Publications :  The Watcher :  OMB Watcher Vol. 6: 2005 :  February 7, 2005 Vol.6, No.3 : 

In This Issue

---

President Bush's FY 06 Budget: An Overview (02/07/2005)
President Bush sent his proposed Fiscal Year 2006 (FY 06) budget to Congress on Monday, Feb. 7, in a package that is one of the most special-interest-driven budgets presented in a very long time. The new budget calls for a large transfer of benefits to corporate special interests and the most well-off through additional tax cuts, regulatory and litigation "reforms," and other measures that weaken public safeguards and government in general. At the same time, the president proposes cutting programs serving low- and middle-income Americans. The budget calls for a trade-off that is both unfair and unwise.

Bush Budget Seeks Deep Domestic Cuts, Radical Budget Reforms (02/07/2005)
The President’s Fiscal Year 2006 (FY06) budget was released today and contains deep cuts in domestic discretionary spending outside of homeland security. Overall, the president’s $2.57 trillion budget seeks to cut non-defense domestic discretionary spending by one percent – eliminating dozens of popular government program and drastically reducing funding for many others.

CBO’s Reduced Deficit Projections Mislead (02/07/2005)
Last week, the Congressional Budget Office (CBO) released an updated Budget and Economic Outlook with new 10-year deficit projections for 2006–2015. The report estimated 10-year deficits to have dropped from $2.3 trillion to $1.4 trillion since last September, a 39 percent decrease. These conclusions, however, are very misleading.

Bush Makes Social Security Centerpiece of State of the Union (02/07/2005)
When President Bush addressed Congress and the nation on the evening of Feb. 2, he devoted much of his address to his proposed changes to Social Security, yet declined to provide the American people with details regarding exactly which reforms he plans to pursue. Many believe this strategy is to avoid what President Clinton faced when he tried to reform health care a decade ago. Clinton had submitted a heavily detailed proposal to members of Congress, who were then able to pick it apart and subsequently defeat it. Bush’s deliberate vagueness allows him to sell his plan to the nation conceptually, while leaving us to guess what the true consequences of his reforms might be.

Center for American Progress Progressive Tax Plan (02/07/2005)
On Jan. 31, the Center for American Progress unveiled its progressive tax plan, titled “A Fair and Simple Tax System for Our Future: A Progressive Approach to Tax Reform.” This comprehensive plan provides an alternate vision for tax reform based on the themes of fairness, simplicity, and opportunity through tax policy. The release of this plan is part of a broader Progressive Policy Series the Center is publishing aimed at outlining responsible policy proposals and proposing steps lawmakers can take to enact them.

Republican Policy Committee Attempts to Bolster Data Quality Act (02/07/2005)
The Senate Republican Policy Committee (RPC) appears to be preparing for a battle over the Data Quality Act (DQA), as it recently released a very slanted background document that praises the law’s benefits and attempts to bolster its legitimacy.

D.C. Council Passes Bill to Reroute Hazardous Materials (02/07/2005)
Last week, the City Council of Washington, DC, voted 10–1, with one abstention, to enact emergency legislation requiring rail companies to reroute hazardous cargo around the city. This legislation, “Terrorism Prevention in Hazardous Materials Transportation Emergency Act of 2005,” will make Washington the first city in the nation requiring companies to route hazardous cargo shipments away from population centers. The bill now only needs D.C. Mayor Anthony Williams’ signature.

Freedom of Information Far From Free (02/07/2005)
The Justice Department has informed the People for the American Way (PFAW) that responding to the group’s Freedom of Information Act (FOIA) request for all records related to the decision to seal the records of immigrants detained in the wake of the 9/11 terrorist attacks will cost nearly $400,000. The unusually large price tag appears to be the agency’s latest move in an ongoing struggle to withhold the information.

New Website Promotes Sunshine Week March 13 (02/07/2005)
The Sunshine Week project debuted a new website this week, sunshineweek.org, that offers a number of resources and tools to journalists and others looking to cover or participate in this year’s activities. The intent of Sunshine Week is to highlight the importance of open government through news stories and other media during the week of March 13. Reporters and editors can find at the website an array of op-eds, story ideas, reports, links to participating groups nationwide, and other resources.

NAACP Says IRS Summons Illegal, Politically Motivated (02/07/2005)
On Jan. 27, the National Association for the Advancement of Colored People declined to respond to a summons from the Internal Revenue Service in an audit based on charges of illegal partisan activity. The NAACP said the IRS did not follow proper procedures and the agency’s actions are politically motivated. The IRS denied its motives are political and referred the allegation to the Treasury Department’s Inspector General for Tax Administration. The audit is unusual because it is based on NAACP Chairman Julian Bond’s July 2004 convention speech that criticized Bush administration policies.

IRS Clarifies Rules for Foundation Funding for Lobbying (02/07/2005)
A recent letter from the Internal Revenue Service to the Washington, DC-based nonprofit, Charity Lobbying in the Public Interest, sheds light on the rules that govern private foundation lobbying. CLPI had requested that the IRS answer a series of questions aimed at clarifying the law on foundation support of nonprofits that engage in lobbying. The response from the IRS dispels the misperception that foundation funding of nonprofits that lobby is inappropriate and illegal.

New Bill to Regulate Independent PACs Introduced (02/07/2005)
On Feb. 2, seeking to act before the 2006 congressional campaigns get underway, sponsors of the Bipartisan Campaign Reform Act of 2002 (BCRA) announced the introduction of a new bill aimed at regulating independent political committees. The 527 Reform Act of 2005, S. 271, specifically targets groups exempt under Section 527 of the tax code, so that charities and other groups exempt under Section 501(c) that focus on issues, not candidates, would not be impacted. Chairman Trent Lott (R-MS), a co-sponsor of the bill, scheduled a hearing for March 8 in the Senate Rules and Administration Committee.

Grassley Revenue Proposal Dims Chances for New CARE Act (02/07/2005)
On Jan. 24, Sen. Rick Santorum (R-PA) introduced S. 6, The Family and Community Protection Act of 2005, a tax and welfare reform bill that includes the Charity, Aid, Recovery and Empowerment Act (CARE). Although the bill was included in Majority Leader Sen. Bill FristÕs (R-TN) Republican Top Ten Agenda for 2005, recent moves by Senate Finance Committee Chairman Charles Grassley (R-IA) dim the ActÕs chances of success.

Investigation of Agency Use of Funds for Propaganda Requested (02/07/2005)
Several columnists, some with ties to nonprofits, have recently been the agents of covert propaganda for the Bush administration. An investigation by USA Today revealed that the Department of Education (ED) hired a public relations agency, Ketchum Incorporated, to promote the No Child Left Behind Act (NCLB). As part of this contract, Ketchum entered into a subcontract to pay Armstrong Williams, a conservative commentator, $240,000, to promote the NCLB. Two more cases of similar actions have surfaced, prompting the Campaign Legal Center to request an investigation by the Department of Justice (DOJ).

HHS Withholds Study Results Showing Head Start Is Effective (02/07/2005)
The Department of Health and Human Services (HHS) failed to publish two reports that show Head Start is effective in raising the academic performance of low-income children. The National Head Start Association (NHSA) recently leaked the data, noting that the Bush administration continues its efforts to dismantle the program. Head Start advocates have been fighting the administrationÕs proposals to restructure the program for more than two years.

Budget Includes Anti-Regulatory Proposals (02/07/2005)
As expected, the White House included several threats of new anti-regulatory initiatives in today’s budget release to Congress.

Bill Would Place Homeland Security Above All Law (02/07/2005)
A bill to establish national identification card standards and restrict asylum claims also contains a controversial provision to empower the Secretary of Homeland Security to waive any and all laws in the course of securing the borders from illegal immigration. The provision also includes an exemption from judicial review that not only shields the waiver decisions from court scrutiny but also strips courts of any power to order remedies for anyone harmed by the consequences of such decisions.

OSHA Must Improve Safety for Meat and Poultry Workers (02/07/2005)
Recent reports highlight the dangerous and sometimes deadly working conditions faced by workers in the meat industry and the urgent need for the Occupational Safety and Health Administration (OSHA) to take increased actions.

Privacy Statement | Press Room | Site Map | Contact OMB Watch

© 2008 OMB Watch
1742 Connecticut Avenue, N.W., Washington, D.C. 20009
202-234-8494 (phone)
202-234-8584 (fax)

Combined Federal Campaign #10201

Please credit OMB Watch when redistributing this material.