To Members of the NASULGC System:
- Board on Agriculture Assembly
- Budget and Advocacy Committee
- Council on Agricultural Research, Extension, and Teaching

Fiscal Year 2009 begins in less than one week (Oct. 1) and legislation must be enacted before then to keep the federal government operating.

An omnibus appropriations bill is being considered in the House today (Sept. 24) and expected in the Senate tomorrow. It includes appropriations for all of F.Y. 2009 for the Department of Defense, the Department of Homeland Security, Military Construction and Veteran's Affairs. Other departments and agencies will be covered by a "Continuing Resolution" (CR) which authorizes them to continue spending at F.Y. 2008 levels through March 6, 2009, or until regular appropriations bills are enacted (whichever is sooner). USDA's Cooperative State Research, Education, and Extension Service (CSREES) is one of the agencies that will be operating under the CR.

Year-to-Date Recap
The House Agriculture Appropriations Subcommittee marked up its F.Y. 2009 bill on June 19. However, the bill did not get consideration or approval by the House Appropriations Committee, or the full House of Representatives. Therefore, the CSREES programmatic results detailed in our June 19 Report have never been formally ratified by the House. And, project-related tables for "special research" and "federal administration" grants (earmarks) have never been released.

On the other side of Capitol Hill, the Senate Appropriations Committee approved its version of the
F.Y. 2009 Agriculture Appropriations bill on July 17. CSREES program and project amounts remain as described in our July 17 Report and detailed in S. Rpt. 110-426.

Looking Ahead
Neither the House nor Senate will pass a stand-alone Agriculture Appropriations bill. Instead, Agriculture Appropriations subcommittee members and staff are expected to negotiate a final measure in the coming months that both chambers can agree upon (most likely as part of another omnibus package). Until the results of such negotiations are made public, we will not know the final funding levels for CSREES programs and projects. It should be noted that although the CR expires on March 6, another omnibus package could be completed during a "lame duck" congressional session in November or December or by the next Congress prior to March 6.

Frequently Asked Questions
	How will funding for CSREES formula funds (e.g. Hatch, Smith-Lever, Evans-Allen, etc.) be impacted? Once the CR is in place, CSREES will receive guidance from the Office of Management and Budget (OMB) as to the timing and amount of formula funds that can be released. Some of these funds may be made available in early 2009.
	Will CSREES funds for special research and federal administration grants be released while the CR is in effect? Release of funds for specific CSREES projects will not occur until after a final F.Y. 2009 Agriculture Appropriations measure is enacted into law.
	Will the CR impact the distribution of mandatory funds authorized by the 2008 Farm Bill? The CR as written does not impose any limitation on the organics, energy, specialty crops, or beginning farmer and rancher programs that are scheduled to receive mandatory funding. However, OMB will control the release of these funds.

CSREES Funding Levels
The following table displays the programmatic funding levels for F.Y. 2008 and the current House and Senate marks for F.Y. 2009. (All $Millions)

As always, we will be certain to keep you informed as further events unfold.

The Cornerstone Team