Publications :  The Watcher :  OMB Watcher Vol. 5: 2004 :  August 9, 2004 Vol.5, No.16 : 

In This Issue

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National Debt Limit Countdown (08/09/2004)
On August 2, Treasury Secretary John Snow urged Congress to raise the federal debt limit without delay, and warned that the limit will be reached by late September or early October.

Budget Legislation Watch (08/09/2004)
Some good and bad news from Congress before the August recess.

Mid-session Review Presents Misleading View of Nation's Finances (08/09/2004)
The White House's Office of Management and Budget recently (and belatedly) released its annual budgetary "Mid-Session Review," which attempts to put a positive spin on massive and worsening deficits, as well as the lowest level of revenue in nearly a half century.

Economy and Jobs Watch: Economy Shows Signs of Weakness under Pressure (08/09/2004)
Two recent economic reports on jobs and gross domestic product (GDP) indicate that the economy is showing some signs of weakness. The economy will begin to be under increasing pressure from higher oil prices, rising interest rates, and a ballooning deficit. Over the period from 2004 to 2009, the White House projects that $1,727 billion will be added to the federal debt -- and this projection does not include many policy proposals favored by the President and many in Congress which would increase the deficit even more.

Ohio Proposes Strengthening Open Records Law (08/09/2004)
Officials in Ohio will soon introduce a bill to the state legislature that would improve the state's current open records laws, according to the Plain Dealer. This comes after a recent survey revealed the state complied with requests for records less than half the time.

Ask Your Representatives to Investigate the Data Quality Act (08/09/2004)
OMB recently published a report to Congress that analyzes and summarizes the first year under the Information Quality Act (IQA). The IQA, commonly known as the Data Quality Act, requires agencies to produce guidelines to ensure that information they use is of high quality. OMB Watch responded with an analysis, which found OMB's report presented Congress with misleading and incorrect facts. Congress never had a hearing on the law, and in light of the OMB report, it is now time for congressional oversight.

To contact your representatives and find out more information, read OMB Watch's action alert.


Justice Dept. Asks for Destruction of Documents, Later Rescinds (08/09/2004)
The Department of Justice (DOJ) called for the destruction of all copies of five documents in library circulation, according to a July 20 message from the Superintendent of Documents. After public outcry from libraries and public interest groups, DOJ rescinded its request in a July 30 message.

FBI Punishes Whistleblowers (08/09/2004)
Another former employee of the Federal Bureau of Investigations (FBI) has come forward to blow the whistle on perceived failings and misconduct within the agency. Mike German, a 16 year veteran of the FBI, recently went public with accusations that the agency mismanagement a terrorism investigation. The case is being investigated but it is unclear how far the investigation will go given last month's dismissal of another FBI whistleblower case.

Data Quality Challenge Helps Bump Species from Consideration for Endangered List (08/09/2004)
On March 31, 2003 the U.S. Fish and Wildlife Service (FWS) of the Department of the Interior received a data quality petition from Terry Bashore of the U.S. Air Force challenging information concerning FWS' proposed rule to list slickspot peppergrass as an endangered species. The challenge clearly contributed to the FWS' decision to withdraw its proposal to recognize and protect the plant as an endangered species.

Sign up for OpenTheGovernment.org Updates on Secrecy (08/09/2004)
With new proposals to expand government secrecy emerging weekly, it's hard to keep up with it all. To wit: The transportation spending bill working through Congress could allow officials to hide hazardous waste hauling through communities across the U.S. One piece of legislation would expand the Patriot Act, another would make permanent sections of the Patriot Act set to expire in 2005, yet a third would restore civil liberties protections for libraries and bookstores asked to divulge their patrons' reading habits. The Department of Homeland Security may propose plans to hide unclassified information even as some Republican members of Congress charge federal agencies keep too many secrets. All this and more was covered in the OpenTheGovernment.org Weekly Update.

Terror Prevention and Nonprofits: CFC Policy Raises Concerns about Chilling Impact (08/09/2004)
The Director of the Combined Federal Campaign (CFC) announced July 31 that participating organizations have an affirmative obligation to check government terror watch lists in order to comply with a certification they are required to sign that they do not support terrorism. The statement prompted the American Civil Liberties Union (ACLU) to withdraw from the fund. In a letter to the CFC, ACLU Executive Director Anthony Romero said, "that requirement is not clear from your certification and I am sure that most if not all of the 2,000 participating charities have a different practice and understanding of the CFC requirements." OMB Watch released a statement on August 6 calling on CFC to withdraw the certification requirement.

Muslim Charity Says FBI Fabricated Evidence, 8 Indicted (08/09/2004)
On July 26, the Holy Land Foundation for Relief and Development, the nation's largest Muslim charity, sent a letter to the Department of Justice Inspector General to investigate FBI's handling of case, alleging "materially misleading" evidence. Later the same day the Justice Department unsealed an indictment of the charity and seven top officials, charging material support of Hamas, a designated terrorist organization, and money laundering.

Senate Finance Committee Asked to Consider Financial Burden of Reform Proposals (08/09/2004)
Comments by lawyers and accountants to the Senate Finance Committee at a July 22 Roundtable pointed out the financial and administrative burdens some staff reform proposals could impose on nonprofits. Some comments targeted a proposed IRS five-year review of each organization's tax-exempt status.

Uniform Financial Guidelines for Government Grants Proposed (08/09/2004)
A coalition of nonprofits has published draft Uniform Data Elements and Definitions for Grant Budgeting and Financial Reporting" for use by government grantees as part of the federal grant streamlining process. The coalition is seeking comments from nonprofits and their accountants by September 30. After the guidelines are modified to incorporate input a new version will be released for field-testing, and all grantees will be urged to try them.

Update on Elections and Nonprofit Advocacy (08/09/2004)
Complaints filed against Jerry Falwell Ministries at the Internal Revenue Service (IRS) and the Federal Election Commission (FEC) allege that the organization illegally endorsed President Bush and solicited donations for a conservative political action committee. A bill to repeal the electioneering communications blackout of broadcasts referring to federal candidates within 60 days of an election or 30 days of a primary or convention is introduced in the Senate, as the Wisconsin Right to Life Committee sues to overturn application of the rule to their grassroots lobbying ads

Mine Safety Subordinated to Mining Company Interests (08/09/2004)
A front-page story in the New York Times August 9 examined the Bush administration's record over the last four years of subordinating mine safety issues to the special interests of the mining companies, stressing in particular the role of former mining executive Dave Lauriski, who is now head of the Mine Safety and Health Administration.

OSHA, Congress Weaken Workers' Protections Against TB (08/09/2004)
According to a July 30 memo from OSHA Deputy Assistant Layne Davis to OSHA Regional Administrators, field officers for the Occupational Safety and Health Administration must contact OSHA's Enforcement Directorate before issuing a citation of violations of new respiratory protection requirements for tuberculosis. This requirement further enervates a system of safeguards that has been increasingly weakened over the past year.

Court Rejects Cost Considerations in Clean Air Act ... Almost (08/09/2004)
In a confusing opinion, the D.C. Circuit has rejected a rule that would have allowed the use of two ozone-depleting chemicals in certain circumstances despite the designation of a non-depleting alternative. Although the decision was based in part on the improper consideration of costs to industry, the court nonetheless declined to make a definitive holding on the permissibility of cost considerations in the disputed section of the Clean Air Act.

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