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Date: Tue, 12 Apr 94 16:50:27 EDT
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Date: 12 Apr 1994 16:41:23 EST
From: Marjorie Forster <xxxxxx@UMAB.BITNET>
To: RESAM-L at ALBNYDH2.Bitnet
Subject:  Indirect "Pause"

The most recent information I have is as follows:  The Senate approved
the 1995 budget resolution but it did not include the "pause".  The
House version H. Con. Res. 218 assumes savings of $130 million in outlays in
FY. 1995 as a result of enacting the Administration's proposal for a "pause"
in indirect costs.  The House-Senate conference on the budget resolution will t
ake place during the week of April 11.  Through the AAMC we have been urged to
write to the conferees asking that they support the Senate's position and
not the house position.  The members of the House-Senate Conference Com
that I am aware of are as follows:  Senators Jim Sasser (D-Tenn), Ernest
Hollings (D.S.C.), J. Bennett Johnston (D-LA), Pete Domenici (R-N.M.), and
Charles Grassley (R.Iowa).  The House Representatives have not been names, but
will include House Budget Chair Martin Sabo (D-Minn), the committee's ranking
member John Kasich (R-Ohio), and Richard Gephardt (D-Mo.).  I drafted letters
for signature by the President and the Dean of the School of Medicine.
Points included: indirect costs are real, not profit; we have negotiated
agreements, implementation of the "pause" in direct violation of the
agreement; "pause" penalizes successful institutions, while those with the
same or decreasing research volume untouched; "pause" in conflict with
A21; revised A21 has eliminated long list of legitimate costs; capped
administrative expenses; institutions in exchange for stability have been
willing to forego year-by-year rates of recovery; "pause" is once again
asking institutions to make up the short-fall; and last but not least
the savings although anticipated in 1995 would not be realized until
1996.

In addition to the foregoing the NSF reauthorization bill included the
"pause" and we have been asked to write to our representatives to ask
them to urge Mr. Brown (D-Calif) to have it removed from the NSF
reauthorization bill. If you need further information give me a call
or ask via e-mail.
Marjorie Forster
Director, OSPAT
The University of Maryland at Baltimore
410-706-3559