1. Research Administration for Scientists Tim Quigg, Associate Chair and Lecturer Computer Science Department, UNC-Chapel Hill The Federal Budgeting Process, Federal Funding of Research and UNC’s Share! COMP 918: Research Administration for Scientists © Copyright 2011 Timothy L. Quigg All Rights Reserved

2. Research Administration for Scientists The Federal Budget: Where does the money go? And why should you care? 1. It’s a lot of money, and it used to be yours The federal government spends ~$3.5 trillion a year, 1/5 of the U.S. economy. More than 80 percent of the money comes directly from YOU through income taxes and payroll taxes (and borrowing).

3. Research Administration for Scientists The Federal Budget: Where does the money go? And why should you care? 2. You can’t do POLICY in Washington without MONEY Bills can be passed, but without money policies can’t be implemented. In these times of huge budget deficits, every policy has to be considered in the context of its impact on the budget.

4. Research Administration for Scientists The Federal Budget: Where does the money go? And why should you care? 3. The budget process takes up a lot of time and effort on Capitol Hill and in federal agencies. Three budget years are being “worked” at any point in time The media is “obsessed” with covering the process

5. Research Administration for Scientists The Federal Budget: Where does the money go? And why should you care? 4. The federal budget determines the health of U.S. science and engineering The federal government spends $140 billion+ a year on R&D. The federal government funds 60 percent of all university R&D, and also supports fellowships, scholarships, student loans, and other aid. R&D funding decisions are part of the federal budget process.

6. Research Administration for Scientists There is no better reflection of the priorities of an organization than where it invests its money, so always look at the budget to see what it really considers to be important! Let’s look at the federal budgeting “process” to see how it works – sort of!

7. Research Administration for Scientists Executive Office of the President (EXOP) White House Office Office of Management & Budget (OMB) Office of the Vice President (OVP) National Security Council (NSC) President’s Foreign Intelligence Advisory Board (PFIAB) Office of Policy Development (OPD) Council of Economic Advisors (CEA) Council of Environmental Quality (CEQ) US Trade Representative (USTR) Office of Administration (OA) Office of National Drug Control Policy (ONDCP) Office of Science & Technology Policy (OSTP) Mix of detailees, career, political Political Primarily career staff

8. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Congress House Senate Approps

9. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Guidance

10. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA

11. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Budget Request

12. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Budget Request Passback

13. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Budget Request Appeal Passback

14. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Congress House Senate Approps President’s Budget Request

15. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Congress House Senate Approps Budget Resolution 302(b) Allocation Subcommittee Markup Committee Markup Floor Vote Conference

16. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Congress House Senate Approps Budget Resolution 302(b) Allocation Subcommittee Markup Committee Markup Floor Vote Conference Hearings SAPs

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18. The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Congress House Senate Approps Bills

19. Research Administration for Scientists The Budget Process Department of Energy Science Fossil Energy NNSA White House OMB Congress House Senate Approps Apportionment $

20. Research Administration for Scientists The DOE/SC Budget Cycle FY 1999FY 2000FY 2001

21. Research Administration for Scientists Glossary of Federal Budget Terms Gross Domestic Product (GDP): The value of all finished goods and services produced in a country during a given period. GDP serves as the principal measure of the size of a country’s economy. Fiscal Year: The federal government’s accounting period, which begins October 1 and ends September 30. Many states have different fiscal years, e.g., North Carolina’s is from July 1 to June 30.

22. Research Administration for Scientists Glossary of Federal Budget Terms Congressional Budget Office (CBO): A legislative agency that assists Congress in the preparation of the budget and analyzes budget-related issues. CBO is responsible for estimating the budgetary effects of all spending and revenue bills. Office of Management and Budget Office (OMB): An executive agency located in the White House that prepares the President’s Budget for submission to Congress and manages the distribution and expenditure of appropriated funds.

23. Research Administration for Scientists Glossary of Federal Budget Terms Authorization: Legislation that establishes or continues a federal program or agency, specifies its general goals and conduct, and usually sets a ceiling on the amount of money that can be appropriated for it. Appropriators may not exceed the amount authorized for a given program, but are under no obligation to fully or even partially fund the program. Appropriation: The amount of funding Congress provides for a federal program to spend in a given year. Legislative language sometimes set the terms under which funds my be spent.

24. Research Administration for Scientists Glossary of Federal Budget Terms Rescission: A statutory midyear reduction or cancellation in previously appropriated funds. The President submits a rescission request to Congress, specifying the amount of the cut and estimating the impact. Congress then has 45 days to pass a bill allowing the cut in spending. If Congress does not pass a bill in that period of time, the rescission request is considered refused. Continuing Resolution: Legislation that extends appropriations for specific ongoing program when the regular appropriation has not been enacted by the beginning of the fiscal year (October 1).

25. Research Administration for Scientists Glossary of Federal Budget Terms Discretionary Programs: Programs funded by annual congressional appropriations bills (currently about 1/3 rd of budget). Categorical Grant: Allocation of funds for a particular programmatic purpose. Block Grants: Grants to states that can be used for a variety of purposes. Block grants are funded by annual appropriations by Congress and allocated to states by formula. Block grants usually provide considerable flexibility to states for delivering the services outlined in the block grant.

26. Research Administration for Scientists Glossary of Federal Budget Terms Earmarks: Often referred to as “pork” these are appropriations that go to specific projects, e.g., a new research center at a university, a highway in a particular state. They by-pass the normal process for distributing funds. Discretionary Spending Cap: Limits placed on the total amount of budget authority and outlays for discretionary programs Congress can provide in a given fiscal year.

27. Research Administration for Scientists Glossary of Federal Budget Terms Entitlement: Program mandating the payment of benefits to any person meeting eligibility requirements established by statute. The amount spent is not controlled by annual congressional appropriations. Entitlement programs include Social Security, Medicare and Medicaid. Mandatory Spending: Federal spending on entitlement programs and interest on the national debt. Mandatory spending accounts for approximately two-thirds of all federal spending.

28. Research Administration for Scientists Glossary of Federal Budget Terms Deficit: The amount by which the government’s spending exceeds its revenues in a single fiscal year. Unified Deficit: The most commonly used measure of the federal deficit. It includes all federal spending and all federal revenues. Federal Funds Ceiling: A measure of the federal deficit that excludes the spending and revenue totals of federal government trust funds such as Social Security.

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30. Glossary of Federal Budget Terms Debt: The total accumulated amount of money the federal government has borrowed to make up shortfalls in revenue (currently over 14 trillion dollars). Treasury Bills: The government “borrows” by selling T-bills which pay interest and mature at set, but differing periods. Example – one might purchase a $100 T-bill and pay $92. At a specified date in the future it would mature and be redeemed for $100.

31. Research Administration for Scientists U.S. N ATIONAL D EBT C LOCK The Outstanding Public Debt as of 04 Jan 2011 at 09:27:38 PM GMT is: The estimated population of the United States is 309,786,306 so each citizen's share of this debt is $45,198.97. The National Debt has continued to increase an average of $4.18 billion per day since September 28, 2007! Concerned? Then tell Congress and the White House!tell Congress and the White House

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34. Debt Ceiling: A statutory limit imposed on the total outstanding federal debt. The ceiling can be raised or lowered through an act of Congress. The current limit is $14.294 trillion and is estimated to be reached sometime in February 2011! Failure to raise the debt ceiling before it is exceeded by debt obligations would result in default by the federal government which has never occurred!

35. Research Administration for Scientists Jan 4 (Reuters) - The Obama administration and Republicans in Congress look set for a brawl this year over raising the U.S. government's $14.294 trillion borrowing limit. Weekly Pulse: GOP Plays Chicken with the Debt Ceiling January 4th, 2011 The Very Real Threat of a U.S. Debt Default Jan 2, 2011, 6:29 PM This morning, CEA chairman Austan Goolsbee warned Republicans against playing games with the nation’s credit rating by refusing to raise the debt limit and creating a technical default. I have been warning people about this problem … there is a widespread belief … that a debt default is just what the country needs to force massive spending cuts into effect. Many stupidly believe that the budget would be balanced overnight because the government couldn’t spend any more than the available cash flow from taxes would permit.warned Republicans

36. Research Administration for Scientists Debt Held by the Public: Federal debt held by all investors outside the federal government, including individuals, corporations, state or local governments, the Federal Reserve banking system, and foreign governments. When the debt held by the Federal Reserve is excluded, the remaining amount is referred to as privately held debt. Debt Held by Government Accounts: Federal debt held by the federal government itself. Most of this debt is held by trust funds, such as Social Security. Gross Debt: The total amount of outstanding federal debt whether issued by the Treasury or other agencies and held by the public or federal government accounts.

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42. Overview of Federal Budget

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58. Historical R&D Priorities (obligations, in 1996 constant dollars) Source: National Science Foundation -5% 0% 5% 10% 15% 20% 25% 30% 1962 - 19681973 - 19791979 - 19851995 - 2001 Average Annual Increases Space Energy Health Defense All Others All Others All Others All Others

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61. 05p2

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65. Awards in Millions at UNC-CH $803 million

66. Sponsored Awards vs State Appropriations at UNC-CH

67. UNC-CH Research Dollars vs Staffing

68. Research Administration for Scientists Remember: “There is no law that requires you to take money from the government to support your research but once you do, there are many laws you must follow!” The Golden Rule: He who has the gold, makes the rules!

69. Research Administration for Scientists Reading Assignments: The Art of Grantsmanship by Jacob Kraicer http://www.utoronto.ca/cip/sa_ArtGt.pdf Advice on Writing Proposals to the NSF by Susan Finger http://www.cs.cmu.edu/~sfinger/advice/advice.html