1 / 33

The Federal R&D Budget: Process and Perspectives

Gain insights into the complexities of federal budgeting, the impact on R&D funding, and the key phases of the budget cycle. Learn about funding priorities and the role of Congress in shaping the budget. Explore the dynamics of discretionary versus mandatory spending and the challenges faced in budget decision-making. Stay informed to navigate the nuances of the federal budget landscape effectively.

dtony
Download Presentation

The Federal R&D Budget: Process and Perspectives

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Federal R&D Budget: Process and Perspectives Matt Hourihan June 23, 2015 For the Washington Internships for Students of Engineering (WISE) AAAS R&D Budget and Policy Programhttp://www.aaas.org/program/rd-budget-and-policy-program

  2. 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 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

  3. Broad Qualities of the System • Decentralization • “Embeddedness” • Incrementalism

  4. 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

  5. A Typical Federal Budget Process:Three Years, Four Phases Phase 4: Execute the fiscal year’s budget (not shown) Arranged by fiscal year (October to September)

  6. 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)

  7. Agency Budgeting Coordination (?) and Top-Down Guidance One Agency’s R&D Budget Decentralized planning and scientific input

  8. 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

  9. 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

  10. The Federal Budget Cycle • Phase 3: Congress gets involved • Receives and reacts to President’s budget, holds hearings • IN THEORY: Approves budget resolution (simple majority) • 302(b) allocations to the 12 appropriations subcommittees

  11. The Budget Resolution Overall spending framework Discretionary spending figure is divvied up by appropriations committees Budget resolution is a politicaldocument (which is why they can’t seem to pass one?) Reconciliation instructions?

  12. 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”

  13. 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”

  14. 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)

  15. The Federal Budget Cycle • Gov’t is working on 3 budgets at any given time. Right now: • FY15 in progress • FY16: Approps underway • FY17: Agencies ramping up

  16. Looking ahead… • Democratic roadblocks • 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

  17. For more info… mhouriha@aaas.org 202-326-6607 http://www.aaas.org/program/rd-budget-and-policy-program

More Related