Department of Commerce

The Administration's FY 2008 discretionary budget request for the Department of Commerce (DOC) is $6.55 billion, a decrease in discretionary spending of $76 million from the FY06 appropriation. The department’s full-time equivalent staff would increase by 4,700 people between FY06 and FY08.

 

Funding for every DOC program or office supporting state and local TBED and traditional economic development programs would be cut deeply or proposed for elimination.

 

The Economic Development Administration (EDA), the agency charged with promoting regional economic development in distressed communities, would receive $202.8 million. The FY06 appropriation was $280.4 million. The cut would be entirely absorbed in the amount of funds available for grants to communities. FY08 EDA grant funds would decrease by 32 percent over the FY06 appropriation. EDA administrative expenses and staff size, however, would increase by 10 percent and 9 percent, respectively.



In FY 2008, EDA would facilitate the streamlining of its application process into one comprehensive, simplified procedure under the Regional Development Account (RDA) that is easier and quicker for applicants to access. The focus of EDA's programs and eligibility requirements would not change under the new procedure, the RDA would encompass most Economic Development Assistance programs, with the exception of planning grants and trade adjustment funding.

 

The Technology Administration (TA) would be shuttered, transmuting the office of Under Secretary to a single senior advisor in the Secretary’s policy office. The Budget Brief explains the demotion as follows: “Technological innovation has evolved to a point where it plays a critical role in competitiveness across our entire economy rather than taking place in an isolated sector unto itself. In keeping with this evolution, the President’s FY 2008 Budget proposes to modernize the Department’s approach to technology policy by elevating technology policy activities to the Secretarial level. In place of a stand-alone Technology Administration, the budget proposes to appoint a senior advisor in the Department’s Office of Policy and Strategic Planning and to create a Department-wide Technology Council that will coordinate technology policy activities that are distributed across the Department.” The TA budget request of $1.56 million to close the office is $4.4 million less than the FY06 appropriation.



The National Institute of Standards and Technology (NIST), presently housed under TA, would receive $640.7 million and would directly report to the Secretary. Of the proposed increases for this agency, $47 million would go toward critical improvements to NIST's internal research laboratories in Boulder, Colo., and the NIST Center for Neutron Research in Gaithersburg, Md. Another $22 million would be used to support research programs in nanotechnology, quantum information science, climate change measurements and standards, disaster-resilience of structures, and earthquake hazard reduction. Other components of NIST include:

• NIST Advanced Technology Program (ATP) - No funding is requested. The performance goal for ATP was discontinued due to the proposed phase-out of this program in FY07, the budget in brief notes. Confusing the matter somewhat, the House-approved Continuing Resolution for FY07 includes $80 million for ATP to support high-risk industrial research.
• NIST Hollings Manufacturing Extension Partnership (MEP) - $46.3 million. This program assists small manufacturing establishments in assimilating new technologies and manufacturing practices through government-industry partnerships and extension services. The FY07 Continuing Resolution provides $106 million.
• NIST Baldrige National Quality Program (BNQP) - $8.1 million. This management program focuses on instilling the principles of continuous quality improvement in U.S. business and educational, health care and nonprofit organizations.
• NIST Laboratories and Research Facilities - $484.1 million. 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.

Funding for the Minority Business Development Agency (MBDA) would be $28.7 million in FY08, a decrease of $940,000 from the FY06 appropriation level. 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 $3.82 billion in FY08 discretionary funding. NOAA components supporting significant research fall under the Operations, Research and Facilities line item, which would receive $2.7 billion. Funding levels for individual components include:

• National Ocean Service - $436.8 million to support coastal science and estuarine research reserves of national significance.
• National Marine Fisheries Service - $704.6 million for research in the variables affecting the abundance and variety of marine fisheries.
• Oceanic and Atmospheric Research - $358.4 million for research and technology development to improve NOAA weather services, seasonal climate outlooks and marine services.
• National Weather Service -  $807.8 million for weather and flood warnings and forecasts.
• National Environmental Satellite, Data and Information Service - $157.8 million for operating and updating polar-orbiting and geostationary operational field satellites.

Consistent with recent years, the Administration proposes to fund the U.S. Patent and Trademark Office (USPTO) budget exclusively through offsetting fee collections. The request for USPTO is $1.9 billion. The agency promotes the research, development and application of new technologies by protecting inventors’ rights to their intellectual property through the issuance of patents. USPTO would use its FY08 spending authority to reduce application processing time and increase the quality of its products.



The Bureau of Economic Analysis (BEA) within the Economic and Statistical Analysis Administration would receive $85 million. This funding is intended to help BEA provide timely, relevant and accurate economic accounts data in an objective and cost-effective manner.



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