NSF’s Budget Request Flat for FY15

On March 25, 2014, in Funding, FY15 Appropriations, by Peter Harsha

Given the relatively austere budget caps for FY2015 the President and Congress agreed to as part of last December’s budget agreement, the President’s relatively flat budget request for the National Science Foundation in FY2015 isn’t unexpected. In fact, the President’s request for NSF would have the agency grow just 1 percent over FY14 (to $7.3 billion), while research at the agency would actually decrease by $3 million under the President’s plan ($5.191 billion in FY14 vs. $5.188 billion in FY15).CISEBudgetFY15

Funding for NSF’s Computer and Information Science and Engineering (CISE) directorate, the home of the great bulk of NSF’s computing research and infrastructure investments, follows a similar trajectory in the President’s budget. Under the President’s plan, the CISE budget would remain at essentially the same level ($893 million) as in FY14 ($894 million). Coming after two years in which CISE did disproportionately “well” in the budget calculus, this flat budget is a little easier to bear. But it does mean that CISE AD Farnam Jahanian had to do a little reshuffling to protect priorities within the CISE budget. In particular, the directorate’s contributions to a number of cross-agency initiatives would be scaled back somewhat in order to take care of “core” research funding within the directorate.

In his letter to the computing research community, Jahanian noted four areas of priority within the directorate request: expansions of CISE foundational research; investments in crosscutting programs led by CISE; investments in advanced cyberinfrastructure, and education and workforce development.

In addition to CISE’s investments in its core foundational research, the directorate will remain a player in a number of key cross-agency programs, albeit in a slightly reduced role in some cases. Here are some details:

Cyber Enabled Materials, Manufacturing, and Smart Systems (CEMMSS): This is a $213 million program across the Foundation geared towards accelerating advances in “21st century smart engineered systems.” CISE’s investment of $81.5 million in FY15 (down from $85 million in FY14) would focus on advanced manufacturing, cyber physical systems, the National Robotics Initiative, Critical Resilient Interdependent Infrastructure Systems and Processes (CRISP) and their interaction and synthesis.

Cyberinfrastructure Framework for 21st Century Science and Engineering (CIF21): The Foundation would spend $125 million across all the major research directorates in FY15, with CISE contributing $80 million (down from $85 million in FY14). CISE’s focus includes work on Big Data, data infrastructure building blocks, building new computational and data-enabled science and engineering research communities, advancing new computational infrastructure and building partnerships.

Cognitive Science and Neuroscience: NSF’s contribution to the White House’s BRAIN initiative (with NSF, NIH and DARPA), would be $29 million foundation-wide in FY15. CISE would contribute $5.65 million vs. $3.5 million in FY14. CISE’s focus is on addressing the challenges of research integration across multiple scales and builds on ongoing NSF investments like the Collaborative Research in Computational Neuroscience collaboration with NIH, Germany and France.

Innovation Corps (I-Corps): The Foundation would invest $25 million in this program designed to accelerate innovations from the lab to the market. CISE’s contribution would grow to $10 million (up from $8 million in FY14), and Jahanian noted that given the level of interest in the program from the community, the directorate could easily invest twice as much.

Secure and Trustworthy Cyberspace (SaTC): The Foundation would spend $100 million on SaTC in FY15 under the President’s plan, and $67 million of that investment would be in the CISE directorate. The focus of CISE’s effort in this space is to support fundamental scientific advances and technologies to protect cyber-systems from malicious behavior, while preserving privacy and promoting usability.

Jahanian’s presentation from the NSF budget roll-out goes into additional detail about these programs and the other efforts the directorate plans for FY15, and the official justification to Congress contains even more detail. The President’s “Opportunity, Growth, and Security Initiative” — his supplemental budget request, should Congress feel the need to spend more than the caps they agreed to — includes $552 million in new spending for NSF, some of which would find its way into CISE for investments in cybersecurity, clean energy/sustainable computing, and core research activities. However, this is essentially dead on arrival in Congress. Sorry.

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As we mentioned, President Obama released his budget request for the Fiscal Year 2015 (FY15) on Tuesday. We’ll be doing a series of posts on the assorted agencies’ budgets that are important to the computing research community. The first agency that we want to highlight is the Department of Energy (DOE), as they released their top line numbers on March 4th (most of the other science agencies are releasing their numbers next week).

Two key parts of the agency for the computing community are the Office of Science (SC), home of most of the agency’s basic research support, and ARPA-E. For SC, the office would only see a 0.9 percent increase from FY14 to FY15 (going from $5.07B to $5.11B). However, that small overall increase masks significant gains for the subaccount that matters most to computing researchers: ASCR or Advanced Scientific Computing Research. ASCR would see a significant increase in funding, going up by 13.2 percent (or $478M in FY14 to $571M in FY15). Much of the justification for this increase is tagged to work on achieving exascale computing, application of high performance computer simulation and modeling, and operations & upgrades to ASCR facilities. ASCR would receive the largest increase within DOE SC’s request. This is obviously good, but the details are important, and we should get those soon.

As for ARPA-E (or Advanced Research Projects Agency-Energy), it would see a large increase of 16.1 percent (or $280M in FY14 to $325M in FY15). This increase is to support, “transformational energy R&D…as part of a $5.2 billion DOE investment in clean energy technology programs.” While this number is encouraging, it is important to note that a large increase in ARPA-E’s budget has been a regular occurrence with Obama Administration budget requests over the years. And Congress doesn’t have a good record of passing those suggested increases. In the FY14 Omnibus, for example, the agency received just enough funding to roll back much of what it had lost to the sequester in FY13 ($275M in FY12; $252M in FY13; and $280M in FY14) but still fell well short of the President’s request for FY14 ($379M).

It is both important, and not important, to note that the President has signaled DOE as a major agency in his “Opportunity, Growth, and Security Initiative,” or his wish list of programs that ought to receive extra funding beyond the FY15 budget caps. It is important because it demonstrates that the Administration is still concerned about scientific research. However, it is not important because the Initiative is dead on arrival with Congress. Whether this is good or bad, to paraphrase Obi-Wan Kenobi, “depends greatly on a certain point of view.”

To sum up, the President’s DOE request is good news for the computing research community, at least at the top line level. Remember, detailed budget info has not been released yet and, as the saying goes, the devil is in the details. As more information is released, we’ll be posting it here, so stay tuned.

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From my column in this month’s issue of Computing Research News (If you don’t receive CRN via email, you should! Sign up here.)

Washington remains configured for political gridlock after last Tuesday’s elections, a fact which seems to portend two more years like the last two. But party leaders on both sides have indicated a willingness to work together in the new Congress, perhaps softening the hard line that built the so-called “fiscal cliff” towards which the country now hurtles. That willingness to compromise will be put to the test even before the new Congress is sworn in, as the lame duck session of the current Congress has two important deadlines looming before they can adjourn: the December 31, 2012, expiration of the Bush-era tax cuts and the January 2, 2013, deadline for automatic, across-the-board budget cuts called sequestration. Failing to address either deadline could plunge the U.S. economy off the “fiscal cliff,” say economists, and perhaps into recession.

In addition, the current Congress needs to decide how it wants to resolve the unfinished work in the FY 2013 appropriations process. Because of election-year gridlock, Congress was able to finish none of the twelve annual appropriations bills required to fund all the operations of the federal government, leaving agencies — including federal science agencies — operating under stop-gap funding at last year’s levels. The congressional leadership will have to decide whether to attempt to pass the unfinished bills before they adjourn, or let the new Congress deal with them.

On top of all of that, it appears likely that the Federal government will once again hit the Federal statutory debt limit by the end of 2012, though a series of “extraordinary measures” taken by the U.S. Treasury may push that deadline until early February 2013. If Congress cannot agree to increase the debt limit before federal spending reaches it, the government will shut down and the U.S. could default on its debts.

So, despite remaining mired on a playing field seemingly designed to ensure gridlock in the legislative process (ie, a somewhat fractured GOP majority in control of the House, a narrow Democratic majority in the Senate, and a Democratic president), Congress needs to take action on a series of issues on which it could not reach agreement at any point over the previous two years, and it needs to do so over the next six weeks or risk plunging the U.S. into recession. And with relatively little change to that playing field, the new Congress will need to solve whatever unfinished business the current Congress leaves it, and address the debt limit, likely by February.

The lame duck has essentially three big decisions to make — on appropriations, the looming budget sequestration, and the expiring tax cuts. Of the three, sequestration and the tax cuts are the most time-sensitive and potentially impact the U.S. economy the most. Congress has already passed stop-gap funding for federal agencies through March of 2013, so failing to get appropriations done before the end of the year would not force agencies to shut down.

Sequestration and the expiring tax cuts have been grouped together by congressional Democrats, who would like to extend the Bush-era cuts, but modify them so that tax rates on the top tier payers would increase. Without concessions designed to raise government revenue, congressional Democrats have been unwilling to support efforts to mitigate cuts called for in the sequester, especially on defense spending that Republicans oppose. Neither party believes the cuts in the sequester are in the best interests of the country. Indeed, the sequester was designed (in the wake of the inability of the two parties to come up with an agreement for cutting the debt during the last debt limit crisis in August 2011) with cuts that were hard to stomach to force the two parties to reach agreement on cutting the deficit on their own.

So there are a few scenarios in which the lame duck may play out. The two least likely are:

  • Congress commits to a proposal for cutting the federal deficit by $1.2 trillion over the next ten years by some combination of raising revenue, cutting discretionary spending, and/or reforming entitlement programs, thereby eliminating the need for the automatic, across-the-board discretionary spending cuts called for in sequestration, and agrees to an extension of the Bush-era tax cuts, with some modification;
  • Congress does nothing, allows the tax cuts to expire and the sequestration cuts to take place.

More likely, according to many Congressional observers and staffers, is that Congress will agree to delay the sequestration cuts for a period of a few months to maybe as much as a year so that Members have more chance to evaluate different solutions, and will either reach some agreement on the tax cuts, extend them for a short period for more debate, or allow the tax cuts to expire with the expectation that the new Congress will act on them immediately, hopefully causing no impact to taxpayers. Because this scenario would not reduce the uncertainty in the market, which is concerned whether sequestration or the tax cut extensions will eventually happen, Congressional leaders may elect to “send a signal” of their seriousness about controlling spending by passing a FY2013 omnibus appropriations bill with some significant across-the-board cut — but not as significant a cut as the sequester would have made.

This would be a marginally better, but still pretty poor, outcome for those concerned about federal investments in science. Research accounts at the National Science Foundation and National Institute of Standards and Technology appeared to be on a path to fare well in the FY 2013 appropriations process, and computing accounts at the Department of Energy would hold their own or grow slightly. An omnibus with across-the-board cuts would mitigate those gains in part, or perhaps completely. However, the alternate scenarios look even worse. Any cut through sequestration (on the order of 8 or 9 percent) would far outstrip the gains science agencies were likely to see, and sequestration followed by an omnibus in March might make a bad situation even worse.

The science community will also find itself without some key allies in the new Congress, as a number of “champions” for the sciences have retired or lost election battles in November. We will have more detail in the next issue of Computing Research News, but retirements like Sen. Kay Bailey Hutchison (R-TX) and Sen. Jeff Bingaman (D-NM) and losses like Rep. Judy Biggert (R-IL) mean that there are fewer Members of Congress with experience making the case for federal investment in fundamental research.

In any scenario, science agencies and programs, and all other federal agencies, will find themselves under increased budget pressure over the next two years, and probably into the foreseeable future. About the only positive change in the dynamic is a President who will no longer have to run for office, freeing him, potentially, to make politically “riskier” compromises on things like entitlement and tax reform.

The deals Congress will make over the next several weeks and months are likely to resonate in federal budgets for years to come. We’ll have all the details.

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