Office of Sponsored Research-Evanston Brownbag Presentation By Jennifer Kunde & Virginia Neale Northwestern Unive

1. Office of Sponsored Research-Evanston Brownbag Presentation By Jennifer Kunde & Virginia Neale Northwestern University Northwestern University Government Relations June 20, 2013

2. Northwestern University Government Relations Mission: • Preserve and protect Northwestern’s tax status; • Increase federal and state funding for research and education and for specific initiatives of Northwestern; • Influence federal and state policies that affect the broad mission of the university and specific goals identified by the University President.

3. Northwestern UniversityGovernment Relations Morty Schapiro President Bruce Layton Special Assistant to the President Jennifer Kunde Director Joseph Fitzgibbon Coordinator Virginia Neale Associate Director Stephanie Espino Administrative Assistant II

4. Northwestern UniversityGovernment Relations State Relations • Maintain relationships with Illinois elected and appointed officials, and Executive Agencies. • Advocate for student financial aid and other University legislative priorities; • Work to prevent harmful effects of regulations and mitigate effects of adverse legislation (e.g. concealed-carry gun law). • Work with coalitions and organizations to advance University priorities, including organizations such as Federation of Independent Colleges and Universities, Illinois Science + Technology Coalition, Illinois Biotechnology Industry Organization.

5. Northwestern University Government Relations State Relations • Advocate for funding. Although the State of Illinois funds very little research in its operating budget, it has appropriated – from the proceeds of bonds – over $75 million in capital funding to Northwestern since 2001 (most recently, $20 million for Tech Infills). • Work with other universities, government agencies and public-private partnerships to advance statewide economic development and engagement of research universities in economic development programs. • Plan and conduct University events on campus and in Springfield that engage students, faculty and University officers with State government officials.

6. Northwestern UniversityGovernment Relations Congressional Relations • Maintain the university’s relationships with the Illinois Congressional Delegation. • Advocate for University priorities. • Keep the delegation informed on campus activities. • Organize events on campus with Illinois delegation members and staff. • Connect Members of Congress with NU expertise. • Organize briefings on Capitol Hill for NU faculty to showcase their research. • Work with consultants and coalitions.

7. Northwestern UniversityGovernment Relations Federal Agency Relations • Attend federal agency meetings and briefings, build new relationships with agency officials. • Track new agency initiatives, observe agency restructuring/strategic priorities. • Promote NU faculty to serve on federal advisory committees. • Connect faculty with agency officials in Washington, DC to pursue new funding opportunities. • Work with the Administration to reduce regulatory burden on recipients of federal research funds. • Work with consultants and coalitions.

8. Northwestern UniversityGovernment Relations A Typical Day for NUGR: • In addition to University priorities, we are guided by the actions in both Congress and the Illinois General Assembly. • Issues change daily, for instance, a major focus at the State Level this Spring was Concealed Carry Legislation, requiring us to work to protect the university. • At the Federal level, we analyze and share with the Illinois Delegation concerns about legislative issues as varied as research funding, immigration, gun control, tax policy, legal reforms, competitiveness and innovation, veterans, healthcare, intellectual property, and regulatory reform.

9. Northwestern University Government Relations • We work closely with associations, such as the AAU, COGR, NAICU, Big Ten, UMR, AAMC, Science Coalition, and the Illinois Science + Technology Coalition to set community priorities and develop legislative strategy.

10. Northwestern UniversityGovernment Relations The Importance of the Federal Budget • The Federal Budget guides annual funding for the government. • In an ideal world: • The President and Congress agree on a budget number; • Congress appropriates funding to the 12 appropriations bills; • Congress passes the bills, the President signs, and; • Agencies receive their funding and award research grants.

11. Northwestern UniversityGovernment Relations Federal Budget • Congressional Level Interventions • Lobby for funding levels • Request favorable bill language • Host and sponsor events • Prevent harmful bill provisions • Showcase faculty Appropriations Bills Agency Decision • Agency Level Interventions • Showcase faculty • Recommend faculty for advisory panels • Obtain early information on agency priorities • Networking • Host and sponsor events Grant

12. Northwestern UniversityGovernment Relations The Federal Budget Process • Unfortunately, we don’t live in an ideal world! • Divided government leads to different priorities, and fights erupt over spending vs. cutting. • This leads to disagreements and inaction. • As a result, government often ends up funding federal agencies via a “Continuing Resolution,” legislation passed to keep the government funded, but often at previous fiscal year levels, or even diminished levels. • This leads to uncertainty for agency-level planning, and can hurt new research starts as well as disrupt ongoing projects.

13. Sequester:A break-down over 10 years • $1.2 Trillion in total cuts between 2013 and 2021 • $984 billion in spending cuts, $216 billion in assumed debt service savings • $492 billion will be cut from defense spending, $492 billion will be cut from non defense spending • Medicare provider payments cut by 2% • Other mandatory programs will be cut by $41 billion

14. Sequestration:Carve-outs • Aside from active duty pay, almost all defense spending is subject to the sequester. There are more carve-outs for domestic spending. Defense: Non-Defense: *All military personnel accounts *Social Security *Overseas Combat Operations *Medicare (limited to a 2% cut) *Foreign Military Sales Trust Fund *Medicaid *Military Retirement Fund *Pell Grants *Food stamps (SNAP) *Dept. of Veterans Affairs programs *Highway trust fund supported programs *Indian Health and Migrant health centers (limited to a 2% cut)

15. Sources: CEF Calculations based on An Update to the Economic and Budget Outlook: Fiscal Years 2013 to 2023, CBO, February 2013; OMB Report Pursuant To The Sequestration Transparency Act Of 2012, September 2012; the American Taxpayer Relief Act of 2012, January 2013; House Budget Committee’s Fiscal Year 2014 Budget Resolution Discretionary Spending table, Senate Budget Committee’s FY 2014 Budget Resolution Discretionary Spending Summary and Budget of the United States Government, Fiscal Year 2014 Summary Tables.

16. Sequestration:2013 Implementation • On March 1, the President issued a sequestration order requiring $85 billion to be cut from the federal budget • Agencies were given 30 days from passage of the FY 2013 continuing resolution (CR) to announce how cuts will be implemented. • Amount reduced from $109 billion in the Jan. 2, 2012 “fiscal cliff deal.” • Cut to defense spending of $42.7 billion • Reduced from $54.7 billion, or to 7.8 percent. • Cut to nondefense spending of $42.7 billion • Reduced from $54.7 billion, or to 5.0 percent. • Medicare cuts ($11.1 billion) comprise about 26 percent of the total non defense cut.

17. Sequestration:Difficulties of 2013 Implementation • Cuts occur in the middle of the fiscal year. • Sequester cuts are applied across-the-board at the “program, project and activity level” and many departments don’t define what that is. • Sequestration in future years will not be across-the-board. Congress will have greater discretion over cuts in 2014-2021.

18. Sequestration:What has happened since March 1 • Most Federal agencies have released general guidance on how they plan to implement the cuts. • Some agencies have begun announcing cuts at the “program, project and activity” level. All agencies will announce their cuts at the “program, project, and activity” level in the coming weeks. • Few contracts/grants have been terminated, but modifications or delays in solicitations and awards have begun. Agency staff are notifying grant/contract recipients as they become aware of cuts to their programs. • Federal employees won’t be laid off immediately; but furloughs have begun.

19. Sequestration:Topline cuts by agency in FY 2013 • National Institutes of Health (NIH): -5.5% • National Science Foundation (NSF): -2.1% • Department of Defense (DOD) R&D: -9% • Air Force Office of Scientific Research (AFOSR): -10% • Department of Energy (DOE) R&D: -4.4% • Health and Resources Services Administration (HRSA): -5.6%

20. Sequestration:Guidance Issued by Federal Research Agencies • NIH: • About 703 fewer new grants (1,357 fewer total grants) in FY 2013. • Average award size will be consistent with 2012 levels. • No inflationary increases for future years. • Continuation grants will likely see small cuts. • NSF: • Existing awards, (including grant increments), NSF staff, and STEM human capital development programs will be protected. • About 1,000 fewer new research grants and cooperative agreements will be awarded in FY 2013.

21. Sequestration:Guidance Issued by Federal Research Agencies • DOD: • $200 million reduction in university grants in FY 2013. • RDT&E investments associated with urgent operational needs or the new defense strategy will be protected. • Avoid cuts that are irreversible or produce significant disruptions/costs. • DOE: • Research grants will be reduced in number and size; the pipeline of support for graduate and post-graduate research fellowships will be constricted. • ARPA-E expects to administer cuts to new awards. Existing awards should be protected.

22. Sequestration:Guidance Issued by Federal Research Agencies • AFOSR: • Total grants in FY 2013 will be significantly reduced. • Likely no new starts and no increments on existing grants, unless your increment was due before March 27, 2013. • 2,000 graduate students supported by AFOSR may be let go. • Planned actions for new and existing work may be re-scoped, delayed or cancelled depending on the nature of the work and the degree to which it directly impacts AFOSR’s mission goals. • HRSA: • Formula funds through the Title VII health professions programs and Title VIII nursing programs will have to be significantly reduced. • No specific guidance on how HRSA will implement cuts to competitive programs that are not funded through formulas.

23. Sequestration:What happens next? Next milestone: • National Debt Limit will need to be raised again in the fall of calendar year 2013. • Funding for all federal programs expires on October 1st, 2013. Failure by Congress to pass funding bills could result in a government shut down. • Possible Scenarios • Congress passes a CR to fund programs at existing levels for a few months (this will result in another across-the-board cut). • Congress passes a year-long CR which includes a few funding bills with bipartisan support (some research programs will do well in this scenario). • Congress negotiates a grand bargain to replace the sequester that reduces mandatory and discretionary spending and raises revenue (research funding may be cut further under this scenario).

24. Northwestern UniversityAdvocacy Urging Congress to turn off the sequester. Urging Congress to fund key federal agencies at the highest possible level. Fighting efforts to impose new Congressional oversight in the peer review process. Collecting vignettes from faculty about the effect of sequestration.

25. Contact Information Questions? Please contact: Jennifer Kunde Director of Government Relations J-kunde@northwestern.edu Virginia Neale Associate Director of Government Relations Virginia.neale@northwestern.edu