Commerce Budget Reflects President's Priority to Keep America Working, Homeland Security Also Prominent

Washington, DC - The President's $5.3 billion budget request for the U.S. Department of Commerce is focused on President Bush's priorities of economic and homeland security.

"Our budget request is designed to keep America working," Commerce Secretary Don Evans said. "Our resources will be focused on the all-important goal of creating jobs, as well as zeroing-in on homeland security with the resources and know-how we have at the Department."

On the jobs front, the Commerce Department will focus on promoting innovation, entrepreneurship and exports, while also spreading opportunity to all Americans and ensuring responsible stewardship of our natural resources.

Homeland security

A critical component to economic security is a secure homeland. The President is requesting more than $48 million in increases for new homeland defense activities in the Department of Commerce.

One of the key bureaus providing homeland defense is the Bureau of Export Administration (BXA). BXA is requesting a total increase of $33 million, $20 million of which is for the Homeland Security Information Technology and Evaluation Program. This new program, administered by BXA's Critical Infrastructure Assurance Office (CIAO), will work closely with the Offices of Homeland Security and Management and Budget to promote the coordinated use of information technology and improve information-sharing, particularly among federal agencies, for homeland security purposes.

An additional $5.5 million is requested for BXA to enhance export enforcement activities by funding new and existing overseas attaches and opening two new field offices in the critical port cities of Seattle and Houston.

At the National Institute of Standards and Technology (NIST), a key part of the department's Technology Administration, the budget proposes devoting an additional $5 million in homeland security funds for its world-class scientific and technical staff to strengthen the security of critical infrastructures, including computer systems controlling utilities and building supervisory control systems; to build public/private partnerships to develop the standards, technology and practices to cost-effectively improve the safety of buildings, occupants, and emergency first-responders; and to help federal agencies identify and fix vulnerabilities in their information systems.

Critical services targeted for additional funding in the proposed budget for the National Oceanic and Atmospheric Administration include important survey data to enhance safety of mariners, passengers and the national economy from threats, either natural or human. Ninety-five percent of America's non-NAFTA economic trade moves through the marine transportation system, and any interruption in the flow of goods would immediately adversely affect our national economy. Funds also will be directed to provide back-up capability for all critical satellite and National Weather Service data products and services.

Innovation

The U.S. Patent and Trademark Office (USPTO) encourages innovation and reinforces confidence in the patent and trademark system by improving quality and reducing turn-around time for patents and trademarks. The President's proposed 21.2% increase for FY 2003 will allow USPTO to hire 950 additional patent examiners, transform trademarks to a fully electronic operation by 2004, and implement the President's management agenda, including e-government, outsourcing, and workforce restructuring.

The National Institute of Standards and Technology is responsible for the measurement foundation that supports U.S. industry, government and scientific establishments. In addition to homeland security, increased funding is requested to improve infrastructure at NIST's laboratories, so they are equipped to continue their cutting-edge of research and development that helps U.S. business maintain a technological edge in the world marketplace. NIST also will utilize additional funding to advance measurements and standards to improve the quality and reduce the cost of health care and to develop advanced nanotechnologies. Appropriations for the NIST laboratories will provide new levels of security through automatic personal identification by developing biometric standards. The NIST biometric standards and testing efforts support counterterrorism efforts and the prevention of identity theft.

Consistent with the President's call to shift resources to reflect our nation's priorities, the FY 2003 budget proposes to return the Manufacturing Extension Partnership program to its original design, which called for the phase-out of federal funding after six years with the goal of each center becoming self-sufficient. Likewise, the budget request calls for $108 million for the Advanced Technology Program (a reduction from $185 in 2002), with the goal of reforming the program so that private entities that profit immensely from developments made possible by the program reinvest some of those profits into the program, to benefit future R& D. (For more details, see the new report on ATP reform at http://www.atp.nist.gov/atp/secy_rept/contents.htm)

The National Telecommunications and Information Administration (NTIA)'s budget request includes funding to reform spectrum management and to upgrade its radio quiet zone test facility in Colorado, to ready it for supporting wireless communications research. Expansion of the Internet and related technologies have developed to the point that NTIA's Technology Opportunities Program, which has provided grants for applications of telecommunications technologies, is no longer needed. The budget request proposes to end funding for the program.

Entrepreneurship and Inclusion

The United States is widely recognized as the world's economic information leader, due in large part to the timely and accurate data and analyses produced by the Economics and Statistics Administration (ESA). The President's budget requests an increase of $14 million. These funds include an additional $4.8 million to accelerate the preparation and release of specific economic indicators. This will dramatically accelerate the release of economic data to policymakers and business analysts.

To deliver high value, the Census Bureau must target measurement on those trends and segments of our population and economy most critical to continued American success and prosperity. The President's budget recognizes that value by calling for an additional $246.8 million in funds for the Bureau, including $5.5 million to create a new principal economic indicator specifically devoted to measuring the service industry. Improvements will also be made in data collection for other economic measurements, such as GDP. About $122 million is requested for the Census Bureau to re-engineer the 2010 Census, including the launch of the American Communities Survey to provide detailed demographic data on an annual basis rather than just every 10 years.

The President's FY2003 budget proposes $29.8 million (a $1.4 million increase over FY 2002) for the Minority Business Development Agency (MBDA) to expand entrepreneurial opportunity for minorities. New priorities include expansion of the Minority Business Internet Portal – a state-of-the-art e-commerce solution designed for the minority business community -- and expansion of MBDA's strategic alliances and economic development partnerships throughout the federal government, to maximize the impact of far-flung federal resources for minority enterprise development.

The Economic Development Administration's (EDA) proposed budget of $349.9 million will be devoted to distressed communities – where plant closings, natural disasters or other disruptions either already have or threaten to weaken the local economy and cost jobs. EDA funds help communities develop and carry out strategic plans for dealing with economic transitions – from attracting new businesses and jobs to retraining workers. In keeping with the President's call for prioritizing federal resources for national security, homeland security and economic security, a $2.5 million increase is requested for the Trade Adjustment Assistance program, while overall EDA requested funds is $16 million lower than the current year. As increased trade is pursued to grow our economy, the Administration wants to ensure sufficient funds are available through the Trade Adjustment Assistance program to help businesses that have been adversely impacted by international trade.

International trade

Trade is critical to expanding our economic growth. The International Trade Administration (ITA) is responsible for encouraging economic growth through international trade, helping ensure a level playing field for American business by strictly enforcing U.S. trade laws and agreements, and by improving access to overseas markets. In FY2003, ITA requests a $13 million increase for trade-compliance efforts and a $2 million increase to analyze trade prospects and growth opportunities for U.S. exporters in newly opened and liberalized markets in Africa.

Environment

Tasked with observing the national oceanic and atmospheric environment and coastal management, the National Oceanic and Atmospheric Administration (NOAA) is equipped with a $3.2 billion proposed budget. Highlights include an additional $23.1 million to ensure continuity of the most critical NOAA services and information in case of an emergency (see details above, under "Homeland Security"), $36.2 million for NOAA climate services, and $8.7 million for NOAA energy programs.

Improved climate predictions will enable climate-sensitive sectors such as agriculture, water management, and energy supply to alter strategies and reduce economic vulnerability. NOAA's request includes $18 million for the Climate Change Research Initiative. The CCRI, announced by President Bush last June, will study areas of scientific uncertainty in global climate change and identify priority areas where research investments can make a difference; create partnerships with other developed countries to measure pollutant emissions, aerosols and ozone in specific regions; and develop an ocean-observing system that can accurately document climate scale changes.

NOAA will improve temperature, precipitation and hydrologic forecasts to help maximize the efficiency of the U.S. energy sector, support the establishment and implementation of a streamlined energy permit review process (which will be executed under the auspices of the National Marine Fisheries Service), and pursue energy savings at NOAA facilities.

www.doc.gov/bmi/budget