Sound and Furry or a Tell?

 

The Budget Brigade never finds itself short of words when it comes to commenting on the president's budget proposal. But it is, after all, just a proposal. What is the practical effect of the president's budget? Bruce Bartlett writing at Capital Gains and Games in a great post on of the history of federal budget making says "not much."

Given all these changes in the budget process, the president's budget has been greatly diminished in importance. Whereas it was once the necessary starting point for all budget discussion, since that was the only place the numbers even existed, now it is just one proposal among many. Congress tends to rely exclusively on the CBO for all its budget numbers and analysis. Although departments and agencies are supposed to adhere to the president's priorities, they do so only half heartedly.

Nevertheless, the media still maintain the fiction that the president's budget is something meaningful. Journalists dutifully report that the president is slashing such and such program, freezing spending or giving the go ahead to some headline-catching initiative. But at the end of the day the final budget has little if anything to do with the president's priorities. Congress mostly decides how the money will be spent and lobbyists probably have more to say about it than OMB does.

All true, I think, except about the bit about the president's priorities. The reason we talk so much about the president's budget is because it's an insight into how the president intends deploy available resources. True, Congress (and lobbyists) has a lot say about which programs get what funds, but that's not the final word by any means in how federal funds are spent. If OSHA gets a ton of money to enforce worker safety rules, the head of OSHA (hired by the president because she is friendly to his governing philosophy) could opt to give across-the-board pay raises to her staff rather than hire more people to inspect workplaces. The president's budget is a bit more than just a deck of jokers; it's a tip of the president's hand.

Image by Flickr user Kalense Kid used under a Creative Commons license.

(Craig Jennings 02/05/10; 1 comment)

Second Open Government Directive Deadline this Saturday

 

Despite the major snowpocolypse expected to hit DC tonight, some government agencies are getting a head start on the next major OGD deadline.  This Saturday will be the 60th day since the publication of the new agency-wide transparency policy.  Check out ProPublica’s Transparency Tracker for a full list of agencies that have developed an open-government website.

In addition to the Saturday deadline for each agency to host an open government web portal located at www.[agency].gov/open to serve as the public gateway for all agency OGD related activity there are other requirements as well.  On the White House’s /open site, they should have an Open Government Dashboard that will include each agency’s open government plan and aggregate visualizations and statistics to demonstrating the government’s progress in complying with the OGD.  Further, the Office of Management and Budget (OMB) will establish a framework for the quality of Federal spending information publicly disseminated through sites like USAspending.gov.  OMB will then require agencies to submit plans with details of the internal controls implemented over information quality, including system and process changes, and the integration of these controls within the agency’s existing infrastructure.

(Roger Strother 02/05/10; 0 comments)

Estate Tax Foes Attempt to Enlist Religious Conservatives

 

It seems old Dick Patten at the American Family Business Institute (AFBI) is up to his old tricks again, trying to scare people about the estate tax with lies and distortions in an attempt to gin up support to kill the tax in Congress. This time, though, he's adopted pious language to spread the gospel of the "evils" of the tax among religious conservatives.

Christian Soldiers Unite

In a recent article, Rebecca Foerg-Spittel over at Campus Progress, a project of the Center for American Progress, details the interesting press conference Patten headed up last week at the offices of the conservative Family Research Council (FRC). During the event, according to Foerg-Spittel, Patten "weaved a strange and tenuous web among business, church, and social structure" in an attempt to portray the estate tax as a tool government uses "to take things away from 'us' (Read: evangelical Christian family business owners) – property, spirituality, and a way of life."

After quoting scripture to portray one's inheritance as a "sacred right," the AFBI executive director really goes out on a limb:

According to Patten, the original Hebrew word for inheritance refers to both spiritual and physical inheritance. Thus, when the government takes away from one’s physical inheritance, it takes away from a sort of spiritual inheritance as well.

And to drive home the point to his FRC audience, Patten claimed – I'm not kidding – "Sixty percent of family businesses are owned by evangelical Christians." Foerg-Spittel did a little fact checking and, big shock, couldn't find any published data to support Patten's claim.

Foerg-Spittel also amply dissects the anti-estate tax argument in her piece:

The right claims both that the tax is a needless attempt to prey on one’s lifelong earnings, and that it is particularly severe on small business, but given that the estate tax only kicks in for inheritances over $3.5 million, the right's argument that this is a populist cause becomes more tenuous.

She's absolutely right, in fact, Citizens for Tax Justice released its latest report in December detailing the effects of the estate tax and concluded that only 0.7 percent – less than one percent – of estates faced any estate tax liability in 2008. Because estate tax exemption levels increased from $2 million in 2008 to $3.5 million in 2009, the percentage of estates facing tax liability in 2009 will be even lower.

Patten may believe that he can incite a Third Great Awakening with his calls to defeat the "evil" estate tax, but his arguments are so hackneyed and boilerplate that they don't get past even a mild amount of scrutiny. Of course, that's never stopped him before.

Image by Flickr user rossaroni used under a Creative Commons license.

(Gary Therkildsen 02/04/10; 0 comments)

Groups Call on Obama to Reform Faith-Based Office

 

OMB Watch, along with religious and public policy organizations, sent President Barack Obama a letter on the anniversary of the Executive Order establishing the White House Office of Faith-Based and Neighborhood Partnerships. The groups asked Obama to, "take additional actions to prevent government-funded religious discrimination and protect social service beneficiaries from unwelcome proselytizing."

The letter details specific proposals to protect civil rights in federally funded social services, including banning employment discrimination based on religion in tax-funded projects. The letter reminds Obama that as a candidate, he promised to reform the faith-based initiative, but has kept in place various rules and executive orders put in place during the Bush administration.

However, Obama's speech at the National Prayer Breakfast claimed otherwise, saying that the administration has, "turned the faith-based initiative around." As the Washington Post also reports, "faith leaders across the ideological spectrum -- including some Obama allies -- say the operation may be more about window dressing than results."

The joint letter states; "We urge you to act now to restore the constitutionally-required safeguards and civil rights protections governing partnerships between government and religiously-affiliated institutions standard operating procedures that had been largely in place for decades prior to the creation of the Faith-Based Initiative."

(Amanda Adams 02/04/10; 0 comments)

Transparency Community Voices Concerns over Data.gov

 

Yesterday, a group of organizations, including OMB Watch, submitted concerns with the high-value datasets published on Data.gov in compliance with the requirements of the Open Government Directive (OGD) issued on Dec. 8. The OGD required that agencies submit at least three high value datasets within 45 days through Data.gov.   These groups outlined the major problems with the site and its implementation thus far.  I have summarized these issues below.

Yesterday, a group of organizations, including OMB Watch, submitted concerns with the high-value datasets published on Data.gov in compliance with the requirements of the Open Government Directive (OGD) issued on Dec. 8. The OGD required that agencies submit at least three high value datasets within 45 days through Data.gov.   These groups outlined the major problems with the site and its implementation thus far.  I have summarized these issues below.

Format & Usability

A major concern of the community is that releasing data in specific formats may make it more usable to coders and the tech-savvy, but not to the general public writ large.  If data is solely released in formats such as XML or CSV leaving the majority of the public unable to decipher these raw formats then Data.gov’s attempt to make the government more transparent has failed.    What good is information if we can’t read it?

The solution?  We proposed that the administration strike a balance between releasing data in machine readable formats and presenting the data to the public through web-based interfaces.  Web-based interface can be designed in a user-friendly way that aggregates the raw data for quick and convenient access.

Definition of High Value


The OGD mandated that agencies release three “high-value” datasets on Data.gov.  However, the Sunlight Foundation noted that only 16 of the 58 datasets posted by major agencies were previously unavailable.  The vast majority of released datasets were already online but not in machine readable format.  This meant that the administration only picked the low-hanging fruit in its first data release.  On the other hand, the data was now available in a central location and in a better format.

Still, this leaves open the question of how the government is defining “high value.”  According to the Open Government Directive, high value data is information that can be used to increase agency accountability and responsiveness; improve public knowledge of the agency and its operations; further the core mission of the agency; create economic opportunity; or respond to need and demand as identified through public consultation.  Yet, the agencies do not have to demonstrate how the releases they submit qualify under these categories.  To resolve this issue we expressed the need for such a requirement.  Other things we asked for:  notations that indicate which datasets are already available and unavailable as well as datasets that help hold agencies accountable for their policies and spending decisions.

Data Quality

This third issue mainly centers on the fact that some datasets could not be opened, were missing portions, or missing headers.  Missing headers, of course, means the data cannot be used even by coders.  Moreover, it was discovered that some of the datasets were being quietly removed from the site without public notification.

Here, we stressed the need for a better feedback mechanism than what exists on the site.  We made the point that there needs to be a system to report problems with specific datasets.  Further, we asked that all datasets on Data.gov be directly associated with their code sheets.
Ultimately, this is a great first step in showing the amount of data the agencies are capable of putting out in machine readable format.  Never before have we been able to access so much raw data in one place.  Despite the short deadline for this disclosure, several executive agencies released more than the required three datasets.  The implementation, however, needs to be improved through  creating public facing interfaces, requiring agencies to demonstrate the value of the data, and by providing a means of user feedback.

In order to improve Data.gov and the range of data included on the site, the administration is welcoming comments on its blog, Join the Dialogue. Additionally, Data.gov allows users to rate each dataset for ease of access, usefulness, data utility, and an overall ranking.

To read the group’s arguments and other points of contention in full, see the letter we sent here.  Feel free to give us your feedback.

 

(Roger Strother 02/04/10; 0 comments)

What is the Obama Administration’s Record on Regulation?

 

Today at 3 p.m., OMB Watch will be webcasting a panel discussion titled, The Obama Administration and Public Protections: A First-Year Regulatory Assessment. The panel discussion will address whether regulatory agencies are being proactive on a number of important issues, such as workplace safety, consumer protections, and the environment.

The panelists for the discussion are Michael Fitzpatrick of the White House Office of Information and Regulatory Affairs, Pam Gilbert of Cuneo Gilbert & LaDuca, Peg Seminario of the AFL-CIO, and Wesley Warren of the Natural Resources Defense Council. The discussion will be moderated by OMB Watch’s Gary Bass.

You can participate in the discussion by emailing your questions for the panelists to questions@ombwatch.org. The discussion will be broadcast online on our webcast headquarters at ombwatch.org/webcasts. Please join us at 3 p.m. today.

(Matthew Madia 02/04/10; 1 comment)

Citizens United, What's Going On?

 

In 2002, while working a polling site in Selma, Alabama, during a state senate race, I remember vividly how proud I felt to be participating in our democratic process. Being in the very city where the value of voting and the right to vote was literally beaten into the consciousness of the American people, had a profound and lasting impact on me.

 The right of citizens to vote is not to be taken lightly; it is an essential right and is the highest form of exercising civic responsibility. It is what we are supposed to do as citizens of this country, and being in Selma reinforced that view for me. In spite of or because of the many people that engaged in invaluable efforts – and sometimes paid with their lives – to ensure that all Americans could vote, it is our responsibility to participate in this process.

For much of the first decade of the 21st century, however, those lessons were lost as state governments and even the federal government actively sought to suppress the vote and disenfranchise millions of Americans. In late January, the situation for our democracy got even worse.

On Jan. 21, the U.S. Supreme Court ruled that corporations can spend unlimited amounts of money on political campaigns as long as they don't formally "coordinate" with candidates or political parties. American politics is already dominated by money. The amount of money that will now be available will be astronomical and could easily drown out the voice of the average American voter. The potential to unbalance the scales and infringe on the right of all Americans to have their voices heard through the principle of "one person, one vote" presents a clear and present danger to our democracy.

Corporations and their allies may even outspend political parties in seeking to influence policy and the whole of the political discourse. The most recent example: according to the Center for Responsive Politics, the U.S. Chamber of Commerce and its national subsidiaries spent $144.5 million in 2009, far more than the Republican National Committee and more than double the expenditures of the Democratic National Committee.

In 1971, Marvin Gaye wrote and released one of the most powerful albums ever made – What’s Going On. It was a simple question about the events of the time, and his expression about those events transcended time. Thus, I use it now. What's going on?

The Citizens United decision, written by Justice Anthony Kennedy, removes limits on so-called "independent expenditures" that are not coordinated with candidates' campaigns. It leaves in place a ban on direct contributions to candidates from corporations and unions, but it allows for unlimited donations to flow to some nonprofit corporations – 501(c)(4)s, 527s, and PACs – to use to influence elections in a partisan manner. Justice Anthony Kennedy, using what some call "aggressive intervention" or "judicial activism," said that political speech is "indispensable to decision making in a democracy, and this is no less true because the speech comes from a corporation rather than an individual." So now corporations are to be treated the same as individual American citizens? What's going on?

The five-justice majority also struck down part of the landmark McCain-Feingold campaign finance bill that served to regulate union- and corporate-paid issue ads in the closing days of election campaigns. Advocates of responsible government, campaign finance reform, and those organizations that promote civic engagement are rightfully concerned and dismayed that the ruling against the limits will be tantamount to selling our elections to the highest bidder. What's going on?

This Supreme Court ruling has the potential to drown out the voice of "We the People." A strong response to the Court's ruling is necessary and puts 501(c)(3) nonprofit organizations in a critical position to ensure that their constituents’ needs and concerns aren't lost in a deluge of corporate dollars. Otherwise, I fear all we are left with is the question, "What's going on?"

 

(Lee Mason 02/04/10; 0 comments)

Iraq Reconstruction IG Nabs a Couple Bad Guys

  U.S. Soldiers in Iraq

The office of the Special Inspector General for Iraq Reconstruction (SIGIR) released its 24th quarterly report on Saturday. If you haven't been paying attention to what's been going on in Iraq recently, it's worth a read. Besides providing observations on what's happening in the country and detailing the sources and uses of reconstruction funds, the inspector general's report also describes their recent oversight activities and successes in rooting out corruption within government contracting overseas.

Among SIGIR's investigations this past quarter, several are worth mentioning (details of each case are available in the report):

  • Major John Cockerham, Melissa Cockerham (his wife), Carolyn Blake (his sister), and Nyree Pettaway (his niece) were all sentenced in U.S. District Court for their participation in a bribery and money-laundering scheme related to bribes paid for contracts awarded in support of the Iraq war.
  • A former DoD contracting officer was sentenced to 110 months in prison for filing false income tax returns in which he failed to report more than $2.4 million in income.
  • A retired U.S. Army major was sentenced to 57 months in prison for his role in a bribery scheme involving DoD contracts.
  • A Coalition partner citizen was arrested for money laundering involving a Coalition Provisional Authority contract.

That's a pretty diverse group of people, which shows you how broad SIGIR's reach extends. In addition to these convictions, the inspector general's office has debarred a number of individuals and contractors, and has saved almost $82 million while redirecting another $230 million to better use because of their investigations.

The inspector general's office is currently operating with a $30 million budget in FY 2010, double what they had in FY 2009, and President Obama has asked Congress for $22 million in FY 2011. As the U.S. begins to withdraw troops from Iraq over the next two years – a period in which our resources will be particularly vulnerable to fraud and waste – SIGIR's presence will become vitally important and it makes sense to invest adequately in their mission.

Image by Flickr user The U.S. Army used under a Creative Commons license.

(Gary Therkildsen 02/03/10; 0 comments)

Tax Expenditures: The Spending that Dare Not Speak Its Name

 

In our statement on the president's FY 2011 budget request to Congress, we mentioned a column in Tuesday's WaPo by Len Burman in which he called for a freeze in tax expenditures. The column, however, deserves more attention than just the one liner we added in the OMB Watch statement.

Here's the paragraphs from which we drew our reference:

At the same time the president promised restraint on a sliver of the federal budget, he proposed new tax breaks for child care, retirement savings and small-business capital gains. This is a perverse kind of gift: Many of the goodies the political Santas leave under our trees will be paid for, with interest, by our kids.

But suppose Obama's "freeze" were also applied to tax expenditures. Say we postponed its effect until fiscal 2013 so that the effects do not threaten a nascent economic recovery. Capping tax expenditures at 2012 levels for three years and indexing the cap for inflation after that, as proposed for non-security discretionary spending, would reduce the deficit by about $3.5 trillion. That's right -- 14 times as much as what the president's spending freeze would save.

What is not commonly mentioned in budget discussions are the hundred of tax breaks for businesses and individuals designed to subsidize certain activities. These tax breaks cost the federal government over $1 trillion per year. Some object to calling these breaks "tax expenditures" because the money was never in the hands of the government so it could never spend it. It's an alluring philosophical argument, but totally blinkered economically and budgetarily. Not collecting $X in taxes form an oil company because it drills for oil in a certain location is the same thing as the government collecting $X dollars in taxes and then turning around and writing a check to that oil company because it drilled in a certain location.

Chapter 16 of the Analytical Perspectives of the President's Budget is a good place to begin looking at tax expenditures (click on Federal Receipts). It's quite a read.

The Joint Committee on Taxation also enumerates tax expenditures. See here.

(Craig Jennings 02/03/10; 0 comments)

A Look at Regulatory Agencies in Obama’s Frugal Budget

 

The Office of Management and Budget unveiled President Obama’s FY 2011 budget request on Monday. Obama has decided to propose a spending freeze for discretionary, non-defense budget items. (See OMB Watch’s statement here.) Because Obama has proposed an overall freeze and not a line-item-by-line-item freeze, spending could be transferred to other areas to reflect administration priorities.

The FY 2011 budget is a mixed bag for regulatory agencies, many of which suffered from near-perennial raids on their coffers when President Bush was in power. In his first budget proposal submitted shortly after he took office, Obama tried to reverse some of the funding trends at regulatory agencies. His FY 2010 proposal was pretty good, but not great. As expected because of the spending freeze, the FY 2011 budget is a bit more subdued. Here is the run down.

Environment

Obama proposed almost $300 million in cuts to the Environmental Protection Agency’s budget for FY 2011 after an approximately $2.7 billion increase the year before. Interesting, however, is the “Clean Air and Global Climate Change” line item which gets a healthy boost to $540 million from $502 million. (Climate Science Watch also points out that Obama has proposed a hefty $439 million increase for the U.S. Global Change Research Program, which covers climate issues.)

Food Safety

Obama’s budget would raise the Food and Drug Administration’s budget by about $500 million, including industry-paid licensing and registration fees, a.k.a. user fees. That does not include an additional $289 million in new user fees currently under consideration in Congress, $220 million of which would go towards food safety. As for run-of-the-mill appropriations, Obama’s budget increases the food safety line item to $848 million, from $784 million. Reactions from food safety advocates are mixed.

As for the regulator of all things meat and poultry, the Food Safety and Inspection Service, the Obama budget calls for a modest $18 million, or 1.6 percent, increase, and only 31 additional employees.

Worker Protection

The Occupational Safety and Health Administration would see a 2.5 percent increase under Obama’s proposal. But a look inside the numbers is more telling: The rulemaking division’s budget would rise to $24 million from $20 million – an important increase for an agency with an overwhelming rulemaking agenda. The budget takes away $3 million, or about 4 percent, from compliance assistance programs, which critics say are too lenient and did not deter bad behavior. Unfortunately, the Obama budget actually calls for a 51-person reduction in the OSHA workforce.

The Mine Safety and Health Administration’s budget would go from $356 million to $363 million. On the plus side, the Wage and Hour Division, which enforces minimum wage and child labor laws, among other worker rights issues – would see a $20 million, or 9 percent increase.

Consumer Product Safety

Last, but certainly not least, the Consumer Product Safety Commission. CPSC’s budget woes are probably the most well-chronicled of this lot. CPSC’s budget was halved (after adjusting for inflation) from the mid-1970’s to the 2000’s. Employment levels declined similarly.

But progress has been made in recent years, rising from about $63 million in FY 2007 to $118.2 million this year, plus about $4 million in industry fees. Last year, Obama proposed a minimal increase, which Congress improved upon. This year Obama is proposing a paltry $400,000 increase. For some obligatory perspective, the increase is about one half, of one millionth, of one percent, of the national defense budget. (Six zeros after the decimal, then a five.) The budget does call for an additional 46 employees, presumably because the agency can continue to absorb new hires because of the major funding increases in recent years.

The figures here are mostly taken from OMB budget documents, available here. The budget’s Appendix provides the most detail. Leave questions or discrepancies in the comments.

(Matthew Madia 02/03/10; 0 comments)