SUMMARY OF BUSH ADMINISTRATION FY’ 08 HEALTH BUDGET
On February 5, 2007, the President Bush released his FY ’08 Budget. This budget would increase discretionary spending to $929.8 billion, an increase of $57 billion or 6.5%. But fully $53.5 billion of the total increase will go to security programs – defense, homeland security, and international affairs. Domestic discretionary programs, such as health care and education, will grow by only 1%, or $3.5 billion. Below is a brief summary of the President’s FY ’08 proposals for health programs of interest to the academic medical community.
NATIONAL INSTITUTES OF HEALTH – TOTAL FUNDING: $29.8 BILLION, a cut of 1.7% or $511 million below the FY 07 Continuing Resolution that is currently funding federal programs. The President’s Budget includes a $300 million transfer from NIH to the Global AIDS fund, reducing the available total for NIH to $28.321 billion. The cut from FY ’07 is further reduced when the biomedical inflator, expected to be above 3%, is factored in.
- Individual Institutes: except for the NIAID, which would receive a $210 million increase, no other institute would receive more than a $7 million increase.
- The NIH Director - increase of $38 million.
- Road Map for Medical Research – $486 million, a 17% increase. The Road map includes interdisciplinary research involving different Institutes.
- Grant Support – the Administration emphasized in its announcement that despite the overall cut for NIH, the budget would allow funding for 10% more new grants than in 2006. This will translate to 10,188 new grants and competitive renewals, indicating an increase close to the 10,411 new grants funded in 2003, the final year of the doubling of the NIH budget process. The Administration explained that it is able to provide these grant increases because currently funded multi-year grants will not receive inflationary increases. The grant success rate will remain at about 20%, or about 1 in 5 grants (by comparison, in 2001, the rate was 1 in 3).
- National Research Service Awards – 17,520 training positions supported.
- Pathways to Independence - $31 million, doubled from previous year for these five-year research grants for post-doctoral researchers.
- National Children’s Study – 0 funding. This program, which is intended
to track 100,000 children from birth to adulthood, with special attention to autism, diabetes and other childhood diseases, is expected to cost $2.7 billion and was considered too expensive, in light of other priorities. - Executive Level I Salaries – $168,000, by reducing NIH, SAMHSA, and AHRQ extramural Level I grant salaries to ’07 Executive Level II. The current Executive Level I rate is $186,600.
Other health and science programs:
- Ryan White HIV/AIDS programs - $2.2 billion, an increase of $95 million.
- Health Professions Training - $10 million, a cut of $135 million that eliminates all Title VII programs but Scholarships for Disadvantaged Students.
- Title VII Student Loan Rescissions – approximately $105 million cut, achieved by the Administration recalling the federal portion of Title VII and VIII student loans programs that include Health Professions Student Loan, Loans for Disadvantaged Students, Primary Care Loans, and Nursing Student Loans. Institutions would be required to return all uncommitted loan funds, amounting to approximately $4 million per institution.
- National Health Service Corps - $116 million, a $7.2% decrease from ’07. $31 million would come from the NHSC field program, and $85 million from the NHSC recruitment appropriations, which provides scholarship and loan repayment awards.
- Agency for Healthcare Research and Quality (AHRQ) - $330 million, an increase of $11 million. Patient safety would receive $34 million, Personalized Health Care Initiative $15 million, and health information technology $45 million, including $26 million for the Ambulatory Patient Safety Program.
- Centers for Disease Control and Prevention (CDC): would receive $5.8 billion, a 5.9% cut. $93 million of this total would be committed to increased testing for HIV/AIDS among high-risk populations; $138 million, a $1 million cut from FY ’06, would go towards injury prevention and control; and public health research would receive $31million. The Preventive Services Block Grant, funded at $99 million in FY ’06, would be eliminated. The National Center for Health Statistics would receive $109 million, derived from transfers from other agencies.
- Bioterrorism Preparedness: The Health Research Services Administration (HRSA) would receive level funding at $474 million for preparedness, but its training and curriculum development programs would be cut 43% to $ 9 million.
CDC biodefense would total $1.7 billion, including $593 million for the Strategic National Stockpile, $3 million for botulinum toxin research, $824 for state and local preparedness, and $136 for CDC’s own preparedness capacity.
NIH would receive $1.9 billion for biodefense. - Veterans Administration:
VA Research would receive a total of $414 million, a decrease of $13 million, or 3.0% below FY ’06. The VA estimates that this funding will support 2,045 research projects, - 66, or 3.2% below FY ’06. The total funding would support:
Medical and Prosthetics Research funded at $399 million, 3.2% below FY’ 06;
Research IT, the VA’s contribution to the new national IT Fund, funded at $15 million, $50 thousand more than last year.
VA Medical Care: would receive $33.075 billion, a 12.1 % increase. The Administration is depending on legislation that would increase veterans’ enrollment fees and pharmacy co-pays to generate additional funds (but also decrease veterans’ enrollment). - National Science Foundation: would receive a 7.9% increase for a total of $6.020 billion. This increase is part of the President’s American Competitiveness Initiative, aimed at strengthening the country’s research and development in the physical sciences. Of the overall total, NSF Research – would receive $4.666 billion (a 7.7% increase).