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"Official Secrets"-Free Intelligence Authorization Act

Last week, Congress passed the Intelligence Authorization Act of 2001 without the "official secrets" (prohibition of unauthorized disclosures of classified information) provision which had prompted the President's veto of the legislation on November 4.

Supporters of the "leaks" provision have promised to bring it back in the 107^th Congress.

Social Justice Movements and the Internet

The Peace Review Journal, an international and multidisciplinary journal of peace, social justice and human rights, is seeking papers for a special issue on social justice movements and the Internet.

This issue aims to examine whether the Internet is really a significant force for progressive political practice and how social justice movements are using the Internet.

More information, including the Peace Review's Writer's Guidelines and suggested topics, is available online. In addition, questions may be addressed by e-mail to Dorothy Kidd or Bernadette Barker-Plummer or by calling 415.422.6680.

James Madison Award Nominations Sought

Freedom of Information Day (FOI Day), Friday, March 16, 2001, celebrates the 250th Anniversary of James Madison's birth. To mark this important day, the Freedom Forum, in conjunction with the American Library Association (ALA), will be granting the 12th annual James Madison Award. This award honors those who have championed, protected, and promoted the public's right to know.

The ALA Washington Office (ALAWON) is currently accepting nominations (until Wednesday, January 10, 2001) for the recipient(s) of the 2001 James Madison Award. Nominations should be mailed to Peter Kaplan at the ALAWON at 1301 Pennsylvania Avenue, NW, Suite 403, Washington, DC, 20004 or faxed to 202.628.8419. More information on the history of the Award and the nominations process is available online.

"Imagine e-Government Awards" Will Honor Innovation in Information Technology

The Council for Excellence in Government and its Intergovernmental Technology Leadership Consortium have announced the creation of the Imagine e-Government Awards, to be presented in the Spring. The awards will recognize one adult and one high school student who suggest the most innovative ways for government to use information technology to serve and connect with the public.

The two winners will be those individuals whose ideas best demonstrate public value, originality and feasibility. On line applications must be submitted and completed by January 15, 2001. Applications can be drafted on line prior to that date, and all applicants will be able to access their applications for editing and augmentation until the submission date. Questions can also be directed to Lucy Bisognano at 202.728.0418

Watch This Space:

As reported here in the Watcher on October 9 and September 11, a set of policy recommendations to help the nonprofit sector is being developed by a group of over 25 nonprofit leaders for the next presidential administration. They will be posted on the OMB Watch website when they are drafted and comments on them from nonprofits will be appreciated.

Call for Papers

The Institute for Women's Policy Research (IWPR) announces its Sixth Women's Policy Research Conference, "The Status of Women: Facing the Facts, Forging the Future," to be held June 8-9. IWPR is currently accepting paper and poster proposals that focus on policies that affect women and their families, and on the intersections between policymaking and research. Proposals are due by December 15, 2000 and applications are available online or by calling IWPR at 202.785.5100.

Call for (More) Papers

The National Science Foundation and the Great Cities Institute, University of Illinois at Chicago, in cooperation with the universities of the Great Cities Universities Consortium, request discussion papers for its "Foundations of Electronic Government in America's Cities: A Multi-Disciplinary Workshop," to be held March 8 and 9, 2001 in Chicago. The focus of this workshop is digital government in urban environments. Papers are due January 5 and further information is available online.

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The 106^th Congress is finally done!

On Friday, December 15, 2000, an Omnibus spending bill incorporating Labor, Health and Human Services and Education; Legislative Branch, and Treasury-Postal (HR 4577) passed the House 292-60 and the Senate by voice vote. (This also cleared the way for the previously passed Commerce-Justice-State appropriations bill to be sent to President Clinton for his signature.) The President is expected to sign both the Omnibus bill and the Commerce bill. His radio address about the budget agreement is now available online, and other documents giving more detail should follow. Points of interest in the legislation include:

• Total discretionary spending for all thirteen appropriations bills for FY 2001 was $634.5 billion. That's $48 billion more than appropriations for FY 2000; $11 billion more than President Clinton's request; and $34 billion more than the congressional budget resolution. Total discretionary spending is almost $93 billion more than the discretionary spending cap required by the 1997 Balanced Budget Act of $542 billion. This situation--that spending would be more than the budget cap--was anticipated long before this point, and the cap had already been raised to $640 billion by a provision of the previously passed Foreign Operations appropriations bill signed by the President on November 6.
• Total Labor-HHS funding is about $108.9 billion. Savings of $1 billion to the costs of the Labor-HHS bill will be achieved by an across-the-board cut which will amount to about 0.2 to 0.25%, of "each department, agency, instrumentality or entity of the Federal Government" funded by the other 12 appropriations bills. The same sort of across-the-board cut was contained in last year's Omnibus appropriations bill.
• Stacked, the bill itself is anywhere from 10 to 15 inches high. Another Continuing Resolution, the 21^st, was also passed on December 15 keeping the government running through December 21 to allow the White House time to sift through the details.
• On the positive side, the extra spending in the Omnibus bill gave big benefits to education and health programs. It includes the "New Markets" tax benefits to revitalize low-income communities. Some spending highlights: Substantial increases for Head Start, school modernization and repair, teacher hiring and training, expanding after-school learning opportunities, Pell Grants, community health centers, the Job Corps, and programs for substance abusers. The bill provides for a $32.5 million increase for Community Technology Centers. But in most of these cases, spending levels are lower than the October budget deal that died. The New Markets initiative was funded at $25.8 billion in tax incentives to help low-income communities, including zero capital gains provisions and a 15% wage credit for forty "renewal communities." The House Appropriations Committee website summarizes the budget agreement and provides a link to a spreadsheet.
• On the negative side, as with all Omnibus bills, a number of earmarked projects were quickly added just to get the bill passed. There were only modest immigration changes and the broad changes in immigration policies, including amnesty for immigrants in the country since 1986, and giving long-term refugees from Central America and Haiti the same rights as refugees from Nicaragua and Cuba, were not included. The bill also includes almost $35 billion in additional Medicare payments to health care providers.

So, it looks like the budget process for FY 2001 is finally almost done, only two and a half months behind schedule. The 107^th Congress will begin on January 3, with a 50/50 split in the Senate and a very narrowly GOP-controlled House; let's hope the FY 2002 budget process, beginning with the President's budget in February 2001, is a smoother and more timely ride.

GAO Denied Funding for New Regulatory Office

Several months ago, President Clinton signed legislation that establishes an office within the Government Accounting Office (GAO) to evaluate agency rulemakings at the request of Congress. However, funding for this office was not provided as part of the Omnibus appropriations bill just agreed to by Congress and the president.

This means the office is now on hold -- the legislation creating the GAO office says that work should begin only if it is granted "a specific annual appropriation not less than $5,200,000." Congress could approve a supplemental appropriations bill toward the beginning of the next administration to put the office into effect. But the chances of that are not known. And the chances of this happening may be diminished with both Congress and the executive branch controlled by Republicans. Oversight of the regulatory agencies is not likely to be a priority for the next Congress in the way it has been under President Clinton.

Moving from Digital Divide to Digital Opportunity: Clinton Wins Funding Increases

In his FY 2001 budget request, President Clinton proposed a seven part initiative to move "from digital divide to digital opportunity." The objective was not only to accelerate access to computer technology, but also to "promote content and applications of technology that will help empower underserved communities."

The President won most of this agenda, particularly with regard to Community Technology Centers, increasing grant opportunities under the Technology Opportunities Program, and teacher training. However, when compared with the budget agreement reached in October that ultimately collapsed, the President lost ground. For example, the October budget deal had $80 million for Community Technology Centers, but the final deal worked out on Friday had only $65 million.

Here is how the President did on the FY 2001 budget deal struck on Friday:

• Community Technology Centers -- Proposed $100 million to create 1,000 centers in low-income urban and rural neighborhoods under the Department of Education's CTC program. Got $65 million to create 650 centers, which doubles the $32.5 million spent in FY 2000. FY 1999 was the first year of this program during which $10 million was appropriated.
• Preparing Tomorrow's Teachers to Use Technology -- Proposed $150 million to help train new teachers to use technology effectively in the classroom. Got $125 million, which increases the $75 million spent in FY 2000. The focus of this program is to help teachers become comfortable with use of computers and other technologies in teaching.
• Supporting Innovative Applications of Technology -- Proposed $45.5 million for the Department of Commerce's Technology Opportunities Program (TOP), formerly the Telecommunications and Information Infrastructure Assistance Program (TIIAP), to apply innovative technology approaches to deliver health care and public health services; help public safety officials; increase low-income families' access to computers and the Internet; support lifelong learning; and strengthen local communities by fostering communication and collaboration through electronic networks. Got $45.5 million, which triples the $15 million spent in FY 2000.
• Creating Digital Opportunity -- Proposed $10 million to prepare Native Americans for careers in information technology and other technical fields. Also proposed a number of efforts to help those with disabilities. Didn't get the Native American funds, but did get $142 million for R&D towards, and support for, programs to make information, communications, and assistive technologies more accessible and affordable for people with disabilities.
• Skill Development Grants -- Proposed $50 million for a new grant program, under the Department of Commerce, to expand low-income families' access to computers and the Internet, and opportunities for skills development, through local public-private partnerships. Didn't get this, but received $872 million for educational technology programs, including $450 million for the Technology Literacy Challenge Fund, which is $25 million above FY 2000. These programs help local communities meet the "four pillars" of the President's Educational Technology Initiative: Internet access, modem computers, educational content, and teacher training.
• Deployment of Broadband -- Proposed $25 million for a new program to accelerate private sector deployment of broadband networks in underserved urban and rural communities through grants and loan guarantees. Didn't get this.
• Tax Incentives -- Proposed $2 billion over 10 years in tax incentives to encourage private sector donation of computers, sponsorship of CTCs, and technology training for workers. Didn't get this.

The budget deal added two provisions that create the potential for limiting information accessible to young people through Internet services in schools and libraries. The Children's Internet Protection Act requires schools and libraries to implement filtering technology for computers with Internet access as a condition of receiving education technology funds, library services funds, or universal service discounts. The Neighborhood Children's Internet Protection Act requires schools or libraries with Internet access to hold public hearings and adopt Internet use policies for material inappropriate for minors.

New Guidelines To Be Created for Information Dissemination

Congress has directed the incoming Bush Administration to set guidelines on the quality, objectivity, utility and integrity of information disseminated by federal agencies. It is unclear, however, whether being objective means putting out factually accurate information, developing reasonable conclusions based on an examination of evidence, (about workplace hazards, for example) or whether "objective" means not crossing powerful interests.

The requirement was included as part of the final budget agreement (H.R. 4577) agreed to over the weekend. The provision requires the Office of Management and Budget (OMB) to set guidelines that could filter information disseminated by agencies. This deal follows through on another deal agreed to back in July 1999.

Repeal of Estate Tax to Move Quickly?

President-elect George W. Bush has not backed off his campaign pledge for a large scale tax reduction that would largely benefit the wealthy. A Citizen's for Tax Justice analysis found that three-fifths of the tax cuts from Bush's plan would go to the best-off 10 percent of taxpayers, and that 43 percent of the benefits would go to the top one percent. Over ten years, the Bush plan would gobble up most of the federal budget surplus.

There are rumors floating that the first tax item in the Bush agenda will be repeal of the estate tax. Some key House staffers are talking about an early tax bill that links the estate tax repeal with allowing taxpayers who do not itemize on their taxes the option of deducting charitable contributions. The aim would be to freeze the charitable community which has strongly supported the non-itemizer deduction, but has mostly opposed repeal of the estate tax. The expectation is that the non-itemizer deduction will keep charities quiet while the estate tax is killed.

It is unclear whether the House staffers are simply raising a flag to see which way the wind is blowing. But OMB Watch would strongly oppose such a bill and would encourage other charities to do the same. The repeal of the estate tax would have a massive impact on revenue to the federal government –- thereby affecting human needs programs –- and to charities. It would create new concentrations of power and wealth in this country, which is precisely why the estate tax was created in 1916. Repeal of the estate tax would have huge and profound impacts in our society, whereas the non-itemizer deduction, though positive and important, cannot really be compared.

Some organizations, such as Independent Sector, have not taken a position on repeal of the estate tax, but do support the non-itemizer deduction. Such organizations will need to take a stand and balance the legislative options for the good of the sector.

Pushing the repeal of the estate tax right away in the new Congress may be a bit premature since the Bush administration has not had a chance to get organized. "The Wall Street Journal" reported on December 14 that "Bush has said he favors complete estate-tax repeal, but not right away." (Emphasis added) This may have an influence on the type of legislation that is proposed.

Moreover, members of Congress will need to be educated about the estate tax. In August, President Clinton vetoed a bill that would have repealed the estate tax, noting that repeal could cost charities $5-6 billion a year. Compromise legislation had been discussed at that time and rejected. For example, there was discussion of raising the threshold of money that would be exempt from the gift and estate tax. Currently, the first $675,000 that is given away before (i.e., the gift tax) or after death (i.e., the estate tax) is exempt from the tax (e.g., a family member can inherit that amount without facing estate taxes). That amount is scheduled to increase to $1 million by 2006. The compromises that were discussed would accelerate the schedule and increase the amount to $2.5 million or $5 million to reflect the growing wealth created by dot.coms.

The rejection of such compromises makes it abundantly clear that repeal of the estate tax is simply for the super rich. Right now, only the wealthiest 1.4% of Americans face the estate tax – and two thirds of the tax comes from the top 0.2%. In FY 2001, the federal estate tax is expected to raise over $30 billion of federal revenue. If it were repealed, who would make up the difference?

Pursuing a compromise would make clear that the tax should be on the very, very rich, and would not have a significant impact on the amount of revenue received by the government.

More information on the estate tax is available on our Resource Page.

Bush Likely to Exacerbate Deficiencies in Regulation

The nearly equal split between Republicans and Democrats in Congress will likely lead President-elect George W. Bush to use executive powers to achieve his ideological objectives. One key focus will likely be the regulatory machinery of government, including the process for developing and enforcing public protections, as well as the collection of information from regulated entities.

The President has an enormous array of powers at his disposal. He can change the analytical requirements for rulemakings to make it extremely difficult for agencies to meet the standards for publishing rules. He can invoke past practices of the Reagan-Bush era when the Office of Management and Budget (OMB), which reviews and must approve all major rules, became a black hole for agency regulatory proposals. He can reconstitute a form of the Quayle Council on Competitiveness, a White House operation that allowed campaign contributors special access to alter government regulations to suit their interests. Or he can simply de-emphasize or ignore enforcement of the rules.

OMB Watch has speculated on what might occur under the Bush Administration in a new report. Given that most new administrations put regulations that are in the process of being published on hold until they can review them, we would assume that President-elect Bush will announce a regulatory moratorium. How long this moratorium will last is unknown. What is certain, though, is that this will make an already too long regulatory process even longer. A moratorium will only affect regulations that have not been published before January 20, 2001.

Besides a regulatory moratorium, the OMB Watch report highlights a number of other consequences likely under a Bush presidency. Specifically:

• Protections for health, safety, and the environment will be rolled back. A number of regulations that the Clinton Administration published, including those strongly opposed by business –- such as one on ergonomics and a forthcoming one requiring federal contractors to abide by laws and regulations –- will likely be abandoned and revoked.
• OMB will take a more aggressive role in rejecting agency rules. During the Clinton Administration only major rules were sent to OMB for review – a change from the Reagan and Bush period when all agency rules went to OMB. During the earlier two administrations, OMB would hold smaller rules hostage in order to force agencies to conform with OMB's view on larger rules. OMB was able to impose the president's ideological agenda by forcing agencies to rework rules or by disapproving paperwork to implement the rules. It is likely that once again all rules will go to OMB where there is less accountability and sunshine. Most likely this will be done by revoking the regulatory review executive order (E.O. 12866) and imposing something more like the Reagan order (E.O. 12291).
• Costs will be elevated in the rulemaking process. Not only will there be greater emphasis on monetizing the value of a human life, and other health benefits of regulation, but the method for doing so will likely lower the dollar value attached to human life. As a result, it will be increasingly difficult to demonstrate that benefits outweigh the costs. Add in the fact that cost-benefit analysis will likely become more determinative in whether an agency may proceed with a regulatory plan and this will be a prescription for disaster.
• Court appointments will bolster a radical, ongoing judicial attack on the federal government's ability to protect health, safety, and the environment. This is true at all levels of the judicial system, but most notably at the Supreme Court.

Two things to keep in mind. During the earlier Reagan and Bush administrations there was at least one house of Congress that used its oversight powers to hold OMB and the administration accountable. That will not exist now since both houses of Congress are Republican controlled.

Second, it was the business community that helped get Bush elected. They will want payback and that is usually in the form of regulatory roll backs. So watch out!

White House Task Force On Nonprofits and Government Releases Recommendations

The Interagency Task Force on Nonprofits and Government released a report December 5 detailing best practices between federal agencies and the nonprofit sector and recommending further action the federal government can take to strengthen its partnerships with nonprofits. The task force was created by President Clinton on October 22, 1999. As a result of the order, the Council of Economic Advisors (CEA) has issued a separate report on trends in philanthropy.

The Interagency Task Force surveyed federal agencies earlier this year, asking each one to submit four examples of productive relationships with nonprofits or new approaches to working with them. They also met with nonprofits, including OMB Watch, to get input on the direction of their work.

The report provides many examples of successful collaborations, emphasizing shared goals between government and nonprofits, noting "By developing mutually beneficial relationships with nonprofit groups, including shared decision making and goals, a federal agency can reach larger numbers of constituents and improve the quality of services offered." The report goes on to recommend that communication with nonprofits be built into the ongoing work of agencies through creation of mechanisms for "early, frequent and meaningful interaction" rather than being treated as an add-on or afterthought.

The discussion and recommendations cover the need for federal agencies to reach out to a broad spectrum of nonprofits, leverage resources, share information, provide technical assistance, streamline grant procedures and expand nonprofit liaisons within agencies. The report notes that there is limited opportunity for nonprofits and federal agencies to discuss policy, and encourages roundtables and other forums to allow for sharing of ideas and feedback.

The report recommends continuation of the Interagency Task Force and opportunities for inter-agency exchange of ideas.

White House Philanthropy Conference –- Round 2

While most White House staff are packing boxes and preparing to move out of their offices, First Lady Hillary Clinton has called for a second White House Conference on Philanthropy to occur before January 20 when George W. Bush takes the oath of office. The Millennium Council, a White House office, which helped organized the first White House Conference, is talking about January 11, 2000, for the event. It will likely focus on the reports resulting from the first conference.

The first conference was held on October 22, 1999, in cooperation with the National Endowment for the Humanities. The conference focused on the American tradition of giving, discussed the diverse and changing face of philanthropy and explored how we as a nation can sustain and expand this tradition for future generations. It generated several activities that may be covered during this second conference:

• The President created a Task Force on Nonprofits and Government which issued its report on December 5, 2000. That report has a number of recommendations, as discussed above;
• The Department of Treasury and the IRS undertook several steps to improve the relationship with nonprofits, including creation of an IRS Advisory Committee to obtain input on tax policies affecting nonprofits;
• The Council of Economic Advisors (CEA) published a report on November 25, 2000, that provides an economic analysis of philanthropic behavior in the U.S., future directions for philanthropy and how greater giving can be encouraged;
• Independent Sector convened a conference in California on online giving; and
• An increased emphasis on giving youth a chance to learn about philanthropic values and volunteering.

Given that it took more than 8 months to publish the report to the first conference and given the Clinton Administration will be gone within 10 days of this second conference, it is unclear who will publish the report from the conference –- or if there will even be a final report.

Also unclear is the agenda. Probably the most significant immediate issue facing the incoming Bush Administration with regard to philanthropy will be the issue of repeal of the estate tax. For more information on the estate tax, see the article above and OMB Watch's Estate Tax Resource Page.

Moynihan and Wyden Release on Government Secrecy

Earlier this Fall, Senators Daniel Patrick Moynihan (D-NY) and Ron Wyden (D-OR) released a joint report on government secrecy. The report, entitled "Secrecy in International and Domestic Policy Making: The Case for More Sunshine," analyzes the effect government secrecy has on a variety of issues important to the public.

According to Moynihan, the Clinton Administration's proposal to the World Trade Organization's (WTO) General Council, to make meetings and dispute settlement proceedings open and to "derestrict" many documents, "set the right course." But more must still be done.

On the domestic front, more than 10 percent of the 1,524 closed meetings mentioned in the "Federal Register" were closed without any specific statutory authority, according to the Congressional Research Service's investigation for the Moynihan-Wyden report.

In response to such findings, the Senators made a number of policy recommendations including:

• Congress should review the 28-year-old Sunshine in Government Act, which currently includes 10 exemptions allowing government officials to meet behind closed doors
• At the upcoming WTO Ministerial Conference, International Monetary Fund and World Bank Board of Governors meetings, U.S. representatives should propose changes in the rules of procedure to require significant, affirmative votes to close meetings
• The public should be given timely access to actual transcripts -- not summaries -- of the Federal Reserve's Open Market Committee (FOMC) meetings

To obtain copy of the Moynihan-Wyden report, contact Lisa Finkel at Senator Wyden's office at 202.224.5244.

Providing Permanent Access to E-Government Information

According to a December 8 press release, the Government Printing Office (GPO) has been convening meetings to develop long-term strategies for providing "permanent public access" to the Federal Government's electronically-published information -- ensuring that it remains accessible to the public over time.

The goals of the Permanent Public Access (PPA) Working Group include: developing and publicizing digital archiving "best practices" that will facilitate cooperation across agency and organizational boundaries; identifying electronic information "at risk" of being lost; and developing collaborative solutions or partnerships to ensure permanent public accessibility.

The PPA Working Group has met 5 times to date. Additional meetings are scheduled for 2001. For further information on this GPO initiative, e-mail Sandy Morton-Schwalb or call 202-512-1114.

Free-To-Be-ISP

There's a sector that we see where the ISPs are free
And we say it's not that far to that place
where there are no fees
Take our word, come with us, where the ISPs are free
Come with us, take our word, and we'll show
ISPs where the fees are hidden well
ISPs where the connections don't gel
ISP quality of varying degress
And you and we will vet "free" ISPs

(A full apology and further explanation of free ISPs are available.)

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