Publications :  The Watcher :  OMB Watcher Vol. 5: 2004 :  September 7, 2004 Vol.5, No.18 : 

In This Issue

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CBO Updates Budget Estimates: Massive Deficits to Grow (09/07/2004)
The Congressional Budget Office today released its semi-annual update on the nation's budget situation. The report confirms massive deficits for the current year and beyond. In addition, the report shows that deficits will not be "cut in half" in the next five years, as projected by the Bush administration.

'State of Working America' Calls Economy Unbalanced (09/07/2004)
On Labor Day, the Economic Policy Institute (EPI) released its 2004 "State of Working America" report, showing that performance of the economy throughout the recovery has been unbalanced. "After almost three years of recovery, our job market is still too weak to broadly distribute the benefits of the growing economy," it found. "Unemployment is essentially unchanged, job growth has stalled, and real wages have started to fall behind inflation."

Labor Day Finds Little to Celebrate in Recent Trends (09/07/2004)
Yesterday we celebrated Labor Day. Unfortunately, there has not been much to celebrate in the labor market over the last 4 years. A look at the recent record shows an extremely under-performing labor market economy.

Economy and Jobs Watch: Sluggish Growth Continues (09/07/2004)
Employment growth continues to be below average. In August, the number of new jobs added was just 144,000, according to the Bureau of Labor Statistics (BLS). This is the third straight month that the data has been below its historical average -- over the last 30 years, the economy has added about 150,000 per month.

Appropriations: A Look Ahead (09/07/2004)
As Congress reconvenes today, the Defense Bill remains the only completed appropriation bill for FY 2005. The $417.5 billion bill was approved only just prior to the August recess. Members of Congress have a lot of work ahead of them if they wish to complete their appropriations work before the end of the fiscal year, which ends on September 30th, as only three other bills -- Homeland Security, Legislative Branch, and Military Construction -- have even made it through a full Senate committee.

Senate Approves FOIA Exemption for Satellite Images (09/07/2004)
The Senate has approved a broad new Freedom of Information Act (FOIA) exemption that would restrict public access and use of commercial satellite imagery.

Coalition Reports Massive Classification Abuse, Secrecy Rose 60% (09/07/2004)
Testimony from two government officials before the House Subcommittee on National Security, Emerging Threats & International Relations confirmed that federal agencies are massively abusing their classification powers. The experts estimated that half of the classified information is wrongly restricted. The same week, OpenTheGovernment.org, a diverse coalition of more than 30 organizations, released a Secrecy Report Card quantifying the expansion of secrecy as well as the growing costs to taxpayers.

Industry Data Quality Challenge Weakens Dietary Guidelines: Deadline for Comments Sept. 27 (09/07/2004)
An industry data quality challenge appears to have succeeded in weakening new U.S. Department of Agriculture (USDA) dietary guidelines.

Security Measures Invoked to End Safety Measures (09/07/2004)
A large sign in New York City, indicating the location of a natural gas pipeline to prevent accidents, was taken down after a website posted a photograph of the sign. John Young, the owner of www.cryptome.org, posts information on his site to draw attention to places needing increased security. Although federal regulations require that the location of natural gas lines be made as obvious as possible to the public for safety reasons, the company that owns the pipeline asserted that local laws allowed the sign's removal.

City Cites Terrorism in Secret Meeting on Gangs (09/07/2004)
The City Council of Staunton, Va., questionably used a terrorism provision to hold a secret meeting on gang activities. Using homeland security policies to hide non-terrorism information appears to be an increasing problem.

Commission Finds Muslim Charities Shutdown Without Cause (09/07/2004)
A report published by the independent commission to investigate the 9/11 attacks has raised "substantial civil liberty concerns" regarding the government's shutdown in December 2001 of two Chicago-area Islamic charities. Since then, the government has neither proven either group was guilty of any terrorism-related crimes, nor convicted anyone involved.

IRS Audits Nonprofits, Lets Big Business Slide (09/07/2004)
The Internal Revenue Service (IRS) has begun a major effort to examine internal financial issues of charities and foundations. IRS Announcement 2004-206, issued August 10, said nearly 2,000 charities and foundations will be contacted and asked for information about their salary practices and procedures. The effort will include a broader review of foundations that will eventually include examinations of over 400 organizations, and conclude in July 2005.

FEC Seeks Comments on Electioneering Rule (09/07/2004)
The Federal Election Commission (FEC) has issued a Notice of Availability of a rulemaking petition filed in July that seeks to exempt promotion of political films, books and other materials that refer to federal candidates from the electioneering communications rule. Comments in support or opposition to the proposal are due September 27. During August a federal court turned down Wisconsin Right to Life's (WRLC) request for an injunction that would allow it to run ads mentioning Sen. Russell Feingold (D-WI), who is running for re-election.

Bush Campaign Files Suit to Force FEC to Shut Down 527s (09/07/2004)
On September 1, President Bush and Sen. John McCain (R-AZ) filed a lawsuit against the Federal Election Commission (FEC) to force FEC action on a complaint the Bush campaign had filed last March against Democratic leaning independent political committees. Based on their announcement August 26, Trevor Potter, a campaign reform advocate and former FEC chairman, said he had anticipated the two would file a second suit as well seeking to force stricter regulation of all independent political committees, but they did not.

Politics over Science: Change in Recovery Plan for Salmon Smells Fishy (09/07/2004)
The National Marine Fisheries Service (NMFS) announced August 31 it will not consider removing dams in the Columbia and Snake rivers in order to save the endangered salmon population. The announcement contradicts twenty years of research by both environmental groups and government agencies that supports breaching the dams as the most effective way to save the endangered fish population.

FDA Quietly Drops Rule to Protect Recipients of Contaminated Blood (09/07/2004)
The Food and Drug Administration (FDA) quietly abandoned work on a proposal to protect recipients of plasma-derived products, according to the agency's most recent statement of its regulatory priorities for the next six months.

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