Publications :  The Watcher :  OMB Watcher Vol. 6: 2005 :  December 13, 2005 Vol. 6, No. 25 : 

In This Issue

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A Letter from Gary Bass (12/13/2005)


Regulatory Year in Review: 2005 (12/13/2005)
A round-up of the key developments in regulatory policy we have covered in 2005.

White House Report Spins Bush Reg Failures (12/13/2005)
In a debate with high stakes for a public that is largely unaware of it, the White House released a report on Dec. 7 spinning its anti-regulatory record as a success.

2005's Information Bunny Hop (12/13/2005)
Over the years many have compared politics and policy formation through our democratic process to a dance between competing viewpoints. Unfortunately for public access to government information, the dance in 2005 closely resembled an old-fashioned bunny hop, involving two steps back for every one step forward.

Secrecy Endangers Biodefense Effort (12/13/2005)
The ultra-secretive agency proposed to lead the nation's effort against biological attacks and national threats posed by pandemics may have to be less secretive if Congress is going to give its approval. You read it right: Congress is balking at approving too much secrecy.

Patriot Act Negotiations Come to a Head (12/13/2005)
With the deadline fast approaching for renewal of USA PATRIOT Act powers, lawmakers appeared unable to reach an agreement. Senate Democrats are proposing to give Congress another 90 days to negotiate before controversial provisions expire this year, while Senate Majority Leader Bill Frist (R-TN) is calling for renewal before Congress leaves this year.

Fight to Save the Toxics Release Inventory Heats Up (12/13/2005)
Since the Environmental Protection Agency (EPA) announced plans on Sept. 21 to reduce TRI chemical release reporting, the agency has faced an ever-growing flurry of criticism and opposition. The program receives tremendous support, because for nearly 20 years it has been an essential tool in addressing environmental and public health concerns. In response to EPA's proposals to cut reporting on TRI chemical releases, in order to eliminate paperwork for reporting companies, individuals and organization have expressed outrage and begun to rally around the program.

Year in Review: More Poor Budgetary Stewardship (12/13/2005)
When it came to tax and budget issues, 2005 was an overwhelmingly disappointing year in the nation's capital. Facing long-term challenges and numerous obstacles, both President Bush and the U.S. Congress seemed to suffer from a severe case of disconnectedness from the fiscal and economic realities that should have moved them toward more rational, healthy tax and budget policies.

Tax Cuts: The Final Melee (12/13/2005)
Continuing its trend of bucking compassion and fiscal responsibility in lieu of tax cuts for the wealthy, the House of Representatives voted last week to pass the $56 billion reconciliation tax bill. This vote, which came on the heels of the vote to save money by slashing mandatory spending, culminated what seemed to be a month of illogical, hypocritical voting. Unlike the Senate tax bill, which centered on extending Alternative Minimum Tax relief (which is increasingly hitting upper middle-income taxpayers), the House tax bill was centered on a two-year extension of low tax rates on capital gains and dividends, the benefits of which will go predominately to the super wealthy. It is no wonder Rep. David Obey (D-WI) said that House actions "makes Mr. Scrooge look like Mother Teresa."

Budget Cuts: The Final Showdown (12/13/2005)
The Senate's return to Washington this week means that conferees have begun final negotiations on the budget reconciliation bill. The two versions of this bill, which aims to cut entitlement spending over five years, contain vast differences, particularly with respect to cuts to Medicaid, student loans, and food stamps. Legislative work on the drafting and passage of the reconciliation bill not only proved to be an obstacle to Congress' appropriations work, but has already extended the congressional session as members have engaged in a showdown over certain contentious provisions, including exploratory drilling in the Arctic National Wildlife Refuge (ANWR), funding cuts to Medicare, Medicaid and popular social welfare programs such as food stamps.

Congress Staggers Toward End-of-Session Finish Line (12/13/2005)
To the amazement of many and the pleasure of none, Congress is still in Washington this week trying to wrap up the 2005 legislative session. Only two must-pass bills remain incomplete (the Labor/Health & Human Services and Defense appropriations bills), yet both the House and Senate seem preoccupied with other matters--namely, the spending and tax reconciliation bills, immigration reform, pension overhaul, and reauthorization of the USA Patriot Act, which some consider another must-pass (at least temporarily as it expires at the end of this year). That Congress is still working to complete appropriations bills that should have been finished in September is indicative of a legislature that has struggled to focus on its logical priorities throughout the course of the year.

A Year of Attacks on Advocacy, Flawed Anti-Terrorism Measures (12/13/2005)
According to a survey of Louisiana residents released last month by Louisiana State University, faith-based organizations and nonprofits got higher marks than government for their hurricane recovery efforts. While not surprising given the abysmal government response, the findings raise larger questions about the role of the federal government in providing resources to the nonprofit sector. Nonprofits face major long-term budget challenges at the federal level that will continue to make it more difficult to serve the people and missions they exist to serve.

Treasury Seeks Comments on Revised Anti-Terrorist Financing Guidelines for Charities (12/13/2005)
On Dec. 5 the U.S. Department of the Treasury released a revised version of its November 2002 Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-Based Charities. The Treasury Department announcement requested public comment on the revisions by Feb. 1, but stated the revised guidelines are now operational. The 2005 version not only does not incorporate the Principles of International Charity, a proposed alternative to the earlier guidelines developed by a working group of nonprofit organizations and released in late 2004, but moves in the wrong direction by adding new and onerous requirements on nonprofits.

Nonprofits Urged to Comment on Proposed IRS Exemption from Privacy Act (12/13/2005)
The Internal Revenue Service is proposing a new Privacy Act system of records exempt from release for Tax Exempt and Government Entities (TE/GE) case management, which could have implications for audited 501(c)(3) organizations.

Failing Grade on Chemical Security (12/13/2005)
As the former 9/11 Commission issued failing grades on the government's preparedness for another terrorist attack, a new draft of chemical security legislation is being circulated by Sen. Susan Collins (R-ME). The bill establishes authority for the Department of Homeland Security to regulate the security plans of U.S. chemical plants. Unfortunately, if its current language remains, the bill will fail to make communities safer from either terrorist attacks or chemical accidents.

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