1. The Federal R&D Budget: Process and Perspectives Matt Hourihan March 19, 2015 for the Marine Geoscience Leadership Symposium 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

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

7. 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)

8. 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)

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

10. 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

12. 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

13. 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

14. 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 can’t seem to pass one?) Reconciliation instructions?

16. 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”

17. 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”

18. The Federal Budget Cycle Gov’t is working on 3 budgets at any given time. Right now: FY15 in progress FY16: Heading for budget resolutions, approps to follow FY17: Agencies probably ramping up

19. Looking ahead… Budget resolutions coming soon 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?

25. 3. agency notes R&D STEM

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