department of Energy: NNSA, renewables and efficiency, ARPA-E Neuroscience NASA: industry partnerships Transportation: highways and high-performance rail Extramural ag research Advanced Manufacturing Environmental research Plus: an extra $5.3 billion in the “Opportunity, Growth and Security Initiative”
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Notes on Appropriations Some notable gainers: DOD, NSF research NIH Alzheimer’s research NASA (especially Planetary Science, Aeronautics, exploration) USDA: Poultry science center funding, AFRI NOAA Research Modest increases for NIST, USGS NSF construction, BRAIN Initiative fully funded
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Notes on Appropriations Most NIH institutes: sub-inflation Mixed outcomes for Office of Science programs, energy technology programs EPA, NASA Earth Science cut No high-performance rail R&D Omnibus also included ~$500 billion for Ebola-related research and clinical trials Excluded DHS Most agencies ahead of the discretionary curve
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Looking ahead to FY16… Back to sequester levels? President to propose cap increase 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 Reconciliation strategy?
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For more info… mhouriha@aaas.org 202-326-6607 http://www.aaas.org/program/rd -budget-and-policy-program
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