Department of Commerce

The Administration's FY 2007 $6.138 billion discretionary budget request for the Department of Commerce reflects a 4.23 percent decrease from the FY06 appropriation of $6.410 billion. However, the Economic Development Administration (EDA) would receive a $46.7 million increase to support programs within the Administration's new American Competitiveness Initiative (ACI), announced in the president's State-of-the-Union Address. The NIST Hollings Manufacturing Extension Program, on the other hand, is slated for a cut of $58.3 million in the FY07 request.



EDA is charged with leading the federal economic development agenda by promoting innovation and competitiveness while preparing regions for growth and success in the worldwide economy. The Administration's FY07 budget request of $327.2 million reflects a 16.7 percent increase compared to the FY06 appropriation of $280.4 million. Additional funding is requested to assist distressed communities with integrating development strategies with the activities of the ACI, which includes investments in R&D, science, education and workforce training, and support for business environments that encourage entrepreneurship.



EDA also will advance the core principles outlined in the FY06 Strengthening America's Communities Initiative (SACI) and incorporate recommendations of the Secretarial Advisory Committee's report issued in June 2005. In addition, EDA plans to work with the Department of Housing and Urban Development's Community Development Block Grant Program, as well as the Department of Labor and its workforce development programs, to explore the implementation of complementary program performance goals and metrics.



The Technology Administration (TA) works with U.S. industry to maximize technology's contribution to U.S. economic growth. Led by the Under Secretary for Technology, TA fulfills its broad responsibilities through its component organizations: the Office of Technology Policy (OTP), the National Institute of Standards and Technology (NIST), and the National Technical Information Service, with its National Telecommunications and Information Administration.

• Under Secretary for Technology/ OTP - $1.5 million ($4.4 million decrease) provides policy guidance to the Secretary of Commerce and TA's component agencies. The Under Secretary also provides counsel on all matters involving innovation and coordinates with counterpart offices in the trade and economic agencies to create unified and integrated trade and technology policies. Full-time equivalent staffing levels would be reduced by 15 in FY07.
• NIST Advanced Technology Program (ATP) - no funding is requested ($79 million in FY06). Through 2006, NIST implemented the ATP program to assist industry to invest in and develop high-risk technologies. The FY07 budget proposes to terminate the program, due to "the growth of venture capital and other financing sources." FY07 phase out activities will be undertaken with FY06 carryover funding.
• NIST Hollings Manufacturing Extension Partnership (MEP) - $46.3 million ($58.3 million decrease). This program assists small manufacturing establishments in assimilating new technologies and manufacturing practices through government-industry partnerships and extension services. With a budget reduction of over 50 percent in FY07, the Administration "will focus funding on maintaining an effective network of centers with an emphasis on activities that promote innovation and competitiveness in small manufacturers." The number of full-time equivalent positions would be reduced by 18.
• NIST Baldrige National Quality Program (BNQP) - $7.6 million (no change). This management program focuses on instilling the principles of continuous quality improvement in U.S. business and educational, health care and nonprofit organizations. Staffing levels are maintained at 49 full-time equivalent positions.
• NIST Laboratories and Research Facilities - $455.9 million ($67.7 million increase). This program focuses on providing the measurements, standards, verified data, and test methods necessary to support the development of new technologies and to promote the competitive standing of the U.S. in the global economy. Additional funding to complement the ACI is requested for NIST laboratories and research in numerous areas: nanotechnology, hydrogen, manufacturing innovation, quantum information science, environmental security, next generation materials innovation, international standards and innovation, innovation in measurement science, bio imaging, cyber security, and biometrics. Staffing would increase by 124 full-time equivalent positions.

Funding for the Minority Business Development Agency (MBDA) would remain at $29.6 million in FY07, the same amount as the FY06 appropriation. MBDA provides management and technical assistance to minority-owned businesses through the national network of Minority Business Development Centers and Native American Business Development Centers. Staffing levels are maintained at 115 full-time equivalent positions.



The National Oceanic and Atmospheric Administration (NOAA) would receive $3.684 billion in FY07 discretionary funding, or $227.3 million less than the FY06 appropriation. NOAA components supporting significant research fall under the Operations, Research and Facilities line item, which is slated for a $156.4 million cut. Key NOAA components for the research community would see increases, however:

• National Marine Fisheries Service - $649 million ($81 million increase) for research in the variables affecting the abundance and variety of marine fisheries.
• National Ocean Service - $394.4 million ($36.3 million increase) to support coastal science and estuarine research reserves of national significance.
• Oceanic and Atmospheric Research - $338.3 million ($37.2 million increase) for research and technology development to improve outlooks, solar-terrestrial forecasts and marine services.
• National Weather Service -  $783.4 million ($37.4 million increase) for weather and flood warnings and forecasts.
• National Environmental Satellite, Data and Information Service - $149.6 million ($5 million increase) for operation and updating polar-orbiting and geostationary operational field satellites.

The U.S. Patent and Trademark Office (USPTO) under the Administration's FY07 recommendation would keep all the fees it will collect. USPTO would use the $1.843 billion in spending authority contained in the president's FY07 budget request to reduce application processing time and increase the quality of its products. This funding would allow for increased staffing of 682 full-time equivalent positions. The mission of the USPTO is to ensure that the intellectual property system contributes to a strong global economy, encourages investment in innovation, and fosters entrepreneurial spirit. This proposal has been made by the Administration in previous years.



The Bureau of Economic Analysis (BEA) within the Economic and Statistical Analysis Administration would receive $80.5 million, an increase of $558,000 over the FY06 appropriation. Funding requested in FY07 will help BEA provide timely, relevant and accurate economic accounts data in an objective and cost-effective manner.