Publications :  The Watcher :  OMB Watcher Vol. 5: 2004 :  November 1, 2004 Vol.5, No.22 : 

In This Issue

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Election Day Ballot Initiatives Could Affect State and Local Tax Policy (11/02/2004)
Citizens across the country have been gearing up for this election week for an untold number of months. And while much of the attention has been focused on the too-close-to-call presidential election and the key House and Senate races, when voters hit the polls on Nov. 2 they will also be deciding on a number of different ballot initiatives that potentially could have significant impacts on state and local tax policy.

Completing Appropriations to Dominate Lame Duck Session (11/02/2004)
Only twice in the last 15 years has Congress been able to complete all 13 of the annual appropriations bills by the end of the fiscal year, and this year is no exception. To address this uncompleted business, the 108th Congress will reconvene Nov. 16 to begin a post-election lame-duck session.

Upcoming 2006 Budget Process Portends Deep Discretionary Cuts (11/02/2004)
The FY 2006 federal budge, scheduled to be released in February 2005, is important now because federal agencies are already making decisions prior to submitting their individual budgets to the Office of Management and Budget (OMB) in September. The Bush administration has proposed cutting the budget deficit in half over the next five years, while John Kerry has proposed that he will do the same in four years. Because neither presidential candidate seems willing to cut funds from the Defense or Homeland Security programs, there is going to be considerable pressure for them to cut non-defense discretionary spending.

NRC Removes All Nuclear Information from Its Public Website (11/02/2004)
The Nuclear Regulatory Commission (NRC) pulled its entire public reading room offline last week after stories broke about possibly sensitive material on the website. They agency defended its action by saying it is trying its best to balance security and right-to-know.

EPA Plans for TRI Burden Reduction (11/02/2004)
The Environmental Protection Agency (EPA) recently held a public meeting to announce two plans for reducing the burden of reporting for the Toxic Release Inventory (TRI). The first, scheduled for sometime in December, would propose simple changes to the TRI reporting forms in an effort to streamline the process. The second rulemaking, scheduled for June 2005, would contain a more substantial programmatic change, although EPA has not yet determined the exact nature of the change.

Bush Campaign Restricts Access to Election Website (11/02/2004)
Last week the Bush-Cheney reelection campaign barred people outside the United States from accessing its website. The restriction was apparently in response to an electronic attack that shut down the both campaign and Republican National Committee (RNC) websites the week before.

Indiana Open Records Audit Finds Improvement but Still Trouble (11/02/2004)
A recent open records audit by eight Indiana newspapers found the state still needs to make significant improvements in order to comply with its own open records laws. Journalists found mixed results to inquiries in all of Indiana's 92 counties.

Report Finds Growing Pattern of Attacks on Nonprofit Speech (11/02/2004)
Government agencies and officials and conservative allies are increasingly targeting nonprofit organizations for their free speech activities, as OMB Watch documents in a report published Oct. 26, Continuing Attacks on Nonprofit Speech: Death by a Thousand Cuts II. (See press release and statements from the audio news conference.) The analysis found:

• Retaliatory action against government grantees that engage in controversial policy discussions or active advocacy that includes points of view different from the administration, regardless of how well those views are supported by science
• Aggressive application of the global gag rule, and signs of a back-door "domestic gag rule" that illegally imposes government rules on private funds of grantees
• Selective enforcement of laws against nonprofits engaged in direct action
• Overbroad implementation of homeland security policy that chills the nonprofit policy voice.

Treasury Department Shuts Down Muslim Charity (11/02/2004)
On Oct. 13, the Treasury Department designated the Islamic American Relief Agency (IARA), along with five senior officials, as supporters of terrorism. This action froze all accounts, funds and assets of IARA in the United States and criminalizes the provision or donation of money to any of its offices. IARA has no right to appeal or learn of the evidence against it. This effectively allows the government to treat organizations as guilty without the opportunity to demonstrate innocence.

New Rules, Empty Pockets: Funding Faith-Based Services in a Time of Fiscal Uncertainty (11/02/2004)
Three executive orders have created centers for the Faith-Based and Community Initiatives in many federal agencies. Booklets have been published which provide guidance to faith-based groups on how to get federal funding, and the government has held a series of educational conferences and a catalog of grant opportunities. Recently, both USAID and HUD published final rules implementing a policy ensuring that faith-based organizations are able to compete on equal footing with other organizations for funding. So why has funding for faith-based organizations in the social service system at the state and local levels deteriorated recently? A new report by the Roundtable on Religion and Social Welfare Policy details the funding problems of the "Faith-Based Initiative."

Independent Sector Names Members of Expert Advisory Panel (11/02/2004)
Independent Sector announced the formation of an eight-member Expert Advisory Group that will advise the "Panel on the Nonprofit Sector" formed in response to a request by the Finance Committee to make recommendations to Congress to improve the oversight and governance of charitable organizations. The Expert Advisory Group will provide knowledge and support to the Panel on such issues as government regulation, financial accountability, and tax policy. They will also provide perspective on recommendations from the working groups that will also support the panel.

FEC Regulations to Stay in Effect Past the Election, Unpaid Broadcast Ban Appealed (11/02/2004)
Although a federal court judge refused to grant the Federal Election Commission (FEC) a stay of a September decision overturning 15 regulations implementing the Bipartisan Campaign Reform Act of 2002, the rules will remain in effect until after the election on Nov. 2. The FEC has appealed the case to the U.S. Court of Appeals for the District of Columbia, challenging the standing of Reps. Chris Shays (R-CT) and Marty Meehan (D-MA) to bring the suit and defending five of the 15 regulations.

Dreier Pushes Amendment to Place DHS Above Law (11/02/2004)
Rep. David Dreier (R-CA) is promoting an amendment to pending intelligence overhaul legislation that would exempt the Department of Homeland Security from all federal law in the course of securing the nation's borders.

Mercury Emissions Adversely Affect Minorities (11/02/2004)
The cap-and-trade method for curbing mercury emissions will greatly harm those from the Great Lakes region, particularly American Indians, according to a new white paper released by the Center for Progressive Regulation (CPR).

Court Rejects Ban on Snowmobiles in Yellowstone (11/02/2004)
Rejecting a National Park Service ban on recreational snowmobile use in the Yellowstone area as a "predetermined political decision," a federal court in Wyoming found that the Clinton-era snowmobile ban violates the National Environmental Policy Act and the Administrative Procedure Act.

Interior Gives Exclusive Appeal Rights to Industry (11/02/2004)
A proposed rule from the Department of Interior would grant those in the hydroelectric industry the exclusive right to appeal rulings about how dams are licensed and operated.

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