Not so fast my friend....

Sorry Lee Corso, only phrase I could think of.....


FY 09 Omnibus has hit a bumpy road. Majority Leader Reid will allow more debate, i.e. he doesn't have the votes to halt debate and hence push a final vote on the package until next week.

The CR currently funding government will expire soon, so both House and Senate today voted to extend current funding through next Wednesday.

So what does that mean for higher education? Well, right now it's unclear. If the Senate amends the bill voted out of the House and the bill returns to the House for a vote, there could be some changes. Speaker Pelosi has stated that if the Omnibus returns to the House amended, she might just move to pass the CR for the remainder of the year--and the proposed increases noted below would go away. This is important because unlike the stimulus dollars, the FY 09 bill sets the base funding levels for agencies that will carry forward.



Stay tuned kids.

FY 2010

OK, I was in DC all last week and I am WAY behind here...so I’ll provide in bite-size morsels. Now I’m hungry.

FY 2010. Yes, 2010. The president has laid out his “blueprint” meaning, I just got elected and I didn’t have time to put my full stamp with specifics. But the administration did lay out targets in areas that relate to higher ed. Hence, here are some priorities for the administration. Plus, OMB is still working on the details to be unveiled later this month. Congress will start hearings soon. The good folks at the AAU put together this summary:

National Institutes of Health
The only information on the National Institutes of Health in the budget outline is the inclusion of $6 billion to support cancer research. The document declares: “This funding is central to the President’s sustained, multi-year plan to double cancer research. These resources will be committed strategically to have the greatest impact on developing innovative diagnostics, treatments, and cures for cancer.”

National Science Foundation
The FY10 budget includes $7 billion for the National Science Foundation (NSF), compared to $6.49 billion in the FY09 omnibus appropriations bill. This represents an increase of $510 million, or 7.9 percent. While the budget offers no breakdown of proposed FY10 spending for NSF, the document does include the following among the President’s priorities:

· Supporting researchers at the beginning of their careers
The document states: “Ensuring America’s economic competitiveness requires that we develop the future scientific and technical workforce for our universities, national labs, and companies. To help accomplish these goals, the Budget provides substantial increases for NSF’s prestigious Graduate Research Fellowship and Faculty Early Career Development programs.”

· Supporting promising, high-risk research
The document states: “The Budget increases support for promising, but exploratory and high-risk research proposals that could fundamentally alter our understanding of nature, revolutionize fields of science, and lead to radically new technologies.

Department of Energy
No specific funding details are provided regarding investments in the Department of Energy Office of Science. The document does, however, emphasis the important role that basic science must play in developing alternative energy sources, stating: “As part of the President’s plan to double Federal investment in the basic sciences, the 2010 Budget, along with the $1.6 billion provided in the recovery Act for the Department of Energy’s basic science programs, provides substantially increased support for the Office of Science.” The document also states that the budget “expands graduate fellowship programs that will train students in critical energy-related fields.”

NASA
The FY10 budget proposes a $918 million, or 5.2-percent, increase over the House-passed FY09 omnibus appropriations bill for NASA. Total spending would be $18.7 billion, compared to $17.782 billion in the omnibus. The document does not include any details for the various NASA programs.

Department of Education
The budget includes the following proposals for student financial aid:

· Increase the maximum Pell Grant to $5,550 in the 2010-2011 school year (a $200 increase above the maximum grant funded through the American Recovery and Reinvestment Act, the House-passed FY09 omnibus appropriations bill, and the mandatory funding approved by Congress in 2007;
· Index the Pell Grant to the Consumer Price Index plus 1 percent in order to maintain its value in future years;
· Convert the Pell Grant to a mandatory program “to ensure a regular stream of funding and eliminate the practice of ‘backfilling’ billions of dollars in Pell shortfalls each year;”
· Originate all new loans through the direct lending program;
· Create a “new modernized” Perkins Loan program; and
· Simplify the student aid application process.

Taxes
The budget includes the following proposals:

· Make permanent the $2,500 American Opportunity Tax Credit, which was created by the Recovery Act and combined and strengthened existing tax incentives for attending college; and
· Further limit the benefits of itemized deductions (including for charitable contributions) for upper-income taxpayers, a provision that could affect charitable giving to colleges and universities.

Department of Defense
The budget document contains no information on funding of basic research at the Department of Defense.

Humanities
The budget document contains no information on FY10 funding for the National Endowment for the Humanities

Non-defense Discretionary Spending
The budget spells out overall non-discretionary spending totals for the next ten years. After rising to $675 billion in FY10, non-defense discretionary spending declines each year until bottoming out at $621 billion in 2013. While it begins to rise again, it does not reach the FY10 total until FY19. A portion of the post-FY10 decline may be attributable to the transfer of Pell Grant funding from discretionary to mandatory spending.

Stimulus Update

OK, no real specifics regarding the stimulus. Agencies have set up websites relating to their plans for the "recovery funds." Mike Cronan in VPR found all these links. We'll send word out to the research community ASAP once info is ascertained. But until then, check in with the agencies that might be of interest:

Agency-Specific Information Related to the Recovery Act
Department of Health and Human Services: http://www.hhs.gov/recovery/National Institutes of Health Acting Director: NIH's Role in the American Recovery and Reinvestment Act
National Science Foundation: http://www.nsf.gov/recovery/NSF Director: Statement on the American Recovery & Reinvestment Act of 2009
Department of Defense: http://www.defense.gov/recovery/
Department of Energy: http://www.energy.gov/recovery/
Department of Interior: http://www.doi.gov/recovery/
National Aeronautics and Space Administration: http://www.nasa.gov/recovery/
National Endowment for the Arts: http://www.nea.gov/recovery/
National Institute of Standards and Technology: http://www.nist.gov/recovery/
National Oceanic and Atmospheric Administration: http://www.noaa.gov/recovery/
American Association for the Advancement of Science: Final Stimulus Bill Provides $21.5 Billion for Federal R&D
American Council on Education: Economic Stimulus Resource Center

Implementation

President Obama signed the stimulus bill (sorry I didn't blog when the senate voted it out, but hey it was all over the news...). So now what.

Implementation, that's what.

Here's what we know, or more likely, what we DON'T know:

1. Research. Each agency (see below) is scrambling to establish guidelines regarding the stimulus dollars. Some agencies, we've heard, believe that they have enough proposals in the queue or that received meritorious marks (yet no money to fund) that will comply with the stimulus goals. Some agencies may require RFP's, etc. So we're anxiously awaiting instructions. NIH is holding a meeting today so we might get a sense there. All agencies will need to get the money out fast. And keep a separate accounting of how the funds are expended. So any institution that receives said funds will need to keep this in mind. Stay tuned.

2. State stabilization funds. This is now a state issue. Governors across the country are looking at all that is associated with accepting these funds. Texas included. What we're interested in is this: If Texas agrees to accept funding that can be used for education purposes, how much will be allocated to higher education and for what purposes? Will keep you posted on that.

If anybody hears anything regarding how the federal research dollars may be spent at a particular agency, then email me. We're in the "fact finding" stage. Or is that RUMOR gathering stage?

One down, one to go...oh and a signature.

The House today passed the conference committee report known as the American Recovery and Reinvestment Act, HR 1. 246-183. OK, the economic stimulus bill. No Repubs voted for the bill. Seven Dems voted no, with one "present." The senate should take it up shortly. Word is the president wants to sign on Monday.


One aspect of the bill not covered in my last entry is the State Fiscal Stabilization funding. [The research and financial aid provisions are noted below]. $53.6 billion to be exact. $39.5 billion is set for elementary, secondary, and public higher education. Nearly $8.8 billion would be allocated for "other government services." No word on the State of Texas share.


There are some "strings" attached and we're just now getting the first reading of the bill so details are sketchy. Even though infrastructure funding was not allocated per se, these "stabilization" dollars could be utilized for construction if deemed appropriate at the state level.


Oh, new word for Beltway speak: "covered funds." In essence any stimulus funds are now defined in the bill as "covered funds." So throw this around, as in, "I have a really great NSF proposal I submitted recently that got high marks so I'm hoping it will received covered funds.'"


Oh, on that note: PI's pay attention. It is possible that most if not all, "covered funds," will be allocated to projects/proposals that are already in the queue. That is, projects that were deemed meritorious by an agency (NSF, etc.) but there were not any funds available. So it is entirely possible that there will not be any "new" RFP's, BAA's or the like issued in order to distribute funding. We've heard this about NSF, not too sure if that applies to NIH.


AGAIN, THIS IS JUST TALK and NOT FACT. We'll have to wait for agencies to issue instructions.


Whew......

Well. That was quick.....

Ok, we have a deal. Struck late yesterday afternoon. Well, among the leadership--House, Senate and WH. Rank and file members are taking it all in today.

So what's in it? A conference committee report has not been released. But the press releases have. Speaker Pelosi issued one and here are some areas that affect higher education:

• Investing in Scientific Research (More than $15 Billion)
  o Provides $3 billion for the National Science Foundation, for basic research in fundamental science and engineering – which spurs discovery and innovation.
  o Provides $1.6 billion for the Department of Energy’s Office of Science, which funds research in such areas as climate science, biofuels, high-energy physics, nuclear physics and fusion energy sciences – areas crucial to our energy future.
  o Provides $400 million for the Advanced Research Project Agency-Energy (ARPA-E) to support high-risk, high-payoff research into energy sources and energy efficiency in collaboration with industry.
  o Provides $580 million for the National Institute of Standards and Technology, including the Technology Innovation Program and the Manufacturing Extension Partnership.
  o Provides $8.5 billion for NIH, including expanding good jobs in biomedical research to study diseases such as Alzheimer’s, Parkinson’s, cancer, and heart disease.
  o Provides $1 billion for NASA, including $400 million to put more scientists to work doing climate change research.
  o Provides $1.5 billion for NIH to renovate university research facilities and help them compete for biomedical research grants.
• Extending Broadband Services
  o Provides $7 billion for extending broadband services to underserved communities across the country, so that rural and inner-city businesses can compete with any company in the world.
  o For every dollar invested in broadband, the economy sees a ten-fold return on that investment.

Some other general educational provisions were noted, yet it is not altogether clear higher education's role (sans the financial aid piece) in some of this--infrastructure for one:

• Preventing Teacher Layoffs and Education Cuts by the States
  o Prevents teacher layoffs and other cutbacks in education and other key services, by establishing a $53.6 billion State Fiscal Stabilization Fund, including $40.6 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks, preventing layoffs, school modernization, or other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8 billion to states for other high priority needs such as public safety and other critical services, which may include education.
• Making College More Affordable
  o Increases the higher education tax credit to a maximum of $2,500. Also makes it available to nearly 4 million low-income students who had not had any access to the higher education tax credit in the past – by making it partially refundable.
  o Increases the maximum Pell Grant by $500, for a maximum of $5,350 in 2009 and $5,550 in 2010.
  o Adds $200 million to the vital College Work-Study program.

As soon as specifics are released, I'll post......

Now what?

OK, the senate has passed their version of the stimulus package (see below). In essence it's the Collins/Nelson amendment. The senate has named their conference committee members--Inouye, Reed, Bacus, Grassley, Cochran and Reid.

Usually higher education issues are not high profile, under the radar. However, the education infrastructure provisions that were struck in the Collins/Nelson amendment will be a MAJOR issue during conference committee negotiations.

And it's public...from today's National Journal CongressDaily:

"The Senate bill creates about 400,000 jobs less than our bill; over 300,000 of those jobs are in school construction, higher education and K-12," said House Education and Labor Chairman George Miller. "If this was a jobs bill, this was a huge mistake to take this out." Miller added that several senators have called him to ask that the House restore the funding.

The House will name their conferees soon, like today, and get after it.The goal is to have a final package by the Feb. 16 President's Day recess.

Developing...