Publisher's Note
Each year, SSTI dedicates an issue of the SSTI Weekly Digest
to the Administration’s federal budget request. The issue, not
intended to be exhaustive, highlights selected S&T programs and
economic development initiatives that we believe are of interest
to our readers. While the issue may not be exhaustive, it is long, so we’ve opted to provide it as a pdf at: http://www.ssti.org/Digest/2009/fy10budget.pdf. The president’s budget request
and supporting documents can be found at: http://www.whitehouse.gov/omb/budget/.
R&D Flat, but Budget Reflects Obama Administration Priorities
The first budget request of the Obama Administration keeps R&D
funding virtually flat, at $147.6 billion, rising only 0.4% over
the enacted FY2009 levels. That conclusion is somewhat misleading
however, given Congress only approved the FY09 budget two months
ago and the massive Recovery Act a month earlier. Recovery Act
funding will be spent over both FY09 and FY10, providing agencies
more money for research and economic development than at any time
previously. The White House Office of Science &
Technology Policy (OSTP) estimates the federal government will
spend $165.4 billion for R&D in FY09.
Despite level funding, the Administration refocuses much of the FY10 spending on what it perceives are national imperatives: fighting climate change, finding cures for cancer, making our economy more innovation-based and efficient, and tying education and training to 21st century skill development.
Research Budgets Shifting Among Agencies
The Administration also begins a shift toward earlier research.
Compared to the enacted FY09 budget, federal support for basic
research would grow 3.4% in FY10 with the Administration’s
request. In contrast, federal basic and applied research funding has declined in
real terms for the past four years.
More of the shift in priorities is reflected at the agency level. Five agencies would see double-digit percentage growth in their FY10 research appropriations as a result of the Administration request. Profiles for most agencies can be found at: http://www.ssti.org/Digest/2009/fy10budget.pdf but the percentage increases for the biggest gains for total research are below:
Agencies for which the Administration requests total research budget reductions include:
All other major agencies would see gains of less than 3.0%.
STEM Education Responsibilities Also See Agency Shift
OSTP highlights the Administration’s commitment to science,
technology, engineering and mathematics education (STEM) through
its support of more than 100 programs by FY10 funding of $3.7
billion. The figure does not include the additional $276 million
included in the Recovery Act for STEM.
Some agencies will become more active in STEM support, including $124 million more (516% increase from enacted FY09 levels) for a new program within the Department of Energy. Other significant agency gains for STEM funding are in the National Science Foundation with $43 million of new funding for a total $1.1 billion (4.0% increase), the Department of Agriculture with $41 million for a total $88 million (87.2% increase) and the Department of Transportation with $15 million in new funding for a total of $174 million (9.4% increase).
Several agencies would see diminished funding for STEM, including the removal of all $10 million of STEM funding from the Department of Labor; $87 million cut from the Department of Education (10.2% decrease); $14 million reduction from the Department of Commerce (28.0% decrease) and NASA losing $43 million (25.4% decrease).
After all of the shuffling, federal STEM support would experience a net increase of $98 million, or 2.7%, in FY10.
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The Difference a Year Makes for Federal Economic Development Policy
For nearly every budget issue SSTI has prepared during the first
decade of the 21st century, our opening paragraphs read like
obituaries. The previous administration was ideologically opposed
to the government taking an active role to support economic
development, even tech-based economic development, beyond increases for university and federally based research. Spending for
federal programs that support regional community and economic
growth were slashed repeatedly. The memories are fresh of having to
fight for every dollar in Congress, and, watching appropriation
levels slide. Earmarks grew as programs were forced to
fend for themselves. Unless you’ve been in the TBED field for
nearly a decade, those may be your only perceptions of the
federal role for innovation.
States, counties, communities, universities, civic organizations and foundations stepped in to fill some of the holes left behind as the federal partner for supporting the nation’s innovation system withered, but it couldn’t be enough compared to the possibilities of establishing a true innovation-oriented partnership between industry, academia and all levels of government.
We could wallow in the what-ifs, or reflect on the resulting opportunities lost, or worry about the increasing economic pressures presented by other nations who didn’t skip out on investing in innovation during the past few years nations - now seeing the results of those investments pay off as their standings in global innovation metrics rise. But there isn’t time – or need.
Things are looking up. We have an important opportunity. And it isn’t just because we are presented with a budget request that increases virtually every federal program focused on innovation, community-development and economic development. It is provided to us by the depth of the current economic downtown and the need to rethink our collective approaches to restoring economic vibrancy. We have an opportunity to build an effective partnership among all levels of government and all players in our innovation system to make things better. It will take more than federal money, however.
We must all be engaged in the process, starting with this budget, to ensure the reversal of fortune – the newfound federal funding for TBED versus the emptying state and local coffers – does not become overly prescriptive for the state, regional, university, nonprofit and for-profit efforts already promoting tech-based economic development. The nation needs to establish a new level of collaboration among all participants in building regional systems to support and expand opportunities for innovation.
Seize the Moment
The opportunity before us is a reason why SSTI decided several
months ago to make that phrase the theme of this year’s
conference – Oct 21-23, 2009. We just need to take that
opportunity and get it right. We hope you’ll join your peers
from across the country: http://www.ssticonference.org
Agencies
SSTI's review of the FY10 budget proposal includes TBED highlights from these agencies:
Read the full analysis at: http://www.ssti.org/Digest/2009/fy10budget.pdf
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