The Federal RD Budget Matt Hourihan September 6
The Federal R&D Budget Matt Hourihan September 6, 2016 For the AAAS S&T Policy Fellows AAAS R&D Budget and Policy Program http: //www. aaas. org/program/rd-budget-and-policy-program Copyright © 2015 American Association for the Advancement of Science 8/26/15
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 De. Lauro § 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 Copyright © 2015 American Association for the Advancement of Science 8/26/15 2
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Two Spending Categories: Discretionary vs. Mandatory § Mandatory Spending (aka Direct Spending) § Mostly entitlements, mostly on “autopilot” § Potential for high political sensitivity = “third rail” § New spending requires new legislation from the authorizing committees § Discretionary Spending: § Adjusted annually through appropriations bills via the appropriations committees § Diffuse support = easy (nondefense) targets? § For example: Sequestration! § Vast majority of federal R&D is discretionary Copyright © 2015 American Association for the Advancement of Science 8/26/15 6
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Ongoing Politics: The “Pong” Model? Protect social spending! Reduce social spending! The science and innovation budget Copyright © 2015 American Association for the Advancement of Science 8/26/15 9
Congress in the Federal Budget Cycle § Congress has the Power of the Purse § U. S. Constitution, Article I, Section 9: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time. ” Copyright © 2015 American Association for the Advancement of Science 8/26/15 10
Senate House Budget Cmte Approps Cmte Energy + Commerce Cmte Subc on Energy + Water Env and Pub Works Cmte Subc on Energy + Water Natural Resources Cmte Subc on Interior + Env Energy and Nat Res Cmte Subc on Interior + Env § § And many others… Also revenue (tax) committees (House Ways and Means, Senate Finance) Copyright © 2015 American Association for the Advancement of Science 8/26/15 11
Senate House Budget Cmte Approps Cmte Energy + Commerce Cmte Subc on Energy + Water Env and Pub Works Cmte Subc on Energy + Water Natural Resources Cmte Subc on Interior + Env Energy and Nat Res Cmte Subc on Interior + Env Budget Committees Copyright © 2015 American Association for the Advancement of Science 8/26/15 12
The Budget Resolution § Established by 1974 Congressional Budget Act § Overall framework § Discretionary spending § Also revenue, deficit, and total spending targets § Can’t change law, but can set up reconciliation instructions § The budget resolution is a political document § (and therefore, often not passed!) Copyright © 2015 American Association for the Advancement of Science 8/26/15 13
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Senate House Budget Cmte Approps Cmte Energy + Commerce Cmte Subc on Energy + Water Env and Pub Works Cmte Subc on Energy + Water Natural Resources Cmte Subc on Interior + Env Energy and Nat Res Cmte Subc on Interior + Env Appropriations Committees Copyright © 2015 American Association for the Advancement of Science 8/26/15 21
From Budget to Appropriations Committees § Budget Resolution limits Approps Committees Subcommittees [302(b) allocations] § These caps remain in place all the way to floor, but can be revised as needed § Twelve Appropriations Subcommittees § Nine subcommittees responsible for at least $1 billion of R&D § Approps led by “Cardinals” § Committee Chairs: Rep. Hal Rogers § § Appropriators will often have their own priorities § “There are three parties: Democrats, § § (KY), Sen. Thad Cochran (MS) Ranking Members: Rep. Nita Lowey (NY), Sen. Barbara Mikulski (MD) Republicans, and appropriators” “President proposes, Congress disposes” Tendency towards incrementalism Copyright © 2015 American Association for the Advancement of Science 8/26/15 22
Congressional Budget Decisions… § “All politics is local” § Broader issues § Competitiveness, health, energy independence, national security, deficits, climate change politics § Concerns over balance, duplication, role of government, fiscal context, waste § Always tradeoffs…and always a need to get the bill passed § No concerted assessment of full R&D portfolio § Somewhat reactive by definition, given agency budgets come first Copyright © 2015 American Association for the Advancement of Science 8/26/15 23
Defense House Senate Chair Rodney Frelinghuysen (NJ) Thad Cochran (MS) Ranking Member Pete Visclosky (IN) Dick Durbin (IL) § Over $500 billion § Tradeoffs: balancing force modernization, readiness, personnel costs, RDT&E (and medical research) § Offset Strategy § War funding Copyright © 2015 American Association for the Advancement of Science 8/26/15 24
Energy & Water House Senate Chair Mike Simpson (ID) Lamar Alexander (TN) Ranking Member Marcy Kaptur (OH) Dianne Feinstein (CA) § ~$40 billion § Tradeoffs: Balancing basic research and facilities, DOE technology portfolio, NNSA; also Army Corps, Bureau of Reclamation § Highly partisan debates over energy technologies (renewables vs. nuclear vs. fossil) § Have mostly embraced new research and innovation models at DOE Copyright © 2015 American Association for the Advancement of Science 8/26/15 25
Labor, HHS, Education House Senate Chair Tom Cole (OK) Roy Blount (MO) Ranking Member Rosa De. Lauro (CT) Patty Murray (WA) § >$150 billion § Deep divisions – especially Obamacare § Usually one of the hardest to pass, thus usually one of the last out of the gate § Everybody likes NIH lately § Especially Alzheimer’s research § Cancer moonshot? § Success rates? Copyright © 2015 American Association for the Advancement of Science 8/26/15 26
Commerce, Justice, Science House Senate Chair John Culberson (TX) Richard Shelby (AL) Ranking Member Mike Honda (CA) Barbara Mikulski (MD) § ~$55 billion § Tradeoffs: Balancing Depts. of Justice and Commerce, NASA, NSF § NSF: social and geo science funding? Facilities? § NASA: planetary exploration, climate research, human spaceflight (and where do we fly to? ) § Commerce: NOAA climate research and NIST industrial technology programs can be controversial Copyright © 2015 American Association for the Advancement of Science 8/26/15 27
Agriculture House Senate Chair Robert Aderholt (AL) Jerry Moran (KS) Ranking Member Sam Farr (CA) Jeff Merkley (OR) § ~$20 billion § Funds most USDA (but not Forest Service); also FDA § Balancing between conservation, public assistance, food safety § Research activities often take secondary prominence § Fragmented? Formula funds or competitive grants? § Once a big source of pork via earmarks Copyright © 2015 American Association for the Advancement of Science 8/26/15 28
Interior & Environment House Senate Chair Ken Calvert (CA) Lisa Murkowski (AK) Ranking Member Betty Mc. Collum (MN) Tom Udall (NM) § ~$30 billion § Includes: Dept. of the Interior, EPA; also Forest Service; small bit goes to NIH § Another divisive bill: environmental protection, land use, emissions regulation, wildfire management and response § Again, science funding tends to take secondary prominence (U. S. Geological Survey, EPA S&T) Copyright © 2015 American Association for the Advancement of Science 8/26/15 29
Appropriations Process § Budget Resolution Limits Appropriations Committees Subcommittees [302(b) allocations] § These caps are always in place throughout the process, but can be revised as needed § Information gathering: § Hearings with agency testimony § “Views and estimates” from other authorizing § § committees Projections from CBO Behind-the-scenes agency contact Constituents, experts, lobbyists Subcommittee Committee Floor § Can be amended throughout § Subject to 302(b) caps § Bills have to pass both chambers § Can be filibustered or vetoed § Differences are negotiated/resolved in conference committee Copyright © 2015 American Association for the Advancement of Science 8/26/15 30
Other Legislative Appropriations Tools § Continuing Resolutions § …with depressing regularity § Uncertainty? New starts? § Omnibus § Or minibus, or megabus, or cromnibus, or… § Supplementals § i. e. Zika, Ebola, Hurricane Sandy § Also war funding § Not subject to spending caps Copyright © 2015 American Association for the Advancement of Science 8/26/15 31
Senate House Budget Cmte Approps Cmte Energy + Commerce Cmte Subc on Energy + Water Env and Pub Works Cmte Subc on Energy + Water Natural Resources Cmte Subc on Interior + Env Energy and Nat Res Cmte Subc on Interior + Env Authorizing Committees Copyright © 2015 American Association for the Advancement of Science 8/26/15 32
Authorizations vs. Appropriations § Authorizations § Creates and modifies programs and policies § Sets funding ceilings § Can provide mandatory spending § Reconciliation bills § i. e. Bush-era tax cuts; certain fiscal elements of Obamacare § Appropriations § Provides funding to discretionary programs § Appropriating federal dollars is basically a two-step process § First authorization, then appropriation § However: unauthorized appropriations (and unfunded authorizations) are ever-present Copyright © 2015 American Association for the Advancement of Science 8/26/15 33
Mandatory Spending: An Alternate Path for R&D? § Two current examples: § Diabetes Research (NIH) § Biomass R&D Program (USDA) § Proposals: § FY 2017 budget request § 21 st Century Cures § Potential challenges: § Shifting power away from appropriators § Can make it harder for Congress to intervene § PAYGO rules § Potential advantages: § Stability? Copyright © 2015 American Association for the Advancement of Science 8/26/15 34
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The Federal Budget Cycle § Gov’t is usually working on 3 budgets at any given time Copyright © 2015 American Association for the Advancement of Science 8/26/15 37
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For more info… mhouriha@aaas. org 202 -326 -6607 http: //www. aaas. org/program/rdbudget-and-policy-program Copyright © 2015 American Association for the Advancement of Science 8/26/15 39
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