billion is a 4.6 percent increase above the House and Senate Appro- 

 priations Conference Report for fiscal year 1996. 



After inflation is taken into account, this is a modest increase. 

 But in a time of very tight budgets, it reaffirms the priority we give 

 to investments in the Nation's future. 



The NSF's strategic plan which was approved by the National 

 Science Board a year-and-a-half ago, served as the starting point 

 for developing our budget. 



Three goals were set forth in that plan: maintaining a world 

 leadership position in all aspects of science, mathematics, and engi- 

 neering; employing new knowledge in service to society and excel- 

 lence in science, mathematics, engineering, and technology edu- 

 cation at all levels. 



These reflect NSF's overall mission. 



In developing the budget with these goals in mind, we first 

 sought balance across the agency. NSF is the only federal agency 

 with the responsibility to support research and education in all 

 fields of science and engineering. 



We intend to continue this balanced support across the major 

 fields while retaining the flexibility to move quickly into new and 

 emerging areas. 



A second consideration was to encourage action across bound- 

 aries. Artificial separations between research and education, for ex- 

 ample, do not serve the interests of either. 



We are committed to reducing organizational and cultural bar- 

 riers to interdisciplinary research — because the most exciting 

 science and engineering often occurs at the boundaries of dis- 

 ciplines. 



Finally, we developed our budget with an emphasis on partner- 

 ships. Our principal partners are, of course, institutions and indi- 

 viduals, and universities and colleges, who are the recipients of 

 roughly three-fourths of our research funding. 



But we also encourage partnerships with the states, with the pri- 

 vate sector, with other agencies, to industry — with all those who 

 have a stake in the science and engineering enterprise. 



Let me just take a few moments to highlight how these prin- 

 cipals are translated into numbers in the budget request. 



The balance principle is reflected in the decisions we made to 

 balance the responsibility for the support of research across all 

 areas of science and engineering with our obligation to promote ex- 

 cellence in education. 



Just over half of our budget — 56 percent — goes for research 

 project support for individual investigators, research groups, and 

 research centers. 



Of the remaining 44 percent, 20 percent is for education and 

 training, and 20 percent for research facilities, which are required 

 for frontier research in many areas of science and engineering. 



This leaves about 4 percent for the administration and manage- 

 ment of the Foundation. Let me emphasize, 96 percent of our budg- 

 et goes out in competitively-reviewed and evaluated research and 

 education activities in all the states and territories. Only 4 percent 

 goes for the administration and the management of these activities 

 here with the NSF staff. 



