The Federal R&D Budget: Process and Perspectives Matt
Hourihan April 9, 2015 For George Washington University Course IAFF
2190W: Science, Technology & Policy 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 is Kind Of a Big Deal Politics is who gets
what, when, and how. - Harold Lasswell Budgeting is about values,
and its 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
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Broad Qualities of the System Decentralization Embeddedness
Incrementalism
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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
Discretionary Spending: Adjusted annually Easy (nondefense)
targets? i.e. Sequestration Vast majority of federal R&D is
discretionary
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A Typical Federal Budget Process: Three Years, Four Phases
Phase 4: Execute the fiscal years budget (not shown) Arranged by
fiscal year (October to September)
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The Federal Budget Cycle Phase 1: Internal agency discussions
and planning Strategic plans, staff retreats, program assessments
OMB is present throughout Early spring: guidance memo Science &
Tech: Joint guidance memo from OMB / OSTP (midsummer) Agencies
deliver budget justifications to OMB (early fall)
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Agency Budgeting One Agencys R&D Budget Coordination (?)
and Top-Down Guidance Decentralized planning and scientific
input
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The Federal Budget Cycle Phase 2: OMB performs multi-stage
review, responds to agencies (passbacks) Agencies and agency heads
can and do negotiate Budget proposals are finalized in January
President presents the proposed budget to Congress early
February
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Major Funding Priorities for FY16 Advanced Manufacturing
Low-carbon energy Climate research and earth observation
Agricultural R&D Infrastructure R&D Antibiotic Resistance*
Precision Medicine* Discovery Science: Life sciences and
neuroscience Advanced computing COMPETES Agencies R&D: $12.1
billion, +6.6% *New for FY16
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The Federal Budget Cycle Phase 3: Congress gets involved
Receives and reacts to Presidents budget, holds hearings IN THEORY:
Approves budget resolution (simple majority) 302(b) allocations to
the 12 appropriations subcommittees
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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 cant seem to
pass one?) Reconciliation instructions?
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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
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Congressional Budget Decisions All politics is local
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
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Authorizations vs. Appropriations Authorization Creates and
modifies programs Sets funding ceilings Under the jurisdiction of
the topical legislative committees Appropriations Permits funding
(power to incur obligations) Under jurisdiction of Approps
Committees Can be multiyear or advance appropriations (i.e.
Veterans) >$250 million in unauthorized appropriations in 2012
(per CBO)
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The Federal Budget Cycle Govt is working on 3 budgets at any
given time. Right now: FY15 in progress FY16: Budget resolutions;
approps to follow FY17: Agencies ramping up
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Looking ahead Budget resolutions to be finalized 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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3. agency notes R&D STEM
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For more info [email protected] 202-326-6607
http://www.aaas.org/program/rd -budget-and-policy-program
