CURRENT NEWS FOR DECEMBER 2006

posted 12/13/06
Congress Passes bills for NIH reform, new Continuing Resolution before adjourning

Before concluding their session over the weekend, federal lawmakers passed several bills of importance to the research community. One bill gives the National Institutes of Health a modest budget increase, however it is subject to appropriations from the new Congress convening in January according to The Scientist Magazine of the Life Sciences. The National Institutes of Health Reform Act of 2006 (HR 6164) “requires the NIH to create a $1.5 billion ‘common fund’ to support promising research across multiple institutes and centers (ICs); mandates that the agency create a standardized electronic system to catalog all research activities; and limits the NIH structure to its current 27 ICs”, according to The Scientist.

It also "authorizes a 7% budget increase of $2 billion for Fiscal 2007, an 8.2% increase of $2.5 billion for Fiscal 2008, and 'such sums as may be necessary' for FY 2009. The Bush Administration has requested a level budget for NIH at around $28.6 billion in Fiscal 2007, which began Oct. 1, 2006. ”

A second bill Congress passed before adjourning "creates incentives for private biodefense research and development” says The Scientist. The Pandemic and All-Hazards Preparedness Act (S 3678) offers money “to help private biotech companies develop bioterror-related vaccines and therapies. Among other things, the bill creates a Biodefense Medical Countermeasure Development Fund with $500 million in annual grants to help companies bridge the funding gap between discovery and procurement” according to The Scientist.

One bill Congress left virtually untouched is the American Competitiveness and Innovation Act (S 3936) earmarking “$20 billion in new spending over five years to enhance innovation and competitiveness by boosting Federal research, as well as science and math education. “Nor did Congress not approve new budgets for the National Institutes of Health, the National Science Foundation and several other agencies for Fiscal Year 2007. According to The Scientist, “only budgets for the Departments of Defense and Homeland Security were approved this year, leaving the others to operate at Fiscal 2006 levels under a third continuing resolution, which expires Feb. 15, 2007, or until new budgets are approved.” This is frustrating not only for faculty awaiting word on their research proposals, but for agency directors who don’t know how much money they can award.

posted 12/04/06
Capitalization Threshold for Equipment Increases

The capitalization threshold for equipment will increase from $2,500 to $5,000 effective July 1, 2007. This change will bring us in line with the Federal government's threshold and will enhance the University's overall control of stewardship of its higher cost assets. In addition, this change will result in a reclassification of equipment purchases between $2,500 and $4,999 from equipment to supplies.

Accordingly, when preparing budgets for grants that will be begin after July 1, 2007, please ensure that equipment purchases of less than $5,000 are placed into a supply category. If you have any questions regarding the impact of this change on active grants and/or indirect cost recovery implications, please do not hesitate to contact Ann Strasser at 631-5437.