It’s hard to know how much emphasis should be put on the president’s 2005 Budget. On one hand, it lays out the president’s main policy objectives – mainly tax cuts for upper income individuals, increases in defense spending, and real cuts for many domestic services. On the other hand, the cost estimates, deficit forecasts, and other analyses are fundamentally misleading.


2005 Federal Budget Continues Fiscal Decline (02/09/2004)

OMB Watch has released a new report providing an analysis of the president’s budget that describes the fiscal chaos created by the president’s proposals. The report is entitled "2005 Federal Budget Continues Fiscal Decline."


Budget Process in the Service of Tax Cuts (02/09/2004)
It is important to remember the magnitude of the federal budget process on the outcome of community results. While budget process issues are often arcane and sometimes difficult to determine the affects on results, in the case of several of the president’s proposals, the purpose is very clear—to make tax cuts easier to pass and expansion of government services more difficult.

State-by-State Effects of the Bush Budget (02/09/2004)
The National Priorities Project has released a state-by-state analysis of the effect of the President's budget.

A Government Rollback (02/09/2004)
It is no secret that, after contributing to the deficit by huge tax cuts, a primary focus of this Administration now is decreasing the deficit by cutting spending, while continuing to reduce revenue by way of tax cuts. This will require massive cuts and eliminations of programs and services. It augurs a historically significant rollback in federal spending that if unchecked will fulfill conservative promises to reduce government to the barest of minimums.

Economy and Jobs Watch: GDP, Employment, and the Federal Reserve (02/09/2004)

Release of two new pieces of economic data showed that the economy, while growing, is still below expectations.


OMB?s Revised Cost of Medicare Prescription Drug Benefits Raises Questions (02/09/2004)

During last year’s debate on the Prescription Drug and Medicare Improvement Act of 2003, Congress used an outlay cost estimate of $395 billion for the new program. However, in the president’s 2005 budget, the 10-year outlay cost was estimated to be $534 billion – 35 percent greater than the initial estimate. See Table S-13, Page 387, 2005 budget..


Tax Freedom or Telecommunications Windfall? (02/09/2004)
There is considerable confusion about the debate on Internet taxes. One issue is whether items sold over the Internet should be taxed. Another issue is whether there should be a tax on access to the Internet; similar to the tax we pay for use of telephones. This second issue – charges a user pays to an Internet Service Provider to connect to the Internet, as well as taxes that would discriminatorily apply only to Internet technology and use – is now being debated in Congress.

Tax and Budget Survey News (02/09/2004)
The OMB Watch Tax and Budget Survey is now closed. We had a tremendous response of over 700 completions. We extend our sincere thanks to all of you who completed the survey. We will be reporting the results soon!

Budget Increases Funds for OSHA Whistleblowers (02/09/2004)
The myriad of numbers in the recent proposed federal budget included a surprising change in the Occupational Safety and Health Administration (OSHA)—an increase of funds to investigate whistleblower claims.

Court Rules Portion of Patriot Act Illegal (02/09/2004)
A federal judge has ruled that at least one provision of the USA Patriot Act is unconstitutional.

Draft FEC Advisory Opinion Generates Comments from Nonprofits (02/09/2004)
The Federal Election Commission (FEC) staff has drafted an Advisory Opinion (AO) that could have far reaching impact on nonprofit advocacy. Draft AO 2003-37 was written in response to a request from Americans for a Better Country, a political organization under Section 527 of the tax code, but it could impact all issue advocacy, not just partisan campaign activity.

IRS Attorney Says Nonprofits Can Lobby During Election Seasons (02/09/2004)
The District of Columbia Bar Association Exempt Organizations Committee held a meeting recently that focused on legal issues in an election year. IRS attorney Judith Kindell explained to those attending the meeting that, “Organizations don’t have to stop lobbying campaigns simply because of an election.”

Groups Ask Congress to Initiate Ethics Investigation of Delay Charity (02/09/2004)
Common Cause and the National Committee for Responsive Philanthropy have called on members of the House to “urge the Ethics Committee to formally rule on the legality of a plan closely associated with Rep. Tom DeLay (R-TX) to establish a children’s charity as a fundraising vehicle to subsidize donor events at the Republican National Convention.”

The House Supports Religious Discrimination Bill (02/09/2004)
On Wednesday, Feb. 4, Rep. Lynn Woolsey (D-CA) offered a substitute amendment during House debate to strip out language that gave faith-based organizations permission to infuse their federally funded programs with religion and to discriminate on the basis of religion when hiring. Woolsey’s substitute amendment failed to be adopted by a 50-vote margin (183-232).

Charitable Giving in Bush?s 2005 Budget Proposal (02/09/2004)
President Bush’s FY 2005 budget proposal includes several tax incentives to encourage charitable giving accompanied by several requirements that will limit taxpayer deductions.

Paul O'Neill's Papers to be Posted Online (02/09/2004)
Documents forming the basis of Paul O'Neill's headline-grabbing charges that the Bush administration planned as early as Jan. 2001 for the fall of Saddam Hussein will be posted on the Internet as an "experiment in transparency."

EPA Gags Regional Staff on Perchlorate (02/09/2004)
EPA has prevented regional offices from speaking to congressional staff about perchlorate contamination. Perchlorate is found in rocket fuel and has contaminated drinking water near Department of Defense (DoD) sites in at least 22 states.

Nuclear Insecurity Under DOE (02/09/2004)
A new Department of Energy (DOE) regulation could threaten safety standards at nuclear weapons facilities nationwide. At the same time, findings by DOE’s watchdog office reveal that nuclear facilities cheated during mock attacks.