Publications :  The Watcher :  OMB Watcher Vol. 5: 2004 :  June 29, 2004 Vol.5, No.13 : 

In This Issue

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Education in the U.S. Leaves Many Children Behind (06/28/2004)
A number of reports have been issued recently revealing cuts for next year in federal spending for education, including Pell Grants for college students, adult and vocational education, and Head Start, and ongoing inadequate funding for the Bush "No Child Left Behind" Act and special education.

Economy and Jobs Watch: Mid-year Update (06/28/2004)
Halfway through 2004 seems a good time to review where the United States is on the economy and jobs situation.



Good Riddance to Bad Policy: Budget Enforcement Bill Dies (06/28/2004)
A conservative effort to severely limit domestic programs was soundly defeated in the House last week. The so-called "Spending Control Act of 2004" failed by a vote of 146-268.

Tax and Spend? (06/28/2004)
In an effort to restore spending in ten critical areas and lower the deficit, Rep. David Obey (D-WI) offered a resolution (H. Res. 685) on Thursday, June 24, to invest $14.2 billion in key domestic priorities and $4.7 billion towards reducing the deficit. The total $18.9 billion would be fully offset by limiting tax breaks to those making over $1 million a year.

Appropriations Still Unknown (06/28/2004)
The appropriations process for FY 2005 doesn't lend itself well to periodic updates on which bills have been passed and who the winners and losers are. No one is even pretending that the House and Senate will debate and pass any of the 13 separate appropriations bills, or reconcile the two versions in conference -- the normal budget process. Rather, it has been clear from the start that an impossibly tight budget in an election year will dictate the process.

Congress Mulls Secrecy on Several Fronts (06/28/2004)
Those who care about American's right to know would do well to keep eyes peeled on recent congressional action. Proposals to amend the USA Patriot Act and spending bills are at the center of congressional debate over openness in government.

State Department Releases New Terrorism Death Count, Corrects Flawed Data (06/28/2004)
The State Department released drastically higher numbers for terrorism-related deaths June 22, after the administration used the original April report to claim the war on terrorism is succeeding. Government officials cited outdated computers and personnel shortages as the reasons for the flawed data, according to the Washington Post.

FBI Used Controversial Patriot Act Provision (06/28/2004)
The FBI applied to use a section of the USA Patriot Act less than a month after Attorney General John Ashcroft stated it had never been used, according to new documents. Section 215 allows the government to track the public's reading habits in bookstores and libraries and seize an organization's computers, files and "any material thing" as part of an ongoing investigation.

DHS Seeks Exemptions From Public Disclosure Requirements (06/28/2004)
The Department of Homeland Security (DHS) is looking to hide Environmental Impact Statements (EIS), partially or in whole, from public disclosure. A June 14 directive published in the Federal Register would exempt the agency from a number of requirements under the National Environmental Policy Act (NEPA).

News Brief: Court Rejects Judicial Review of Data Quality Act (06/28/2004)
In the first ever court decision to address the Data Quality Act, a federal district court in Minnesota has held that the Act does not permit petitioners to seek judicial review.

The DQA issue was just one of many complaints targeting the plans of the Army Corps of Engineers and the Fish and Wildlife Service for management of the Missouri River. Several different causes of action were consolidated by the Judicial Panel on Multidistrict Litigation and referred to the U.S. District Court for the District of Montana. The resulting 51-page opinion disposed of the entirety of the case by granting the government's motions for summary judgment. Although the DQA issue received a scant page of discussion, it remains significant nonetheless as the first court decision to address the DQA.

See full story and DQA background

NPAction.org Announces A New Web Resource to Aid Nonprofits (06/28/2004)
Nonprofits Can Help America Vote! Announcing a new web resource dedicated to giving nonprofits the tools they need.


Report Says Economic Disparities Deny Many Americans a Political Voice (06/28/2004)
The American Political Science Association released a report this month, warning that democracy in the United States faces profound threats because "disparities of income, wealth and access to opportunity are growing more sharply in the United States than in many other nations, and gaps between races and ethnic groups persist."


Implementing Electioneering Communications Gets Complicated (06/28/2004)
With the party conventions and fall election getting closer, the Federal Election Commission (FEC) has published a brochure that explains restrictions on paid broadcasts that mention federal candidates 30 days before a primary or party convention and 60 days before a general election. This is the first election implementing the "electioneering communications" rule, which passed as part of the Bipartisan Campaign Reform Act of 2002 (BCRA). FEC regulations exempt 501(c)(3) organizations and unpaid broadcasts. The rule has raised new questions for the FEC on how it must be applied, including public service announcements where federal candidate appear, the breadth of the news exemption and advertising for Michael Moore's new film Fahrenheit 9/11.

New FEC Complaint Filed Against America Coming Together (06/28/2004)
Three campaign finance reform groups have filed a new complaint at the Federal Election Commission (FEC) against an independent political committee, America Coming Together (ACT), alleging violation of FEC rules on what activities must be paid for with hard money. Hard money refers to funds raised subject to the limitations of federal campaign finance regulations, which prohibit corporate donations and individual donations over $5,000. ACT has used soft money to pay for direct mailings urging voters to defeat President Bush and elect progressive candidates all across the country.

The Faith-Based Initiative: In the Courts, Congress, and by Presidential Order (06/28/2004)

• A Wisconsin-based group sues the federal government over the faith-based initiative
• The president creates three new Centers for Faith-Based and Community Initiatives by Executive Order and more agency regulations are announced
• Congress works to include religion in legislation

Senate Finance Committee Holds Hearing on Nonprofits (06/28/2004)
Three panels of witnesses testified before the Senate Finance Committee on June 22, addressing a wide range of issues on governance, accountability and enforcement of tax laws. Committee Chair Charles Grassley (R-IA) said he expects to introduce comprehensive legislation on these issues in the fall, but that some proposals may move separately and possibly sooner. He said the hearing was the beginning of a dialog with the nonprofit sector, and that more hearings may follow.

Leaked EPA Memo Reveals Likely Delays from Economics Analysis (06/28/2004)
OMB requirements that agencies conduct economics-based analyses of the costs and benefits of regulatory decisions have delayed several major environmental protections and prompted the Environmental Protection Agency to install working groups of economists for every major rulemaking, according to an internal EPA memorandum.

Details Emerge on Data Rejected in Morning-after Pill Decision (06/28/2004)
Internal FDA memos reported by the Washington Post last week show senior scientists at the FDA disagreed sharply with the agency's decision last month to bar the Plan B morning-after pill from over-the-counter sales.

Court Rejects Claim in First Decision on Data Quality Act (06/28/2004)
In the first ever court decision to address the Data Quality Act, a federal district court in Minnesota has held that the Act does not permit petitioners to seek judicial review.

The DQA issue was just one of many complaints targeting the plans of the Army Corps of Engineers and the Fish and Wildlife Service for management of the Missouri River. Several different causes of action were consolidated by the Judicial Panel on Multidistrict Litigation and referred to the U.S. District Court for the District of Montana. The resulting 51-page opinion disposed of the entirety of the case by granting the government's motions for summary judgment. Although the DQA issue received a scant page of discussion, it remains significant nonetheless as the first court decision to address the DQA.

See full story and DQA background

Rise in Child Deaths Due to Power Windows Angers Safety Advocates (06/28/2004)
Seven children have been killed by power windows in the past three months, prompting safety advocates to demand government and industry action. The number of deaths is an increase from the two to four deaths per year reported in the past several years.

EPA Releases 2002 Toxic Release Inventory: Right-to-Know Compromised (06/28/2004)
The Environmental Protection Agency's (EPA) 2002 data for the Toxic Release Inventory (TRI) shows a 5 percent increase in toxic releases to the environment. The agency's premier right-to-know program released the new data on June 23, one day after the Environmental Integrity Project published a report documenting levels of air toxins four to five times higher than previously reported.

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