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1. How does the budget process affect research funding?
2. What happens if Congress can’t agree to a budget?
3. How does inflation make a difference in federal funding for research?
4. What is the fiscal year (FY)?
5. What is the difference between an authorization and an appropriation?
6. When does an agency begin planning for a new budget?
7. In regards to the the federal budget, how does a Congressional conference committee work?
8. What are 302a and 302b allocations?
9. What is House Resolution 1 (HR 1)?
1. How does the budget process affect research funding?
Federal funding makes up a large portion of total U.S. investment in health research; for example, it was 34% – about $47 billion – in 2009. If Congress makes drastic cuts to research, it will severely hurt our economy, global competitiveness, safety, and health. Public support for research remains strong, and through advocacy we can make the case against cuts and instead push for further investment.
2. What happens if Congress can’t agree to a budget?
If Congress can’t agree on a budget before the fiscal year begins on Oct. 1, there are two options:
1) Continuing Resolution
A Continuing Resolution (CR) is a temporary measure that keeps funding levels the same (not adjusted for inflation) as the year prior. Congress then has a new deadline for passing a budget, but members can also pass a new CR when that time comes. A CRmay last for days or for months.
2) Government Shutdown
The federal government suspends all non-essential services, meaning that most federal workers do not go to work.
3. How does inflation make a difference in federal funding for research?
Inflation is the rise in price for goods and services over time; in other words, a dollar will buy you less tomorrow than it does today. Because of inflation, if a federal agency receives the same level of funding as the year prior, it’s actually able to purchase less. There are three measures of inflation often brought up with regard to federal agencies: the Consumer Price Index (CPI) most commonly used by the public, the Gross Domestic Product Price Index (GDPPI) used by most government agencies, and the Biomedical Research & Development Price Index (BRDPI) used by the NIH. According to BRDPI, for example, a flat NIH budget between FY 2011 and 2012 would be equivalent to a 2.9% cut in funding.
4. What is the fiscal year (FY)?
The federal government's fiscal year runs from Oct. 1 to Sept. 30. For example, FY 2012 runs from Oct. 1, 2011 to Sept. 30, 2012.
5. What is the difference between an authorization and an appropriation?
An authorization gives the legal authority to create a federal program or agency. An appropriation provides the money for that federal program to function, but appropriations are not always approved for every authorization. Congress must authorize or reauthorize programs before they can be funded in the new year.
6. When does an agency begin planning for a new budget?
An agency begins planning for the new fiscal year up to two years beforehand. For a better idea of the timeline, check out the budget process.
7. In regards to the federal budget, how does a Congressional conference committee work?
Conference committees include negotiators from both the House and Senate, usually people who took the lead on a bill.
8. What are 302a and 302b allocations?
An allocation is an amount of money distributed during the appropriations process. 302a allocations are the total amounts of money provided to House and Senate appropriations committees for distribution. 302b allocations are the subsets of money allotted to each of the 12 subcommittees. The subcommittees then decide on allocations to individual federal programs and agencies.
9. What is House Resolution 1 (HR 1)?
House Resolution 1 (HR 1) was an appropriations bill for Fiscal Year 2011 that included deep cuts to the federal budget and research agencies. HR1 was passed by the House on February 19, but did not pass the Senate.