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OMB Watch Logo
Publications :  The Watcher :  OMB Watcher Vol. 4: 2003 :  June 2, 2003 Vol. 4 No. 11 : 

Acrobat PDF Version

In This Issue

Updates For Your Information
Josh Bolten Nominated as New OMB Director

Federal Budget
Tax Priorities
Budget ZigZag

Information & Access
In the Name of Homeland Security, Let the Stonewalling Begin
Supreme Court Refuses to Resolve Deportation Secrecy
NRC Secrecy Unlikely to Lead to Security for Neighbors
Several States Rushing to Close Openness Laws
DOJ Whistleblower on Terrorist Case Still Paying
National Security Agency's FOIA Exemption Moves Through Congress
Ohio Attack on E-Gov: Update

Nonprofit Issues
Study on Effectiveness of Faith-Based Services Shows Little Difference
Sen. Kennedy Condemns Restrictions on Legal Services

Regulatory Matters
New Forest Rules to Increase Logging, Limit Public Participation
House, Senate Approve Military Exemptions from Environmental Laws
Graham Urges Revision of Food Pyramid
OSHA Drops Plans to Issue Tuberculosis Standard


Josh Bolten Nominated as New OMB Director (06/02/2003)
As President Bush gears up for his re-election bid, a number of senior level personnel changes are occurring. One key change is the replacement of OMB Director Mitch Daniels, who reportedly is headed back to Indiana to take a run at the governorship. The President has nominated the 48-year-old Joshua Brewster Bolten to replace Daniels. As his name was announced by the White House, there seemed to be a general murmur of “Josh Who?”

Tax Priorities (06/02/2003)
The 2003 tax cut package contained a number of goodies for higher income individuals -- a dividend tax cut, a capital gains tax cut, acceleration of previous reductions in upper income tax rates. However, several reports have shown that millions of taxpayers, primarily middle income and below, as well as millions of children, have been left behind.

Budget ZigZag (06/02/2003)

The “Jobs and Growth Tax Relief Reconciliation of 2003” bill (HR 2) that President Bush signed into law with much fanfare on May 28 is chock full of tax cuts that “sunset” – that is, they revert back to pre-2003 law. When combined with the previous Bush tax cut, “The Economic Growth and Tax Relief Reconciliation Act of 2001,” which is also full of tax cuts that slowly phase in and then end altogether, the result is like something out of Kafka. However, the difficulty for the IRS of creating forms and instructions to reflect yearly changes and taxpayer confusion are not the worst consequences of these bills.

In the Name of Homeland Security, Let the Stonewalling Begin
The Department of Homeland Security (DHS) has been severely criticized over recent allegations that department resources were used during a partisan political battle in Texas. On Monday May 12th, more than 50 Democratic Texas state legislators fled to Oklahoma to avoid hearings and prevent the Legislature from having quorum on a bill that would redraw congressional districts in the Republicans’ favor. The same day, a DHS agency was contacted in order to track a plane carrying several of the Democrats in hopes of returning them to the state capitol.

Supreme Court Refuses to Resolve Deportation Secrecy
On May 27, 2003 the Supreme Court refused to hear a case challenging the blanket secrecy of deportation hearings held for hundreds of foreigners detained after the September 11th attacks.

NRC Secrecy Unlikely to Lead to Security for Neighbors
While the Nuclear Regulatory Commission (NRC) has issued new security standards for nuclear power plants defending against terrorist attacks, residents near these plants are unlikely to even be aware of them. The standards have been developed without the consultation of key groups, and most of the new rules are not being made public.

Several States Rushing to Close Openness Laws
Open-government laws continue to face threats from limits on access to information for the second year in a row. Last year, 21 states passed measures to limit public access to information that was deemed sensitive. This year, 15 states have considered similar legislation, with 5 states passing laws that restrict public access to documents or meetings.

DOJ Whistleblower on Terrorist Case Still Paying
Jesselyn Radack, a lawyer who worked in the Justice Department’s Professional Responsibility Advisory Office, is without a job and at the center of a debate over legal ethics in a high profile terrorist case. Radack provided legal advice to the FBI on the possible interrogation of John Walker Lindh, the American who was captured in Afghanistan after joining with the Taliban.

Study on Effectiveness of Faith-Based Services Shows Little Difference
Ever since President Bush announced his faith-based initiative in January 2001, the administration has claimed faith-based programs are more effective than secular programs, but most of the evidence has been anecdotal. That has now changed, with publication of a study by Indiana University and Purdue University comparing results of faith-based and secular job training programs.

Sen. Kennedy Condemns Restrictions on Legal Services
Every year the federal appropriations for legal services carries a rider imposing a host of restrictions on legal services grantees, including an extension of these restrictions to funds from other sources. On May 19, Sen. Edward Kennedy (D-MA) made a statement in the Congressional Record condemning the restrictions, noting that the “results have been devastating.” (See 149 Cong. Rec. S6598-03).


New Forest Rules to Increase Logging, Limit Public Participation
The Bush administration recently finalized standards that will allow more forest-thinning projects to evade the established environmental review process, including public appeals -- likely accelerating logging in forests.

House, Senate Approve Military Exemptions from Environmental Laws
The House recently approved two of five exemptions from environmental laws sought by the Pentagon while the Senate approved just one.

Graham Urges Revision of Food Pyramid
John Graham, administrator of OMB’s Office of Information and Regulatory Affairs, is urging the departments of Agriculture and Health and Human Services to revise dietary guidelines and the food pyramid to reflect the dangers of trans fatty acids (found in margarine, salad dressings and baked goods) and the benefits of omega-3 fatty acids (found in fish, flaxseed and canola oil).


OSHA Drops Plans to Issue Tuberculosis Standard
The Occupational Safety and Health Administration (OSHA) recently announced its intent to abandon a rulemaking that would protect workers from tuberculosis (TB) -- a contagious and potentially lethal airborne disease.

National Security Agency's FOIA Exemption Moves Through Congress
Two dozen public interest and journalism groups objected to provisions in defense and intelligence authorization bills that would expand the zone of secrecy around the federal government's intelligence-gathering operations.


Ohio Attack on E-Gov: Update
Public reaction and government employees' concern appear to have halted a proposed prohibition on Ohio government actions that could be perceived as competitive with the private sector.