1. The Federal Budget and R&D Funding in 2007 Kei Koizumi AAAS Board of Directors October 27, 2006 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 CONGRESS THIS MONTH The House and Senate could not finish appropriations by the October 1 start of FY 2007, and have postponed final action. Only DOD and DHS have their final FY 2007 budgets; other agencies are operating under a CR through November 17. So far, appropriators have agreed with Administration priorities for ACI, defense, and space, and have added money to other areas (environment, agriculture). Increases for development are final at DOD, and are on track for NASA and other agencies. But tight budget targets are forcing an overall cut in domestic spending. As a result, overall federal research spending will almost certainly decline despite ACI gains. AAAS R&D Budget and Policy Program

9. A COMMUNICATION PORTAL FOR THE MACARTHUR INITIATIVE CONGRESS: WHATS NEXT There are many congressional proposals to address the innovation challenge, most of them on hold, but the problem is finding the resources. Appropriators are billions of dollars short in finalizing 2007 domestic appropriations because of large increases for defense and a tight overall budget cap. ACI and other R&D gains could be threatened in November if appropriators shift the money to programs facing steep cuts. It may be December, or perhaps 2007 before appropriations are finalized in an omnibus bill. AAAS R&D Budget and Policy Program

10. 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. AAAS R&D Budget and Policy Program

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