Election results signal steady course for research, energy issues

The re-election of President George W. Bush and the continued Republican majority in the House and Senate would appear to signal a steady course along the current path for research and energy issues.

Now that Republicans have gained four additional seats in the Senate, and likely an equal number of additional seats in the House, prospects for enactment of comprehensive energy legislation have brightened. Even though both Houses passed such legislation last year, agreement on a final bill was stymied by disagreement over certain provisions. While the disagreement will likely remain, increased majorities make it more that likely a compromise House-Senate bill would at least receive a vote on the Senate floor next year.

Sen. George Allen, R-Va., who is chairman of the National Republican Senatorial Committee, was upbeat one day after the election when asked about energy bill prospects. "We have more than enough votes for an energy bill," Allen said.

Senate Energy and Natural Resources Committee Ranking Democrat Jeff Bingaman agreed, telling reporters that Republicans are now "in a better position to enact legislation," even with what he termed some "very objectionable" provisions included.

The president's ability to carry West Virginia for the second time appears to signal continued financial support of a robust clean coal technology research program that would benefit the state. Furthermore, research is likely to continue and even increase for the president's pet energy project: hydrogen. In his 2003 State of the Union message, Bush called for research into a fuel cell vehicle that could be commonplace on America's roads by the time a child born in 2003 reached
driving age.

Overall, depending on how Congress sees fit to handle its appropriations responsibilities, research and development funding — particularly for defense and homeland security — could be expected to increase, although it is possible that deficit concerns could result in smaller increases than the president and some in Congress might like.

Study looks at offshore outsourcing issues in Michigan, United States

A recent study sponsored by the Detroit Regional Chamber of Commerce, the Accelerator Group and the Michigan Hispanic Chamber of Commerce found that manufacturing losses being blamed on offshore outsourcing actually should be attributed to other factors, including increasing health care costs, tort liability, regulatory burdens and a "burgeoning workforce shortage."

"The Impact of Offshore Outsourcing on the Manufacturing Sector in Michigan and the United States" cited a lack of skilled workers due to an "insufficient emphasis" on K-12 science and engineering programs, and the fact that the small numbers of students majoring in engineering programs at the undergraduate level cannot compensate for the number of jobs needed
to fill the retiring baby boomers' slots.

The study found that the offshoring component of manufacturing losses in Michigan represents only a small fraction, 1.1 percent, of the manufacturing jobs lost because of a lack of skilled workers.

For more information about the study and to read the full report in its entirety, visit www.detroitchamber.com/MPC/documents/offshoring.pdf.

— Francis Dietz
ASME Government Relations

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