STATEMENT ON PROPOSED FY 1995 RESCISSION TO NIST'S FUNDING FOR INDUSTRY
PROGRAMS

The February 23 action by the House Appropriations Subcommittee on
Commerce, Justice and State to rescind $46.6 million in funding for
programs at the Commerce Department's National Institute of Standards and
Technology would have damaging impacts on the full range of U.S.
industries that depend on NIST for critical technology- based research and
services. Coming on top of the House-approved rescission of $107 million
in FY 1995 funds from NIST's Advanced Technology Program, the proposed
rescission would be a substantial setback in the nation's efforts to
invest in technology for economic growth. These actions would be
shortsighted in today's climate where rapid technological change and
global competitiveness are challenging many U.S. companies' very survival.
They would erode the growing spirit of industry- government technology
partnerships to strengthen our economy.

The proposed $19.5 million rescission for NIST's laboratory work would have
a real impact on industry's ability to compete in both emerging and mature
markets. NIST laboratories develop and deliver measurement techniques,
test methods, standards and other types of infrastructural technologies
and services that provide a common language needed by industry in all
stages of commerce. These technologies are beyond the reach of individual
companies for economic, technical or other reasons. They are widely needed
by industry and have demonstrated great returns for the economy. The
increased funds provided in FY 1995 for these activities are enabling NIST
to support industry-focused efforts in advanced manufacturing,
biotechnology, environmental technologies, advanced materials and
processing, semiconductor metrology, information infrastructure, and
international standards assistance. The proposed cuts would affect
thousands of companies -- and ultimately, workers and taxpayers -- relying
on NIST to provide these infrastructural technologies that underpin our
economy.

The proposed $26.5 million rescission for the Manufacturing Extension
Partnership (MEP) would undermine this emerging nationwide network of
extension centers -- co-funded by state and local governments -- that
provide small and medium-sized manufacturers with technical assistance as
they upgrade their operations to boost competitiveness and retain or
create new jobs. The rescission would reduce funding available for
establishing new centers around the country. Approximately 10 new centers
could be funded in FY 1995, rather than the planned 36 centers. This
program has shown a rate of return of 7 to 1 for the federal government's
investment, with concrete benefits in increased sales, cost savings, and
jobs for small manufacturers. Reducing the number of new centers would
slow the delivery of MEP services to large regions of the United States --
and many thousands of small companies.

The proposed rescission of $0.6 million for the Baldrige National Quality
Program is small in absolute terms but constitutes a substantial fraction
of NIST's $3.4 million quality improvement program. It would force the
cancellation of brand new pilot programs to help the education and health
care sectors take advantage of proven quality improvement efforts that are
making large, positive differences for U.S. industry. At a time when
government and business leaders -- and citizens -- are fighting to contain
costs in both health care and education, it is foolish to abandon a
promising approach for making substantial improvements in these systems.
After several years of planning that involved both communities, these
programs literally have just been launched -- and, under the proposed
rescission, would have to be terminated.

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