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Publications :  The Watcher :  OMB Watcher Vol. 4: 2003 :  February 10, 2003 Vol. 4 No. 3 : 

Acrobat PDF Version

In This Issue

Updates For Your Information
Read the Watcher in Full in Easy-to-Print PDF Format

Federal Budget
Program Assessment And Budget Cuts Ahead
Responses to President's FY 2004 Budget Proposal
Dynamic Dysfunctions
Update: FY 2003 Appropriations Drawing to a Close?
Treasury Department Warns U.S. Will Reach Debt Limit Soon
State-by-State Analyses Show State Budget Deficits? Impact

Information & Access
Patriot Act II Also Limits the Public's Right-to-Know
Ray of Sunshine at SEC?
Supreme Court to Hear Freedom of Information Case
CRS Resolution Would Make Congressional Reports Available to the Public

Nonprofit Issues
Limited CARE Bill Passes Senate Finance Committee

Regulatory Matters
OMB Proposes Changes in Regulatory Decision-Making
EPA Sidesteps Action on Dangerous Herbicide in Drinking Water
New Marine Diesel Rule Falls Short
Court Ruling Overturned: Mining Companies Free to Bury Streams Once Again
Bipartisan Bill Seeks to Increase SUV Fuel Efficiency


Read the Watcher in Full in Easy-to-Print PDF Format (02/10/2003)
For your convenience, the OMB Watcher is also available in full as a PDF document -- this will allow for viewing and printing of the entire issue in one document.

Program Assessment And Budget Cuts Ahead (02/10/2003)

This Administration has not made reducing the size and effectiveness of government a stated goal; however, the strides that are being made to devolve responsibilities to the states and to privatize government functions, deregulate and limit government oversight, and defund government by reducing federal (and often state) revenue through huge tax cuts, make the words unnecessary. One new and potentially effective tool in this effort to delimit the role of the federal government is the “Program Assessment Rating Tool,” or “PART.”


Responses to President's FY 2004 Budget Proposal

The President issued his FY 2004 budget proposal February 3, which was received with accolades by some and with great criticism by others worried that several key education, housing and environmental programs would suffer under his proposed funding levels. Included in this article are links to OMB Watch analyses, as well as the responses of other organizations and Members of Congress.

Dynamic Dysfunctions
At the start of this Congress, the Republican-led House Ways and Means Committee made the implementation of the controversial practice of “dynamic scoring” for budget decisions one of its first orders of business.

Update: FY 2003 Appropriations Drawing to a Close?
As reported in today’s Washington Post, House and Senate conferees are nearing completion on negotiations over H.R. 2, the omnibus bill for the remaining 11 FY 2003 appropriations bills that were not enacted by last October 1.

Treasury Department Warns U.S. Will Reach Debt Limit Soon

Bush Sets Record on Deficit:
According to a chart released by Reuters last week, this year's $304 billion deficit that arose under the Bush Administration's watch is the largest in the last 30 years. Though many economists agree that temporary deficits at a time of a slowed economy are beneficial, most are concerned that the permanent commitment of the country's vital resources to providing permanent and costly tax cuts to the very wealthy will only create more trouble for the economy in the long-run.


The Treasury Department issued a warning last week that the federal government would soon reach its current borrowing limit of $6.4 trillion, if Congressional action were not taken to raise it. As reported in the June 24 edition of the Watcher, this announcement regularly sets up a struggle between the Administration and Members of Congress, who do not want to appear to be spending beyond the government’s debt limit. As this Washington Post article points out, this most recent announcement is particularly troublesome, given that the President is also requesting a $674 billion tax cut.


State-by-State Analyses Show State Budget Deficits? Impact (02/10/2003)

In addition to the National Priorities Project’s handy “State of the States” reports announced in the last Watcher, there is also a new set of fact sheets from AFSCME documenting the draconian cuts states have been forced to make to contend with their 3-year cumulative budget gap of $189 billion. A one-page fact sheet looks comprehensively at the cuts used by many states to meet their own constitutions’ mandates of a balanced budget. Some of the cuts recently used by states include releasing prisoners before completion of their sentences, cuts to higher education, increases in tuition at state universities, reducing funds for community services and child support enforcement, tightening eligibility requirements for the working poor and disabled for state Medicaid health plans, raiding state rainy day funds, and layoffs. Other state-by-state analyses will be available soon, which OMB Watch will note.

Patriot Act II Also Limits the Public's Right-to-Know
(Revised February 13, 2003)
The U.S. Department of Justice appears ready to ask Congress to allow broader surveillance of citizens and aliens and to grant wide new avenues for government censorship. A "confidential" draft of an 86-page bill called the Domestic Security Enhancement Act of 2003 would help transform the government into the big brother you never had and would greatly constrain the free flow of information.


Ray of Sunshine at SEC?

In the wake of retirees' losses piling into the millions from the Enron and Worldcom scandals, the president's budget proposes a much needed infusion of cash into the Securities and Exchange Commission (SEC), part of which is earmarked to help the public in efforts to track corporate wrongdoing.

Supreme Court to Hear Freedom of Information Case

Department of the Treasury v. City of Chicago, which likely will be heard by the Supreme Court next month, has the potential to significantly narrow the application of the Freedom of Information Act (FOIA). Any time a case involving FOIA comes before the Supreme Court it is a cause of concern for public access advocates since any Supreme Court ruling introduces a binding precedent throughout the legal system.


CRS Resolution Would Make Congressional Reports Available to the Public

Sens. John McCain (R-AZ) and Patrick Leahy (D-VT) are preparing to introduce a resolution to make Congressional Research Service (CRS) reports and products publicly available on the Internet. The CRS is a research arm of the U.S. Congress, which authors numerous reports and products on issues ranging from the environment to budget.


Limited CARE Bill Passes Senate Finance Committee

For more information see our summary of both bills. Tax policy expert Matt Hamill of the Institute for Higher Education Policy has put together a comparison of the charitable giving portions of H.R. 7, CARE Act 2002 and 2003 and the Bush Budget for FY 04.


On February 5, the Senate Finance Committee passed a scaled back version of the Charity Aid, Relief and Empowerment Act that has tax incentives for charitable giving, eliminates the distinction between direct and grassroots lobbying, restores funding for the Social Services Block Grant and increases oversight of nonprofits. The bill, S. 256, does not include the provisions on "equal treatment" of faith-based and community organizations applying for federal grants that were in last year's CARE bill. However, Sens. Rick Santorum (R-PA) and Joseph Lieberman (D-CT) have filed another version of CARE, S. 272, that does have the "equal treatment" provisions. It is expected that if the bill moves to the Senate floor the charitable giving and faith-based provisions will be merged.

OMB Proposes Changes in Regulatory Decision-Making
OMB’s Office of Information and Regulatory Affairs (OIRA) proposed new guidance February 3 that instructs federal agencies how to make regulatory decisions, including the specific analytical methods that should be employed.

EPA Sidesteps Action on Dangerous Herbicide in Drinking Water
EPA will continue to allow widespread use of the weed killer atrazine despite evidence that it has contaminated certain drinking water systems at levels 12 times greater than allowed by law.

New Marine Diesel Rule Falls Short
EPA is issuing a weak final rule to limit nitrogen oxide (NOx) emissions from new marine diesel engines in large ships and tankers. The standards are equivalent to those contained in a previous international agreement, which manufacturers are already meeting, and are not expected to have much effect.

Court Ruling Overturned: Mining Companies Free to Bury Streams Once Again
To the delight of the mining industry, a federal appeals court overturned a ruling that blocked the U.S. Army Corps of Engineers from issuing permits to allow the dumping of waste from mountaintop mining into rivers and valleys.

Bipartisan Bill Seeks to Increase SUV Fuel Efficiency
Sens. Dianne Feinstein (D-CA) and Olympia Snowe (R-ME) introduced a bill (S. 265) that would require sport utility vehicles (SUVs) to meet the same fuel efficiency standards as passenger cars.