Publications :  The Watcher :  OMB Watcher Vol. 3: 2002 :  December 9, 2002 Vol. 3 No. 25 : 

In This Issue

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Read the Watcher in Full in Easy-to-Print PDF Format (12/09/2002)
For your convenience, the OMB Watcher is now also available in full as a PDF document -- this will allow for viewing and printing of the entire issue in one document.


Tax Cut Fever: What the Budget Future May Hold (12/09/2002)
With the shake-up in the Administration’s economic team, the recent rise in the unemployment rate to 6% (the highest rate in eight years), and absolutely no evidence that the massive Bush tax cut has done anything but send the federal budget on a rapid spiral into deficit, a reasonable person might think that it was time for the Administration to reevaluate the idea that tax cuts are the solution to everything. The President’s economic stimulus plan, currently in the design phase, however, is expected to consist of tax cuts aimed at corporations and individuals in the higher tax brackets.

Budget Schedule (12/09/2002)
The incoming Director of Budget and Appropriations Issues for Sen. Trent Lott (R-MS), G. William Hoagland, recently gave a briefing to states about the upcoming budget. Included in this piece are some points from that briefing and other reports, as well as a tentative schedule for completing work on the FY 2003 budget and beginning the FY 2004 budget work.

It's the States' Turn (12/09/2002)
In the last year or so, we’ve seen some relatively large federal assistance provided to a few fairly large private industries. Last year, it was the $15 billion grant and loan package to “bailout” the airline industry after the September 11 attacks. At the time, it was seen as the prudent thing to do, since the federal government had grounded all flights for days until it could return some sense of security to the skies. White House Press Secretary Ari Fleischer explained that the assistance was necessary because "a safe, viable and effective commercial air travel system is important to America’s economy and to our way of life."

GAO Reports on Job Prospects of Former TANF Recipients with Impairments (12/09/2002)
A recent study conducted by the General Accounting Office (GAO) examined the job prospects of people leaving the Temporary Assistance for Needy Families (TANF) program. Specifically, the study, shows that recipients of TANF “who had impairments were found to be half as likely to exit TANF as recipients without impairments…” Similar rates were seen among TANF recipients caring for children with impairments as those caring for children without impairments, even when factors such as marital status and age were taken into account. According to the GAO report, former TANF recipients with impairments are “one-third as likely as people without impairments to be employed,” with 40 percent of such former TANF recipients reporting Supplemental Security Income (SSI) assistance.

Data Quality Invoked in Information Collection (12/09/2002)
In a letter to the National Highway Traffic Safety Administration (NHTSA) dated November 6, 2002, the Center for Regulatory Effectiveness (CRE) raised data quality concerns with NHTSA's recent Proposed Collection of Information.

Data Quality's First Test (12/09/2002)
The Center for Regulatory Effectiveness (CRE), Kansas Corn Growers Association, and the Triazine Network filed a request for correction of information with the Environmental Protection Agency (EPA) November 25, 2002 under the data quality guidelines. The petition could cripple EPA's ability to address endocrine disruptors.


FEC Approves New Rule on Coordinated Communications (12/09/2002)
On December 5 the Federal Election Commission (FEC) approved new regulations that define when communications with a federal candidate, a campaign, party or their agent, may turn an otherwise independent expenditure into a prohibited in-kind campaign contribution. The rule implements the Bipartisan Campaign Reform Act of 2002, which required the FEC to write tougher regulations in this area. The regulations will take effect 30 days after publication in the Federal Register. The new rules use a three-part test to determine when an expense is considered “coordinated”. It must be for a public communication paid for by someone other than a candidate or campaign and meet specific standards relating to both content and conduct between the candidate and group or person paying for it.

NPAction Greeted By Positive Reception; State Advocacy Guides Added (12/09/2002)
NPAction, OMB Watch's new online resource for nonprofit advocacy, launched on November 22, 2002 in its pilot form. In the roughly two weeks since, the site has averaged roughly 1,300 unique visitors who have taken the time to explore the content offerings and features, and more importantly, to provide feedback on what's available. Recent additions to the site include Poll results and topic discussion around nonprofit attitudes regarding IRS restrictions on candidate endorsements by charities; and a set of state advocacy guides for nonprofits to help identify key government agencies, rules, regulations, and guidelines regarding their advocacy work. Over the next few months, the site will be refined in order to provide a more robust version for early 2003. Visit NPAction today, share your thoughts on our work, and help us to provide the best resources possible to assist your organization and partner groups in their policy participation.

Bush Administration Proposes to Gut Forest Protection Rule (12/09/2002)
Two days before Thanksgiving the Bush administration quietly approved a proposal that would gut current forest protection regulations by removing requirements to protect forest wildlife and ecology, and by eliminating the requirement of an analysis that serves as the key mechanism for informing the public of the environmental impacts of forest management plans, among other de-regulatory changes to the rule.

Cheney Task Force Lawsuits: Courts Dismiss GAO Request, Delay White House Deadline (12/09/2002)
On December 6, 2002, a federal appeals court issued a two-page order indefinitely delaying the December 9, 2002, deadline for the White House to produce documents on Vice President Cheney’s energy task force. The order stated that the court will schedule a date for arguments on whether to step into the case and consider the administration's request to put a halt to producing documents and providing testimony.

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