Publications :  The Watcher :  OMB Watcher Vol. 5: 2004 :  January 12, 2004 Vol.5 No.1 : 

In This Issue

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Needs UP, Services DOWN (01/12/2004)
Today, more Americans are looking to the government for help, yet the budgets of government-funded social service programs are dwindling.

Economy and Jobs Watch: Long-term Budget Choices (01/12/2004)
Several new reports have pointed to the weakness of the long-run U.S. fiscal situation. A wide range of observers -- from independent analysts to conservative think-tanks, from international aid organizations to congressional analysts, and even from the administration itself -- are all pointing to the fact that current tax and budget policy is not sustainable. (See links below).

Economy and Jobs Watch: Unemployment Down, No New Jobs (01/12/2004)
With a strong quarter of economic growth in the July-September period, many observers were expecting to see employment strengthen in the last part of 2003. However, as recent economic data shows, the labor market remains very weak, as employment was “flat” last month.

FBI Marks Almanacs as Terrorist Tools (01/12/2004)
Almanacs may assist potential terrorists in selecting targets and planning attacks, according to the Federal Bureau of Investigation (FBI). The agency sent a message to roughly 18,000 law enforcement agencies on Dec. 24, 2003 urging police to keep alert of anyone carrying almanacs, especially if they contain notations. The alert did acknowledge almanacs could be used for legitimate reasons.

Government Web Pages Altered to Hide Information (01/12/2004)
The recent takedown of a U.S. Agency for International Development (USAID) web page and a new Department of Defense (DoD) memo provide two more examples of the Bush administration’s penchant for altering information to fit its interests.

Comments on Peer Review Bulletin Reveal Strong Opposition (01/12/2004)
A majority of the near 200 comments received by the Office of Management and Budget (OMB) on its Draft Peer Review Bulletin opposed the proposal, calling for its complete withdrawal.


Shays-Meehan Lawsuit Challenging FEC Rules for Unpaid Broadcasts and Charities Proceeds (01/12/2004)

For more information see our analysis of the Supreme Court decision's impact on nonprofit advocacy, and issues created by Shays v. FEC.

The recent Supreme Court decision upholding the Bipartisan Campaign Reform Act of 2002 (BCRA) has the potential to dramatically expand the scope of regulation of federal election activity. The decision did not, however, address the act's applicability to 501(c)(3) charity organizations, which the Federal Elections Commission has already exempted from all BCRA requirements. A suit filed by BCRA co-sponsors Reps. Chris Shays and Marty Meehan to overturn the FEC exemption will now quickly move forward.

IRS Releases Guidance on Genuine Issue Advocacy vs. Electioneering (01/12/2004)
In late December the IRS released an announcement reminding tax exempt organizations that they must comply with both campaign finance and tax rules during an election year. The guidance, in Revenue Ruling 2004-6, focuses on those nonprofits permitted to take sides in an election and lists the facts and circumstances the IRS believes distinguish genuine issue advocacy from partisan electioneering. Six specific examples are provided. The IRS asks for comments and suggestions on questions for future guidance in this area.

Complicated and Expensive Reporting for Labor Unions is Put on Hold (01/12/2004)
A United States Judge issued an injunction this month blocking enforcement of a Department of Labor’s (DOL) final rule on financial reporting by labor unions. The court found unions would suffer “irreparable harm if forced to start complying with new reporting requirements by Jan. 1.”

Court Upholds Postal Service Ban (01/12/2004)
A recent ruling by a United States District Court Judge will contribute to the scarcity of places to collect signatures for ballot measures and candidates. The ruling upheld the U.S. Postal Service’s (USPS) 1998 policy change prohibiting solicitation of signatures on petitions, polls, or surveys on any USPS property.

Administration Moves to Allow Dumping of Mining Waste Into Streams (01/12/2004)
The Bush administration unveiled a proposal Jan. 7 that would gut a prohibition against the dumping of mining waste within 100 feet of streams, easing the way for new mountaintop mining, which generates large amounts of dirt and rock waste.

Administration Opens Tongass Forest to Logging (01/12/2004)
Two days before Christmas, the Bush administration finalized plans to open 300,000 acres in Alaska’s Tongass National Forest for logging and development, removing protection provided by the Clinton-era “roadless rule,” which banned road construction in 58.5 million acres of national forests.


Court Blocks Bush Rollback of Power-Plant Emissions Standards (01/12/2004)
A day before Christmas, a federal appeals court temporarily blocked the Bush administration from implementing a major rollback of clean air standards, which would have allowed the nation’s oldest and dirtiest power plants to upgrade their facilities without installing the latest anti-pollution controls (as they were previously required to do under EPA’s New Source Review program) -- even if it results in substantial new emissions.

Judge Rejects Bush Plan to Allow Snowmobiles in Yellowstone (01/12/2004)
A federal judge strongly rebuked the Bush administration on Dec. 16 for rescinding a Clinton-era plan to phase out snowmobile use in Yellowstone and Grand Teton National Parks.

Administration Abandons Plan to Lift Wetlands Protections (01/12/2004)
The Bush administration recently abandoned a proposal, sought by developers, to remove federal protection for as much as 20 million acres of wetlands after receiving more than 133,000 comments in opposition from environmentalists, sportsmen, state officials, and others.

Groups Asks High Court to Open Unusually Secret Case (01/12/2004)
Public interest and media organizations this week appealed to the Supreme Court to stop the near-total secrecy surrounding the five-month detention of a Florida waiter as part of what the federal government claims to be a terrorism-related investigation. They did this through a friend of the court or an amicus brief.

EPA Plans Early Release of Some TRI Data (01/12/2004)
EPA recently held a meeting with interested stakeholders to explain its intention to release 2002 Toxic Release Inventory (TRI) data much earlier than in recent years. Under EPA's current plans the 2002 TRI would be available on the agency's website in February or March, several months ahead of the recent release times of May or June.

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