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Publications :  The Watcher :  OMB Watcher Vol. 3: 2002 :  February 19, 2002 Vol. 3 No. 4 : 

Acrobat PDF Version

In This Issue

Federal Budget
Tax Cuts vs. Everything Else
The Game of Ping-Pong, or "The Economic Stimulus Package Debate"
Estate Tax Repeal Sense of Senate Amendment Tacked onto Farm Bill
The Bush Budget and Budget Process

Information & Access
Right-to-Know Update

Nonprofit Issues
House Passes Shays-Meehan Bill 240-189
Civil Rights Group Sets Long Term Campaign Finance Reform Goals
FEC To Hold Public Hearing on Proposed Internet Rules
Faith-Based Compromise Reached
Proposed Non-Itemizer Deduction Raises Concerns
Legal Services Restrictions Under Review, Lawsuit Filed
Community Technology Programs Cut Back in FY 2003 Budget

Regulatory Matters
Graham Rejects Tire Safety Standard


House Passes Shays-Meehan Bill 240-189 (02/19/2002)
A substitute bill sponsored by Reps. Chris Shays (R-CT) and Marty Meehan (D-MA) passed the House of Representatives at 2:40 a.m. on February 14 by a vote of 240-189. 198 Democrats and 41 Republicans voted for the bill.

Civil Rights Group Sets Long Term Campaign Finance Reform Goals (02/19/2002)

The California-based Greenlining Institute released recommendations for campaign finance reform from a civil rights perspective on February 12, the day the House of Representatives started debating the issue.



FEC To Hold Public Hearing on Proposed Internet Rules (02/19/2002)
The Federal Election Commission (FEC) has scheduled a public hearing on its proposed rules on three Internet-related political activities.

Faith-Based Compromise Reached (02/19/2002)

After months of wrangling between the House, Senate and White House, a compromise on the Administration's Faith-Based Initiative has been reached. The CARE act of 2002 (S. 1924) was introduced on February 8, and contains several major provisions.



Proposed Non-Itemizer Deduction Raises Concerns (02/19/2002)
Instead of questioning the wisdom of the tax cut enacted last summer or proposing to delay its implementation until support for key domestic investments is provided -- which is what should be done -- we now have to weigh an acknowledged valuable tax break, the non-itemizer deduction, against vitally needed federal programs.

Legal Services Restrictions Under Review, Lawsuit Filed (02/19/2002)
An internal Legal Services Corporation (LSC) review of restrictions on legal aid programs has recommended no change in restrictions prohibiting LSC grantees from using LSC or other funds for class action litigation, legislative advocacy and community education.

Community Technology Programs Cut Back in FY 2003 Budget (02/19/2002)
The proposal calls for eliminating two successful community technology programs -- one at the Department of Commerce, the other at the Department of Education -- and increasing a HUD program that allows funds to be used for community technology programs but does not require it.

Tax Cuts vs. Everything Else (02/19/2002)
We can either choose to pay now, or we will have to pay later -- preventing social ills is much cheaper in the long run. From a purely economic standpoint, many economists agree that a return to deficits is not a problem -- running a surplus would actually be more of problem -- and that this economic climate prescribes more government spending, not less.

The Game of Ping-Pong, or "The Economic Stimulus Package Debate" (02/19/2002)
Less than two weeks ago, many observers -- including OMB Watch -- were predicting that an end, at least for the foreseeable future, had come for the debate on an economic stimulus package.

Estate Tax Repeal Sense of Senate Amendment Tacked onto Farm Bill (02/19/2002)


Estate Tax Repeal's Impact on States

A recent report from the New Jersey Policy Perspective (NJPP) illustrates the havoc the 2001 tax cut's repeal of the estate tax is wreaking on the already strained New Jersey budget. The report offers a state-level solution to the problem created by the federal estate tax repeal process, which actually ends the states' ability to "pickup" a portion of the federal tax for themselves earlier than the federal government's estate tax ends. The NJPP website also provides links to the 3 newspapers that have thus far endorsed its proposal, as well as an op-ed piece that ran in the New York Times New Jersey edition.

An update on the efforts of Sen. Jon Kyl (R-AZ) to repeal the estate tax.

The Bush Budget and Budget Process
President Bush's budget proposes a number of budget process changes that he believes will allow budgeting to be accomplished in a more fiscally responsible manner.

Graham Rejects Tire Safety Standard

Using his review authority as administrator of the Office of Management and Budget's (OMB) Office of Information and Regulatory Affairs (OIRA), John Graham rejected a rule from the National Highway Traffic Safety Administration (NHTSA) that would have required automakers, by 2007, to install a system in all cars that would alert drivers when their tires are under-inflated.



Right-to-Know Update (02/19/2002)
The issue over public access has taken a new urgency after the September 11th terrorist attacks with some -- often including those who opposed public access before September 11 th -- arguing that we should not be providing information that could be used by terrorists to do damage.