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FY11 Appropriations Come to a Halt

Yesterday evening, Senator Majority Leader Harry Reid (D-NV) decided to pull the FY11 omnibus appropriations package from the Senate schedule.The move came after several committed “aye” votes decided that they could no longer support the legislation due to concerns about the overall cost and presence of earmarks. The next step in the FY11 process will likely be a 3rd short-term continuing resolution that keeps the government running at FY10 levels until February and leaves spending decisions to the new Congress.

It is expected that there will be even less support for an omnibus appropriations bill in the new Congress, which potentially sets the stage for a year-long continuing resolution or funding at even lower levels if the new House majority is successful in their push to roll back spending to FY08 levels  -an idea opposed by the Senate leadership and President Obama. Additional details will be provided as they become available.

Rep. Adam Smith Likely Ranking Member on House Armed Services

Yesterday, the Democratic Policy and Steering Committee voted to recommend that Washington Congressman Adam Smith serve as the top Democrat on the House Armed Services Committee. The vote essentially guarantees Congressman Smith the Ranking Member post in the 112th Congress. The Armed Services Committee has oversight of the operations of the Department of Defense as well as the national security functions of the Department of Energy.

UW Bothell Nursing Program on the Hill

UW Bothell with Jay Inslee

UW Bothell Nursing Program Director Dr. Mary Baroni (pictured front right) and  faculty member Dr. Suzanne Sikma (pictured back right) came to DC last week to attend and present at the Global Alliance for Leadership in Nursing Education and Science (GANES) conference. They were joined by program alumni Florentina Culiac (pictured center) and Gail McLean (pictured left) who also presented at the GANES conference. The UWB Nursing Program has benefited from significant federal support for student scholarships, primarily through the efforts of Congressman Jay Inslee (pictured) and Senator Patty Murray. The scholarships have enabled the training of nursing faculty resulting in increased educational opportunities for community college nursing students around the state, and ultimately increasing the number of practicing nurses.

The UWB contingent participated in meetings on Capitol Hill to thank the two offices for their support and to discuss the future of the program.

Senate Moves Tax Package Forward (Updated 12/17)

**2nd Update 12/17** The packaged has been fully approved by Congress and is heading to the President’s desk, where it will be signed this afternoon.

** Update ** Today, by a vote of 81-19, the Senate voted to pass the much discussed tax-extenders package. The bill now goes to the House for a vote. The $893 billion package would provide an extension of various Bush-era tax cuts that were set to expire at the end of December. The package includes several items of note to our community, including:

Tax incentives that would be extended for two years through 2012

  • Section 127 Employer-provided education benefits
  • Coverdell education savings accounts
  • Student loan interest deductions
  • American Opportunity Tax Credit (AOTC)

Tax incentives that would be extended for two years through 2011 (they expired in 2009)

  • Deductions for qualified educational expenses
  • Research and development credit
  • Ability to “roll over” assets in Individual Retirement Accounts (IRA) to charitable organizations, including institutions of higher education

Additional items of note for employees

  • Sales tax deduction in states with no income tax -retroactively for 2010 plus 2 additional years
  • Social security payroll tax reduction from 6.2% to 4.2% of income for one year

Although the tax package will leave the Senate with rare bipartisan support, it’s path in the House is less clear. House Democrats have promised to amend the legislation, primarily the estate tax portion, which could send it back to the Senate. Senate Republicans have already signaled that they are unlikely to support House modifications. Nonetheless, it is expected that some form of a final deal will be struck by the end of the week -so that tax rates do not increase at the beginning of the year.

FY11 Omnibus Spending Bill Increasingly Possible (Updated 12/17)

**12/17 Update: Now increasingly unlikely, as several committed votes in favor have switched

Today, in a step towards closing out the FY11 appropriations process, the Senate Appropriations Committee released its omnibus appropriations package. The package would enable modest increases to federal research agencies that the University of Washington draws competitive grant support from. Additionally, the package contains support for several UW specific projects. Items of note from the Senate omnibus are listed below. The package will require 60 votes in the Senate in order to overcome a filibuster. At present, it appears that Senate Appropriations Committee Chairman Daniel Inouye (D-HI) has the votes necessary to advance the legislation. However, the process is far from a done deal. A final outcome should be clear by the end of the week, when the House hopes to adjourn for the year.

UW Specific Projects in the Senate Omnibus

  • Puget Sound Littoral Sensing- $4.96 million
  • National Tidal Energy Test Platform- $3.76 million
  • Healing in Bone & Eye with Sphere-templated Polymers- $1.2 million
  • Center of Excellence for Advanced Materials in Transport Aircraft Structures (AMTAS)- $750,000
  • Dental Education in the Care of Persons with Disabilities (DECOD)- $570,000
  • Small Business Development Center (Tacoma)- $265,000

Agency Funding Levels of Note in the Omnibus

  • Commerce-Justice-Science Section
    NSF: $7.34 billion (an increase of approximately $400 million from FY10)
    NOAA: $5.5 billion (an increase of approximately $800 million from FY10)
    NIST:
                    – Technology Innovation Program: $70 million
                    – Manufacturing Extension Program: $125 million
  • Interior-Environment Section
    USGS: $1.2 billion (an increase of approximately $900 million from FY10)
  • Labor-HHS-Education Section
    NIH: $31.8 billion (an increase of about $750 million from FY10)

*Additionally, $5.7billion is provided to fill a shortfall in the Pell Grant program, which was created by increased eligibility