Publications :  The Watcher :  OMB Watcher Vol. 6: 2005 :  January 25, 2005 Vol.6, No.2 : 

In This Issue

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State Budget Crises Begin to Result in Actual Cuts (01/24/2005)
While much has been written recently about the federal budget deficit, states across the country are continuing to struggle under budget crises of their own. Most states are required by law to balance their budgets. While the federal government often carries large deficits to finance its programs and priorities even when revenues are not sufficient, this is usually not an option for state legislatures. Often, the resulting deficit financed federal policies are responsible for making state fiscal situations worse.

Social Security Will Impact More Than Just Seniors (01/24/2005)
One of the most gaping holes in the debate on Social Security reform is the lack of discussion about Social Security as a life and disability insurance program. The program insures much more than just the elderly in retirement; fully one-third of payments go to non-retirees. These benefits – to around 17 million Americans – insure workers and their families from slipping into poverty when a worker becomes disabled or dies.

Will Bush's Social Security Reform Plan Succeed? (01/24/2005)
President Bush has been clear that Social Security reform is a top priority in his second term. Even though he has not announced a plan, he expressed his desire to allow people the option of creating private – or in Bush language, personal – investment accounts. Given the necessity of benefits cuts as well as heavy transition costs years into the future, several high-ranking Republicans have begun expressing doubts about the president’s plan. Moreover, many are beginning to question whether Social Security really has a “crisis” as Bush claims.

Budget Battles Loom as Advocates Prepare (01/24/2005)
Advocacy groups and policy experts are gearing up for the difficult and crucial budget battles anticipated this year in Congress. A number of briefings and conference calls recently have been held to educate and prepare people in Washington, DC, and around the country.

NRC Censors Environmental Impact Statement (01/24/2005)
The public will not have access to health and safety data about a proposed uranium enrichment plant in New Mexico, despite a legal requirement that the public have ample access to such information.

Data Quality Update: Court Decision Appealed (01/24/2005)
In a Jan. 14 news release, the Salt Institute announced that it would appeal the dismissal of its data quality case against the National Heart Lung and Blood Institute (NHLBI). The Salt Institute along with the U.S. Chamber of Commerce had filed suit against NHLBI claiming that statements made by the agency about health benefits from lower sodium diets did not comply with the Data Quality Act.

DHS Cancels Nondisclosure Agreements for Unclassified Information (01/24/2005)
The Homeland Security Department (DHS), under pressure from congressional offices, federal employee unions and the media modified it policies for “Sensitive But Unclassified” (SBU) information and stopped requiring nondisclosure agreements.

Bill to Allow Campaigning by Religious Organizations Back in House (01/24/2005)
On Jan. 4, Rep. Walter Jones (R-NC) introduced H.R. 235, the Houses of Worship Free Speech Restoration Act of 2005. The bill would amend the Internal Revenue Code to allow religious congregations to support or oppose candidates for public office and conduct partisan campaign activities without losing their tax-exempt status, as long as the activity takes place in the context of a religious service or gathering. While narrower than previous proposals, the bill still unfairly favors religious organizations over other nonprofits and allows tax-deductible contributions to support partisan activities.

Court Rules on Key Issues on Funding Faith-Based Groups (01/24/2005)
A Jan. 11 ruling by a federal district court judge in Wisconsin in a complex case challenging the federal faith-based initiative has blocked funding to a program that incorporated religious content into government funded activities, but dismissed a claim that another program discriminated against secular nonprofits in awarding subgrants. Freedom From Religion Foundation v. Towey may be appealed by both sides.

Congress Faces First Faith-Based Issues of 2005 (01/24/2005)

A Quarter of HUDÕs Budget Slashed in BushÕs Budget

The Bush administration, in a drastic reversal of election promises, plans to cut $8 billion in funding at the Department of Housing and Urban Development (HUD), in programs often administered by faith-based organizations, resulting in a reduction of the agencyÕs $31 billion budget by almost a quarter.

Post Election Analysis of 527s Dispels Myths, Shows Trends (01/24/2005)
The Campaign Finance Institute (CFI) held a briefing on Jan. 14 that provided a glimpse of findings in its soon to be published book The Election after Reform. In a special presentation on independent political committees (often referred to as 527s) CFI analyst Steve Weissman said these groups did not become substitutes for party soft money that could no longer be given to political parties under the Bipartisan Campaign Reform Act of 2002 (BCRA). The findings provided more detail on 527 groups based on data and interviews conducted after the election and compared with data from 2002.

House Bill Calls for Agency Performance Ratings (01/24/2005)
A controversial bill that would require yet more burdensome analysis of regulatory and other government programs has resurfaced after passing the House but stalling in the Senate during the 108th Congress.

EPA Assessment Finds Potential Risk to Humans in Teflon (01/24/2005)
While an Environmental Protection Agency draft risk assessment for a chemical compound used in the production of Teflon did find that exposure could lead to adverse health effects, EPA fell far short of condemning the chemical or its makers.

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