[Budget of the United States Government, Fiscal Year 1999]
[Page 161-165]
[DOCID: f:1999_bud.bud14.wais]
From the Budget of the U.S., FY 1999 Online via GPO Access

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                                            (In millions of dollars)                                            
               Function 250                   1997   -----------------------------------------------------------
                                             Actual     1998      1999      2000      2001      2002      2003  
  Discretionary Budget Authority..........    16,641    17,914    18,459    18,479    18,735    18,977    19,091
  Mandatory Outlays:                                                                                            
    Existing law..........................        25        40        37        37        34        31        31
Tax Expenditures:                                                                                               
  Existing law............................     1,075     2,555     1,440     1,055       905       820       795
  Proposed legislation....................  ........       365       802       608       261       124        49

   Science and technology are the principal agents of change and 
progress, with over half of the Nation's economic productivity in the 
last 50 years attributable to technological innovation and the science 
that supported it. Appropriately enough, the private sector makes many 
investments in technology development. The Federal Government, however, 
also has a role to play--particularly when risks are too great or the 
return to companies is too small.
   Within this function, the Federal Government supports areas of 
science at the cutting edge, through the National Aeronautics and Space 
Administration (NASA), the National Science Foundation (NSF), and the 
Department of Energy (DOE) science programs. The activities of these 
agencies contribute to greater understanding of the world we live in, 
ranging from the edges of the universe to the smallest imaginable 
particles, and to new knowledge that may or may not have immediate 
applications to improving our lives. Because the results of basic 
research are unknowable in advance, the challenge of developing 
performance goals for this area is formidable.
   Each of these agencies has a tradition of funding high-quality 
research and contributing to the Nation's cadre of skilled scientists 
and engineers. To continue this tradition, and as a general goal for 
activities under this function, at least 80 percent of the research 
projects \1\ will be reviewed by appropriate peers and selected through 
a merit-based competitive process.
  \1\ Measured by the amount of funds allocated, not the number of 
   An important Federal role in this area is to construct and operate 
major scientific facilities and capital assets for multiple users. These 
include telescopes, satellites, oceanographic ships, and particle 
accelerators. Many of today's fast-paced advances in medicine and other 
fields rely on these facilities.
   As general goals:
<bullet>   Agencies will keep the development and upgrade of these 
          facilities on schedule and within budget, not to exceed 110 
          percent of estimates.
<bullet>   In operating the facilities, agencies will keep the operating 
          time lost due to unscheduled downtime to less than 10 percent 
          of the total scheduled possible operating time, on average.

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   The budget proposes $18.5 billion to conduct these activities. The 
Government also seeks to stimulate private investment in these 
activities through over $2 billion a year in tax credits and other 
preferences for research and development (R&D).

National Aeronautics and Space Administration

   The budget proposes $12.3 billion for NASA activities in this 
function. While NASA's funding represents just 12 percent of total 
Federal funds for R&D, NASA serves as the lead Federal agency for R&D in 
civil space activities, working to expand frontiers in air and space to 
serve America and improve the quality of life on Earth. NASA pursues 
this vision through balanced investment in space science, Earth science, 
space transportation technology, and human exploration and development 
of space.
   The 1999 goals for these enterprises follow.
   Space Science programs, for which the budget proposes $2.1 billion, 
are designed to enhance our understanding of how the universe was 
created, the formation of planets, and the possible existence of life 
beyond Earth. NASA has enjoyed major successes of late, including the 
landing on Mars with Mars Pathfinder.
<bullet>   NASA space science will successfully launch its four planned 
          spacecraft missions--Mars 98 lander, Stardust, and two 
          Explorer missions--within 10 percent of its schedule and 
<bullet>   NASA space science will increase its contribution to the 
          general knowledge base and to education, as reflected by its 
          contributions to a college space science textbook, to a level 
          at least equal to the 1996 level of 27 percent.
<bullet>   The NASA Advisory Council will rate all near-term space 
          science objectives as being met or on schedule. Examples of 
          objectives include: investigate the composition, evolution and 
          resources of Mars, the Moon, and small solar system bodies 
          such as asteroids and comets; identify planets around other 
          stars; and observe the evolution of galaxies and the 
          intergalactic medium.
   Earth Science programs, for which the budget proposes $1.4 billion, 
focus on increasing our understanding of the total Earth system and the 
effects of natural and human-induced changes on the global environment 
through long-term, space-based observation of Earth's land, oceans, and 
atmospheric processes. NASA will launch the first in a new series of 
Earth Science spacecraft in 1998.
<bullet>   NASA Earth Science will successfully launch its four planned 
          spacecraft missions--Quikscat, the Advanced Land Imager, a 
          Geostationary Operational Environmental Satellite, and the 
          Shuttle Radar Topography mission--within 10 percent of its 
          schedule and budget.
<bullet>   NASA will obtain new data on precipitation, land surface, and 
          climate, and will deliver the data to users within five days.
<bullet>   NASA's Advisory Council will rate all near-term earth science 
          objectives as being met or on schedule. Examples of objectives 
          include: observe and document land cover and land use change 
          and impacts on sustained resource productivity; and understand 
          the causes and impacts of long-term climate variations on 
          global and regional scales.
   Space Transportation Technology programs, for which the budget 
proposes $400 million, work with the private sector to develop and test 
experimental launch vehicles that cut the cost of access to space.
<bullet>   The X-33 program will begin flight tests in 1999 and 
          demonstrate, by year-end, key technologies to cut the cost of 
          space transportation. These technologies will be directly 
          scaleable to the mass fraction (less than 10 percent empty 
          vehicle weight) required for future reusable launch vehicles 
          and meet the following operational requirements: flights 
          faster than Mach 13; 48-hour and seven-day ground turnarounds; 
          and 50-person maintenance crews.
<bullet>   The X-34 program will perform 25 flight tests in one year, 
          starting no later than March 1999, to demonstrate the 
          operational parameters of future reusable launch vehicles. 
          These parameters include:

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           recurring costs under $500,000; 24-hour ground turnarounds; 
          safe abort landings; landings in cross winds up to 20 knots; 
          and flights through rain and fog.
   Human Exploration and Development of Space (HEDS) programs, for which 
the budget proposes $5.8 billion, focus on human space exploration. In 
1997, HEDS programs supported the successful launch of eight Space 
Shuttle flights, a continuous U.S. presence on the Russian Mir space 
station, and continued construction of the International Space Station. 
In 1998, assembly of the International Space Station will begin in Earth 
   For 1999, the performance goals include the following:
<bullet>   NASA will successfully complete Phase 2 (the first ten 
          assembly flights) of the International Space Station within 
          performance, schedule, and budget targets.
<bullet>   NASA will ensure that space shuttle safety, reliability and 
          cost will improve, by achieving seven or fewer flight 
          anomalies per mission, successful on-time launches 85 percent 
          of the time, and a 13-month flight manifest preparation time.
<bullet>   NASA will expand human presence and scientific resources in 
          space by increasing the amount of crew time in orbit to 185 
<bullet>   NASA-supported scientific research in life and microgravity 
          sciences will broaden, as indicated by a rise in the number of 
          resulting journal publications to 1,600.

National Science Foundation

   NSF-supported activities have led to breakthroughs and advances in 
many areas, including superconducting materials, Doppler radar, the 
Internet and World Wide Web, medical imaging systems, computer-assisted-
design, genetics, polymers, plate tectonics, and global climate change. 
While NSF represents just three percent of Federal R&D spending, it 
supports nearly half of the non-medical basic research conducted at 
academic institutions. NSF also provides 30 percent of Federal support 
for mathematics and science education. NSF programs involve over 25,000 
senior scientists; 50,000 other professionals, graduate students, and 
undergraduate students; and 120,000 K-12 teachers.
   The budget proposes $3.7 billion in 1999 for NSF, which it would 
invest in four key program functions:
   Research Project Support: Over half of NSF's resources support 
research projects performed by individuals and small groups, 
instrumentation, and centers.
<bullet>   An independent assessment will judge NSF's portfolio of 
          research programs to have the highest scientific quality and 
          an appropriate balance of projects characterized as high-risk, 
          multidisciplinary, or innovative.
<bullet>   NSF will ensure that all of its new announcements of research 
          opportunities and proposal solicitations will contain an 
          explicit statement encouraging proposers to integrate their 
          research activities with improving education or public 
          understanding of science.
<bullet>   NSF will increase the percentage of competitive awards going 
          to new investigators to at least 30 percent, a 2.6-percent 
          rise over a baseline of 27.4 percent.
   Facilities: Facilities such as observatories, particle accelerators, 
research stations, and oceanographic research vessels provide the 
platforms for research in fields such as astronomy, physics, and 
oceanography. About 20 percent of NSF's budget supports large, multi-
user facilities required for cutting-edge research. NSF facilities will 
meet the function-wide goals to remain within cost and schedule, and to 
operate efficiently.
   Education and Training: Education and training activities, accounting 
for 20 percent of NSF's budget, revolve around efforts to improve 
teaching and learning in science, mathematics, engineering, and 
technology at all education levels. Education and training projects 
develop curriculum, enhance teacher training, and provide educational 
opportunities for students from pre-K through undergraduate degrees. NSF 
also contributes to the education of future scientists and engineers by 
supporting graduate students and postdoctoral programs.

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<bullet>   Over 80 percent of schools participating in a systemic 
          initiative program will: 1) implement a standards-based 
          curriculum in science and mathematics; 2) further professional 
          development of the instructional workforce; and 3) improve 
          student achievement on a selected battery of tests, after 
          three years of NSF support.
<bullet>   NSF will fund intensive professional development experiences 
          for at least 75,000 pre-college teachers.
   Administration and Management: NSF does not operate programs or 
laboratories; rather, the agency supports research and education 
activities, conducted primarily at colleges and universities, selected 
through a competitive, merit-based process.
   Performance goals for 1999 include:
<bullet>   processing 70 percent of grant proposals within six months of 
          receipt, and
<bullet>   publishing 95 percent of program announcements at least three 
          months before proposals are due.

Department of Energy

   DOE provides major scientific user facilities and sponsors basic 
scientific research in specific fields, such as high energy and nuclear 
physics and materials, chemical, biological, and environmental sciences. 
It supports over 60 percent of federally-funded research in the physical 
   The budget proposes $2.5 billion for DOE science programs, which 
include high energy and nuclear physics, basic energy sciences, 
biological and environmental research, and computational technology 
research. These programs support scientific facilities for high energy 
and nuclear physics, and also support the research performed by the 
users of the facilities. They also provide and operate synchrotron light 
sources, neutron sources, supercomputers, high-speed networks, and other 
instruments that researchers use in fields ranging from biomedicine to 
agriculture, geoscience, materials, and physics. These state-of-the-art 
scientific facilities provide the cutting edge experimental and 
theoretical techniques that provide insights into dozens of 
applications, and they are available, on a competitive basis, to 
researchers funded by NSF, other Federal agencies, and public and 
private entities. DOE's facilities will meet the function-wide goals to 
remain within cost and schedule, and to operate efficiently.
  The 1999 goals for these programs follow.
   Basic Energy Sciences (BES) supports basic research in the natural 
sciences for new and improved energy techniques and technologies, and to 
understand and mitigate the environmental impacts of energy 
<bullet>   BES will start construction of the Spallation Neutron Source 
          to provide beams of neutrons used to probe and understand the 
          physical, chemical, and biological properties of materials at 
          an atomic level--leading to better fibers, plastics, 
          catalysts, and magnets and improvements in pharmaceuticals, 
          computing equipment, and electric motors.
<bullet>   An independent assessment will judge BES research programs to 
          have high scientific quality.
   Computational Technology Research (CTR) performs long-term 
computational, technology, and advanced energy projects research through 
an integrated program in applied mathematical sciences, high performance 
computing and communications, information infrastructure, advanced 
energy projects research, and laboratory technology research.
<bullet>   CTR will complete prototype development of the ``virtual 
          lab'' approach and implement at least three program trial 
<bullet>   Users will judge that computer facilities and networks have 
          met 75 percent of their requirements.
   Biological and Environmental Research (BER) provides fundamental 
science to develop the knowledge to identify, understand, and anticipate 
the long-term health and environmental consequences of energy 
production, development, and use.
<bullet>   BER will complete sequencing of 40 million subunits of human 
          DNA to submit to publicly accessible databases.

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<bullet>   BER will complete 70 percent of the genetic sequencing of 
          over 10 additional microbes with significant potential for 
          waste cleanup and energy production.
   High Energy and Nuclear Physics (HENP) strives to deepen 
understanding of the nature of matter and energy at the most fundamental 
level, as well as understanding of the structure and interactions of 
atomic nuclei.
<bullet>   An independent assessment will judge HENP research programs 
          to have high scientific quality.
<bullet>   HENP will begin operating the B-factory at the Stanford 
          Linear Accelerator Center, the Main Injector for the Tevatron 
          at Fermilab, and the Relativistic Heavy Ion Collider at 
          Brookhaven National Laboratory, and will deliver on the 1999 
          U.S./DOE commitments to the international Large Hadron 
          Collider project. These facilities will provide cutting-edge 
          scientific capabilities to further study the fundamental 
          constituents of matter. For example, the B-factory will 
          illuminate the basic question of why matter exists in the 

Tax Incentives

   Along with direct spending on R&D, the Federal Government has sought 
to stimulate private investment in these activities with tax 
preferences. The law provides a 20-percent tax credit for private 
research and experimentation expenditures above a certain base amount. 
The credit, which was extended in 1997, is due to expire on June 30, 
1998. The President proposes to extend it for one year--that is, through 
June 1999. Under current law, the credit will cost $2.1 billion in 1998 
and $860 million in 1999.
   A permanent tax provision also lets companies deduct, up front, the 
costs of certain kinds of research and experimentation, rather than 
capitalize these costs; this tax expenditure will cost $580 million in 
1999. Finally, equipment used for research benefits from relatively 
rapid cost recovery; the cost of this tax preference is calculated in 
the tax expenditure estimate for accelerated depreciation of machinery 
and equipment.