Charlie Hathaway recently inquired:

>We have begun asking investigators submitting applications to NIH to
>limit requests for cost of living increases on recurring expenses to
>3% as recently "suggested" by NIH.  However, many institutions are
>continuing to ask for 4%...perhaps in the hope that an across the
>board cut in their budget will leave them with more money.  I would
>like to hear from others on their policy if any concerning this issue
>AND any comments on what NIH is doing in terms of enforcement.

My current understanding is that the 3% cost of living increase is related to
total direct costs rather than to any specific line item, i.e., NIH wants to
limit annual increases in total direct costs to 3%.  Further, if sound
programatic or institutional reasons exist for greater increases, they may be
allowed if fully justified.  Examples:  Specified programatic aspects of the
work scope are not scheduled to begin until Year 3 of a 5 year grant period.,
computer hardware and software upgrades occurring in Year 3 of a 5 year
grant period, or merit increases that are part of an institution's Title and
Pay Plan and are unrelated to cost of living increases, etc.

I would appreciate it very much if you would post a summary of your
responses to the list.  Thanks!

Donna Sofaer
Director of Development
Public Health Institute
2001 Addison St., Second Floor
Berkeley, CA  94704
(510) 644-8200
xxxxxx@publichealth.org

I would also appreciate knowing