COMMERCE DEPARTMENT’S SCIENCE & TECHNOLOGY BUDGET PROMOTES ECONOMIC GROWTH AND
TECHNOLOGICAL LEADERSHIP

As the President’s FY 2004 budget makes clear, a strong technology base will help play a key role in winning the war on terrorism, strengthening our nation’s security, and improving our economic growth and global competitiveness.

“I am proud to join President Bush today in announcing the Department of Commerce’s strategic investment in IT to support our nation’s homeland and economic security,” said Commerce Secretary Don Evans. “The President’s proposed investments furthers our nation’s technological leadership and commitment to IT in achieving breakthrough performance for the American people.”

The 2004 budget request maximizes technology’s contribution to economic and homeland security through strengthening the nation's measurement and standards infrastructure, providing the USPTO with more resources to improve quality and protect innovation, furthering the President’s vision of a system of “smart export controls” that focuses on technologies that pose the greatest threat to U.S. national security, and continuing the development and operation of NOAA’s series of environmental satellites.

The budget proposal demonstrates the central role the Department of Commerce (DOC) will play in keeping America safe and working, especially in the areas of science and technology. From the Technology Administration’s National Institute of Standards and Technology (NIST) to the U.S. Patent and Trademark Office, from the National Oceanic and Atmospheric Administration (NOAA) to the Bureau of Industry and Security (BIS), DOC is clearly the go-to agency for much of the science and technology work ahead. These offices are actively supporting President Bush’s call to marshal the nation’s technology resources to help the United States win the war on terrorism, strengthen homeland protections, revitalize the economy and create new jobs.

"This is a budget that reflects the President's priorities – and technology is the common denominator," said Under Secretary of Commerce for Technology Phil Bond. "It is a budget that recognizes money is limited but research and innovation are vital to America's world leadership.”

President Bush is requesting an FY 2004 budget of $8.015 million for the Office of the Under Secretary for Technology and the Office of Technology Policy (US/OTP). This request supports US/OTP in its work with the private sector to analyze, develop, coordinate and advocate national policies that maximize technology’s contribution to the war on terrorism, homeland security, job creation, and economic growth and security.

At the National Institute of Standards and Technology (NIST), a key part of the department's Technology Administration, the President's budget requests $9.2 million to implement a program to build or strengthen the nation's measurement and standards infrastructure in three fast-growing, globally competitive fields of technology:

· Nanotechnology, with a market predicted to reach $1 trillion during the next decade;
· Quantum computing, which could yield devices that process immensely more information than today’s best supercomputers, and;
· Health care, where improved measurements and services could cut the estimated $50 billion annual cost of inaccurate clinical measurements and repeat testing.

The budget requests an increase of $10.3 million for a total of $38.7 million for NIST to provide critical measurements and infrastructure support for homeland security, an area in which NIST has been playing an increasingly important role. This includes: An increase of $5.3 million for a total of $26.8 million for detecting chemical biological, radiological, nuclear and explosive threats and safely using radiation to destroy biowarfare agents; a $4 million increase for a total of $10.9 million to make buildings, occupants and first responders safe from building disasters; and $1 million for biometric identification standards. Recognizing the vital importance of the nation's science and technology facilities, the President seeks a $43.3 million increase for a total of $78 million for the NIST laboratories' facilities and equipment in Gaithersburg, Md. and Boulder, Colo.

Consistent with the Administration's emphasis on shifting resources to reflect changing needs, the FY 2004 Budget proposes to terminate the Advanced Technology Program (ATP), and to maintain the FY 2003 policy of significantly reducing federal funding for the Manufacturing Extension Partnership (MEP).

The President has reduced the annual practice of "fee diversion,” under which a portion of the United States Patent and Trademark Office’s (USPTO) fees are not available to the agency in the year they are collected-by nearly 50% in the Administration's Fiscal Year (FY) 2004 Budget. This bold step is being taken as part of Secretary Evans' efforts to create the conditions for economic growth and continued technological leadership by working to eliminate the practice of using USPTO revenues for unrelated federal programs. For over 200 years, the USPTO has provided patent and trademark protection to inventors and businesses. This protection enables innovation in science and technology that leads to economic growth. In addition, the President has simultaneously increased his budget request for the USPTO from $1.334 billion in FY 2003 to $1.404 billion in FY 2004. Revenues to support this increase will be generated by USPTO fees proposed by the President. The budget continues past increases for USPTO's spending level, with a five percent increase over the FY 2003 request. The FY 2003 request was18% above the FY 2002 enacted level.

The President’s Fiscal Year 2004 budget proposal for the Bureau of Industry and Security BIS) includes a $1 million increase for the creation of a new office – the Office of Technology Evaluation. This new office will play a key role in bringing to fruition the President’s vision of a system of “smart export controls” – those that are narrowly focused on items and technologies that pose the greatest threats to U.S. national security without unnecessarily burdening U.S. exporters. The President’s budget proposal also includes an increase of $1.3 million for export enforcement activities, a portion of which will fund additional staff for the Bureau’s Special Computer Evidence Recovery (SCERS) program. Evidence seized from computers and other electronic storage media are an increasingly important part of export enforcement activities – where violations often are the result of business transactions conducted or documented electronically.

To meet increasing demand for federal wireless communication systems and services, an increase of $1 million is requested for the National Telecommunications and Information Administration (NTIA) to establish a paperless system for spectrum issue resolution, certification, satellite coordination and frequency authorization. The FY 2004 budget also proposes to suspend the Public Telecommunications Facilities Planning and Construction (PTFPC) grants, a program reduction of $41.1 million for NTIA during FY 2004. The Administration is proposing to target funding of up to $80 million for digital transition grants for public television stations within the Corporation for Public Broadcasting.

The National Oceanic and Atmospheric Administration (NOAA) is requesting a budget increase of $190 million to observe and describe changes in the Earth’s ecosystems for the protection of life and property and to sustain a healthy economy. This additional funding includes:

· $81.7 million increase to continue the development and operation of NOAA’s series of environmental satellites. This will be used to develop a variety of instruments and the procurement of the next series of spacecraft that are vital in forecasting national weather and long-term global climate trends.

· $6.5 million for Marine Transportation System projects. Ranging from electronic navigational charts to ocean current forecast models that enhance response to hazardous materials spills, all projects directly impact the safe and rapid movement of commerce through the nation's seaports and harbors.

· $6.3 million for ocean observations for climate that will document long-term trends in sea-level change, ocean carbon sources and sinks, heat uptake and release by the ocean.

· $3.5 million increase to enhance NOAA’s Geophysical Fluid Dynamics Laboratory’s (GFDL) supercomputing capability to develop products to document, assess and understand the impacts of long-term climate variability and change on the United States.

For detailed budget descriptions, please visit the link for each agency at www.commerce.gov/organization.html