The Federal RD Budget Process 101 Matt Hourihan
The Federal R&D Budget Process 101 Matt Hourihan November 7, 2017 For the UNC-Chapel Hill Science Policy Advocacy Group 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
The Federal Budget is Kind Of a Big Deal § Major impact for R&D and innovation: most basic research, and most university research, is federally funded § “Politics is who gets what, when, and how. ” - Harold Lasswell § Public dollars are scarce resources § The budget process is ultimately a negotiation between competing interests (and their proxies) in a decentralized system § Budget choices are influenced by many things at every step: § values; politics and political constituencies; power and control; tradeoffs; incrementalism; rules and institutions; and even merit! Copyright © 2015 American Association for the Advancement of Science 2
The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committee s OMB Budget Resolution OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x 12) § Timeline is 18 months or more from the start of agency planning to completion of appropriations and start of the fiscal year on October 1, however… § Congress hasn’t gotten appropriations finished on time since 1996 Copyright © 2015 American Association for the Advancement of Science 3
Formulation of the President’s Budget Executive Branch White House Agencies OMB § POTUS first required to submit annual budget in 1921 OSTP § Agencies work for the President, and thus the White House has final approval on what makes it into the budget request to Congress § Both top-down and bottom-up Copyright © 2015 American Association for the Advancement of Science 4
Agencies in the Budget Process Executive Branch § Agency process kicks off 18+ months in advance. Generally: § Developing strategic priorities, objectives (winter/early spring) § Then developing and iterating concrete, detailed program proposals and scenarios (spring/summer) § Often bottom-up: small units larger units agency leadership/CFO § Ingredients include: § Agency head and staff judgment § External input from advisory or review committees, workshops or meetings, NAS surveys, Congress, etc. § Incrementalism: last year’s budget influences next year’s § Performance metrics White House Agencies OMB OSTP Copyright © 2015 American Association for the Advancement of Science 5
The White House in the Budget Process Executive Branch § White House Agencies OMB = Office of Management and Budget § Spring: Guidance memo to agencies § Fall: Thorough, detailed review of agency OMB § OSTP = Office of Science and Technology Policy § Summer: joint memo with OMB outlining § § § budget submissions, followed by “passbacks” and appeals OMB’s job is to constrain spending broad S&T priority areas for investment Advice (with PCAST) and coordination to President, agencies, OMB, NSTC on science investments and strategies High-level political, spending, or legislative priorities Negotiation with agencies Things must wrap in January This is all truncated in transition years Copyright © 2015 American Association for the Advancement of Science 6
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The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committee s OMB Budget Resolution OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x 12) § Congress has the Power of the Purse § Does the President’s Budget even matter? Only as much as Congress lets it Copyright © 2015 American Association for the Advancement of Science 11
The Budget Resolution Legislative Branch § Established by 1974 CBA § Intended to reassert legislative control § Overall framework: § § § Revenue, deficit, and total spending targets Non-binding recommendations Key for science : discretionary spending limit to govern appropriations § Isn’t law and can’t change law, but can set up reconciliation instructions (i. e. tax reform this year) Budget Committee s Budget Resolution Appropriations Committees & Subcommittees SPENDING BILLS (x 12) § Best seen as a political document as much as a governing document § Partly because it isn’t always adopted… Copyright © 2015 American Association for the Advancement of Science 12
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Enter the Appropriators Executive Branch Legislative Branch White House Agencies Budget Committee s OMB Budget Resolution OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x 12) § Budget resolution discretionary target spending caps for each appropriations bill § Twelve appropriations subcommittees = twelve spending bills Copyright © 2015 American Association for the Advancement of Science 18
From Budget to Appropriations § Budget Resolution limits Approps Committees Subcommittees § These caps remain in place all the way through floor consideration § Led by “Cardinals” § Committee Chairs: Rep. Rodney § § Frelinghuysen (NJ), Sen. Thad Cochran (MS) Ranking Members: Rep. Nita Lowey (NY), Sen. Patrick Leahy (VT) Appropriators will often have their own priorities § “All politics is local” § Merit, ideology, constituent needs, § § balance and tradeoffs, waste and good government “President proposes, Congress disposes” Key: Getting bills that can pass Copyright © 2015 American Association for the Advancement of Science 19
Energy & Water Subcommittee House Senate Chair Mike Simpson (ID) Lamar Alexander (TN) Ranking Member Marcy Kaptur (OH) Dianne Feinstein (CA) § § § Tradeoffs: Balancing basic research and facilities, labs, tech portfolio, NNSA; also Army Corps, Bureau of Reclamation NNSA prioritized Office of Science: flat in House, +3% in Senate § ASCR boosted in both (exascale, facilities) § BES: facilities prioritized over research § Variation on Fusion Science Applied tech: Mixed reductions § ARPA-E zeroed in House § Very mixed for EERE, Fossil, Nuclear, grid Hubs, manufacturing institutes, other research centers mostly preserved Copyright © 2015 American Association for the Advancement of Science 20
Labor, HHS, Education Subcommittee House Senate Chair Tom Cole (OK) Roy Blunt (MO) Ranking Member Rosa De. Lauro (CT) Patty Murray (WA) § § § Deep divisions over public health programs, education, DOL Everybody likes NIH lately § House: +3. 2% (+$1. 1 billion) § Senate: +5. 6% (+$2. 0 billion) § Especially Alzheimer’s research § F&A changes prohibited § Fogarty protected § Includes 21 st Century Cures funding Others: § Bio. Shield and BARDA flat § IES flat or trimmed § CDC cut § Opioids Copyright © 2015 American Association for the Advancement of Science 21
Commerce, Justice, Science Subcommittee House Senate Chair John Culberson (TX) Richard Shelby (AL) Ranking Member Jose Serrano (NY) Jeanne Shaheen (NH) § § Tradeoffs: Balancing Justice, Commerce, NASA, NSF; smaller bills this year NSF: Cut by ~2% in both § House: no funding for vessels; physical and biological disciplines targeted on floor Senate: research, EHR trimmed § § § NASA: recent priority, but modest this year § Variation in Science Directorate funding; Exploration favored; Education protected NOAA: Sea Grant, most research protected § Climate research cut by 19% in House § Major differences re: Polar Follow-On NIST: Senate more generous; labs fare better than industrial innovation programs Census: boosted by 4%, but is it enough? Copyright © 2015 American Association for the Advancement of Science 22
The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committee s OMB Budget Resolution OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x 12) Copyright © 2015 American Association for the Advancement of Science 23
The Budget Process at a Glance Executive Branch Legislative Branch White House Agencies Budget Committee s OMB Budget Resolution OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x 12) “Please don’t veto us!” Copyright © 2015 American Association for the Advancement of Science 24
Other Legislative Tools for Spending § 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 25
The Federal Budget Cycle § Gov’t is usually working on 3 budgets at a time § (However, presidential transitions complicate things) Copyright © 2015 American Association for the Advancement of Science 26
Progress to Date On R&D-Relevant Spending Bills Bill House Floor Senate Committee Agriculture X X Defense X Commerce, Justice, Science X Energy & Water X Homeland Security X Interior & Environment X Labor, HHS, Education X X Milcon, Veterans X X State X X Transportation, HUD X X Copyright © 2015 American Association for the Advancement of Science 27
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Looking Ahead § FY 18 spending caps: Where do we end up? § House and Senate have budget resolutions, but… § Will need to work with Senate Democrats on any deal to change the caps § FY 18 appropriations: § CR in place until December § House finished, Senate close § Will the White House ultimately go along with any of this? § Signaled willingness to sign House omnibus § Implications of other policy issues: tax reform, border wall, healthcare, etc? Copyright © 2015 American Association for the Advancement of Science 29
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For more info… mhouriha@aaas. org 202 -326 -6607 http: //www. aaas. org/rd Copyright © 2015 American Association for the Advancement of Science 31
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