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Washington Highlights: February 1, 2008

Congressional Report Encourages Preservation of Medicaid and SCHIP Funding

The bipartisan, bicameral Joint Economic Committee (JEC) Jan.18 issued a report indicating that "worsening economic conditions" will cause "substantial increases" in Medicaid and the State Children's Health Insurance Program (SCHIP) enrollment. The report warns that the Administration's recent series of proposed Medicaid cuts will severely impede the ability of states to finance the expected demand for additional Medicaid and SCHIP services.

The report outlines possible "courses of action" that Congress could take to avert the loss of federal funding for Medicaid and SCHIP. One option is to "delay or cancel" the Administration's proposed Medicaid regulations "at least until possible impacts of a slowing economy are understood."

The JEC report was released as the House and Senate took up their respective economic stimulus packages. Neither the House-passed nor the Senate Finance Committee's stimulus legislation ultimately addressed the JEC's Medicaid and SCHIP recommendations. During the Finance Committee mark-up, Sen. Jeff Bingaman (D-N.M.) raised concern about the problematic impact of the Medicaid regulations. However, Senate Finance Committee Chair Max Baucus (D-Mont.) reiterated his opinion that the stimulus package was not the appropriate vehicle for addressing the cuts. Chairman Baucus indicated some willingness to address the Medicaid regulations in the future.

Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

President Issues Executive Order Against Earmarks

President Bush Jan. 29 signed Executive Order 13457, "Protecting American Taxpayers from Government Spending on Wasteful Earmarks." The executive order makes clear that federal agencies are to ignore future earmarks included in report language. The President, in his Jan. 28 State of the Union address, pledged to veto FY 2009 spending bills that do not cut the cost and number of earmarks in half from FY 2008 levels.

According to a White House press release, the executive order defines an earmark as "any funds provided by Congress for projects, programs, or grants where the congressional direction (whether in statutory text, report language, or other communication) (1) circumvents merit-based or competitive allocation processes; (2) specifies the location or recipient of the funds; or (3) otherwise limits the ability of the Executive Branch to manage its statutory and constitutional responsibilities for the allocation of federal funds."

NIH Announces FY 2008 Grants Fiscal Policy, Updates Salary Cap

The National Institutes of Health (NIH) Jan. 28 announced its FY 2008 fiscal policy. Under the policy, which reflects the omnibus "Consolidated Appropriations Act for FY 2008" (P.L. 110-161), the NIH:

  • Provides a 1 percent inflation allowance for non-competing awards (each institute and center is given discretion in allocating the adjustment, and future year commitments will be adjusted accordingly);
  • Allows the average cost of competing grants to increase by 1 percent over FY 2007 (it is estimated this will allow the various institutes and centers to support a total of approximately 9,700 new and competing research project grants (RPGs));
  • Maintains a number of new investigators comparable to the average of the most recent 5 years; and
  • Holds Ruth L. Kirschstein National Research Service Awards (NRSA) funds for stipends, tuition and training-related expenses at the FY 2007 levels.

The NIH Jan. 15 published its 2008 annual salary cap implementation notice, which provides updated information regarding the salary limitation for NIH grant and cooperative agreement awards, as well as extramural research and development contract awards. The notice sets the annual salary cap at $191,300, a 2.5 percent increase from the FY 2007 level of $186,600. Under the FY 2008 consolidated appropriations act, the cap level is restricted to Executive Level I of the Federal Executive Pay scale. A historical overview of the salary cap level is available on the NIH website.

Information:
Tony Mazzaschi, Senior Associate Vice President
AAMC Biomedical Health Sciences Research
tmazzaschi@aamc.org
(202) 828-0059

NCRR Advisory Council Reviews CTSA Program

Members of the NIH Clinical and Translational Science Awards (CTSA) Consortia Oversight Committee Jan. 30 presented to an NIH National Center for Research Resources advisory council on the status of projects at their own institutions. The oversight committee primarily consists of CTSA principal investigators (PIs). The presenters included:

  • Lars F. Berglund, M.D., Ph.D., Director, Clinical and Translational Science Center, University of California, Davis School of Medicine;
  • David S. Guzick, M.D., Ph.D., Dean, University of Rochester School of Medicine and Dentistry;
  • Robert A. Rizza, M.D., Professor of Medicine, Mayo Medical School;
  • Henry N. Ginsberg, M.D., Professor of Medicine, Columbia University College of Physicians and Surgeons;
  • Gordon R. Bernard, M.D., Assistant Vice-Chancellor for Research, Vanderbilt University School of Medicine;
  • Daniel E. Ford, M.D., M.P.H., Professor of Medicine, Epidemiology, Health Policy and Management, Johns Hopkins University;
  • David S. Stephens, M.D., Executive Associate Dean for Research, Emory University School of Medicine;
  • Gary W. Hunninghake, M.D., Director, Division of Pulmonary, Critical Care and Occupational Medicine, University of Iowa Roy J. and Lucille A. Carver College of Medicine.

Several of the CTSA PIs described - and all affirmed - difficulties created by recent funding decisions cutting back on approved award levels. Advisory council members commented on the wide variety of approaches reflected in each CTSA, although presentations shared several common themes. The first was integration of pre-existing elements of clinical research with new organization, infrastructure, or resources made available through the CTSAs. All presenters spoke to enhanced levels of communication and interaction among programs and investigators that had, prior to the CTSA, operated more insularly.

A second theme was the use of the awards to leverage other resources, from sharing of medical school or other facilities more broadly across campuses to obtaining state funding for new construction. When probed about the institutions' response to continued funding constraints, several PIs responded that fewer CTSA funds would be used for directly supporting research projects, in expectation that funds from other sources, including other NIH institutes, would materialize.

The council also received an overview of cutting edge programs involving non-human primates at the nation's 8 National Primate Research Centers, which also provide infrastructure for translational research as well as supporting research projects directly.

Information:
Stephen Heinig, Senior Research Fellow
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488

Irena Tartakovsky, Clinical Research Program Manager
AAMC Division of Biomedical and Health Sciences Research
itartakovsky@aamc.org
(202) 862-6134

NSF Reports Enrollment Growth in Foreign S&E Grad Students at US Schools

A December 2007 report from the National Science Foundation (NSF) finds that after 2 years of decline, U.S. enrollment of foreign graduate students in science and engineering (S&E) fields increased in 2006. According to the report, "The increase was largely due to first-time, full-time enrollment of foreign students, which grew 16 percent over the 2005 level. First-time, full-time enrollment of S&E graduate students with U.S. citizenship or permanent resident status rose by slightly more than 1 percent. Total enrollment of first-time, full-time S&E graduate students rose 6 percent over the 2005 level."

Information:
Jodi Lubetsky, Staff Associate
AAMC Biomedical Health Sciences Research
jlubetsky@aamc.org
(202) 828-0485

On the Hill...

Rep. Tom Davis (R-Va.) Jan. 30 announced he will not seek re-election in 2008. Rep. Davis indicated that he will finish out the remainder of his term. In a press release he stated, "I have not yet decided what opportunities to pursue when I depart Congress. But it's clear to me that returning to the private sector and reacquainting myself with that view of the world is the best move for me and my family."