The Federal R&D Budget: Process and Perspectives - AAAS
The Federal R&D Budget: Process and Perspectives Matt Hourihan March 31, 2014 For the Catalyzing Advocacy in Science and Engineering Workshop
AAAS R&D Budget and Policy Program http://www.aaas.org/spp/rd
The Federal Budget is Kind Of a Big Deal z “Politics is who gets what, when, and how.” z Put another way: budgeting is a manifestation of politics z The Budget is also a roadmap
z The primary way Congress directs U.S. policy z Major impact for R&D and innovation: most basic research, and most university research, is federally funded
Source: Rock Talk blog, February 2012, http://nexus.od.nih.gov/all/2012/02/03/ourcommitment-to-supporting-the-next-generation/
Two Spending Categories: Discretionary vs. Mandatory z Mandatory Spending (aka Direct Spending) z Mostly entitlements, mostly on “autopilot” z Potential for high political sensitivity = “third rail”
z Discretionary Spending: z Adjusted annually z Easy (nondefense) targets? z i.e. Sequestration z Vast majority of federal R&D is discretionary
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
A Typical Federal Budget Process: Three Years, Four Phases Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Phase 4: Execute the fiscal year’s budget (not shown) Arranged by fiscal year (October to September)
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Phase 1: Internal agency discussions and planning z Strategic plans, staff retreats, stakeholder meetings, program assessments
z OMB is present throughout z Early spring: guidance memo z Science & Tech: Joint guidance memo from OMB / OSTP (midsummer)
z Agencies deliver budget justifications to OMB (early fall)
What Drives Presidential R&D Budget Formulation? z Top-down and bottom-up priorities and politics z OMB oversight and OSTP input
z Expert and community input z Congressional legislation z Big (fiscal) picture z Incrementalism
Science + Politics Mingle: One Example z Human Genome Project z Community takes first interest in mapping/sequencing z DOE labs take early gov’t interest and lead z Radiation and computing power z DOE labs officials convince dept. managers and advisory groups, OMB, Appropriators z NIH sets up its own program z Interagency rivalry evolves to collaboration z Congress eventually creates NHGRI
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Phase 2: OMB performs multi-stage review, responds to agencies (“passbacks”) z Agencies and agency heads can and do negotiate
z Budget proposals are finalized in January z President presents the proposed budget to Congress early February
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Phase 3: Congress gets involved z Receives and reacts to President’s budget, holds hearings z IN THEORY: Approves budget resolution (simple majority) z 302(b) allocations to the 12 appropriations subcommittees
The Budget Resolution z Overall spending framework z Discretionary spending figure is divvied up by appropriations committees z Budget resolution is a political document z (which is why they can’t seem to pass one?)
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Approps committees write/approve 12 appropriations bills z Bills have to pass both chambers z Differences are resolved in conference committee z Can be filibustered
z “President proposes, Congress disposes”
The Federal Budget Cycle Phase 4: Spend the Fiscal Year Budget Phase 2: OMB Review
FY 2016
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Budget Release
FY 2015
Phase 3: Congressional budget and appropriations
Phase 4: Spend the Fiscal Year Budget Phase 2: OMB Review
Budget Release
FY 2014
Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Gov’t is working on 3 budgets at any given time. Right now: z Spending FY14 z FY15 released, Congress getting involved z Agencies / OMB already thinking about FY16
Looking ahead… z Discretionary spending in FY 2015 has already been agreed z 25% of sequester reductions rolled back z Budget resolutions? Maybe in the House z Beyond FY 2015: back to sequester levels
z Big-picture fiscal challenges remain largely unchanged z Can R&D stay ahead of the curve?
For more info… [email protected] 202-326-6607 www.aaas.org/spp/rd/
AAAS R&D Budget and Policy Program http://www.aaas.org/spp/rd
The Federal Budget is Kind Of a Big Deal z “Politics is who gets what, when, and how.” z Put another way: budgeting is a manifestation of politics z The Budget is also a roadmap
z The primary way Congress directs U.S. policy z Major impact for R&D and innovation: most basic research, and most university research, is federally funded
Source: Rock Talk blog, February 2012, http://nexus.od.nih.gov/all/2012/02/03/ourcommitment-to-supporting-the-next-generation/
Two Spending Categories: Discretionary vs. Mandatory z Mandatory Spending (aka Direct Spending) z Mostly entitlements, mostly on “autopilot” z Potential for high political sensitivity = “third rail”
z Discretionary Spending: z Adjusted annually z Easy (nondefense) targets? z i.e. Sequestration z Vast majority of federal R&D is discretionary
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
A Typical Federal Budget Process: Three Years, Four Phases Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Phase 4: Execute the fiscal year’s budget (not shown) Arranged by fiscal year (October to September)
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Phase 1: Internal agency discussions and planning z Strategic plans, staff retreats, stakeholder meetings, program assessments
z OMB is present throughout z Early spring: guidance memo z Science & Tech: Joint guidance memo from OMB / OSTP (midsummer)
z Agencies deliver budget justifications to OMB (early fall)
What Drives Presidential R&D Budget Formulation? z Top-down and bottom-up priorities and politics z OMB oversight and OSTP input
z Expert and community input z Congressional legislation z Big (fiscal) picture z Incrementalism
Science + Politics Mingle: One Example z Human Genome Project z Community takes first interest in mapping/sequencing z DOE labs take early gov’t interest and lead z Radiation and computing power z DOE labs officials convince dept. managers and advisory groups, OMB, Appropriators z NIH sets up its own program z Interagency rivalry evolves to collaboration z Congress eventually creates NHGRI
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Phase 2: OMB performs multi-stage review, responds to agencies (“passbacks”) z Agencies and agency heads can and do negotiate
z Budget proposals are finalized in January z President presents the proposed budget to Congress early February
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Phase 3: Congress gets involved z Receives and reacts to President’s budget, holds hearings z IN THEORY: Approves budget resolution (simple majority) z 302(b) allocations to the 12 appropriations subcommittees
The Budget Resolution z Overall spending framework z Discretionary spending figure is divvied up by appropriations committees z Budget resolution is a political document z (which is why they can’t seem to pass one?)
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Phase 2: OMB Review
Budget Release
The Federal Budget Cycle Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Approps committees write/approve 12 appropriations bills z Bills have to pass both chambers z Differences are resolved in conference committee z Can be filibustered
z “President proposes, Congress disposes”
The Federal Budget Cycle Phase 4: Spend the Fiscal Year Budget Phase 2: OMB Review
FY 2016
Phase 1: Planning within Agency w/ OMB and OSTP oversight
Budget Release
FY 2015
Phase 3: Congressional budget and appropriations
Phase 4: Spend the Fiscal Year Budget Phase 2: OMB Review
Budget Release
FY 2014
Phase 3: Congressional budget and appropriations
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
z Gov’t is working on 3 budgets at any given time. Right now: z Spending FY14 z FY15 released, Congress getting involved z Agencies / OMB already thinking about FY16
Looking ahead… z Discretionary spending in FY 2015 has already been agreed z 25% of sequester reductions rolled back z Budget resolutions? Maybe in the House z Beyond FY 2015: back to sequester levels
z Big-picture fiscal challenges remain largely unchanged z Can R&D stay ahead of the curve?
For more info… [email protected] 202-326-6607 www.aaas.org/spp/rd/
