The National Academy of Sciences (NAS) released a report entitled "Evaluating Research Efficiency in the U.S. Environmental Protection Agency" yesterday that reviewed the way PART evaluates federal research and development programs. This review was requested by the Environmental Protection Agency (EPA) in 2006 in order to assist the agency in "developing better assessment tools to comply with PART, with emphasis on efficiency," according to the preface to the report. I don't know, but I suspect, EPA requested this study because they are frustrated with the poor ratings and inflexibility of the PART for EPA research and development programs and tired of feeling like the ugly duckling of the federal government, at least in OMB's eyes. Turns out, the NAS study draws many of the same conclusions we have promoted about the PART, particularly its inability to correctly evaluate and capture the work of R&D programs. For instance, NAS finds that measuring research programs based on outcomes (i.e. does research on health policy make people healthier) is neither achievable nor valid. It further finds that efficiency in research should only be one part of evaluating the quality, relevance, and effectiveness of research programs. These conclusions lead NAS to make three excellent recommendations for how the federal government should evaluate research.

Yesterday, CBO Director Peter Orszag testified before the Senate Budget Committee on the rising costs of health care. He emphasized that technological change in health care is the primary driver of health care cost, and not population aging. Furthermore, it is the rising cost of the health care that is the underlying cause of the nation's long-term fiscal challenge.

...while maintaining payments to insurance companies through flawed Medicare Advantage program Reporting in the International Herald Tribune, Robert Pear reports that the president's budget, which will be released Monday, will slash Medicare and Medicaid spending to an even greater extent than his FY 2008 request.

It seems things are getting worse out in the states, almost by the day. The Center on Budget and Policy Priorities has released another update of their analysis first released last week, adding one more state (Illinois) to the list of states facing a budget crunch in 2009. Now there are 20 states that are projecting budget gaps in 2009. The updated summary stats from CBPP: More than half of states anticipate budget problems, according to this updated analysis of state fiscal conditions.

• 20 states now project budget gaps for 2009. Illinois joins this list.
• The combined budget shortfall for these 20 states in 2009 is now at least $34 billion.
• 5 states now say they will have 2009 deficits, but have released no further information.
• 3 other states project budget gaps for 2010 and beyond.

CBPP: 20 STATES FACE TOTAL BUDGET SHORTFALL OF AT LEAST $34 BILLION IN 2009