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OMB Watch Logo
Publications :  The Watcher :  OMB Watcher Vol. 4: 2003 :  August 25, 2003 Vol.4 No.17 : 

Acrobat PDF Version

In This Issue

Updates For Your Information
Nominate Someone for the Public Interest Hall of Fame

Federal Budget
Economy and Jobs Watch: 2001 Recession in Perspective
Help Us Put "A Face on the Numbers"!
OMB Watch on Estate Tax Tour
The Bush Tax Cuts are No Worse than the Reagan Tax Cuts?
Deficit May Reach $500 billion in 2004

Information & Access
Can Companies Sue Critics for Bad Product Reviews? Supreme Court Asked to Decide
Ashcroft on Tour to Defend Patriot
Congress Might Put Nuclear, Energy Programs Behind Closed Doors
Illinois Strengthens Open Government Laws
Federal Secrecy Includes State and Local Officials
Jailed Whistleblower Files Appeal
Whistleblowers Face Alleged Criminal Investigation
EPA Reponse to 9/11 Influenced by the White House

Nonprofit Issues
More Evidence of Retaliatory Grant Audits Emerges
Federal Agencies Launching Grants.gov Web Site
FCC Postpones New Rule on ?Junk? Faxes

Regulatory Matters
Bush Picks Utah Governor to Head EPA
Administration Pushes for Increased Oil and Gas Development
EPA Agrees to Act on Air Pollution in National Parks


More Evidence of Retaliatory Grant Audits Emerges (08/26/2003)

If you know of organzations experiencing the problems outlined in this article or other types of actions taken by the government to control nonprofit speech please send a message to Kay Guinane at kguinane@ombwatch.org


The Department of Health and Human Services (HHS) has launched another audit of a federal grantee, Advocates for Youth, apparently based on the group’s opposition to the administration’s abstinence-only strategy for HIV/AIDS prevention and health education. The audit will be the third review in a year, although the previous two audits found no problems. The new review, which is being conducted by the Centers for Disease Control and Prevention (CDC), responds to a complaint by Rep. Joseph Pitts (R-PA), an abstinence-only advocate. Pitts sponsored an amendment to this year’s international AIDS bill that requires one-third of federal HIV/AIDS prevention funds to be spent on abstinence-only programs.


Nominate Someone for the Public Interest Hall of Fame (08/25/2003)
As part of our 20th Anniversary celebration, OMB Watch is creating a Public Interest Hall of Fame. Our aim is to call attention to individuals who have made extraordinary contributions to the causes OMB Watch cares about—government accountability, citizen participation, and social justice—and who have gone largely unrecognized.



Economy and Jobs Watch: 2001 Recession in Perspective (08/25/2003)
The recession that began in March 2001 was relatively mild by historical standards when measured by total output. The recession saw just three quarters of negative growth and a cumulative output decline of less than 1 percent of gross domestic product (GDP). By the end of 2001, GDP had fully recovered to pre-recession levels.


Help Us Put "A Face on the Numbers"! (08/25/2003)
Have you ever felt frustrated that policy makers in D.C. don't seem to understand the lives of real people who depend on federal and state services? OMB Watch is launching a new web site to change this, and we need your help to make it happen.


OMB Watch on Estate Tax Tour (08/25/2003)
On behalf of Americans for a Fair Estate Tax, a coalition of nonprofit organizations opposing the repeal of the estate tax, OMB Watch economist John Irons will be traveling the country in early September – from Washington, D.C., to Washington State, Portland, Oregon, to Portland, Maine, and a number of places in between – to discuss recent reports assessing the impact of estate tax repeal on charitable giving. These local events will be organized by United for a Fair Economy, the Fair Taxes for All coalition, and their local affiliates.

The Bush Tax Cuts are No Worse than the Reagan Tax Cuts? (08/25/2003)
There seems to be a common misperception that while things are pretty bad, the country survived the Reagan tax cuts, and the Bush tax cuts aren’t that much worse. All that progressives need to do is continue working against any more tax cuts and advocating for adequate appropriations funding, and we'll get through it. This complacency is misplaced and dangerous. The tax cuts, the fiscal condition of the federal government and the states, and the politics are very different. Conservatives have been working on a long-term agenda of shrinking government by reducing revenue. Movement conservative Grover Norquist wants to cut spending on federal programs in half within the next generation; in his words: "kill the taxes and you kill the government."

Deficit May Reach $500 billion in 2004 (08/25/2003)
Reuters is reporting that the Congressional Budget Office (CBO) is expected to release deficit projections tomorrow showing deficits reaching approximately $500 billion for fiscal year 2004. In addition, the CBO's report will also contain 10-year budget forecasts, unlike the Administration's official numbers released through the Office of Management and Budget (OMB), which only have a five-year horizon. These longer-range forecasts are expected to show significant long-run damage to the budget outlook.

Can Companies Sue Critics for Bad Product Reviews? Supreme Court Asked to Decide (08/25/2003)
Can companies sue critics who publish independent tests of products? The publishers of Consumers Reports have petitioned the Supreme Court to stop a suit that tests the right of consumers to be informed of independent test results.

Ashcroft on Tour to Defend Patriot (08/25/2003)
Attorney General John Ashcroft and the Bush administration appear to be feeling the growing public opposition to the USA Patriot Act. Rather than push safeguards and increase transparency, Ashcroft has hit the road in a publc relations campaign to convince the public that the Patriot Act is nothing to fear.

Congress Might Put Nuclear, Energy Programs Behind Closed Doors (08/25/2003)
House and Senate conferees will have to decide whether the federal government's nuclear waste and energy programs can be closed off from media and public scrutiny. Included in the House version of the defense authorization bill (H.R. 1588) is a provision that would grant the Department of Energy (DOE) the ability to restrict unclassified information on these programs.

Illinois Strengthens Open Government Laws (08/25/2003)
Illinois Gov. Rod Blagojevich (D) recently signed two pieces of legislation into law that expand current open government laws. The first requires local government bodies to record closed meetings; the second allows attorneys fees and court costs to be awarded to plaintiffs in Freedom of Information Act (FOIA) cases.

Federal Secrecy Includes State and Local Officials (08/25/2003)
A new report from the Democratic staff of the Senate Governmental Affairs Committee has found that federal secrecy and information restrictions imposed following the terrorist attacks of Sept. 11, 2001, are preventing state and local officials from accessing important security information.

Federal Agencies Launching Grants.gov Web Site (08/25/2003)
OMB Watch has been monitoring implementation of the federal government’s grants streamlining project, which is required by the Federal Financial Assistance Management Improvement Act of 1999. The federal government has developed a web site for all agencies to post grant opportunities, and is also piloting a site for electronic submission of grant applications. You can view these at Grants.gov.

FCC Postpones New Rule on ?Junk? Faxes (08/25/2003)
The Federal Communications Commission (FCC) postponed implementation of its “do not fax rule” for 16 months thanks to the many concerns voiced by nonprofit organizations and business groups.

Bush Picks Utah Governor to Head EPA (08/25/2003)
President Bush recently nominated Utah Gov. Michael Leavitt (R) to head the EPA, replacing Christie Whitman, who resigned in May.

Administration Pushes for Increased Oil and Gas Development (08/25/2003)
The Bureau of Land Management (BLM) recently instructed federal land-use planners to clear the way for increased oil and gas drilling on federal lands.

EPA Agrees to Act on Air Pollution in National Parks (08/25/2003)
In a recent court settlement, EPA agreed to issue new standards by April 15, 2005, to reduce air pollution in national parks and wilderness areas.

Jailed Whistleblower Files Appeal (08/25/2003)
After serving a 16-month sentence for exposing an email vulnerability to his company’s customers, Bret McDanel is appealing his conviction in an effort to clear his name and send a message that discussing flaws and vulnerabilities is acceptable.

Whistleblowers Face Alleged Criminal Investigation (08/25/2003)
A Transportation Security Administration (TSA) investigation is targeting whistleblowers that have spoken with the media, as reported by MSNBC.com. The investigation stems from media reports that TSA removed air marshals from flights. The Department of Homeland Security (DHS), which oversees TSA, denies any whistleblower investigation is taking place, but is looking into the removal of the air marshals from flights.

EPA Reponse to 9/11 Influenced by the White House (08/25/2003)
The Environmental Protection Agency (EPA) Inspector General released a report Aug. 21 revealing that EPA communications to the public immediately after 9/11 were misleading. Statements made by EPA did not fully represent the data the agency possessed, and were strongly influenced by the White House. The report follows an investigation by the Inspector General into EPA’s overall response to 9/11.