Publications :  The Watcher :  OMB Watcher Vol. 4: 2003 :  September 22, 2003 Vol. 4 No. 19 : 

In This Issue

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State and Local Finance Data Disappears (09/22/2003)
Analysts and policymakers are losing their most consistent, thorough source of state and local finance data for 2001 and 2003. The US Census Bureau did not publish state-by-state data on local government finance for fiscal year 2001 and will not be publishing it for 2003, a practice begun in 1970. In lieu of this data, the Census Bureau is publishing local finance estimates for the country as a whole. However, the Census Bureau will report the state level data for 2002 through the Census of Governments Report, and this data will be functionally similar to what was available before the Bureau stopped publishing such information, according to the government agency.

Digging Ourselves out of the $7 Trillion National Debt (09/22/2003)
The growing national debt and deficits as far as the eye can see prompt varied reactions.

Internet Tax Bites the Dust in the House (09/22/2003)
The moratorium on state taxation of Internet services is likely to be extended.

Americans are Worried about the President and his $87 Billion Request for Iraq (09/22/2003)
Recent polls indicate that Americans are growing increasing worried about the Administration's handling of a number of issues.

APPROPRIATIONS UPDATE - MISSING THE DEADLINE AGAIN (09/22/2003)
FY 2004 appropriations unlikely to be completed by the start of the new budget year.

Economy and Jobs Watch: Political Business Cycle? (09/22/2003)
Economy and Jobs Watch Update

DHS CII Docket Published, Not User-Friendly (09/22/2003)
The Department of Homeland Security (DHS) finally published public comments to the proposed Critical Infrastructure Information (CII) rule on its website. OMB Watch published the comments on our site Sept. 3 after DHS failed to post them according to its timeline. Although the comments are now publicly available through DHS, the entire dissemination process DHS followed has been poor and could set a bad precedent for the agency's future rulemakings.

GAO Report Indicates Less FOIA Information Under Ashcroft (09/22/2003)
Federal agencies are limiting public access because of a 2001 memo from Attorney General John Ashcroft, according to a congressional watchdog agency.

Charitable Giving Bills Headed to Conference Committee (09/22/2003)
On September 17 the House passed legislation with tax breaks for charitable giving. The bill, the Charitable Giving Act of 2003 (H.R. 7), is now headed to a conference committee with the Senate. The Senate passed a similar bill, the CARE Act (Charity Aid Recovery and Empowerment Act, S. 476), last spring. In addition to tax breaks for contributions to charities, H.R. 7 provides money for a Compassion Capital Fund, simplification of lobbying rules for charities, reduction in excise taxes for foundations, and authority for states to transfer money from welfare to social service programs. This article includes a summary of the major provisions of H.R. 7, a look at how it compares to the Senate bill, the controversial issues facing the Conference Committee and the administration's position.

OMB Asks for Comments on Proposed Changes to Audit Form (09/22/2003)
Nonprofits that get federal grants have an opportunity to suggest ways audit forms can be streamlined for reports auditors make to them and reports grantees must submit to the federal government. A Federal Register notice invites comments on changes proposed for current audit forms, including the SF-SAC and single audit reporting packages. Comments are due on or before October 14.

Soft Electioneering vs. Issue Advocacy: Where is the Line? (09/22/2003)
On September 8 the Supreme Court heard arguments in the case challenging the constitutionality of the new campaign finance law, officially called Bipartisan Campaign Reform Act (BCRA). The major issues argued were restrictions on “electioneering communications” and soft money contributions to political parties. The arguments illustrated the difficulty in drawing the line between genuine issue ads meant to impact legislation and campaign ads. Ads that promote or attack candidates without expressly urging votes for or against a federal candidate have been labeled “issue advocacy.” As a result, nonprofits involved in non-electoral issue campaigns can find themselves caught in a gray area between genuine issue advocacy and electioneering communications. A recent settlement in an enforcement case at the Federal Election Commission (FEC) involving lobbying ads about Florida everglades conservation illustrates the problem.

Senate Votes to Block Overtime Changes Despite Veto Threat (09/22/2003)
The Senate recently voted to block changes that would strip millions of workers of eligibility for overtime pay, despite the threat of a presidential veto.

Senate Votes to Repeal FCC Media Ownership Rules (09/22/2003)
The Senate recently voted to overturn the Federal Communications Commission’s (FCC) controversial new media ownership rules that would allow media conglomerates to own more newspapers, as well as television and radio stations.

Agencies Slow to Implement Environmental Justice Order (09/22/2003)
EPA and the departments of Interior, Transportation and Housing and Urban Development have not fully incorporated environmental justice principles into their work as required by a Clinton-era executive order, according to a report by the U.S. Commission on Civil Rights (USCCR).


OMB Finalizes Changes to Regulatory Decision-Making (09/22/2003)
OMB’s Office of Information and Regulatory Affairs (OIRA) issued final guidance today that instructs federal agencies on specific analytical methods for regulatory decisions.

Ashcroft Budges Slightly on Patriot Act Secrecy (09/22/2003)
After receiving sharp criticism, Attorney General John Ashcroft has decided to release a fragment of information available on how the USA Patriot Act is being used in libraries. This follows pointed words by Ashcroft, characterizing the concern voiced by those worried about library surveillance as “hysterics.”

Administration Hid Number of Detainees in Iraq (09/22/2003)
U.S. officials have been hiding the actual number of prisoners in Iraq for months, after a news report last week placed the new number at 10,000. Of these prisoners, 3,800 are considered “security detainees” and went unreported for months. Officials said they previously did not have a proper category for the prisoners, therefore leaving them out of the actual count.

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