Second Round of Recovery Act Recipient Reports Released Saturday

 

As a reminder, tomorrow the Recovery Board will release the next batch of recipient reports on Recovery.gov. The new reports will be released along with a limited overhaul of the site, which will feature a new search option, a "diversity map," and a job search function. We'll be reviewing these new features, and the new reports, on Monday.

Also, this release will be the first under the new job counting rules, which eliminate the awkward "created or saved" dichotomy from last cycle.

And, as always, remember that over two-thirds of Recovery Act spending will not be included in this release, a point helpfully highlighted by a recent Center on Budget and Policy Priorities report. So while it's great that we're getting another batch of recipient reports, we still don't have comparable transparency for a vast majority of the Act's funding.

For more Recovery Act info, check out our past coverage here.

(Sam Rosen-Amy 01/29/10; 0 comments)

SpeechNow.org Seeks Unlimited Individual Contributions for 527 Groups

 

Almost two years ago, a 527 organization called SpeechNow.org, asked for a court ruling that would have blocked the Federal Election Commission (FEC) from enforcing limits on contributions to the group. On Jan. 27, the Court of Appeals for the D.C. Circuit heard oral arguments in the case. The court must consider whether the group should be subject to an annual limit on donations from individuals and comply with disclosure requirements.

SpeechNow.org wants to collect unlimited contributions to help elect candidates who support free political speech. They argue that prohibiting contributions of more than $5,000 per year is an unconstitutional violation of free speech and association rights. After the group was initially formed in 2007, the FEC said it would have to register as a political committee, which requires contribution limits and prohibits corporate contributions.

News reports indicate that FEC attorney David Kolker faced skeptical questioning from appeals court judges as he sought to defend the contribution limits. The judges supposedly seemed sympathetic to SpeechNow.org's argument. The Associated Press reports that one of the judges told the lawyer representing the FEC; "You don't seem to value the First Amendment very highly."

According to BNA Money and Politics ($$), Kolker noted that the Citizens United ruling does not change limits on contributions to political parties. "Similar restrictions on non-party groups also should remain, the FEC lawyer said, because such groups can act as 'shadow parties' and be used to circumvent limits on contributions to candidates."

The judges suggested that since, "the Citizens United case established that independent expenditures do not corrupt candidates and thus cannot be limited under the First Amendment. It is not a long leap, the judges suggested, to assume that groups making only independent expenditures, like SpeechNow.org, cannot have their funding sources limited."

However, as the Supreme Court upheld disclosure requirements, judges in this case also seemed doubtful of SpeechNow.org's disclosure arguments. They are challenging the requirement that they would have to disclose as if the were a political action committee.

SpeechNow.org highlighted the recent EMILY’s List decision, which struck down regulations limiting donations to nonprofit political action committees that are used for campaign activity. The case also questioned the constitutionality of limits on contributions to independent political committees even though they were not challenged in the lawsuit.

(Amanda Adams 01/29/10; 0 comments)

CBO Recovery Act Cost Estimate Rises to $862 Billion

 

I'm sure you all already read all of the Congressional Budget Office's 2010 Budget Outlook since I blogged about it the other day, but in case you missed it, the outlook also included a special section on the Recovery Act. The main take away from this section is that the CBO predicts that the overall cost of the Act will be higher than initially estimated, thanks to a couple of factors.

The first factor is higher unemployment. When the CBO initially estimated the Recovery Act's cost, it predicted an 8% unemployment rate, not today's 10% rate. This higher rate means that the unemployment insurance provision of the Act will cost more as more people qualify for unemployment; $21 billion more in fact, over the life of the Act.

The second factor is the food stamp program. There's a very complex reason why the program's cost is increasing, involving inflation and baskets, but explaining it would take up a couple pages, so just take CBO's word that it's going to cost an extra $34 billion.

Finally, another $26 billion in additional spending comes from the Build America Bond program which, according to the CBO, "pays state and local governments for 35 percent of their interest costs on taxable government bonds issued in 2009 and 2010 to finance capital spending." The program is more popular than the CBO initially estimated, generating more costs over the next ten years.

All told, the CBO is estimating that the Recovery Act will cost $862 billion over the Act's lifetime, up from $787 billion. The CBO helpfully provides the below chart to show how these costs are broken down over time by program.

Note that this year, FY 2010, will be by far the most expensive year of the Act. Although that shouldn't be too surprising since it's the first full year since Congress passed it.

Surprisingly, the news of a higher Recovery Act price tag has not created much of a stir. Earlier today (a full three days after this report came out!) I got a press release talking about Obama's "$787 billion American Recovery and Reinvestment Act." These things take time, I guess.

(Sam Rosen-Amy 01/29/10; 0 comments)

Iraq and Afghanistan Get an Extra Dose of Oversight

  An Army of One

The folks over at Government Executive.com have the scoop on the Commission on Wartime Contracting's (CWC) recent move to open two field offices in Southwest Asia. The Iraq office, which is currently staffed by one expert and awaiting a second, is located in central Baghdad. Two experts staff the Afghanistan office, located at Bagram Air Field, which is roughly 25 miles outside the capital of Kabul.

The article quotes Robert Dickson, the commission's executive director, as stating that the staffers hired for these overseas posts "have decades of experience in construction management, military contracting, development projects, policy analysis, program management, and other work that ties directly to our research areas."

The piece also quotes Dickson as saying that these new offices will allow the commission to "maintain liaison with agencies and commands in theater, fill data requests from stateside staff, directly observe events on the ground, and assist with commissioners' research visits to the region."

It's hard to say to what degree these offices will affect the commission's future work, but my hope is that it will allow the CWC to dig a little deeper into the messes that are our contingency contracting environments in the two theaters of war.

Image by Flickr user The U.S. Army used under a Creative Commons license.

(Gary Therkildsen 01/29/10; 0 comments)

Of Campaign Promises and No-Bid Contracts

  Everyone chill out, I got this

With the recent passage of President Obama's first anniversary in office, journalists, bloggers, and commentators have been sizing up the administration's accomplishments and failures thus far. In that spirit, Fox News, in an article examining a contract recently awarded under the Obama administration, concluded that the president has failed to keep his campaign promise of ending no-bid "sweetheart deals" in government contracting. To say that this verdict – which manipulated data from OMB Watch – is misleading and a bit premature is an understatement.

The contract in question is a $24 million award for "rule of law stabilization services" in Afghanistan. Fox News tells us that this contract warrants scrutiny because the recipient company is "owned by a Democratic campaign contributor," and the contracting agency, the United States Agency for International Development (USAID), awarded it without competition, which, according to Fox, proves that the president broke his campaign promise.

To start, let's separate the two issues that Fox News has conveniently tangled together here. The first issue is the "controversial" nature of the contract; that it is somehow a "sweetheart deal." Unless I missed something in the article, Fox has zero evidence that USAID awarded the contract based on the party affiliation or campaign contribution history of the top executive of the winning company. Indeed, a quick check of USASpending.gov reveals that the government has been contracting with the company for millions of dollars each year since 2002, not exactly a period of Democratic dominion in the executive branch.

Add to all this the fact that USAID made the award without competition because it was renewing a previous contract that the company had with the agency – a completely legitimate reason – and the controversy quickly falls away.

The second issue, which parts of the blogosphere have begun to regurgitate, is the president's campaign promise. President Obama never promised to end the use of no-bid contracts, he promised to end the abuse of them. Cynics might dismiss this distinction, but it's an important one that Fox News glosses over. No contracting analyst would honestly argue that the government could get rid of no-bid contracts; they perform an essential role in the government's repertoire of contracting vehicles. The president even said as much last March when he laid out his proposal to reform government contracting.

While I applaud Fox News for attempting to hold President Obama accountable and appreciate their use of the information we provide the public, they may want to do a little more research next time and make a better effort at getting their facts straight. And as far as campaign promises go, I would caution against concluding that the president has failed to end the abuse of no-bid contracts based on the non-competed renewal of a $24 million USAID award one year into his presidency.

Image by Flickr user Barack Obama used under a Creative Commons license.

(Gary Therkildsen 01/28/10; 1 comment)

Obama Seeks More Lobbyist Disclosure

 

During President Barack Obama's State of the Union address, he said he came to Washington "to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve. [. . .] That's why we've excluded lobbyists from policymaking jobs, or seats on federal boards and commissions." However, as a group of nonprofits have recently noted, in the process of attempting to limit the influence of special interests, the administration has successfully "[excluded] the voices of citizen- and community-based organizations."

A coalition of thirteen nonprofit organizations, including OMB Watch, sent President Obama a letter requesting changes in the executive order issued last year restricting lobbyists from jobs in the administration. The letter details the current ban as well-intended, but imperfect. While the order excludes registered lobbyists that work for nonprofits for example, "the vast majority of 'special interest' insiders like corporate executives and their public relations and legal advisors" continue to exercise the same influence as before.

The Washington Post highlights an example; "Caroline Smith Dewaal, the director of food safety at Center for Science in the Public Interest, a lawyer and nationally known food safety expert who has spent 20 years working on policy and trade issues. But Dewaal's nomination came to a halt in August because she was a registered lobbyist, which violated the administration's policy against hiring lobbyists."

The letter stated, "Using it [the Lobbying Disclosure Act] to restrict public service has the perverse result of decreasing transparency and driving real influence peddlers into the shadows and out of the sunlight. By using the LDA, the Ethics Order is broadly under-inclusive for its purposes." Further, the Citizens United v. FEC decision, "has increased the urgency of such actions."

"The solution should focus on issues like campaign finance reform and the disproportionate influence that large financial interests have over our nation's politics and public policies."

Despite, the unintended consequences of the policies instituted last year, Obama should be applauded for discussing during the State of the Union his plan to expand lobbyist transparency. Yet, the focus should not remain solely on federally registered lobbyists.

Obama announced, "It's time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with Congress." He also put forth a proposal to limit how much lobbyists can contribute to candidates for federal office. "It's time to put strict limits on the contributions that lobbyists give to candidates for federal office." Such changes must be crafted so that many can not simply steer clear of federal disclosure requirements.

(Amanda Adams 01/28/10; 0 comments)

Open Government Webcast This Afternoon

 

Tune in at 3 pm today for OMB Watch's webcast discussion, "Policymaking for Open Government: An Assessment of the Obama Administration's First-Year Progress."  The discussion will feature Norm Eisen, Special Counsel to the President for Ethics and Government Reform, describing the administration's efforts on government transparency.

A panel of public access experts will explore issues related to President Obama's pledge to lead the most transparent presidential administration in American history.  Panelists include Sarah Cohen (Duke University), Ellen Miller (Sunlight Foundation), Mark Tapscott (Washington Examiner), and Meredith Fuchs (National Security Archive).  They will analyze the progress made thus far, and examine several policies that are considered most exciting or disappointing by those in the open government community.  Panelists will also tackle likely issues going forward and the work still needed from the Obama administration to bring the promise of a more open and accountable government to fruition.

The webcast will run for 90 minutes, including the panel discussion and time for questions from the in-person and online audience.  Tune in on our website.

Future webcasts will be held in the coming weeks: "The Obama Administration and Public Protections: A First-Year Regulatory Assessment" (Thursday, Feb. 4), "Recovery Act Transparency - Implementation and Effectiveness" (Wednesday, Feb. 10), and "The Obama Administration's Approach to Lobbyists - A One-Year Review" (Thursday, Feb. 18).  Please RSVP to join us for these discussions at ombwatch.org.

(Chris George 01/28/10; 0 comments)

White House Meddling in EPA Rule on Air Pollution Monitors

 

Update (02/17/10): "Last-Minute Changes Will Improve Air Pollution Monitoring, EPA Says."

It’s looking more and more like the White House Office of Information and Regulatory Affairs (OIRA) overruled the EPA in a decision to place more air pollution monitors near major roadways.

On Monday, EPA finalized a rule which limits nitrogen dioxide exposure and sets up a monitoring network along heavily-polluted roads. The trigger for placement of a monitor is the population of a metro area. If the area has a population of 500,000 or more, it gets a monitor.

But originally, EPA indicated the threshold would be a population of 350,000. The change means 41 fewer monitors will be placed around the country. [I was wrong, see the update above.]

Based on documents in EPA’s rulemaking docket, we know that the change was made during the OIRA review of the draft of the NO2 final rule. We also know that at least one high-level EPA official was pushing for the lower threshold.

In an email dated Jan. 19, an EPA employee wrote, “We are willing to put forward an alternative threshold for the first tier of the near-road monitoring network for you to discuss with your management at your 2:30 meeting,” and then suggested the 500,000 population threshold.

What prompted this 11th hour policy change? Who knows. Semantically, “we are willing” suggests a certain level of coercion, but that’s mere speculation on my part.

The more interesting exchange came the next day when Lisa Heinzerling, EPA’s Associate Administrator for policy and an adviser to EPA Administrator Lisa Jackson, sent a follow-up email to OMB. It simply stated, in its entirety, “EPA does not support the alternative threshold described in the email below.” The email was in direct response to the EPA's employee's proposal, though the email itself was addressed to OIRA.

Despite Heinzerling’s clear protest, the threshold was raised. Sometime between Jan. 20 and Jan. 22, the day OIRA concluded its review of the NO2 rule, somebody changed his or her mind, or somebody was overruled.

We’re still investigating this, but if EPA was indeed overruled, it would be a clear-cut instance of political interference in an inherently scientific decision. Regulators need reliable data to enforce EPA’s new NO2 standard which, for the first time, targets short-term exposure to the pollutant. NO2 begins to wreak its havoc even in short bursts, causing respiratory illnesses “particularly in at-risk populations such as children, the elderly, and asthmatics,” EPA says. EPA describes the urban and near-roadway environments that will be closely monitored as “high-risk.” Given that information, EPA needs to go about its business monitoring pollution and rigorously enforcing the new standard. Instead, because of possible White House interference, the agency will have to operate with one hand tied behind its back.

(Matthew Madia 01/28/10; 2 comments)

CBO: 2010 Deficit to Fall to $1.35 Trillion

 

In case you missed it, the Congressional Budget Office (CBO) just released its 2010 Budget Outlook, its yearly look at the health of the federal budget. CBO's director, Doug Elmendorf, provides the basics of the report:

CBO projects, that if current laws and policies remained unchanged, the federal budget would show a deficit of $1.35 trillion for fiscal year 2010. At 9.2 percent of gross domestic product (GDP), that deficit would be slightly smaller than the shortfall of 9.9 percent of GDP ($1.4 trillion) posted in 2009.

While there are some no-brainers in the outlook (who knew deficits were caused by spending outstripping revenues?), the report does helpfully identify the many causes of the current deficit: Bush's tax cuts, the two wars, and the Great Recession. And while the deficit is falling for the next few years, which is generally a good thing, the outlook warns that deficits will still average about $600 billion a year for the next ten years.

In other fun developments, this year the CBO added a quite useful chart to its outlook webpage. The chart, which is pictured below, shows the deficit over the next ten years. While it's good to have a visual representation of how the deficit is getting better over the next few years (up in this graph is good), what's really useful is that it lets users see how various policies would affect the deficit. Wonder how reducing US troops in Iraq and Afghanistan would change the deficit? (If so, see the chart below; the bottom line is the baseline, top line is with only 30,000 troops in the two countries) How about extending the Bush tax cuts? Freezing all discretionary spending? This graph will show users just how far into the red select proposals will push us.

For more on the outlook, check out tomorrow's (Thursday's) Senate Budget Committee hearing, featuring testimony by Elmendorf. The Committee's chairman, Sen. Kent Conrad, just saw his deficit commission die on the Senate floor, so expect a lot of questions from the Senator on ways to reduce the deficit.

(Sam Rosen-Amy 01/27/10; 0 comments)

EPA Seeking Citizen Watchdogs

 

The Environmental Protection Agency (EPA) has established a new telephone hotline for citizens to report suspicious or unusual activities involving natural gas drilling. The "Eyes on Drilling Tipline" allows anyone to report activities such as dumping and other "illegal or suspicious hauling and/or disposal activities." Vigilant citizens can call the new toll-free number, 1-877-919-4EPA, or email eyesondrilling@epa.gov.

The EPA encourages citizens to send photos and video of the activities if they have them. So if you or someone you know lives near a gas drilling operation – get your cameras, video recorders, and pen and paper and help the government keep tabs on this egregiously poorly regulated industry.

According to the press release announcing the new tipline, EPA is concerned about the huge expansion of natural gas drilling operations in recent years, and especially drilling in the Marcellus Shale, a huge geologic formation underneath several northeast states, including New York, Pennsylvania, and Ohio. Technical developments in a procedure known as hydraulic fracturing have made these previously inaccessible gas deposits economical to extract in recent years. EPA warns, "Chemicals used in the process are often stored on-site. Spills can occur when utilizing these chemicals or when transporting or storing wastewater, which can result in the contamination of surface water or ground water, which is used for many purposes including drinking water.

The agency is right to be concerned about natural gas drilling, as this factsheet from the watchdog group Oil & Gas Accountability Project makes clear.

Drilling operations pose a threat to environmental and public health in numerous ways. In addition to the threat of spills mentioned by EPA, emissions from toxic waste and burning colossal amounts of diesel fuel pollute the air, drinking water could be threatened by underground leaks of methane and toxic chemicals, and other possible harms.

A loophole in the 2005 Energy Policy Act (known as the Halliburton loophole) reduced EPA's already limited authority to regulate the natural gas drilling industry, and the agency has been able to eke out only a tiny amount of oversight. A bill now creeping through Congress would close the Halliburton loophole and force drillers to disclose to the public what toxic chemicals they are using and threatening water supplies with.

The EPA "wants to get a better understanding of what people are experiencing and observing as a result of these drilling activities. The information collected may also be useful in investigating industry practices."
 

(Brian Turnbaugh 01/27/10; 0 comments)