Publications :  The Watcher :  OMB Watcher Vol. 6: 2005 :  October 18, 2005 Vol. 6, No. 21 : 

In This Issue

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Republicans Use Katrina To Push For More Drastic Cuts (10/18/2005)
The debate in Congress over fiscal priorities has taken a turn toward radical conservatism this week, as the right-wing members of the House Republican Study Committee (RSC) have gained the upper hand in their push for increased cuts in the budget resolution. As Congress returns from its October recess this week, House GOP leaders are planning to amend the budget resolution to include more drastic cuts to mandatory and discretionary spending, ostensibly to pay for rebuilding in the aftermath of Hurricane Katrina.

President's Tax Panel Hints at its Forthcoming Recommendations (10/18/2005)
The President's Advisory Panel on Tax Reform met last week, for the first time since Hurricanes Katrina and Rita ravaged the Gulf Coast, and again today, in preparation for making their recommendations for tax reform to the Treasury Department before the Nov. 1 deadline. During the two meeitngs, the panel referenced some loose conclusions it has reached on tax reform, mainly with regard to the alternative minimum tax, and to scrapping deductions for homeownership, employer-provided health insurance, and state and local taxes.

Congress Mistakenly Focusing On Katrina Spending As Top Fiscal Danger (10/18/2005)
Although conservatives in the House and Senate have been squealing over the past few weeks that budget cuts are necessary to offset spending for Gulf Coast reconstruction, in reality Hurricane Katrina will have little effect on long-term deficits. Despite this minimal impact, many GOP lawmakers are using the disaster as an opportunity to advance calls for sharp cuts in federal spending in the name of "fiscal responsibility." These cuts are neither necessary nor fiscally or socially responsible, considering that federal spending in response to Hurricane Katrina will, at most, cause a slight ripple in our immediate deficits and on the nation's long-term fiscal situation.

Study Adds Voice of Low-Income Americans to Debate Over Economic Divide (10/18/2005)
In the aftermath of Hurricane Katrina, there has been widespread concern that the local residents of New Orleans and other affected communities be an integral part of any and all reconstruction efforts in the Gulf Coast region. In order to embrace a similar approach in addressing deep and persistent U.S. poverty brought to light by Katrina, the Marguerite Casey Foundation commissioned a comprehensive study looking at attitudes of Americans, particularly those of low-income families, before and after Hurricane Katrina.

California Biomonitoring Bill Stumbles in its Final Hurdle (10/18/2005)
California Governor Arnold Schwarzenegger vetoed the Healthy Californian's Biomonitoring Program (SB 600), after its narrow passage by the state legislature. The bill would have established America's first state-wide program to assess levels of human chemical exposure. The governor struck down the bill despite its support by the Center for Disease Control and Prevention, U.S. Rep. Nancy Pelosi (D-CA), the California Medical Society, and numerous health advocacy organizations.

Open Records Problems in Old Kentucky (10/18/2005)
Kentucky has recently experienced challenges implementing its Open Records Act. Officials have already been accused of abusing new homeland security exemptions to the state's open records law to avoid public scrutiny of matters unrelated to terrorism concerns. One decision to withhold information will be reviewed in court this week. In another case, Governor Ernie Fletcher will likely go to court to challenge the state attorney general's decision to make certain records available to the public.

Rep. Oxley Strikes Deal with House Conservatives; Housing Bill to Include Nonprofit Gag Provision (10/18/2005)
A GSE (government-sponsored enterprise) bill that would establish a new affordable housing fund, but limit nonprofits' rights to engage in, or affiliate with organizations that engage in, nonpartisan voter registration or lobbying activities, is racing ahead to a floor vote in the House.

Friend of Court Brief Planned in Supreme Court Case on Grassroots Lobbying (10/18/2005)
Nonprofits will have a chance to weigh in on a case that may decide their advocacy rights, when the Supreme Court considers whether to uphold a lower court decision to ban certain paid broadcasts of grassroots advocacy messages. The case in question involves messages that mention public office holders who are also candidates in a federal election, funded with corporate, including nonprofit, money. On Oct. 14 OMB Watch and other nonprofit groups met with legal experts to begin work on a friend-of-the-court brief that will highlight the negative impact a ruling against Wisconsin Right to Life (WRTL), the defendant in the case, could have on nonprofit advocacy rights.

Federal Court Allows Salvation Army to Consider Employees' Faith (10/18/2005)
A federal court opinion permitting the Salvation Army to consider the faith of employees hired for government- funded projects is being touted as a victory by proponents of President Bush's faith-based initiative, claiming it legitimizes the administration's stance. Yet, opponents of the Bush faith-based initiative are not entirely sure the court decision is a loss.

Cases Before High Court Could Redefine Limits of Federal Power to Protect Public (10/18/2005)
The U.S. Supreme Court has agreed to review two Clean Water Act cases that could prompt yet another examination of the limits of Congress' power to protect the public.

Katrina Exposes Some, But Not All, Unmet Security and Safety Needs (10/18/2005)
While the country may now be cognizant of water contamination and other serious safety gaps prevalent in the regions hit by Hurricane Katrina, health and safety threats are not unique to the Gulf Coast.

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