small but not insignificant. For example, this year we effectively had a 3 percent cut because of congressional direction.

So the system does have flexibility and you can make rational cuts, but you can't do it on an ongoing basis without severely affecting the programs. I think many basic research programs in the federal government are at the point where they can no longer make perturbative cuts to get rid of inefficiencies. Instead, you will start seeing entire programs eliminated. That is essentially where we are right now.



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