Publications :  The Watcher :  OMB Watcher Vol. 5: 2004 :  October 18, 2004 Vol.5, No.21 : 

In This Issue

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Senate Pushes Through Corporate Tax Bill Over Holiday Weekend (10/18/2004)
The Senate commemorated the Columbus holiday Oct. 11 by holding a special session to pass the corporate tax bill, also known as the FSC/ETI bill. The previous week the House had passed the bill, which was designed to remove certain corporate tax subsidies on exports which had been ruled illegal by the World Trade Organization two years ago. The new tax breaks hit the nation at a time when corporate tax revenue has dropped to a historic low -- and the federal deficit has climbed to an all-time high. Last week, the Congressional Budget Office reported the FY 2004 federal deficit hit a record $413 billion.

Federal Spending Hits Ceiling Forcing Treasury to Act (10/18/2004)
Last week, federal spending again reached the debt limit put in place by Congress -- the legal amount, above which the federal government cannot borrow. If borrowing exceeds this ceiling, currently set at roughly $7.4 trillion, immediate action is necessary. Treasury Secretary John Snow was recently forced to take action to ensure that normal monetary transactions can continue.

A Tale of Two Deficits -- Trade and Budget (10/18/2004)
In the past few days, the government released separately two numbers showing record deficits:

• The final fiscal year 2004 federal budget deficit of $413 billion -- the highest dollar value on record
• A monthly trade gap in August rising to $54 billion -- the second highest on record.

Senate Recesses, Completes Only 4 of 13 Spending Bills (10/18/2004)
After passing the Corporate Tax Bill on Columbus Day, the Senate approved with little debate measures to fund both the Military Construction and Homeland Security appropriations bills for FY 2005, which began Oct. 1. Together with the Defense and the District of Columbia appropriations bills Congress recently approved, these bring the total passed to only four of the thirteen bills needed to fund discretionary spending for FY 2005.

Economy and Jobs Watch: Employment Report Again Shows Weakness (10/18/2004)
The U.S. employment situation remains weak as the Bureau of Labor Statistics September report showed an increase of just 96,000 jobs. That figure is far below the level needed to keep pace with overall population growth.

Delaware Professor Sues Pentagon for Coffin Photos (10/18/2004)
A University of Delaware professor of communications is suing the Pentagon to make public the photos of returning soldiers' coffins to American soil.

Senate Chairman Refuses to Release Richard Clarke's Testimony (10/18/2004)
For almost four months Sen. Pat Roberts (R-KS), Chairman of the Senate Intelligence Committee, has refused to release declassified testimony related to the 9/11 investigation from former White House Counterterrorism Chief Richard Clarke. Given the critical nature of Clarke's public statements and the proximity of elections, political motivations for the repression are strongly suspected.

Critical Habitat Proposed for Endangered Species Challenged Under Data Quality Act (10/18/2004)
The Fish and Wildlife Service (FWS) proposed designating 376,095 acres essential to the survival of the southwestern willow flycatcher. The southwestern willow flycatcher is an endangered bird whose habitat covers the southwestern portion of the United States. Information related to this endangered species was challenged under the Data Quality Act in 2003 and may have helped shape the habitat designation.

Congress Passes Limited FOIA Exemption for Satellite Imagery (10/18/2004)
The House and Senate adopted a new Freedom of Information Act (FOIA) exemption without the overly broad language originally proposed by the Senate, which would have provided a blanket prohibition on disseminating any commercial satellite imagery or derived products. The exemption was part of the 2005 Defense Authorization Act passed Oct. 9.

Justice Asks to Submit Secret Evidence on Transportation Rule (10/18/2004)
The Justice Department has requested permission to submit evidence to the court under seal in a case about a secret security rule. The case involves a secret transportation security rule that requires airline passengers to show identification in order to fly.

OpenTheGovernment.org Targets Secrecy in Post Ad (10/18/2004)
OpenThegovernment.org, a broad-based coalition of more than 30 groups dedicated to fighting government secrecy and strengthening open government, placed a quarter-page ad in the Washington Post Oct. 13. The primary message states, "Our Safety Depends on the Free Flow of Information … Let's Turn the Tide on Secrecy." The coalition placed the ad as part of its campaign to raise awareness about the problems of unnecessary government secrecy, which undermines public health and security. Learn more.

New Corporate Tax Bill Limits Charitable Deductions (10/18/2004)
While conferees rejected last minute efforts to attach provisions of both the CARE Act and the Houses of Worship bill to the corporate tax bill, the legislation sent to the president does contain three provisions of particular interest to the nonprofit sector.

Independent Sector Names Accountability Panel (10/18/2004)
Congress recessed without taking action on Senate Finance Committee staff proposals outlined in a July discussion draft. However, the Finance Committee is pursuing the nonprofit accountability issues. It has asked Independent Sector (IS) to form a panel to recommend measures that would increase accountability and good governance in the sector. Independent Sector recently announced its panel, comprised of 25 nonprofit and philanthropic leaders from both public charities and private foundations. Independent Sector's president, Diana Aviv, will serve as executive director, and Patricia Read, IS's senior vice president for public policy and government affairs, is the project's director.

FEC To File Response to BCRA Court Ruling (10/18/2004)
The Federal Election Commission (FEC) has told an appeals court it will file a statement noting which rules it will defend from a lower court ruling overturning regulations implementing the Bipartisan Campaign Reform Act of 2002 (BCRA) by Nov. 8. Rules that are not appealed will have to be reconsidered by the agency. In a recent meeting FEC Vice-Chair Ellen Weintraub indicated that its exemption for Internet communications may need to be reconsidered. The FEC must also decide whether to defend its exemptions to the electioneering communications rule for 501(c)(3) organizations and unpaid broadcasts.

Update on Church Electioneering (10/18/2004)
The corporate tax bill has been sent out of conference without provisions from the "Free Speech Restoration Act," which would have allowed churches to endorse candidates and fund partisan electioneering activities. However, that has not stopped a rash of churches from directly or indirectly endorsing candidates this election season.

Comments Needed on Alternative Guidelines to Prevent Terrorist Financing (10/18/2004)
A group of charitable and philanthropic organizations has released a draft "Principles of International Charity" that can be used to prevent diversion of charitable funds to terrorists. Both domestic and international nonprofits are being asked to comment on the draft, which is an alternative to the Dept. of Treasury's November 2002 guidelines. OMB Watch and other groups have called on Treasury to withdraw their guidelines .

Gaps in Homeland Security Benefit Bush Campaign Funders (10/18/2004)
The Bush administration has weakened, opposed, or failed to initiate proposals to address security gaps that leave chemical and nuclear plants, hazardous material carriers, shipping ports, and drinking water facilities vulnerable to terrorist attacks, according to a new report that links these failures to Bush campaign funding from the very industries that oppose needed regulation.

Recent Studies Show Lack of Enforcement of Environmental Laws (10/18/2004)
Enforcement of federal environmental law has declined significantly during the Bush years, according to several recent studies, even as the 30-year trend of environmental improvement has begun to reverse course.

Partisan Patterns Detected in Civil Rights, Environment Decisions (10/18/2004)
Federal judges appointed by Republican administrations -- and the Bush administration in particular -- are expressing, through decisions and dissents, a marked bias against civil rights, environmental, and other public interest litigation, according to two new reports.

Administration Continues to Suppress, Weaken Science (10/18/2004)
In three separate cases in the past month, agency scientists have claimed that government agency officials have suppressed or softened their scientific findings, allowing policies harmful to public health and the environment to be carried out despite scientific evidence of their potential harm.

RegWatch Roundup (10/18/2004)
If you haven't been reading RegWatch, our new regulatory policy weblog, here's a look at what you've been missing.

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