To Members of the NASULGC System:

The House and Senate have adjourned for the year without enacting the F.Y. 2004 omnibus appropriations bill, which provides funding for many departments and agencies, including the Department of Agriculture and CSREES.

Before adjourning, the House did give its approval to the omnibus bill by a vote of 242 to 176. The Senate, however, put off a vote until late January (no earlier than January 20), when Congress reconvenes to hear the president's State of the Union address.

Many CSREES Line Items Cut
As reported previously (see BRT Reports No. 14 and 15), the joint House-Senate conference committee cut a number of the critical CSREES line items by 10%. In addition, as it stands now (and this could get worse), all non-defense programs/projects (including special grants) will be subject to a 0.59% across-the-board reduction.

As detailed below, we have and will continue to fight vigorously to have the 10% cuts restored at the earliest possible opportunity. However, in the meantime, we wanted to provide some perspective on the situation.

Analysis of the Situation
We have posted a spreadsheet on the nasulgc-bac.com Web site, and we urge you to open that file as you read the analysis that follows. Link: F.Y. 2004 CSREES Spreadsheet

1. Total funding for CSREES is almost exactly where it was in last year's bill. Total spending for the agency in F.Y. 2004 was $1.107 billion vs. $1.13 billion in F.Y. 2003. The only real difference is the 0.59% across-the-board cut.

2. Most of the major CSREES line items remained at last year's levels, grew a small amount, or were cut a small amount. Major line items that were essentially unchanged: Hatch, McIntire-Stennis, Evans-Allen, NRI, Smith-Lever 3(b) and 3(c), 1890s Extension, 1890s Facilities (Sec. 1447).

3. Funding for "Special Grants" and "Federal Administration" increased by some $9.5 million. Although funding for "Special Grants" under Research and Education heading declined slightly, "Federal Administration" under that same heading grew by 27% ($8.015 million) and funding for "Special Grants and Federal Administration" under the Extension heading increased by nearly 7% ($1.423 million).

4. There were only two other CSREES line items that received significant increases. These two line items were under Integrated Activities: "International Science and Education Grants" increased by $0.398 million, and funding for "Homeland Security" (the animal and plant diagnostic labs) by $7.953 million. As you are aware, the Homeland Security line was included in the president's budget request, is a continuation of the $16 million approved in last year's Supplemental Appropriations bill, and is halfway between House and Senate positions.

5. A majority of the CSREES line items were cut by 10 percent. The big problem with the final House-Senate conference committee action is that most of the CSREES lines were cut by 10% from F.Y. 2003 levels. Under the Research and Education heading, 14 of 26 line items were cut by 10%. Under the Extension heading, 11 of 15 line items were cut 10%. And, under the Integrated Activities heading, 8 of 11 line items were cut 10%.

These 10% cuts came to $20, 644,000, which is a little less than 2% of the CSREES budget. However, these reductions will cause significant problems for many programs that we all hold dear, including EFNEP and RREA. Fortunately, interested individuals from throughout the NASULGC system have begun to express their strong concerns to their senators and representatives.

6. These 10% reductions result from the 8%+ cut that the Agriculture Appropriations Subcommittees suffered in their F.Y. 2004 302(b) allocations. For additional analysis on this point, see BRT Report No. 3 (June 17, 2003).

7. Many other USDA programs were also cut. Although it is of no consolation, numerous other USDA programs and projects had to be cut to keep the bill in line with the 302(b) allocation given to the Agriculture Appropriations subcommittees. (Examples can be found throughout the joint House-Senate conference report.)

Next Steps
Dean Fred Cholick, chair of the Budget and Advocacy Committee of NASULGC's Board on Agriculture Assembly, has called a conference call meeting of the BAC (date and time not yet set) to begin the process of developing a strategy to reverse the 10% cuts. We will be certain to keep you informed as that strategy takes shape.

Links:
F.Y. 2004 CSREES Spreadsheet (.xls)
CSREES Portion of Joint House-Senate Conference Report (.pdf)

Fred Hutchison
Fleishman-Hillard Government Relations