Crucial R&D Funding Saved: Congress Acts in Closing Hours of Session.

BOSTON--(BUSINESS WIRE)--Oct. 21, 1998--In the closing hours of the 105th Congress, federal support for research and development activities critical to New England's continued economic growth was preserved. This followed a year-long effort by The New England Council and other business groups to highlight the important role this funding plays in the development of new technologies, jobs and in some cases entire industries.

"Funding levels announced for Defense R&D, National Institutes of Health, and the National Science Foundation budgets represent an important victory for New England in the effort to maintain a source of funding that has been so important to our region's economic growth and transformation," said James T. Brett, president and CEO of The New England Council.

Earlier this year, the Administration recommend significant increases in federal support for R&D. Because the Administration assumed the revenue to pay for these increases would come from the passage of a tobacco bill, the prospects until very recently appeared dim, Brett said.

"Members of the New England Congressional Caucus deserve special praise for their work to secure this funding. Working with the Council, the Caucus sent a letter signed by all 23 House members to Appropriations Committee Chairman Bob Livingston arguing for higher levels of R&D support. In a special meeting of the Caucus, during which Peter Lynch of Fidelity Financial Services was invited to attend, members committed to redoubling their efforts to preserve this funding," Brett said.

The final budget figures for key R&D areas indicate just how successful those efforts were:

--Defense R&D: the fiscal 1999 budget will fund defense basic research at $1.1 Billion, a 6.7% increase over the previous year. This funding level represents an amount higher than that requested by the President and the first increase in this area since 1993. For the past few years, funds meant for defense basic research have been diverted for "Procurement" and "Readiness". Defense basic research is conducted for the most part by universities. Massachusetts ranked second nationally in the awarding of grants for this purpose in fiscal 1998.

--National Institutes of Health: the NIH budget will increase by $2 Billion to $15.65 Billion. This represents a 14.9% increase over the current year. With our many medical schools and research universities, New England has always benefited disproportionately from this funding.

--National Science Foundation: the NSF research and development budget for fiscal 1999 will total $2.8 Billion, an increase of $216 million or 8.4% over 1998. This places NSF's R&D budget at an all-time high. NSF funds research and education in science and engineering through awards to universities and other research institutions. NSF is second only to NIH in the value of basic research awards and university-sponsored R&D. New England's rich network of research institutions results in significant awards to the region.