February 9, 2007

APPROPRIATIONS - FY2007 JOINT FUNDING RESOLUTION

 

On January 31, 2007, the House approved the Joint Funding resolution [also referred to as the full-year FY2007 continuing resolution (CR) (H.J. Res 20)] by a vote of 286-140. The spending measure fills the gap left by the collapse of the budget process under Republican rule last fall. The Senate began debating the measure on February 8, 2007, but with funding for the government running out on February 15, 2007, both parties and the White House are eager to resolve the fiscal crisis for FY2007 and move on to the FY2008 budget process.


Total funding for the resolution, which covers ten of the twelve appropriations bills, conforms to the spending caps set by the White House last year, but tilts now toward Democratic priorities in health care and education.


Joint Funding Resolution Provides NIH with $620 Million Increase in FY2007
The Joint Funding resolution provides the National Institutes of Health with a $620 million increase to $28.931 billion in FY2007. FASEB applauded House passage of the Joint Funding Resolution, and is actively encouraging the Senate to do the same.


The significant NIH increase that was included in the Joint Funding resolution is a tremendous victory for biomedical researchers and all those who support it. While the change in Congressional leadership (as a result of the elections) contributed to making this possible, it still is highly unusual that an agency’s (NIH) final funding level would exceed all three of the FY2007 proposals put forward last year. Remember, the President proposed flat funding, the House did the same, and the Senate proposed a $200 million increase for NIH. Therefore, FASEB society scientists, as well as the entire biomedical research community, deserve tremendous credit for helping make this increase possible. In fact, nearly 2,000 FASEB Society members contacted their Members of Congress during a 24-hour period when the final funding decisions were being made, and more than 5,000 society members responded to an earlier alert to ask their Members of Congress to support additional increases for NIH.


According to Congressional leaders, the $620 million increase for NIH in FY2007 will allow the agency to award an additional 500 research grants. It will create a new $40 million program (Junior Pioneer awards program) to support innovative thinking and outside-the-box research and looks to the future by providing $91 million for grants to first-time investigators. The measure also provides $443 million for the common fund, an increase of $113 million over the FY2006 level. However, appropriators will no longer require NIH Institutes and Centers (ICs) to transfer funds to the Common Fund, and instead will provide funds directly to it. All ICs will thus receive increases in FY2007 based on not having to transfer dollars to the Common Fund. In addition, the resolution includes $69 million for the National Children’s Study.


Joint Funding Resolution Provides NSF and DOE with Significant Increases
While the Joint Funding resolution did not completely embrace the American Competitiveness Initiative to double spending on basic research at NSF and DOE over 10 years, it did provide significant increases to both agencies in FY2007. The House-passed bill provided $4.7 billion, an increase of $335 million, in the NSF’s research account to fund Innovation Programs. The Department of Energy’s Office of Science is funded at $3.8 billion in FY2007, an increase of $200 million. Both increases result in a hefty down-payment towards enhancing U.S. global competitiveness by investing in basic science research.

 


 

PRESIDENT'S FY2008 BUDGET REQUEST FOR NIH, NSF, DOE, USDA, VA and NASA

 

Overview
President Bush released his FY2008 budget proposal on Monday, February 5, 2007. Defense and Homeland Security accounts receive the bulk of the increases, while the President’s budget would squeeze non-security programs to a one percent annual growth rate in order to meet his goal of erasing the deficit by 2012. Rob Portman, the President’s Budget Director, stated that the one percent increase in non-security domestic spending “is adequate to fund the nation’s priorities.”


FASEB issued a press release stating that President Bush has failed to live up to his promise of nourishing NIH, especially in light of the FY2007 Joint Funding resolution, which provides NIH with a $620 million increase. However, the press release also praised the President for conveying a commitment to America’s future through the American Competitiveness Initiative’s continued support of the National Science Foundation (NSF) and the Department of Energy’s (DOE) Office of Science.
 

NIH
At first glance, it appears that the President’s FY2008 budget proposal includes an increase of $232 million for NIH, to $28.621 billion (the President’s Labor-Health-Education appropriations request for NIH). However, when reading the fine print, it was discovered that the President’s FY2008 budget proposes to increase the amount of dollars that NIH must transfer to the Global AIDS Fund by $200 million over FY2007. Therefore, based on the President’s assumptions for NIH’s FY2007 funding level, the net effect is that NIH would receive a paltry $32 million increase in FY2008 under the President’s proposal. The $32 million increase amounts to a 0.1 percent increase for the agency.


The President’s proposal looks even worse when compared to the funding level proposed for NIH in the FY2007 Joint Funding Resolution ($28.931 billion for NIH). In fact, the President’s FY2008 proposal for NIH would represent more than a $500 million cut from the House-passed joint funding resolution. NIH’s purchasing power would continue to decline in FY2008 under the President’s proposal because the Biomedical Research and Development Price Index (BRDPI) is forecasted to be 3.7 percent in FY2008.
Specific NIH Budget Information relating to the President’s FY2008 proposal:


• Research Project Grants (RPG’s) represent 53 percent of the total NIH budget request.
• NIH plans to support 10,188 new and competing RPG’s in FY2008, an increase of 566 over FY2007.
• The average cost of a new and competing renewal project grant in FY2008 will be about $350,000, with no increase provided for inflation.
• The FY2008 budget allocates a total of $486 million, an increase of $72 million, or 17 percent, over FY2007, to continue support for trans-NIH Roadmap initiatives (Common Fund) in accordance with the strategic plan developed in September 2003.
• The FY2008 budget includes $31 million, an increase of $16 million, to double the funding available across the NIH ICs for the “Pathways to Independence” program to provide increased and stable support for new research investigators.
• For FY2008, the President’s budget proposes a total of $1.7 billion for NIH biodefense efforts, a net decrease of $8 million or 0.4 percent, below FY2007.


Additional information about how the President’s FY2008 budget will affect NIH can be found here.


NSF
The President’s FY2008 budget proposes that the National Science Foundation (NSF) continue down the path described in the American Competitiveness Initiative (ACI), which aims to double the budgets of NSF and DOE over the course of a 10-year period. NSF would receive $6.43 billion in the President’s budget. Given congressional support
for the ACI, as shown through the introduction of numerous bills aimed at increasing the U.S.’s scientific competitiveness, it seems likely these numbers would be supported by Congress. A link to the NSF budget request can be found here.


DOE
Similar to the NSF budget, the President recommended the Department of Energy’s (DOE) Office of Science receive an increase in FY2008 that continues toward the path described in the American Competitiveness Initiative (ACI). DOE’s Office of Science would receive $4.398 billion in the President’s budget.


USDA
The President’s FY2008 budget proposes a significant increase for the USDA’s National Research Initiative (NRI), recommending a funding level of $257 million. This is approximately $67 million over the FY2007 funding level in the House-passed joint funding resolution. However, much of the increase is targeted to “high priority” research areas, including $19 million for bio-based fuels as part of the President’s alternative energy initiative. At a briefing releasing the budget, USDA Secretary Mike Johanns stated that the Administration is emphasizing the importance of competitive research grants through the NRI. This was clearly to deflect criticism that the FY2008 proposal also includes the loss of several hundred million dollars of projects funded through the Agricultural Research Service (ARS) via congressional earmarks, a topic of great interest to reporters present at the briefing. In answer to questions about whether the cuts will make the U.S. less competitive in agricultural research or if the cut projects had no value, Johanns stated simply that the President was not going to fund earmarks, supported competitive research, and wished to bring greater transparency to the budget process. The proposed amount for ARS in the FY2008 budget is $1.056 billion. The USDA budget request to Congress can be found here.


VA
In FY2008, $411 million is requested for the VA Medical Research Program. The President intended to provide a $2 million increase based on his assumption that the VA Medical Research Program’s budget in FY2007 would be $409 million. However, the Joint Funding resolution proposes to fund the VA Medical Research program at $412 million in FY2007. Therefore, some may view the President’s proposal as a cut.
For more information, read the press release from VA.


NASA
President Bush’s FY2008 budget for NASA’s Human System Research and Technology (HRS&T) theme is quite disappointing this year. This budget requests greatly fails FASEB’s FY2008 funding recommendation that NASA restore funding for basic life sciences research, increase funding for “countermeasures research” needed for human space travel, and allocate funding to investigator-initiated, peer reviewed life sciences research in FY2008. Detailed information on the NASA budget can be found on its web site.


TOP OF PAGE

 

 

PAGE 1PAGE 2

 

GO BACK TO FEB 9, WASHINGTON UPDATE

 

FASEB’s Washington Update is brought to you bi-monthly by the FASEB Office of Public Affairs. We welcome your questions and comments – please contact Carrie Wolinetz at cwolinetz@faseb.org or 301-634-7650. For more information about how to get involved in research advocacy, visit: http://capwiz.com/faseb/home/

 

   
   
 

Click Here to
Subscribe/Unsubscribe to FASEB Washington Update