NCURA Region I RADG Meeting:

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NCURA Region I RADG MeetingFaith , Hope, and
Charity A new administration in Washington, a
financial crisis and unprecedented investment
losses. What does the future hold for federal
research policy and federal and foundation
research funding?
WASHINGTON UPDATE
Kevin Casey Jon Groteboer, NCURA Region I RADG
Meeting, February 26, 2009
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The President articulated support for research
and universities

• The state of the economy calls for action, bold
  and swift, and we will act - not only to create
  new jobs, but to lay a new foundation for growth.
  We will build the roads and bridges, the electric
  grids and digital lines that feed our commerce
  and bind us together. We will restore science to
  its rightful place, and wield technology's
  wonders to raise health care's quality and lower
  its cost. We will harness the sun and the winds
  and the soil to fuel our cars and run our
  factories. And we will transform our schools and
  colleges and universities to meet the demands of
  a new age. All this we can do. And all this we
  will do.
• President Barack Obama, Inaugural address,
  January 20, 2009

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Stimulus expenditures in historical context
Cost of the Stimulus Plans versus the Costs of
Selected Science Initiatives, Economic Recovery
Plans, and Wars and Conflicts (2008 Dollars in
Billions)
Dollars in Billions
Human Genome Project includes costs accrued for
genomics research between 1990-2003. Iraq War
costs from beginning of 2008 through July 2008.
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Impact on federal budget
FY09 United States Budget with the Stimulus
Plan 1004.3 trillion
FY09 United States Budget without the Stimulus
Plan 1003.5 trillion
Net Interest
Stimulus Plan
Non-Defense Discretionary Spending
Social Security
Net Interest
Medicare and Medicaid
Defense
Discretionary Spending
TARP and Fannie Mae/Freddie Mac Subsidies
Other
Mandatory Spending
Income Security
Source Congressional Budget Office
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FY09 Appropriations
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Trends in Federal Science Appropriations, FY04
FY09Nominal Year-to-Year Changes as a Percent
for Select Federal Science Agencies
FY09 Omnibus figures released February 23, 2009
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American Recovery Reinvestment Plan

• President Obama signed the two-year, 787
  billion economic stimulus package into law on
  February 17. The bill makes significant
  investments in biomedical research and the
  physical sciences and marks a notable
  acknowledgement by Capitol Hill of the critically
  important role university-based research plays as
  an economic driver and catalyst for solving
  public sector challenges.

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Breakout of how the new money will be allocated
among a number of major federal sponsors
ofresearch at Harvard

• National Institutes of Health
• Receives 10.4 billion overall
• 8.2 billion to the Office of the Director
• 7.4 billion to the Institutes, Offices and the
  Common Fund
• 800 million for the Office of the Director
• 1.3 billion to the National Center for Research
  Resources
• 1 billion for competitive construction and
  renovation awards of extramural research
  facilities
• 300 million for shared instrumentation and
  capital research equipment
• 400 million for comparative clinical
  effectiveness research (transferred from the
  Agency for Healthcare Research and Quality)
• 500 million for intramural facilities
  construction and renovation

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Breakout of how the new money will be allocated
among a number of major federal sponsors
ofresearch at Harvard
National Science Foundation Receives 3
billion overall o 2.5 billion for research and
related activities ?? 300 million for major
research instrumentation o 200 million for
academic research facilities modernization o
400 million for major research equipment and
facilities construction The NSF is directed to
submit a spending plan detailing its intended
allocation of funds within 60 days of the
enactment of the bill. Department of Energy
Receives 2 billion overall o 1.6 billion for
the Office of Science o 400 million for ARPA-E
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Breakout of how the new money will be allocated
among a number of major federal sponsors
ofresearch at Harvard
NASA Receives 1 billion overall o Science
400 million ?? To accelerate the development
of the tier one set of Earth science climate
research missions recommended by the National
Academies Decadal Survey ?? To increase the
agencys supercomputing capabilities o
Aeronautics 150 million o Exploration 400
million o Cross-agency 50 million NASA is
directed to submit a spending plan detailing its
intended allocation of funds within 60 days of
the enactment of the bill.
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Timeline - Milestones at a glance

• FEBRUARY 2009
• - 13th H.R. 1 passed by the House of
  Representatives H.R. 1 passed by the Senate
• 17th H.R. 1 signed into law, and site goes live
• 19th Federal Agencies to begin reporting their
  formula block grant awards
• MARCH 2009
• 3rd Federal Agencies to begin reporting use of
  funds
• Dialogue between agencies and OMB continues on
  government-wide requirements for obligating funds
• MAY 2009
• - 3rd Federal Agencies to make Performance
  Plans publicly available and will begin reporting
  on their allocations for entitlement programs
• - 15th Detailed agency financial reports to
  become available
• - 20th Federal Agencies to begin reporting their
  competitive grants and contracts
• JULY 2009
• 15th Recipients of Federal funding to begin
  reporting on their use of funds
• SEPTEMBER 2010
• -Funding authority expires

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What reporting will be collected from recipients
of Federal funding for reporting on Recovery.gov?

• As required by Section 1512 of the Recovery Act
  and this guidance, each recipient, as described
  above, is required to report the following
  information to the Federal agency providing the
  award 10 days after the end of each calendar
  quarter, starting on July 10th.
• These reports will include the following data
  elements, as prescribed by the Recovery Act
• (1) The total amount of recovery funds received
  from that agency
• (2) The amount of recovery funds received that
  were obligated and expended to projects or
  activities. This reporting will also included
  unobligated Allotment balances to facilitate
  reconciliations.
• (3) A detailed list of all projects or activities
  for which recovery funds were obligated and
  expended, including--
• (A) The name of the project or activity
• (B) A description of the project or activity
• (C) An evaluation of the completion status of the
  project or activity
• (D) An estimate of the number of jobs created and
  the number of jobs retained by the project or
  activity and
• (E) For infrastructure investments made by State
  and local governments, the purpose, total cost,
  and rationale of the agency for funding the
  infrastructure investment with funds made
  available under this Act, and name of the person
  to contact at the agency if there are concerns
  with the infrastructure investment.

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Deficits pose a challenge for programs not
supported through the stimulus plan
United States Budget Deficit 2005-2010
The question we ask today is not whether our
government is too big or too small, but whether
it works - whether it helps families find jobs at
a decent wage, care they can afford, a retirement
that is dignified. Where the answer is yes, we
intend to move forward. Where the answer is no,
programs will end. Those of us who manage the
public's dollars will be held to account - to
spend wisely, reform bad habits, and do our
business in the light of day - because only then
can we restore the vital trust between a people
and their government. President Barack
Obama
Source Congressional Budget Office
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The Presidents plan for renewing science and
innovation

• Restoring integrity to U.S. science policy
• Doubling over a 10 year period the federal
  investment in basic research
• Making a national commitment to science education
  and training
• Encouraging American innovation to flourish
• Addressing the grand challenges of the 21st
  century through accelerating the transition to a
  low-carbon, oil-free economy, enabling all
  Americans to live longer and healthier lives, and
  protecting our country from emerging threats to
  our national security.

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Investing in research strengthens the economy

• Research is the basis of virtually every
  improvement in health and medicine. The impact of
  scientific research, however, extends far beyond
  disease. Throughout history, advances in science
  and technology strengthened our economy, raised
  our standard of living, enhanced our global
  leadership, and lengthened and improved our
  lives.
• Elias Zerhouni, Former Director of NIH
• A variety of studies have concluded that between
  50 and 85 percent of the growth in Americas
  Gross Domestic Product over the past half-century
  has its root in advancements in science and
  engineering. Correspondingly, it has been
  estimated that two-thirds of the increase in
  productivity in America in recent decades is also
  attributable to advancements in science and
  engineering.
• Norman Augustine, Retired Chairman CEO,
  Lockheed Martin Corp

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NIH pays real dividends

• In FY07, NIH awarded approximately 22.846
  billion in grants and contracts to universities
  and other research institutions in 50 states.
• The value of NIH state awards ranged from 3.493
  billion (California) to 7 million (Wyoming)
• Seven states received more than 1 billion in
  funding from NIH California (3.493 billion),
  Massachusetts (2.339 billion), New York (2.005
  billion), Maryland (1.566 billion), Pennsylvania
  (1.436 billion), Texas (1.128 billion), and
  North Carolina (1.088 billion)
• NIH funding creates jobs and supports wages.
• In fiscal year 2007, NIH grants and contracts
  created and supported more than 350,000 jobs that
  generated wages in excess of 18 billion in the
  50 states. The average wage associated with the
  jobs created was 52,000.
• NIH funding stimulates business activity.
• In FY07, every 1 million that NIH invested
  generated 2.21 million in new state business
  activity.
• An overall investment of 22.846 billion from NIH
  generated a total of 50.537 billion in new state
  business activity in the form of increased output
  of goods and services.

Source Inside Your Own Backyard How NIH
Funding Helps Your States Economy, 2008
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NSF Investments create Economic Benefits and Jobs

• NSF invests 94 of its budget directly into
  support for research at universities and
  colleges, in all 50 states. Much of this leads
  directly to job creation in the short-term, and
  innovation in the long-term. NSF supports over
  2,000 institutions and reaches nearly 200,000
  researchers, postdoctoral fellows, trainees,
  teachers, and students every year.
• Various studies have shown increased economic
  activity (wages paid) of about 2.5 dollars for
  every dollar of NSF investment, with associated
  tax revenue benefits to state and federal
  governments. Thus, a 600 million increase in
  NSFs budget eventually will result in
  approximately 1.5 billion in added economic
  activity to the U.S. economy.
• Roughly 200 direct and indirect jobs are created
  at universities and research institutions for
  every 1 million invested by NSF. So, 1 billion
  translates into 200,000 new jobs (both direct and
  indirect).

Source AAU White Paper, February 2009
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Role beyond the sciences

• The common thread linking these challenges is
  the fundamental reality that in the 21st century,
  our destiny is shared with the worlds from our
  markets to our security. From our public health
  to our climate, we must act with that
  understanding that now more than ever, we have a
  stake in what happens across the globe. --
  President Barack Obama
• The fate of our nation and the future of our
  children will be forged in the crucible of these
  global challenges. America cannot solve these
  crises without the world, and the world cannot
  solve them without America.
• -- Hillary Clinton, Secretary of State

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Health care reform poses a challenge to the new
administration

• In charting a new fiscal course, we need to be
  clear in diagnosing the problem. The single most
  important thing we can do to improve the
  long-term fiscal health of our nation is slow the
  growth rate in health care costs.  Health care is
  the key to our fiscal future. So to my fellow
  budget hawks in this room and in the rest of the
  country, let me be very clear health care reform
  is entitlement reform. The path of fiscal
  responsibility must run directly through health
  care.  
• -- Peter R. Orszag, OMB Director
• It is estimated 75 of todays healthcare
  expenditures relate to chronic diseases. The
  emergence and consequences of chronic conditions
  -- like obesity, diabetes, or Alzheimers disease
  -- are examples of the challenges we face.
  Healthcare costs are rising exponentially. We
  must continue our focus on not only how we best
  deliver healthcare, but more importantly, what
  healthcare we deliver.
• --Elias Zerhouni, Former Director of NIH

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The health care challenge closing thoughts

• We cannot afford to stand stillthe
  demographics are against us. There is an
  impending increase in cancer due to the baby
  boomers aging into their cancer-prone years,
  which has been referred to as an impending
  tsunami. But unlike a real tsunami, which comes
  unexpectedly with no time for preparation, we are
  well aware of this impending crisis. And we know
  that the Congressional investment in basic and
  cancer-focused research has positioned the cancer
  research community to make more rapid progress in
  translating basic discoveries into the diagnosis,
  treatment, and eventually, prevention of cancer.
  We owe it to the public to capitalize on these
  investments. We are all in this together.
• -- Joan Brugge, Cancer Researcher