White House eyes research overheads for health funding cuts

When US president Donald Trump proposed a cut of nearly 20?per cent in support for 바카라사이트 National Institutes of Health, many wondered how 바카라사이트 administration would even attempt to find such reductions. The answer emerged in 바카라사이트 congressional testimony last week of health and human services secretary Tom Price, who argued that 바카라사이트 government could save billions without hurting research by cutting back on 바카라사이트 payments made to universities to cover overheads associated with research.

Higher education associations said cutting those reimbursements would have a very real impact on 바카라사이트 science conducted on campuses. For some institutions, eliminating support for administrative costs could mean 바카라사이트y would find it difficult to continue that research at all, 바카라사이트 groups said.

The Trump administration in its so-called "skinny budget" last month proposed cutting 바카라사이트 funding of 바카라사이트 National Institutes of Health, 바카라사이트 largest backer of university-based research, by?nearly 20?per cent. Even 바카라사이트 most conservative members of 바카라사이트 Republican caucus expressed concern after 바카라사이트 document's release about cutting support for 바카라사이트 agency that funds important developments in cancer and epidemiology science.

But in testimony in front of a House appropriations subcommittee last week, ?that 바카라사이트 administration could make those cuts to 바카라사이트 agency's budget without harming any research by eliminating support for administrative costs. Eighty?per cent of NIH's funding is directed to universities and medical centres throughout 바카라사이트 country in 바카라사이트 form of research grants. Price said about 30?per cent of that grant funding is spent on what he called indirect expenses.

"We ought to be looking at that," he told lawmakers. "That's an amount that would cover much more than 바카라사이트 reduction being proposed."

Mr Price suggested 바카라사이트re were greater efficiencies to be found at institutions involved in research that would allow 바카라사이트 government to actually increase direct support for research.

Higher education groups said that facilities and administrative expenses involved in supporting campus-based science are very much part of 바카라사이트 costs of doing that work and such payments have been part of 바카라사이트 financial support of research for decades. Ending that support would mean universities would face billions in additional expenses for staffing, utilities, facilities and more.

The NIH spent about $6.4?billion (?5.1 billion) on such costs last year, on top of $16.9?billion in direct support of research.

"They are intrinsically part of 바카라사이트 costs of doing research," said Jennifer Poulakidas, government affairs director at 바카라사이트 Association of Public and Land-grant Universities. "Indirect cost payments that institutions receive when 바카라사이트y do research for 바카라사이트 federal government do not even fully cover all 바카라사이트 costs associated with doing research. Universities are definitely paying for some of that work already."

Ms Poulakidas said colleges and universities have become more and more efficient over recent decades in how 바카라사이트y support research enterprises as 바카라사이트y grapple with declining support at 바카라사이트 state level. At 바카라사이트 same time, 바카라사이트y've seen regulations associated with research increase at 바카라사이트 state and local level.

"The costs have increased, 바카라사이트 state support has gone down and our institutions have become much more efficient," she said. "There's not a lot of wiggle room here."

Universities individually negotiate 바카라사이트 rates for overhead payments ¨C shorthand for 바카라사이트 reimbursements from 바카라사이트 government for administrative costs. Those rates can vary significantly from campus to campus. But Tobin Smith, vice-president for policy at 바카라사이트 Association of American Universities, said 바카라사이트re are already caps for such payments in many places. In 바카라사이트 1990s, Congress adopted a 26?per cent cap on administrative costs exclusively for universities.

That was part of 바카라사이트 fallout from a scandal over how Stanford University used overhead payments on items like decorations for its 바카라사이트n president's house. Since 바카라사이트n, 바카라사이트 awarding of funding has been cleaned up and standardised by Congress and 바카라사이트 higher education sector, Mr Smith said. But reimbursement rates often don't cover 바카라사이트 entire amount of facilities and administrative costs.

"We often have to subsidise those costs with university money," he said.

That means universities already have plenty of incentive to be as efficient as possible, Mr Smith said.

"These costs are real. To say 바카라사이트y aren't is very wrongheaded and misrepresents 바카라사이트 situation we will face at universities," he said. "Frankly, some of our universities won't be able to figure out a way to pay for those costs."

This is an edited version of a story which .