Special Federal Budget Issue — February 15, 2000
Each year, SSTI dedicates an issue of the SSTI Weekly Digest to the President's budget request. Because of length considerations, the issue is not intended to be exhaustive. Instead we highlight selected S&T programs and initiatives that we believe are of interest to our readers.

Contents

Copyright State Science & Technology Institute 2002. Information in this issue of the SSTI Weekly Digest was prepared under a cooperative agreement with the U.S. Department of Commerce, Economic Development Administration. Redistribution to all others interested in tech-based economic development is strongly encouraged — please cite the State Science & Technology Institute whenever portions are reproduced or redirected. Any opinions expressed in the Digest do not necessarily reflect the official position of the U.S. Department of Commerce.

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President’s 2001 Budget Request: An S&T Overview
The Clinton Administration’s final budget request calls for substantial increases in most civilian R&D areas. Overall, civilian R&D would see a six percent increase totaling $2.5 billion and would surpass military R&D spending, which, at $42 billion, essentially would be held level with FY 2000 appropriations.

The Administration also proposed funding for several technology-related initiatives in the $1.84 trillion budget; many of these were announced during the last two weeks of January. The centerpiece remains the 21st Century Research Fund, a packaging of new and existing programs used by the Clinton Administration to measure federal investment in basic and applied research. Aggregated, the programs within the fund would receive a seven percent increase of $2.8 billion.

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Interagency Initiatives

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U.S. Department of Agriculture (USDA)
The overall FY2001 budget request for the U.S. Department of Agriculture reflects a decrease of more than 9% over FY2000. For several research and economic development programs, the Administration is requesting the opportunity to use funds appropriated in previous years but blocked from use by Congressional appropriations language in 1999 and 2000. Selected agency program highlights include:

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Department of Commerce
Several Clinton Administration programs in the Department of Commerce are perennial budget battles, and this year is likely to be no exception. Selected program highlights include:

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Department of Defense
The Clinton Administration budget request for Defense R&D would be essentially equal in FY2001 to FY2000 levels. Research, Development, Testing & Evaluation would dip from $38.3 billion to $37.9 billion. Selected highlights include:

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Department of Education
With 12.6 percent growth, the Department's budget request includes the largest increase in discretionary spending in the history of the Department. Funding for educational research would increase by $30 million. S&T highlights include:

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Department of Energy
The President's request for the Department of Energy reflects a 9.2 percent increase over last year's budget. Funding for science and technology activities, however, would increase by $12 percent. Research and development funding for nuclear and fossil fuel energy systems would decrease by five percent and ten percent respectively. Program highlights include:

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Environmental Protection Agency
There are several environmental R&D initiatives in the Administration's budget request, however, except for the Global Climate Change Technology Initiative, few of these include the Environmental Protection Agency as an active financial participant. EPA's R&D activities are slated to decrease by $6 million in FY 2001 to $530 million (excluding Climate Change expenditures, which is requesting a 120 percent increase).

National Institutes of Health
The Administration’s budget request includes a 5.6% increase of $1 billion in biomedical research within the National Institutes of Health. The funding would support research in the areas of diabetes, brain disorders, cancer, genetic medicine, disease prevention strategies, and development of an AIDS vaccine. The increased funding also would result in approximately $25 million in additional funding for the NIH SBIR Program.

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NASA
For the first time in many years, the budget request for NASA reflects an increase, rather than a cut. R&D programs would receive a 14 percent increase if the President's budget request passes. Commercial Technology Programs within the Science, Aeronautics and Technology unit would receive $135 million, a decrease of $5 million over FY 2000. Academic programs would experience a sharper drop of $38.8 million to a FY 2001 total of $100 million. HIghlights include:

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National Science Foundation
Under the President's budget request, NSF would receive increased funding of $675 million or 17.3 percent, doubling the single largest increase ever for the Foundation. If passed, Funding for NSF will have increased by 66 percent since President Clinton took office. Selected program highlights for the FY 2001 request:

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Small Business Administration
The SBA budget requests $1 billion in new spending authority, including the expanded New Markets Venture Capital Program mentioned under the Interagency Initiatives. The program is designed to increase access to equity capital and technical assistance to women, minorities and to businesses located in low- and  moderate-income rural areas and inner cities. It proposes $150 million in SBA-backed funds for these venture capital companies, and $30 million to pay for technical assistance for the firms in which they invest.

Other potentially technology-relevant highlights include:

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U.S. Department of Transportation
As was the case in the Administration’s budget request last year, the Department of Transportation’s R&D programs have the greatest percentage growth over the previous year’s funding level at 37 percent. A record $1.28 billion, would be spent for transportation research and for the development and deployment of new technologies. This includes:

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