Publications :  The Watcher :  OMB Watcher Vol. 4: 2003 :  May 5, 2003 Vol. 4 No. 9 : 

In This Issue

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Read the Watcher in Full in Easy-to-Print PDF Format (05/06/2003)
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.

Cheaper at Half the Price (05/05/2003)
According to the results of a joint NPR-Kaiser Family Foundation-Kennedy School of Government poll released last month -- and confirmed by almost every other poll on Americans' attitudes toward tax cuts - we are all in favor of tax breaks, until we understand what we have to give up in return.

Deficits and Debt and Tax Cuts (05/05/2003)
Federal Reserve Board Chairman Alan Greenspan doesn't think that tax cuts are needed now and warns about the danger of growing budget deficits. (See this New York Times article). Recently, the International Monetary Fund issued its economic report that advised the US against passing more tax cuts. Hundreds of economists, including a number of Nobel Laureates, oppose tax cuts. According to a number of polls, most Americans don't want more tax cuts, either.

Efforts Made to Expand Critical Infrastructure Information (05/05/2003)
The Department of Defense (DoD) has wasted no time in attempting to get a Critical Infrastructure Information (CII) exemption to the Freedom of Information Act (FOIA) similar to the CII provisions for the Department of Homeland Security (DHS) within the Homeland Security Act of 2002. The dust hasn’t yet settled on the massive DHS reorganization, nor have its CII rules been formalized, much less evaluated, but already DoD has decided that this program merits replication. Meanwhile DHS has come under scrutiny for its own efforts to expand the CII program to all other Federal agencies including DoD.

Administration Attempts to Re-classify 9-11 Information (05/05/2003)
The current Administration's propensity for secrecy is evidenced once again by the recent move against disclosure of the joint congressional report on September 11th. The over 800 page long investigative document was completed last December, with only a limited list of findings made public. Intelligence officials have taken a strong stance against any additional disclosure.

Supreme Court Vacates and Remands FOIA Case (05/05/2003)
The Supreme Court was scheduled to hear oral arguments early last month in the first Freedom of Information Act (FOIA) case (United States Department of Justice v. City of Chicago) to reach the Supreme Court in years. However, just days before the March 4 oral argument the Supreme Court cancelled the hearing, removed the case from its docket, and ordered the lower court's judgment vacated. This is the second time in recent years that a last minute development has removed a FOIA case from the Supreme Court's docket.

Justice Order Gags Whistleblowers (05/05/2003)
The Justice Department issued a directive on March 27th tightening their oversight of employee contact with Congress. Employees are directed to inform the Office of Legislative Affairs "ahead of time and as soon as possible - of all potential briefings on Capitol Hill and significant, substantive conversations with staff and members on Capitol Hill." This requirement would include phone calls. The office would clear Congressional contacts and liaison officials would accompany employees to briefings.

Court Strikes Down Blanket Issue Advocacy Ban in Campaign Finance Law (05/05/2003)
On May 2 a special federal three-judge panel ruled some parts of the Bipartisan Campaign Reform Act of 2002 (BCRA) unconstitutional, while upholding others. There is good news for nonprofits engaged in genuine issue advocacy, since the court struck down the blanket ban on broadcasts that refer to federal candidates within 60 days of a federal election or 30 days of a primary.

The CARE Act - What Next? (05/05/2003)
Before the Memorial Day recess, the House of Representatives is expected to give priority to legislation aimed at increasing charitable giving, but the Ways and Means Committee will probably not consider the Charity Aid, Recovery, and Empowerment (CARE) Act passed by the Senate last month. House Majority Whip Ray Blunt (R-MO) and Rep. Harold Ford (D-TN) are expected to introduce a bill limited to giving incentives previously considered by the House.

IRS Discontinues Audits of Charities That Lobby (05/05/2003)
In a joint statement, seven nonprofit groups, including Alliance for Justice, Charity Lobbying in the Public Interest, Council on Foundations, INDEPENDENT SECTOR, National Committee for Responsive Philanthropy, National Council of Nonprofit Associations and OMB Watch, praise the Internal Revenue Service's (IRS) decision to halt an audit program of charities that lobby pending a review of the program.

IRS Seeks Comments on Guidance, Practices to Prevent Fund Diversion for Terrorism (05/05/2003)
The Internal Revenue Service (IRS) is seeking public comments on how it can improve guidance and oversight in order to prevent diversion of charitable assets for terrorist activities. Announcement 2003-29, which will be formally issued May 19, focuses on grants to international charities, but also asks about the appropriateness of issued by the Treasury Department last November. These practices are recommended for all charities, but were released without a public comment period. This announcement provides the nonprofit community with its first opportunity to be heard on the appropriateness of these practices.

Independent Report Critical of Administration's Air Policies (05/05/2003)
The National Academy of Public Administration (NAPA), an independent, congressionally chartered organization, recently released a report highly critical of the Bush administration's approach to air pollution policy -- raising concerns that public health is not being adequately protected.

Questions Raised About EPA Enforcement (05/05/2003)
EPA investigators and attorneys are questioning the agency's enforcement efforts -- including decisions to assign criminal agents to EPA Administrator Christie Whitman's "personal security detail" -- as the number of cases referred for federal prosecution by the agency drops.

USDA Failed to Act on School Lunches Contaminated with Ammonia (05/05/2003)
The United States Department of Agriculture (USDA) failed to notify state and local officials about food contaminated by ammonia and allowed dangerous beef patties, chicken tenders and potato wedges to be shipped to school lunch programs across the state of Illinois, according to the Chicago Tribune. Forty-two children and teachers at an elementary school in Joliet, Ill., were sickened and rushed to the hospital in November of 2002 after eating contaminated chicken tenders, found to contain 133 times the accepted level for ammonia.

New 'Highway Safety' Rules Let Truckers Drive Longer (05/05/2003)
The Bush administration recently released new standards, which it says will "improve highway safety," that actually extend the amount of time truckers can stay behind the wheel each day.

ALEC-backed Attacks on E-Gov't Move in States (05/05/2003)
Legislation backed by the American Legislative Exchange Council that would stifle public access to taxpayer-funded information and services in the name of protecting commercial profits is rapidly moving through the state legislature in Ohio and is under consideration in other states.

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