Publications :  The Watcher :  OMB Watcher Vol. 8: 2007 :  February 6, 2007 Vol. 8, No. 3 : 

In This Issue

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OMB Watch Releases Analysis of Bush FY 08 Budget Request (02/06/2007)
During the week of Feb. 5, OMB Watch issued a multipart analysis of President George W. Bush's Fiscal Year 2008 budget request to Congress. In an overview of the president's budget, OMB Watch examined the overall impact of the request and found that it puts tax cuts ahead of domestic needs. The budget uses gimmicks and omissions to mask the true impact of the president's proposals and allows him to project an artificially balanced budget.

House Passes FY 2007 Spending Resolution that Restores Some Funding (02/06/2007)
On Jan. 31, the House cleared a $463.5 billion joint resolution that boosts spending or maintains service levels in health, education and housing programs while staying under a tight budget cap. The resolution also makes $10 billion worth of cuts in 60 programs and eliminates earmark language from bills that were drafted but not passed during the last Congress. If the Senate passes the resolution, the new Congress will finish the FY 2007 budget bills, which the last session of Congress failed to do.

Senate Passes Minimum Wage Increase with Tax Cuts Added (02/06/2007)
On Feb. 1, the U.S. Senate wrapped up nearly two weeks of debate with a 94-3 vote to approve S. 2, the Fair Minimum Wage Act of 2007. The bill raises the federal minimum wage to $7.25 an hour by 2009 and extends $8.3 billion of existing small business tax breaks. The fate of the bill remains uncertain because House Democrats are reluctant to provide tax breaks for small business in exchange for passing a minimum wage hike.

Media, Congress Begin to Examine Bush's Executive Order on Regulatory Process (02/06/2007)
President George W. Bush's Executive Order amending the regulatory process in significant ways didn't immediately garner the attention one might have expected from the mainstream media and Congress. The order set in motion changes that could further delay or hinder public health, safety, environmental, and civil rights protections. It was issued by the White House, with a press release, Jan. 18, and only OMB Watch and Public Citizen rang the alarm bells, calling attention to changes that give OMB's Office of Information and Regulatory Affairs (OIRA) even broader powers over agency actions.

Congress Steps Up Oversight of Executive Branch (02/06/2007)
Congressional Democrats are stepping up their oversight of the Bush administration. Several of the steps Congress has taken, or is likely to take soon, have implications for the federal government's regulatory policy. One recent oversight hearing reflected concerns over scientific integrity within the White House. The impetus for two other hearings, and one potential hearing, is concern over the Bush administration's failure to enforce laws passed by Congress.

Federal Contractors: The Invisible, Unaccountable Agency (02/06/2007)
The incredible growth in the amount of money spent by the federal government on contractors, with almost no corresponding increase in oversight or management, was highlighted in a recent New York Times article, "In Washington, Contractors Take on Biggest Role Ever." According to the article, the amount spent on federal contracts has doubled since 2000, from $207 billion to $400 billion. The lack of sufficient government oversight has led to a virtual free reign for contractors, who are not answerable to the public and have not been called to account by the federal government.

TRI Changes are Major Issue at EPA Oversight Hearing (02/06/2007)
The Environmental Protection Agency's (EPA) changes to the Toxics Release Inventory (TRI) were a prominent issue at the Senate Environment and Public Works Committee's (EPW) Feb. 6 EPA oversight hearing. The three-panel hearing also addressed the closure of EPA libraries, the elimination of perchlorate testing, and the agency's current consideration of revoking the air quality standard for lead.

OMB Watch Critical of Proposed Chemical Security Rule (02/06/2007)
In response to the Department of Homeland Security's (DHS) proposed interim chemical security rule, OMB Watch will submit comments to DHS that argue for increased transparency and stronger protections at thousands of facilities across the country.

FEC Tells Court that Case-by-Case Regulation of Independent PACs Works (02/06/2007)
On Feb. 1, the Federal Election Commission (FEC) published new guidance for its 2004 rule defining when independent political committees are subject to federal campaign finance rules and contribution limits. The document responds to a court order seeking stricter regulation of 527 groups. In the guidance, the FEC cites its 2006 enforcement action against six groups as proof that its case-by-case approach — used to determine whether a group's "major purpose" is to influence federal elections — is workable. It remains to be seen whether the court will accept this approach, which moves the FEC toward a vague standard similar to the "facts and circumstances" test used by the Internal Revenue Service (IRS) to define prohibited partisan activity by charities and religious organizations.

Courts Defining When Government Funds Cannot Support Faith-Based Programs (02/06/2007)
The U.S. Supreme Court will soon hear oral arguments about whether taxpayers have the right to challenge the constitutionality of government funding for conferences supported by the White House Office of Faith-Based and Community Initiatives that are alleged to promote religious groups over secular ones. Meanwhile, several recent court decisions involving separation of government-funded and religious programs provide some clarity to vague federal regulations.

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