Prospects for Research Funding

Association of Medical School Neuroscience Department Chairs Annual Meeting

David B. Moore Senior DirectorGovernment RelationsMarch 4, 2010

What I Will Cover• Current political landscape

• Where we are now (FY 2010)

• Where we are headed (FY 2011)• Budget environment• President’s Budget• Congressional response

• Potential changes in political landscape

“Everything is changing. People are taking their comedians seriously and politicians as a joke.”

- Will Rogers

The Political Landscape

The Political Landscape

“Just because you are good on TV doesn’t mean you can sell socialism to freedom loving Americans.”

Senator Jim DeMint (R-SC)Remarks to C-PACFebruary 18, 2010

The Political Landscape • Highly partisan – Election year

• Issues• Health care reform• Second jobs bill• Unemployment extensions• Taxes – including AMT fix• SGR• Federal spending

Is Obama the Light at the End of the Tunnel for Science?

Obama Inaugural Address

“The state of the economy calls for action, bold and swift, and we will act - not only to create new jobs, but to lay a new foundation for growth…. We will restore science to its rightful place, and wield technology’s wonders to raise health care’s quality and lower its cost….”

Remarks at National Academy of Sciences

“We will devote more than three percent of our GDP to research and development…. through policies that invest in basic and applied research, create new incentives for private innovation, promote breakthroughs in energy and medicine, and improve education in math and science. This represents the largest commitment to scientific research and innovation in American history.”

President Obama April 27, 2009

A Strategy for American Innovation: Driving Towards Sustainable Growth and Quality Jobs – September 2009Restore American leadership in fundamental research.

Educate the next generation with 21st century knowledge and skills while creating a world-class workforce.

Build a leading physical infrastructure.

Develop an advanced information technology ecosystem.

Where Are We Now?

FY 2010 Funding for Science

Agency FY 2009 FY 2010 % change

NIH $30.317 B $31.010 B 2.3%

NSF Research $5.183 B $5.564 B 7.4%

DOE (Office of Science) $4.773 B $4.895 B 2.6%

NIST (Sci & Tech Res. Services) $478 M $520 M 8.8%

AHRQ $372 M $397 M 6.3%

VA Research $510 M $581 M 13.9%

House passed July 24 (264 – 153)

Senate Appropriations Committee passed July 30 (29 – 1)

Full Senate did not consider

Bill filed as part of Transportation/HUD appropriation (H.R. 3288) December 8

President signed Consolidated Appropriation [P.L. 111-117] December 16

Status of FY 2010 HHS Appropriations Bill [H.R. 3293]

NIH Budget Chronology [in billions]

FY 2009 Omnibus $30.317 +$0.938 (3.2%)

ARRA Funds $10.400

FY 2010 President $30.759 + $0.442 (1.5%)

FY 2010 House $31.259 + $0.942 (3.1%)

FY 2010 Senate Cmte. $30.759 + $0.442 (1.5%)

FY 2010 Final $31.010 + $0.692 (2.3%)

BRDPI Projection for FY 2010 = 3.2%

“The Committee understands that the recommended fiscal year 2010 funding level falls below the amount needed to keep up with biomedical inflation, and that the NIH could face severe financial pressures in fiscal year 2011.

But the Committee notes that the record-high increase for the NIH in the ARRA greatly mitigates the need for more funding than the administration requested in fiscal year 2010.”

Senate Report 111-066

Rationale Behind Senate Bill

NIH Funding, Percentage Increase Constant Dollars [FYs 1980-2010]

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

-6.0%

-1.0%

4.0%

9.0%

14.0%

Loss of More Than $3.3 Billion (12%) in Purchasing Power Since FY 2003

2003 2004 2005 2006 2007 2008 2009 2010$20

$22

$24

$26

$28

$30

$32

$27.1$27.9

$28.5 $28.5$29.0

$29.3

$30.3$31.0

$26.9 $26.4

$25.3 $24.8$23.9 $23.9

$23.7

Current Constant (BRDPI)

Do

llars

in b

illio

ns

NIH Research Project Grants

2001 2002 2003 2004 2005 2006 2007 2008 2009 20108,000

8,500

9,000

9,500

10,000

10,500

11,000

9,396

10,411

10,025

9,481

9,085

9,8729,737

9,1119,251

9,052

New/Competing Renewal

Rather than fight the same tired battles that have dominated Washington for decades, it’s time to try something new. Let’s invest in our people without leaving them a mountain of debt. Let’s meet our responsibility to the citizens who sent us here. Let’s try common sense.                                     – President Barack Obama

FY 2011 Obama Budget

• Rescuing the Economy

• Reviving Job Creation and Laying a New Foundation for Economic Growth

• Restoring Responsibility

FY 2011 Obama Budget

• Freezes Non-Security Discretionary Spending for the Next Three Years

• Investing in the Sciences for a Prosperous America• Proposes $61.6 billion for basic and

applied research [+5.6%]

FY 2011 Obama Budget

Agency FY 2010 FY 2011 % change

NIH $30.010 B $32.007 B 3.2%

NSF Research $4.618 B $5.006 B 7.1%

DOE (Office of Science) $4.895 B $5.121 B 4.6%

NIST (Sci/Tech Res. Services) $520 M $587 M 12.9%

AHRQ $397 M $611 M 54%

VA Research $580 M $590 M 1.5%

NIH Director’s Strategic Priorities• Applying "high-throughput" technologies to

understand fundamental biology and disease

• Translating basic science into new and better treatments

• Putting science to work for the benefit of health care reform

• Encouraging greater focus on global health

• Reinvigorating and empowering the biomedical research community, including new scientists

FY 2011 Obama Budget – NIH

• Request = 3.2% (equals projected FY 2011 BRDPI)

• New & Competing RPGs = 9,052 (-199)

• Total RPGs = 37,001 (+195)

• Ave. Cost Comp. & Non-Comp. RPGs = +2%

• Projected FY 2011 Applications = 60,133 (FY 2010 = 43,890)

• Projected FY 2011 success rate = 15% (FY 2010 = 21%)

FY 2011 Obama Budget – NIH

• NRSA = $824.4 M (+$41.7 M or 6%) for stipends• NRSA positions = 17,164 (-92 FTTPs)• CTSAs = $500 M

• Common Fund = $562 M (+$17.5 M)

• Therapeutics for Rare and Neglected Diseases = $50 M (+$26M plus $24M ARRA funds

• Basic Behavioral and Social Sciences Opportunity Network (OppNet) = $20 M

The future ain’t what it used to be.

- attributed to Yogi Berra

Things to Watch For• How will Congress address the budget

deficit?

• Will Congress go along with the spending freeze?

• How will Congress respond to the cuts in the Obama budget?

• What about the ARRA “cliff”?

CBO Federal Deficit Projections

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-1,600

-1,400

-1,200

-1,000

-800

-600

-400

-200

0

NIH as a % of Labor-HHS Discretionary Funding

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100.0%

5.0%

10.0%

15.0%

20.0%

25.0%

18.9%

17.1%16.8%

18.8%20.8%

18.6% 18.4%

20.4% 20.0% 20.1% 20.1% 20.0% 20.2% 19.9%

18.6%

Fiscal Year

“The Committee understands that fiscal year 2011 will be an even more difficult year, because several programs that were well-funded in ARRA will face the prospect of ‘falling off a cliff.’ The Committee expects to restore a special emphasis on its traditional priority programs next year to help ease the transition to a post-ARRA budget.” Senate Report 111-066

The “Cliff”

NIH ARRA Funding

FY 2009 Actual FY 2010 Estimate

$4.954 Billion $5.447 Billion

Source: FY 2011 NIH Congressional Justification

NIH Baseline Outlays [in billions]

FY 2009 FY 2010 FY 2011 FY 2012

$29.782 $31.641 $36.954 $33.243

Source: FY 2011 President’s Budget

Frequently Asked Questions

• What did we get for the doubling?

• What did we get from ARRA?

• Where are the jobs?

“We would like the Government Accountability Office to examine the use of the recovery funds by NIH.  Specifically, we would like information on the process and criteria used for awarding grants that were made available through ARRA monies, and the extent to which these may have varied from the process and criteria typically used by NIH to award grants. Additionally, we are interested in obtaining information on grantee estimates of the number of jobs created or maintained through grant awards funded with ARRA monies.”

September 11, 2009, Letter to GAO

Barton Asks GAO to Review NIH’s Use of Stimulus Funds

NIH Grants Funded by the American Recovery and Reinvestment Act of 2009

http://report.nih.gov/recovery/arragrants.cfm

http://report.nih.gov/recovery/arragrants.cfm

From Recovery to Discovery: ARRA Funding and Medical Research

http://www.aamc.org/advocacy/recovery/start.htm

Messages That Resonate with the White House/Capitol Hill

• Health Impacts

• Connecting Science to Health

• Local/Regional Economic Impacts

Investing in Discovery: The Impact of Basic Research and the Role of the National Institute of General Medical Sciences

Jeremy Berg, Ph.D.

Director

National Institute of General Medical Sciences

Friday, March 5, 2010 -- Noon to 1:00 p.m.

Rayburn House Office Building – Room B-339

The Ad Hoc Group for Medical Research

Congressional Biomedical Research Caucus

Messages That Do Not Resonate with the White House/Capitol Hill

• Loss of Purchasing Power

• Paylines/Success Rates

• National/Global Economic Impacts

Date of Signing of Labor-H Bill

FY 01

FY 02

FY 03

FY 04

FY 05

FY 06

FY 07

FY 08

FY 09

FY 10

0 20 40 60 80 100 120 140 160 180

Days into fiscal year

12/16/09

2/15/07

12/30/05

12/8/04

1/23/04

2/20/03

1/10/02

12/21/00

12/26/07

3/11/09

“I not a member of any organized political party. I am a Democrat.”

- Will Rogers

Specter re-election forecast: Sunny spring; partly cloudy for fall

USA Today, Feb. 24, 2010

Poll: Specter leads Toomey in potential showdownMSNBC, March 2, 2010

http://www.researchmeanshope.org/index.html

Final thoughts….

Remember, there are

only 244 days

until the mid-term election!

Democracy is the theory that the common people know what they want and deserve to get it good and hard.

- H.L. Mencken