1. Research Administration for Scientists Tim Quigg, Associate Chair and Lecturer Computer Science Department, UNC-Chapel Hill The Federal Budgeting Process, Federal Funding for Research and UNC’s Share! COMP 918: Research Administration for Scientists © Copyright 2012 Timothy L. Quigg All Rights Reserved

2. Research Administration for Scientists The U.S. Federal Budget How does the budgeting process work? Where does the money go? And why should you care? These are important questions for any citizen, but they are especially important to anyone interested in seeking federal support for research.

3. Research Administration for Scientists The federal government spends almost $4 trillion a year, 1/5 of the U.S. economy. More than 80 percent of the money comes directly from YOU through income taxes, payroll taxes and It’s a lot of money, and it used to be yours! borrowing!

4. Research Administration for Scientists Bills can be passed, but without money policies can’t be implemented. In these times of huge budget deficits, every program and expenditure has to be considered in the context of its impact on the budget. You can’t do policy in Washington without money

5. Research Administration for Scientists Three budget years are being “worked on” at any point in time. The media is “obsessed” with covering the process; therefore, we are bombarded with information, opinions and folks “playing politics” The budget process takes up a lot of time and effort on Capitol Hill and in federal agencies.

6. Research Administration for Scientists The federal government spends $140 billion+ a year on R&D. The federal government funds nearly 75% of university research and it also supports fellowships, scholarships, student loans, and other aid. This R&D funding is part of the “discretionary” portion of the federal budget, thus it is the most vulnerable to cuts! The federal budget determines the health of U.S. science

7. Research Administration for Scientists There is no better way to understand the priorities of an organization than to examine how and where the organization invests its money, so always look at the budget to see what it really considers to be important! So we’ll look at the federal budget in a few moments, but first…

8. Research Administration for Scientists There is no better way to understand the priorities of an organization than to examine how and where the organization 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!

9. 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

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

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

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

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

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

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

16. 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

17. 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

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

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

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

23. 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 (usually a fiscal year). 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. Most state fiscal years, including North Carolina, run from July 1 to June 30.

24. Research Administration for Scientists Glossary of Federal Budget Terms Congressional Budget Office (CBO): A non- partisan 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, commonly called a “mark-up”! Office of Management and Budget (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.

25. 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 sets a ceiling for the amount of money that can later be appropriated. Total accumulated appropriations may not exceed the amount authorized for a given program, but Congress is 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 fiscal year. The appropriation bill may also set the terms under which the funds may be spent.

26. Research Administration for Scientists Glossary of Federal Budget Terms Continuing Resolution: Legislation that extends appropriations for specific ongoing programs when the regular appropriation has not been enacted by the beginning of the fiscal year (October 1). The “CR” may authorize spending at the previous year’s level or at some percentage increase or decrease. It usually lasts for a brief period (weeks) to provide time for Congress to complete work on the new budget; however, in recent years Congress has passed many consecutive CRs because they could not agree on a new budget!

27. 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.

28. 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 or a highway in a particular state. They by-pass the normal process within an agency for determining what projects to fund. Discretionary Spending Cap: Self-imposed limits that Congress places on the total amount of budget authority and outlays for discretionary programs in a given fiscal year.

29. 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.

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32. Glossary of Federal Budget Terms Deficit: The amount by which the government’s spending exceeds its revenues in a single fiscal year. In 2011 it was 40 cents of every dollar spent! 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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35. Glossary of Federal Budget Terms Debt: The total accumulated amount of money the federal government has borrowed (and not paid back) from Presidents Washington to Obama (currently over 15 trillion dollars). Treasury Bills: The government “borrows” by selling T-bills which pay interest and mature on established dates. Example – one might purchase a $100 T-bill for $92. At a specified date in the future it would mature and be redeemed for $100. The government normally pays-off maturing T-bills with cash derived from selling new T-bills!

36. Research Administration for Scientists U.S. N ATIONAL D EBT C LOCK http://www.usdebtclock.org $15,187,045,500,000 The estimated population of the United States is 312,543,535 so each citizen's share of this debt is $47,809. The National Debt has continued to increase an average of $4.18 billion per day since September 28, 2007!

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38. Debt Ceiling: A statutory limit imposed on the total allowable federal debt which can only be raised by an act of Congress. If Congress fails to raise the debt ceiling before it is exceeded by debt obligations, the US Treasury would not have adequate funds to meet our obligations. This would result in default by the federal government – a situation which has never occurred!

39. 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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41. Overview of Federal Budget

42. Research Administration for Scientists FY 2011 Budget Overview Mandatory Social Security19% Medicare13% Medicaid 8% Other (VA, Federal17% Retirement, etc.) Interest on debt 7% Subtotal 64% Discretionary Defense 18.5% * Non-defense17.5% * Subtotal 36% *Approximately 2% is for R&D (4% of total federal expenditures)

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55. 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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63. Awards in Millions at UNC-CH $788 million

64. Research Administration for Scientists UNC-CH Units with the Largest Sponsored Research Funding in 2010-11 1. School of Medicine$382.5 million 2. School of Pharmacy$ 25.2 million 3. Lineberger Cancer Center$ 63.8 million 4. Carolina Population Center$ 59.9 million 5. School of Pharmacy$ 25.2 million

65. Research Administration for Scientists UNC-CH Sponsored Research Funding in 2010-11 by Source Federal Government ($574.5 m) 72.8% * Non-profits 9.7% NC State and local government 5.3% Foundations 5.2% Industry 4.6% Other 2.4% * 68.9% from NIH (19 th in U.S. by latest count – 2009)

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 from my webpage: 1. The Art of Grantsmanship by Jacob Kraicer http://www.utoronto.ca/cip/sa_ArtGt.pdf 2. Advice on Writing Proposals to the NSF by Susan Finger http://www.cs.cmu.edu/~sfinger/advice/advice.html