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News and updates

News and updates

Additional Glimpses Into Obama Budget Request

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Despite President Obama’s plan to call for a three year freeze of domestic discretionary spending, K-12 and certain higher education student aid/support services grant programs stand to receive significant increases in the FY11 budget process -according to administration officials. As mentioned in yesterday’s (1/26) post, certain federal programs may be cut, consolidated, or eliminated to achieve the President’s increases for education while maintaining an overall freeze on federal spending.

During the State of the Union address tonight, President Obama is expected to reiterate his support for the Student Aid and Fiscal Responsibility Act (SAFRA) that passed the House of Representatives last September but has been delayed in the Senate -pending passage of health care reform. SAFRA would eliminate banks from federal student loan programs, yielding roughly $80 billion in savings that would be spent to increase the mandatory funds available for Pell grants as well as to fund certain college access and completion grant programs.

At the K-12 level, President Obama is expected to propose an allocation of $1.35 billion for the Race to the Top program, which funds state education innovations and reforms. Additionally, $1 billion would be set aside to fund an overhaul of No Child Left Behind. Additional details will be provided in the State of the Union this evening, with a full blueprint available when the FY11 budget request is released on February 1st. The Office of Federal Relations will provide additional information as it becomes available.

President Obama to Propose Discretionary Spending Freeze

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Late yesterday, the Obama administration announced an intention to propose a 3 year freeze of domestic discretionary spending -excluding defense/veterans and homeland security. The proposal, an attempt to decrease the federal budget deficit, will be outlined in the President’s State of the Union address this Wednesday night. At present, we know that the proposal would save approximately $250 billion (by 2020). If the president’s proposal succeeds, it could mean level funding for science and education accounts — important to the higher education community — for the remainder of his first term. However, administration officials have indicated a willingness to cut certain programs in order to allow for increases to programs of importance to the administration -such as education and health. President Obama will officially unveil his complete FY11 budget request on Monday February 1st. It remains to be seen whether or not Congress will go along with his proposed spending freeze. In recent years, Congress has balked at cuts or level funding of programs deemed important by the majority. However, the current political climate on Capitol Hill and fact that we find ourselves in an election year, could increase pressure on Congress for fiscal restraint.

This Week on Capitol Hill – January 25-29

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The Senate votes Monday on a judicial nomination and is expected to continue debate on a measure to increase the federal debt limit, with votes on amendments beginning Tuesday.

The House returns Tuesday to consider a number of commemorative resolutions along with a draft bill to provide emergency aid to U.S. survivors of the eqrthquake in Haiti.  The Senate may also take up that bill later in the week.

The House is scheduled Wednesday to vote on extending small-business programs.

President Obama is scheduled to give the State of the Union address to a joint session of Congress on Wednesday night.

House Republicans attend their annual policy retreat Thursday and Friday.

Source:  Congressional Quarterly

Commerce Secretary Locke Announces Plans for Forum on R&D Commercialization at Universities

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US Commerce Secretary Gary Locke announced on Tuesday his plans to host a forum with university leaders and key stakeholders on the roles of universities in innovation, economic development, job creation, and commercialization of federally funded research next month in Washington, DC.

The forum, to be held February 24, will open a dialogue among administration officials, university leaders, innovators, entrepreneurs, investors, and other stakeholders on the effectiveness of existing government and university policies, programs and practices that impact job creation and commercialization.  Participants will discuss potential collaborative steps that the Commerce Department and administration can take working with universities and industry to increase and accelerate commercialization of federal R&D in universities.

Universities cultivate many of the critical capabilities needed to build an innovation economy, including the creation of new fundamental knowledge and technologies, the production of skilled industrial and research workforces, and entrepreneurship and leadership development.  The federal government makes substantial investments in university-based R&D and has a long relationship with the university community.  With input from many stakeholders, the Commerce Department will explore ways to increase and accelerate commercialization of new ideas from R&D that lead to new businesses and new jobs. 

Obama’s FY11 Proposal — Details and Leaks

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Budget Tracker  at CQ.com is keeping track of the details emerging on the fiscal 2011 budget request from the Obama administration, as well as reports seemingly based on leaks, and requests. The President’s budget will be submitted to Congress on Monday, February 1st.  The following are a few of the details that are beginning to emerge that may have some implications for the UW or the State of Washington.

• “Race to the Top” Education Funding: On January 19th, the President announced he will request $1.35 billion for his “Race to the Top” education reform program, which was created last year using about $4.35 billion in economic stimulus funding. Obama also said that program funding would be available not just to states, but also to “local school districts that are also committed to change”. Stimulus program funding was intended to be temporary, and it was unclear whether the new funding would be added to the Education Department‘s budget or offset. Obama said that the competitive and innovative aspects of the program will also be apparent in other parts of his fiscal 2011 budget.

• Transportation Funding: On January 14th, Transportation Secretary Ray LaHood said the Obama administration is working on a multi-year transportation bill that will cost between $400 billion to $500 billion, and that the administration’s transportation priorities will be unveiled as part of the fiscal 2011 budget. Highway and transit funding, including research funding, is currently operating under temporary extensions because Congress has been unable to agree upon a new multi-year funding mechanism. The House Transportation and Infrastructure Committee drafted its own $450 billion six-year plan last year and seems intent on pushing that bill forward.  So far the Senate and the White House have not agreed on a path forward but most pundits speculate that reauthorization will wait until after the November 2010 elections. 

• Everglades Restoration: Nancy Sutley, Chairwoman of the White House Council on Environmental Quality, recently indicated that Everglades projects may fare well in FY11, even in a budget year that will be marked by especially fierce battles for funding. She recently told reporters in Florida that “[w]hen the 2011 budget comes out, I think you’ll see a continued commitment not only to the Everglades but other ecosystem restoration projects.”  Other ecosystem restoration projects may include funding for the Puget Sound.

• NASA:  Some media outlets are reporting that NASA’s budget will be a billion-dollar increase in the President’s FY11 budget to help fund the International Space Station through 2020.  However, the shuttle program may not be extended.