Publications :  The Watcher :  OMB Watcher Vol. 6: 2005 :  May 2, 2005 Vol.6, No.9 : 

In This Issue

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Congress Passes Irresponsible Budget Resolution (05/02/2005)
Last week, after lengthy negotiations, House and Senate Republican leaders finally agreed to a set of compromises in the fiscal year 2006 (FY06) budget resolution that allowed both chambers to narrowly pass the legislation. Negotiated behind closed doors, the final budget resolution is a dishonest and irresponsible agreement that will weaken both the federal government and the U.S. economy -- and negatively impact most Americans. Most striking is that it provides another tax break for the wealthy and cuts programs to needy and middle-income Americans while still increasing the deficit.

Despite Public Disdain, Private Accounts Will Not Die (05/02/2005)
The issue of Social Security reform is gathering steam once again as President Bush wraps up his "60-cities-in-60-days" tour to sell his privatization plan to the public. Although the latest polls show more Americans oppose the president's proposal than ever, recent congressional hearings continue to keep the plan on life support.

Bush Criticized for Continuing 'Dishonest' War Budgeting (05/02/2005)
For months, President Bush's budget proposal has been criticized for not being an honest reflection of his intended policies or the current fiscal reality. The president purposely left out a number of major policies, including Social Security reform, extension of Alternative Minimum Tax relief, and perhaps most egregiously of all, any funding for the future cost of the wars in Iraq and Afghanistan. That last omission garnered increased criticism from Capitol Hill last week.

Senate Passes Emergency Supplemental; Bill Held up in Conference (05/02/2005)
The latest emergency supplemental spending bill (H.R. 1268) was held up as House and Senate conferees struggled to reach an agreement regarding specifics for the bill before leaving town April 29 for the week-long May recess. The bill, which will mainly fund war operations in Iraq and Afghanistan, was held up due to disagreements over provisions regarding immigration, border security funding, and earmarks for special projects and programs.

Economy and Jobs Watch: Economic Recovery Still Shortchanging Workers (05/02/2005)
The gross domestic product (GDP) of the United States grew at a slower pace than expected during the first quarter of 2005 according to data released by the Commerce Department. At just 3.1 percent, it was the slowest rate of growth in over two years since the first quarter of 2003.

Chemical Security Remains an Unaddressed Problem (05/02/2005)
An April 27 panel of government officials and security experts told the Senate Subcommittee on Homeland Security and Governmental Affairs that chemical security remains a looming problem that the federal government refuses to address. The same day the House Committee on Homeland Security proved that point by rejecting an amendment to improve security related to shipments of dangerous chemicals. Also the same day, President Bush called for development of new oil refineries on old military bases but did not address the existing gaps in chemical security.

National Security Whistleblowers Urge Better Protections (05/02/2005)
The National Security Whistleblowers Coalition met with key congressional committee staff April 28, stressing the important role of whistleblowers that disclose security problems, and detailing the retaliation these individuals then encounter. On the same day, Rep. Edward J. Markey (D-MA) announced his intention to introduce legislation in the House to strengthen whistleblower protections.

Defense Department Seeks New FOIA Exemption (05/02/2005)
The Department of Defense (DoD) is seeking a broad Freedom of Information (FOIA) exemption, which would remove critical information from public purview -- everything from information on human rights abuses, to historical military records. The agency sought such an exemption in 2000, but Congress rejected the measure.

Ohio Bill To Privatize Government Information, Services (05/02/2005)
An Ohio state legislator last month reintroduced legislation to force taxpayers to pay companies for services and information that taxpayers already receive more efficiently and cheaply directly through the government. An anti-government conservative group, the American Legislative Exchange Council, originally drafted the legislation and saw it introduced in at least five states in 2003. It previously failed in Ohio.

Kentucky Attorney General Caps Copying Fees (05/02/2005)
Kentucky Attorney General Greg Stumbo (D) recently limited the amount the state agencies could charge citizens for copies of government documents. The prices the government charges for searches and copies are often cited by groups as a major obstacle to obtaining more information through the Freedom of Information laws.

Journalists Teach Communities to Access Government Information (05/02/2005)
On the heels of Sunshine Week, during which journalists highlighted the importance of open government, several newspapers have taken an extra step and begun training local communities to use freedom of information laws. Though freedom of information laws grant the general public rights to access government information, many citizens do not know how to use them and often journalists act as intermediaries between the public and the government. However, journalists can never fully represent a community's range of concerns, so it is important to inform and empower the public.

Senate Committee Passes Amended 527 Bill (05/02/2005)
An attempt by Sens. John McCain (R-AZ) and Russell Feingold (D-WI) to extend federal campaign finance regulation to independent political groups has backfired in the Senate Rules Committee, which amended the 527 Reform Act of 2005 (S. 271), to repeal portions of the Bipartisan Campaign Reform Act of 2002 (BCRA). The vastly altered version of S. 271 passed by the committee on April 27 is a crazy quilt of amendments that restricts independent groups while lifting limits on business groups and PACs run by members of Congress. An additional amendment exempts groups that limit their activities to voter mobilization if they do not use broadcast media. Another exempts the Internet from the definition of regulated public communications. The bill reflects opposing approaches to changing campaign finance laws that were also debated in an April 21 hearing by the House Administration Committee.

IRS Describes Increased Enforcement of Nonprofit Sector (05/02/2005)
Mark Everson, commissioner of the Internal Revenue Service (IRS), told attorneys at the Georgetown Law Center's Tax-Exempt Seminar that the sector must act to head off a "gathering storm" resulting from use of the sector as a vehicle for tax avoidance. Other IRS officials at the April 28 training described new and increased enforcement activities.

GAO Finds Bush's Social Security Campaign Not Illegal Lobbying (05/02/2005)

On April 27, the Government Accountability Office (GAO) sent a letter to eight Democratic senators finding that the Bush administration's program to promote its Social Security plan to the public does not constitute illegal use of government funds for grassroots lobbying. The senators had asked for an assessment of whether the overall context and message of the administration's Social Security campaign amounted to a clear appeal to the public to contact members of Congress. The GAO disagreed, saying that no violation occurs unless there is an express request to the public to contact Congress.

House Ways and Means Committee Holds Hearing on the Tax-Exempt Sector (05/02/2005)
More law school seminar than hearing, on April 20, the House Ways and Means Committee examined the "legal history of the tax-exempt sector; its size, scope and impact on the economy; the need for congressional oversight; Internal Revenue Service (IRS) oversight of the sector; and what the IRS is doing to improve compliance with the law." According to Chairman Bill Thomas (R-CA), the hearing, was not meant to parallel a recent hearing by the Senate Finance Committee reviewing specific reforms. Instead the committee wanted to "establish a foundation from which members can systematically begin to examine the tax-exempt sector, and determine what remedies, if any, are needed to provide greater clarity, transparency, and enforcement."

UMRA, Results Proposals Advance in Budget Resolution (05/02/2005)
The budget resolution Congress finally agreed upon last week incorporated language that endorses the establishment of a results commission and marks the first steps in the direction of turning the Unfunded Mandates Reform Act (UMRA) into an insurmountable obstacle for new protections of the public interest.

Anti-Regulatory Hit List Debated in House Hearing (05/02/2005)
The Bush administration again defended its anti-regulatory hit list to Congress, this time presenting the initiative as a boon to small manufacturers in a hearing before the House Small Business Committee that also featured renewed calls for regulatory sunsets.

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