Publications :  The Watcher :  OMB Watcher Vol. 8: 2007 :  August 21, 2007 Vol. 8, No. 17 : 

In This Issue

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Crandall Canyon Mine Collapse Implicates MSHA Procedures (08/21/2007)
The Aug. 6 mine collapse at the Crandall Canyon coal mine in Utah, which trapped six coal miners and led to the deaths of three rescue workers, again calls into question the effectiveness of the federal Mine Safety and Health Administration (MSHA). The mine operators were working under a plan approved by MSHA in June, just months after serious structural problems forced the operators to abandon a work area only 900 feet from where the miners are trapped.

Bush Administration Skirts Broad Environmental Law (08/21/2007)
The Bush administration has expanded exclusions of the National Environmental Policy Act (NEPA). The administration will allow private industry to engage in selected land management projects without first assessing the potential impact on the environment. Furthermore, by excluding these activities, the administration has stripped the public of its opportunity to provide input into potentially damaging projects.

New Report Examines Agency Review of Regulations (08/21/2007)
The Government Accountability Office (GAO) has released a new report on the process by which federal regulatory agencies review regulations after they take effect. Agencies conduct reviews to comply with existing law, as a matter of agency policy, and in response to White House requests. The report finds the quality of reviews varies widely and determines the major barriers to more useful reviews are gaps in available data and problems with public participation.

The Year in Fiscal Policy...So Far (08/21/2007)
After the elections in November 2006, with a new majority and low public confidence in Congress following multiple lobbying and ethics scandals, members vowed to restore integrity and responsibility to the legislative process, particularly in fiscal policy. Congress pledged it would prioritize funding for domestic needs and abide by pay-as-you-go rules for new mandatory spending and taxes. It would shed light on the earmarking process and spend more time minding the people's business in Washington. In short, the new Congress said it would clean up Washington and rebuild public confidence in government.

Carried Interest Issue Gathering Momentum in Congress (08/21/2007)
Congress's tax-writing committees have focused increasing attention this summer on a hitherto little-noticed tax preference enjoyed by private equity and other fund managers that allows them to pay capital gains rates (15 percent) on "carried interest" income they are paid to manage investment funds they do not own. This is significantly lower than the income tax rate that would otherwise be assessed, which could be as high as 35 percent. As Congress moves to take action to close this loophole, nonprofit advocacy groups are mobilizing to support a fix to this unfair aspect of the tax code. At the same time, powerful special interests are working to protect this tax break, which affects some of the wealthiest individuals in this country.

State Secrets Privilege on Trial (08/21/2007)
The Ninth Circuit U.S. Court of Appeals heard arguments on Aug. 15 regarding the administration's claims that two lawsuits involving the National Security Agency's spying program cannot move forward because of the state secrets privilege. The administration argues that the cases involve secret matters essential to protecting national security.

EPA Overlooking Testing and Regulations of Nanochemicals (08/21/2007)
As the nanotechnology sector expands, the U.S. Environmental Protection Agency (EPA) has not kept pace with oversight controls. Despite work to develop research strategies and priorities, the agency has not proposed any actual regulatory program for nanotech materials.

FOIA Performance Goes from Bad to Worst (08/21/2007)
The Coalition of Journalists for Open Government's (CJOG) analysis of government's implementation of the Freedom of Information Act (FOIA) indicates record-setting FOIA problems despite a positive June report on FOIA from the Justice Department. These problems come to light as a legislative effort to reform FOIA has passed both the House and Senate and may soon become law.

Agencies Extend Legal Services Restriction to HIV/AIDS Grants (08/21/2007)
In an apparent attempt to derail a constitutional challenge to a requirement that all grantees in an HIV/AIDS prevention program adopt formal policies against sex trafficking, the United States Agency for International Development (USAID) and the Department of Health and Human Services (HHS) have issued guidelines for grantees that allow affiliations with groups that do not adopt such pledges. The guidelines, issued July 23, are even more restrictive than similar requirements for legal services programs that are also the subject of a constitutional challenge. They require separate "management and governance" and complete physical separation "between an affiliate which expresses views on prostitution and sex-trafficking contrary to the government's message…" and the grantee. Four leaders in the House have written to USAID urging it to adopt the less restrictive standards that allow faith-based organizations to keep religious and government funded activity separate in time and place without the need for a separate affiliate. Although the guidance is already effective, HHS intends to publish the rule for public comment.

Panel Debates Pros and Cons of Allowing Charities to Become Partisan (08/21/2007)
On Aug. 9, the Hudson Institute's Bradley Center for Philanthropy and Civic Renewal hosted a forum titled "Should Nonprofit Organizations Play an Active Role in Election Campaigns?". The debate was inspired by separate opinion pieces in The Chronicle of Philanthropy, one by Robert Egger of the DC Central Kitchen, titled "Charities Must Challenge Politicians," and one by Pablo Eisenberg of Georgetown University, titled "Charities Should Remain Nonpolitical". Egger fiercely defended his argument that charities and religious organizations should be directly involved in partisan politics, while Eisenberg warned that such participation would taint the sector.

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