University officials are expressing cautious optimism about federal funding for higher education, after President George W. Bush released his $2.13-trillion budget proposal for the 2003 fiscal year.
Aside from highly publicized increases in defense spending, the proposal includes several significant provisions for universities, including large increases in some research spending, limits on student financial aid and tax law changes for charitable giving. The plan was released last week and is the first major step in shaping the federal budget that is scheduled to take effect Oct. 1.
"We're very, very pleased about the increase for the National Institutes of Health," said Nan Nixon, assistant vice president and director of federal relations at the University. "We really do think that student aid and the other [academic] disciplines need increases as well, so we're hoping over the year that the administration will be able to add to them."
The NIH is the largest single source of research funding for both the University and the Medical Center, providing about $23 million this year for research at the University alone. Overall the agency is slated for a 15.7 percent increase in the president's proposal. If approved by Congress, the increase would complete a five-year campaign by politicians and higher education lobbyists to double the NIH budget.
The National Science Foundation, another major source of research funding, is slated for a 5 percent increase in the Bush proposal. Nixon said, however, that several existing programs were consolidated under NSF this year, and therefore the increase is closer to 3.4 percent. This year NSF contributed $17 million to the University's $95 million pool of external research funding.
Since the president's proposal is only an initial step in the budget process, funding levels could change substantially during Congressional negotiations. But, Nixon expressed hope that the spending would be maintained or even increased.
"Last year, we started out with most of the research accounts not very well funded, and they all ended up pretty well," Nixon said.
Other basic science funding, including in the departments of Energy and Defense, received small increases that could also grow during negotiations, said Jim Siedow, vice provost for research. He said many higher education officials had feared cuts in funding, especially for basic research, after Sept. 11 and with the current economic slump.
"We could nitpick certain programs here and there, but on the whole we're fairly pleased about where we are," Siedow said. "This isn't quite the increases we've seen in recent years, but one has to put it in the context of the times, and with that we did okay."
He did express concern about federal funding keeping up with other sources, however. In recent years, Siedow said, the percentage of University research funding from the federal government has fallen from the mid 70s to the low 70s.
Also under the president's budget for this year, Pell Grants for financial aid recipients will be capped at $4,000 after an increased demand caused a $1.3 billion shortfall in the program this year. Nixon said that 622 Duke undergraduates received Pell Grants this year, averaging $2,740, and about 422 received Supplemental Educational Opportunity Grants, which also did not receive an increase in the Bush proposal. Nixon said that increasing funding for the programs will be a priority in Congressional negotiations.
Jim Belvin, director of financial aid, said if the programs' funding remains flat, the impact to Duke students will be minimal, because the University pledges to meet 100 percent of students' demonstrated financial aid. However, he said it could affect institutional resources, especially in a poor economy.
As the economy continues its slump, Belvin said between 75 and 100 students' aid packages have been altered significantly.
"I think the economy's impact has been difficult for many families. By and large, we are expecting to see aid eligibility increase next year," Belvin said. "Obviously [Pell Grants] are important for those students who receive them, and it's certainly helpful for an institution that needs to meet full need."
In addition to funding for research and financial aid, the president's budget also includes tax law changes for charitable giving.
One proposal would further encourage donors to makes charitable gifts from Individual Retirement Accounts, especially from Rollover IRAs. Another proposal would increase the deduction for taxpayers who do not itemize their returns.
"[The changes] would really encourage donors to make gifts of charity to educational institutions," Nixon said.
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