AAAS R&D Funding Update on R&D in VA FY 2007 House Appropriations -

VA R&D Wins Increase in House

Go to: -Table. VA R&D in FY 2007 House Appropriations PDF version of this document Main R&D in the FY 2007 Budget Page Supplemental Materials: "VA R&D Remains Flat in 2007 Budget," AAAS R&D Funding Update on R&D in the FY 2007 VA Budget AAAS Analysis of R&D in the FY 2007 Budget

Highlights - The Department of Veterans Affairs (VA) would have an R&D budget of $790 million in the latest House appropriation, a $25 million boost over both the request and the current year, for a 3.3 percent gain (see Table). VA R&D in FY 2007 House Appropriations On May 10, the House Appropriations Committee approved its version of the fiscal year (FY) 2007 Military Quality of Life appropriations bill (HR 5385) for expected debate and approval by the full House this week. The bill funds the Department of Veterans Affairs (VA) and parts of the Department of Defense (DOD). VA R&D would total $790 million in FY 2007 in the House plan, an increase of $25 million or 3.3 percent over both the request and the FY 2006 funding level, with half of the increase going to R&D facility improvements and the other half to research programs. (For details of the President’s request for VA R&D, please see Chapter 13 of AAAS Report XXXI: R&D FY 2007 or the March 1 VA R&D Funding Update.) The Department of Veterans Affairs (VA) is one of the 10 largest R&D funding agencies in the federal government, with the 9th largest R&D portfolio in the FY 2007 request, but receives relatively little attention because its entire R&D investment goes to its own nationwide network of VA hospitals. VA’s Medical and Prosthetic Research is a longstanding program of research aimed at improving health care for veterans through research on injuries and illnesses with special relevance to veterans. All scientists and engineers who receive VA funds must be VA employees, and thus its entire R&D investment takes place in VA hospitals and laboratories except for a small percentage of VA investigators who hold joint appointments with academic institutions.  Most of the roughly 3,000 investigators supported by VA are physician-scientists doing both clinical practice and research. The Medical and Prosthetic Research budget account is the core of VA’s research effort, but it funds just over half of VA’s total R&D for support of direct R&D costs. Support costs, infrastructure, and other indirect costs as well as the salaries of clinician-researchers who both treat patients and perform research are funded out of other VA medical care accounts. After including support costs, total federally funded VA R&D would be $790 million in FY 2007 in the latest House appropriation, $25 million or 3.3 percent more than FY 2006 (see Table). The House would add $12 million for R&D facilities improvements and $13 million for research. VA scientists also compete for research funding from other agencies (such as NIH and DOD), foundations, and industry. Next year, VA projects that $885 million in R&D funding will come from other sources,  mostly from VA scientists winning federal research grants, resulting in a total VA portfolio of $1.6 billion when combined with VA appropriations. VA federal R&D has mostly expanded in recent years as the overall VA budget has grown (see Figure 1). After peaking in 2004, VA R&D fell in 2005 because of tough budgetary pressures for domestic spending in general and veterans spending in particular, and the 2006 and 2007 budgets would continue funding at the reduced 2005 level. Years ago, VA did not count support, salary, and infrastructure costs in its R&D funding. The big jump in FY 1997 represents VA’s decision to add in these costs beginning that year. Figure 1. (click on image for PDF)  Outlook and Next Steps  The full House will debate the Military Quality of Life this week, and will most likely approve it by a large margin. The Senate version of the bill, however, may not be drafted until July or later. (This analysis is one of a series of AAAS R&D Funding Updates on FY 2007 congressional appropriations. The complete series of AAAS R&D Funding Updates, including continually updated analyses of R&D in FY 2007 appropriations, is available on the AAAS R&D Web Site (http://www.aaas.org/spp/rd) in the “FY 2007 R&D” or the “What’s New” sections.) - May 17, 2006 AAAS R&D Budget and Policy Program 1200 New York Avenue, NW Washington, DC 20005 (202) 326-6607 AAAS R&D Web site: http://www.aaas.org/spp/rd

Table. Department of Veterans Affairs
House Appropriations Committee Action on R&D in the FY 2007 Budget
(budget authority in millions of dollars)
			Action by House
	FY 2006	FY 2007	FY 2007	Chg. from Request		Chg. from FY 2006
	Estimate	Request	HOUSE	Amount	Percent	Amount	Percent
Medical and Prosthetic Research  1/
Biomedical laboratory science	240	230	237	7	3.0%	-3	-1.3%
Rehabilitation research	53	51	53	2	3.9%	0	0.0%
Health services research	65	61	63	2	3.3%	-2	-3.1%
Clinical science research	70	67	69	2	3.0%	-1	-1.4%
Research support 1/	353	366	378	12	3.3%	25	7.1%
BA Adjustment  1/	-16	-10	-10	0	0.0%	6	-37.5%
	_______	_______	_______	_______		_______	_______
Total VA R&D	765	765	790	25	3.3%	25	3.3%
AAAS estimates based on FY 2007 appropriations bills.  Includes conduct of R&D and R&D facilities.
FY 2006 and FY 2007 request figures based on OMB R&D data and supplemental agency budget data.
Figures are rounded to the nearest million. Changes calculated from unrounded figures.
1/ Includes funding for laboratory facilities, support services, and some investigator salaries
from other VA accounts under Research Support; in obligations.
BA adjustment converts obligations to budget authority.
May 16, 2006 - AAAS estimates of House Appropriations Committee action.
These figures may be modified or rejected by the full House.