Publications :  The Watcher :  OMB Watcher Vol. 3: 2002 :  July 22, 2002 Vol. 3 No. 15 : 

In This Issue

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FEC Delays Issue Advocacy Rulemaking (07/24/2002)
The Federal Election Commission announced that it will be not be ready to consider proposed regulations on issue advocacy on July 25, as had been planned. A new date has not been set, and other rulemakings, including a proceeding to define illegal coordination between campaigns and donors and advocacy groups, are also likely to be delayed. The Bipartisan Campaign Reform Act of 2002 (BCRA) requires that all rulemakings be completed by the end of the year.



Senate Appropriations Subcommittees Push for Limited FY 2003 Community Technology Funding (07/22/2002)
On July 16, the survival of two key federal programs working to bridge the digital divide was given an additional boost during markup sessions for FY 2003 appropriations.


Appropriations and Supplemental Spending Bill Update (07/22/2002)
Negotiations between the House and Senate on the FY 2002 supplemental spending bill (H.R. 4775) broke down after the White House threatened to veto the bill if spending was much more than the $28.8 billion requested by the President and consisted primarily of spending for defense and national security and aid to New York City.

OMB?S Mid-Session Budget Review: Rosey Pays Another White House Visit (07/22/2002)
It comes as no surprise that the budget review issued by the Office of Management and Budget on July 19, 2002, shows a higher deficit for 2002 than predicted in its February 2002 report—from a $106 billion to a $165 billion deficit. In spite of the increasing deficit, OMB is optimistic about a quick return to budget surpluses in 2005, which are estimated to continue to increase over the next decade. In other words, according to OMB, this has been a rough time, but the President’s economic and fiscal policies, particularly the tax cut, insure that the long-term outlook couldn’t be better.

IRS Sets 2004 Goals for E Filing Form 990, Seeks Comments on 990 EZ (07/22/2002)
The Internal Revenue Service expects to develop an electronic filing system for nonprofits to file Form 990, the annual information return required of most groups. Terry Lutes, director of the IRS's Electronic Tax administration, told participants in a July 9 web audio broadcast sponsored by the IRS that he is working with software developers to develop better e filing systems.

The IRS has also published a notice asking for public comments on whether changes should be made to Form 990 EZ. The IRS is interested in hearing whether the information collected is necessary to achieve its oversight purposes, the accuracy of their estimate of the burden of completing the form, ways to enhance the quality and utility of the information collected and reduce the burden on nonprofits. Comments are due September 6th, and should be sent to Glenn Kirkland, IRS, Room 6411, 1111 Constitution Ave. NW, Washington, DC 20224.

CARE Act, Faith-Based Initiative Update (07/22/2002)
Following a press conference sponsored by Americans for Community and Faith-Centered Enterprise and the Charitable Giving Coalition last Thursday, Senate Majority Leader Tom Daschle (D-SD) agreed to seek agreement on rules of debate so the CARE Act ( S. 1924) can go the Senate floor during the week of July 22. CARE Act sponsors Sen. Joe Lieberman (D-CT) and Sen. Rick Santorum (R-PA) spoke at the press conference, and said they expect the bill to be considered before the August recess. The bill passed the Senate Finance Committee in June, with several amendments.


Corporate Reform Bills Differ on Nonprofit Disclosure (07/22/2002)
In the wake of the widening corporate accounting scandals, both the House and Senate have passed versions of corporate accountability and reform legislation. As reported in a previous Watcher, on April 24, the House passed the "Corporate and Auditing Accountability, Responsibility, and Transparency Act" (H.R. 3763), while the Senate passed its version (S. 2673) last Monday, July 15th. The conference committee that will hammer out the differences between the House and Senate version was appointed on Wednesday, July 17th, and has promised to be finished with the legislation by July 26th.


Church Electioneering Bill Gains Sponsors, IRS Issues Guidance for Religious Organizations (07/22/2002)
Two bills that would allow religious congregations to endorse or oppose candidates for office and spend church funds on electioneering gained new sponsors last week, as its sponsors criticized the IRS for publishing a Tax Guide for Churches and Religious Organizations, Publication 1828, in early July.

OMB Hijacks Clean Air Standards (07/22/2002)
In what appears to be part of a broad effort to reshape air regulation, OMB’s Office of Information and Regulatory Affairs (OIRA) apparently forced EPA to withdraw two proposed emissions standards for stationary internal combustion engines and industrial boilers, insisting that the agency make changes that may be inconsistent with the Clean Air Act.

Department of Homeland Secrecy (07/22/2002)
The secrecy proposal began in President Bush’s proposal for the creation of a new Homeland Security Department as a single vague and overly broad sentence describing a new FOIA exemption for information concerning “infrastructure” and “vulnerabilities” that was “voluntarily submitted.” Numerous information provisions which go much further have now been proposed to replace this section of Homeland Security Act.

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