To Members of the NASULGC System:

The Senate Appropriations Committee has now heard from OMB Director Josh Bolten and USDA Secretary Mike Johanns about the Administration's F.Y. 2006 Budget Request. The hearing with Secretary Johanns occurred last week and the hearing with OMB Director Bolten was held this morning. I had withheld this report on the chance that Bolten might be asked a formula funds question (as we thought he might). However, no such question was asked.

During the Senate Agriculture Appropriations Subcommittee hearing on April 12, Subcommittee Chair Robert Bennett (R-UT) asked Secretary Johanns a question about the administration's proposal to eliminate funding for Hatch, McIntire-Stennis, and Animal Health & Disease formula funds over the next two fiscal years. Here's a paraphrased version of the exchange:

Sen. Bennett: Let's talk about the [formula fund] proposals for CSREES and their impacts on schools of agriculture and forestry. Is there a possibility that some agriculture research stations will be shut down if these budget proposals are upheld? And what about the state legislatures? Do they have time to react to the proposed changes in funding?

Sec. Johanns: These are programs that have been in place for a long time, so they [the universities] have this built into their budgets. Part of what's behind our proposal is the idea that when it comes to most research, we should do it competitively. We want to do everything we can to maximize the use of federal dollars in this area, making sure we are getting maximum impact. So the proposal is for a competitive, peer-reviewed mechanism to decide where those research dollars should be allocated. It is hard to argue with that approach if you recognize that what we are trying to do is take a limited resource -- the money that we can put into research -- and get the best research we can get. This phases in over two years, so I hope the universities will adjust to it. Many are talking about the reductions they are going to face, but I believe universities can compete in this process and secure funding through the juried, competitive process for science-based research.

Note: Joseph Jen, Undersecretary for Research, Education, and Economics at USDA testified before the Senate Agriculture Appropriations Subcommittee on April 14. However, Dr. Jen was asked no questions of relevance to this report.

Fred Hutchison
Fleishman Hillard Government Relations