1. An Update on Federal R&D in the FY 2007 Budget Kei Koizumi December 8, 2006 for the AAAS Board of Directors AAAS R&D Budget and Policy Program http://www.aaas.org/spp/rd See the Whats New section for the latest updates; see the Seminars and Presentations section for copies of this presentation.

2. A COMMUNICATION PORTAL FOR THE MACARTHUR INITIATIVE FY 2007 BUDGET… STILL UNFINISHED Only 2 of the 11 FY 2007 appropriations bills (for DOD and DHS) are enacted; other agencies are operating under a CR through midnight tonight. Later today, the House and Senate vote on another CR through February 15. Domestic, non-security discretionary spending would fall 1 percent in 2007 in the latest congressional budget plans. So far, appropriators have agreed with Administration priorities for ACI, defense, and space, and have added money to other areas (environment, agriculture). But these gains are threatened as appropriations drag on. Only a 2-year (retroactive) extension of the R&E tax credit may pass tonight. AAAS R&D Budget and Policy Program

3. A COMMUNICATION PORTAL FOR THE MACARTHUR INITIATIVE FEDERAL R&D IN THE FY 2007 BUDGET Innovation is a key theme, with proposed increases for three key physical sciences agencies (NSF, DOE Science, NIST labs), but those increases are endangered despite Administration, House, and Senate support. Homeland security R&D falls for the first time. Overall federal research spending will almost certainly decline even if ACI gains become final. AAAS R&D Budget and Policy Program

4. A COMMUNICATION PORTAL FOR THE MACARTHUR INITIATIVE

6. CONGRESS: WHATS NEXT -The 109 th Congress will leave Washington shortly, forcing the 110 th Congress to complete 2007 appropriations. -Appropriators are $5-$8 billion short in just keeping 2007 funding at 2006 levels for domestic programs. - Until appropriations are finalized, programs are operating at the lower of FY 2007 House or FY 2006 levels, which means steep cuts for some programs (NOAA). - Scenario 1 – In February or March, the new Congress will pass an omnibus bill, without extra money. ACI and other R&D gains would be seriously threatened. - Scenario 2 – An omnibus bill with extra billions would risk a presidential veto. Better scenario for R&D funding. - Scenario 3 – A year-long CR would lock in declining or flat funding for all programs except for a few exceptions. AAAS R&D Budget and Policy Program

7. A COMMUNICATION PORTAL FOR THE MACARTHUR INITIATIVE NEXT YEAR -The 110 th Congress will have a lot to do in its first few weeks: 1/ Finish FY 2007 appropriations. 2/ Begin consideration of the Presidents FY 2008 budget, due in early February. 3/ Consider a $130-$160 billion war supplemental request in February. -Its unclear how ACI will fare in the FY 2008 budget, but all indications are that the Bush Administration will continue its policy of reducing domestic discretionary spending. AAAS R&D Budget and Policy Program

8. A COMMUNICATION PORTAL FOR THE MACARTHUR INITIATIVE MEANWHILE, IN OTHER NATIONS… Japan has begun its 3 rd S&T Basic Plan 2006-2010, including increases for R&D spending, especially fundamental research in priority areas. Chinas total R&D grew 25 percent in 2005, including a 17 percent increase in national government R&D. South Koreas 2007 proposed budget calls for a 10.8 percent increase in government R&D. South Korea recently surpassed the U.S. in its R&D / GDP ratio. European Union finalized its 7 th Framework program this week, with large increases for EU-wide science funding 2007-2013. AAAS R&D Budget and Policy Program

9. A COMMUNICATION PORTAL FOR THE MACARTHUR INITIATIVE TO LEARN MORE… The AAAS R&D web site is www.aaas.org/spp/rd AAAS R&D Budget and Policy Program