Vol. 4, No. 1 - February 6, 2006
 

President's FY 2007 Budget Released

To Members of the NASULGC System:

The President's FY 2007 Budget Request was made public this morning and we have obtained or created several documents concerning funding for the USDA's Cooperative State Research, Education, and Extension Service (CSREES). These documents are posted to the Web site at the following locations:

USDA Portion of Budget:
www.nasulgc-bac.com/documents/FY2007/USDA.pdf

CSREES (and ARS) Excerpts from the USDA Appendix:
www.nasulgc-bac.com/documents/FY2007/ARS_CSREES.pdf

CSREES Information from Congressional Budget Book:
www.nasulgc-bac.com/documents/FY2007/CSREES_BB.doc

CSREES Spreadsheet (a BRT document):

www.nasulgc-bac.com/documents/FY2007/Bush.xls

Statement About Competitive Research:
www.nasulgc-bac.com/documents/FY2007/USDA_spin.doc

Here are some key details (as we know them at this time):

1. USDA Research, CSREES, and ARS
The Budget requested a total of $2.653 billion for USDA's research agencies, which represents a $382 million reduction in funding over the FY 2006 enacted level.  (In some documents you will see the Administration claim an increase in USDA research funding but that is only in comparison to the President's FY 2006 Budget Request.) Total funding for CSREES in the President's Budget is $1.046 billion, compared to $1.207 billion in the FY 2006 bill as enacted. Total funding for the Agriculture Research Service (ARS) would be $1.001 billion, compared to $1.124 billion in the FY 2006 bill as enacted.

2. Formula Funds
The Budget does not proposed to eliminate funding for Hatch and McIntire-Stennis programs as had been proposed in the President's FY 2006 Budget. However, apparently funding for the Animal Health & Disease research program would be eliminated as would funds for several other programs in the Research & Education category. (See the CSREES spreadsheet.) The "USDA Budget Brief" provides the following explanation with respect to a proposed redirection of Hatch and McIntire-Stennis funds:

"The 2007 budget which funds the Hatch Act and the McIntire-Stennis programs at about the 2006 level would increase funding for competitive grants. The proposal will modify the Hatch formula program by expanding the multi-State research programs to approximately 55.6 percent from the current base of about 25 percent. A portion of these funds, 35 percent, will be redirected to nationally, competitively awarded, multi-State/multi-institutional projects in the first year with the remaining multi-State funds being phased into competitive grants from formula funding over a four year period as existing multi-State projects are completed. This new approach will sustain the matching requirement and the use of Federal funds to leverage non-Federal resources. Additionally, the proposal will modify the McIntire-Stennis formula program by creating a multi-State research program supported by about 59 percent of the total funding. All McIntire-Stennis multi-State funds will be distributed though competitively awarded grants in 2007."

3. NRI and Section 406 Integrated Programs
The Budget once again proposes to move a number of the programs authorized under Sec. 406 of the Agricultural Research, Extension and Education Act of 1998 from the "Integrated Activities" section of the CSREES budget to the National Research Initiative (NRI). Funding for the NRI would be increased by some $66.3 million above the FY 2006 enacted level. This means that if all of the Sec. 406 programs were funded at their FY 2006 levels, the NRI would still be increased by $24 million over last year.

4. Special Grants ( Earmarks )
As has been true for many years, the President's Budget proposes to eliminate most of the special grants that Congress has traditionally included within the CSREES budget.

We will provide additional details to you just as soon as we have them.

Fred H. Hutchison
Fleishman-Hillard Government Relations

BRT Report from Washington is edited by Fred H. Hutchison on behalf of the BRT. The BRT, comprised of Fleishman-Hillard Government Relations, Fleishman-Hillard Inc., and Cornerstone Government Affairs, represents the Budget and Advocacy Committee of NASULGC's Board on Agriculture Assembly before Congress and executive branch agencies. © 2006, Fleishman-Hillard Government Relations. For more information: www.nasulgc-bac.com