February 2012

Federal Budget Review & A Look Ahead

“Don’t let other countries win the race for the future. Support the same kind of research and innovation that led to the computer chip and the Internet; to new jobs and new American industries.”
-President Obama, 2012 State of the Union Address

In anticipation of the President’s proposed Fiscal Year 2013 budget, this edition of ISTC Catalyst takes a further look at the federal budget, reviewing FY12 and setting the stage for the year ahead. President Obama will be releasing the budget on Monday, February 13.

According to AAAS, for FY12 total R&D spending was set at $142 billion in the recently signed ‘megabus’ spending bill, a decrease of 1.4%, or approximately $1.9 billion, from 2012. However, a few areas fared better than others, and the U.S. Department of Energy, National Science Foundation and the Department of Commerce’s National Institute of Standards and Technology all saw increases.

Matt Hourihan, director of the AAAS R&D Budget and Policy Program, shared his perspective with the ISTC on what these figures might mean for FY13:

“It’s always hard to predict what’s going to happen, especially now given a tough fiscal environment. The White House does remain fairly clearly committed to a robust public-private innovation system, and by extension to investment in R&D. The President stated as much in his State of the Union, and Defense Secretary Panetta has also echoed those comments publicly. The past few budget requests have sought to substantially support federal R&D investment, and I’d expect that to continue, if at a smaller magnitude than in the past. The Administration will need to abide by the discretionary budget caps established in the Budget Control Act in their proposed budget, but will likely ignore the sequester.

The real question is what will happen in Congress. There is bipartisan Congressional support for funding research and innovation, but there is also the competing priority of deficit reduction. If the automatic cuts in the Budget Control Act remain in place come January 2013, it will result in around $100 billion in additional cuts. Much of that would come from Defense spending, but there are already several proposals to restore those Defense cuts and replace them with spending cuts elsewhere. Even if the sequester is rolled back – and many believe that will happen – it will require another budget deal, and that probably doesn’t happen until after the elections. The future is obviously hazy, but it’s hard to imagine a situation where research budgets see much of an increase this year. We may end up with a result similar to last year with funding gains in some areas offset by cuts elsewhere.”

For a schedule of individual agency budget briefings and R&D budget information, visit the American Association for the Advancement of Science (AAAS).

In the Numbers: A History of R&D

Federal Spending by Performer
As this graph provided by the National Science Foundation shows, industry and universities and colleges usually get the largest amount of federal support for research and development. As of 2009 industry received $43.8 billion, while universities and colleges were awarded $36.48 billion.

Support for Science and Engineering Fields
According to the NSF, since 2001 the life sciences have accounted for half of the federal research portfolio. As of 2009, about $30.47 billion went to life sciences. Engineering received $9.87 billion and physical sciences received $6.07 billion.

Watch & Listen

State of the Union 2012: Clean Energy and Job Creation Patrick Gallagher, Director NIST, Discusses How to Out Innovate: Federal Support for R&D Top

Learn

President’s Proposed Budget for FY 2013: Schedule of individual agency briefings and R&D information

The White House: Securing American Energy

Illinois Innovation Index: R&D funding for Illinois universities and research institutions drives innovation

New Report Outlines Trends in U.S. Global Competitiveness in Science and Technology

AAAS Analysis: 2012 R&D Gains for Basic Research, Energy, and Environment; Overall Investment Down

FY 2012 Congressional Action on R&D by Agency

Out Innovate: Federal Support for Research and Development

Pioneering research center at Northwestern receives $16.2 million from National Science Foundation

University of Illinois awarded federal funds for transportation center

NIU gets grant on preserving digital information

DOE Awards More Than $30 Million to Help Universities Train the Next Generation of Industrial energy Efficiency Experts, including Bradley University

University Of Illinois Receives Federal Grant To Support Entrepreneurship In East Central Illinois

Focus on NSF Funding for Multi-Year, Multi-Disciplinary Research Research at IIT

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Engage

Clean Energy Challenge 2012
March 1, 2012

The Exchange 2012
March 22, 2012

Department of Defense (DoD) SBIR/STTR, Phase 1
Proposal Preparation Workshop

April 24, 2012

On Tuesday, April 24, the Illinois Science and Technology Coalition, Illinois Institute of Technology and Northwestern University will be sponsoring an all day SBIR application training session on IIT's campus. Jim Greenwood, an expert on the SBIR process and head of Greenwood Consulting Group, will be leading the workshop on the SBIR/STTR program and DoD opportunities.

Space for this event is limited. For more information, or to reserve your spot, contact Margaret Smith at msmith@istcoalition.org.

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Speak

We encourage you to submit ideas for future issues for ISTC Catalyst.

In March 2012, ISTC Catalyst will feature Case Studies in State Investment in Research, Development & Innovation.

To submit articles, please e-mail info@istcoalition.org.

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