All hands meetingBudget discussion

P. Oddone, February 15, 2011

Why this meeting?

• I have many calls from the press and others regarding the consequences of various budget scenarios

• I want to talk to you first, before you read what I have to say in the newspapers

• There are two main scenarios to discuss: the FY12 President’s Budget Request for HEP and the recently proposed 20% cut to Office of Science in FY11

P. Oddone, All-hands meeting, February 15, 20112

The bad news first……

• The House is debating the FY11 budget and the Committee on Appropriations has come through with $100B in cuts to domestic spending

• The cuts respond to powerful forces to restore fiscal balance to the Federal budget. The deficit is estimated for FY11 at $1.5 trillion or about 10% of GDP (it will also add 10% to total debt)

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From Congressional Budget Office:

P. Oddone, All-hands meeting, February 15, 20114

Budget deficit

• Would decrease to tolerable levels in 3-4 years by the CBO projections if:

Economy recovers to historical standards of growth

Laws stay without changes, i.e. taxes enacted first in President Bush’s era are allowed to expire after their present extension

P. Oddone, All-hands meeting, February 15, 20115

Budget deficit

• These are two big assumptions. If they are not correct, the debt keeps increasing at a relatively fast pace. So limiting outlays is the call of the day on both sides of the isle:

President’s freezing of non-defense discretionary spending

Proposed cuts in the House budget also on non-defense discretionary spending

• Non-defense domestic spending is only 12% of the budget so the actions above won’t solve the problem but they are a start

P. Oddone, All-hands meeting, February 15, 20116

What does a 20% cut in FY11 mean?

• It comes halfway through the fiscal year so it would amount to a 40% cut on the rate of expenditures for the remainder of the year.

• Impossible to accommodate such cuts without major disruptions: Stop operation of all accelerators immediately Stop most procurements for remainder of year Slow down projects to barely keep-alive levels Furlough staff for roughly two of the remaining six

months Prepare layoffs of 20% of the staff or 400 employees

P. Oddone, All-hands meeting, February 15, 20117

What does a 20% cut in FY11 mean?

• There would be similar effects on all other Office of Science laboratories

• It would be a major blow not only to particle physics but to US science overall, with thousands of layoffs, many projects terminated, and a very difficult recovery

• We have to make the consequences of these cuts evident if we are to prevent them. We have support from our representatives and our stakeholders

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Now for the better news

• Yesterday the President released his FY12 budget request to Congress

• Within the overall freeze of domestic spending there were major increases in the Office of Science budget for three areas that contribute to clean energy technologies: Basic Energy Sciences (BES), Biological and Environmental Research (BER), and Advanced Scientific Computing Research (ASCR)

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Office of Science in the PBR

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Office of Science ($M) FY10

Enacted* FY12 PBR**

% Change FY10-FY12

BES 1,637 1,985 21%ASCR 394 466 18%BER 604 717 19%HEP 810 797 -2%NP 535 605 13%Fusion 426 400 -6%SLI 128 112 -12%SC Prog Dir 189 217 15%WDTS 21 36 74%S&S 83 84 1%SBIR/STTR - - - Earmarks 77 - -100%Total program activities 4,904 5,419 11%

* FY11 continuing resolution funding level** PBR = President's Budget Request

Laboratory projection

P. Oddone, All-hands meeting, February 15, 201111

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 PBR

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

FERMILAB OHEP FUNDING

FUNDING FY08 SUPPLEMENTAL INFLATIONARY INCREASE

$ M

Laboratory projection

• The FY12 budget is very tight and less than what we would have hoped for

• Playing on this is the uncertainty in the DUSEL situation and whether new starts will be allowed in a FY11 CR

• Given all the factors and the tremendous emphasis on research tied to green energy, we would still have a good budget that will allow progress in all our projects

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