Post-July 4th Appropriations Update

As Congress returns to work this week, it's time to take a look at the status of various appropriations bills. 

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CAR Releases Analysis of New Recovery Act Reporting Guidance

The Coalition for an Accountable Recovery (CAR), of which OMB Watch is a co-chair, just released its analysis of OMB's recent guidance on recipient reporting under the Recovery Act. OMB's guidance only covers recipients of grants and loans (a separate guidance for federal contractors is coming soon), but it starts to flesh out the details of the reporting process, which up until this point have largely been vague and unformed.

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Oversight Board to Congress: Give IRS More Money

Dollar, Dollar Bills, Y'all

In a report released today, the IRS Oversight Board recommended that Congress increase the Internal Revenue Service's (IRS) FY 2010 budget by $363 million over what the Obama administration requested. The independent panel, which Congress created in 1998, cited the "IRS's archaic computer systems," a lack of adequate computer hardware and IT infrastructure, and the need for better taxpayer service programs as targets for the extra money. Unfortunately, the report comes a tad late.

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No Easy Task: Building a Better Government Performance System

Today, Accenture, the Georgetown Public Policy Institute (GPPI), and OMB Watch officially released a report, Building a Better Government Performance System: Recommendations to the Obama Administration", that outlines six key principles that are essential in the reform of government performance systems.  These principles will help to open up internal compliance-based review processes that typically result in static ratings and create a more dynamic conversation about continually improving performance.

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IT Dashboard Provides Detailed Look at Tech Spending

On Tuesday, June 30, Vivek Kundra, the new federal Chief Information Officer, unveiled the IT dashboard, part of the newly redesigned USAspending.gov. The dashboard is actually pretty amazing, as it lets users examine every federal IT project, by agency, and shows whether each project is on schedule and on budget, along with a link to a detailed list of performance metrics for the project. It also has a tab for analysis of the data, which right now is limited to a graph of spending by agency over time and a chart showing a breakdown of the current year's budget. The site also allows third-parties to download XML versions of the data, a feature which I hope will now be standard on all government sites.

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A Not-so-Free Pass to Pollute

With the passage of the Waxman-Markey bill (HR 2454) in the House, the U.S. is one step closer towards the implementation of a major effort to reduce greenhouse gas emissions (GSGs).  Despite its inclusion of a cap-and-trade system, famed Harvard economist, Greg Mankiw, recently called the bill a "missed opportunity" because it gives away a significant number of very valuable pollution permits instead of using an auction system.

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Counting Chickens Before They Hatch: A Quick Lesson on Recovery Act Spending

One of the trickiest aspects of tracking Recovery Act spending is a very basic one: figuring out how much money has been spent so far. Theoretically, it should be pretty easy. Find out how much the federal government has spent because of the Recovery Act, and, well, that's how much has been spent on it. By that estimate, according to Recovery.gov, we've already spent almost $53 billion on the recovery, which isn't particularly impressive.

Unfortunately, though, it's not that easy.

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The Veterans Affairs Budgeting Experiment

Earlier this week, the House passed an unusual bill that authorizes advance appropriations for Veterans Affairs (VA) funding.  HR 1016 means that Congress will create two budgets this year, one for the current 2010 appropriations cycle, and a future budget for 2011.  Subsequent years will produce budgets that are at least a year ahead.  For the VA department, which has been plagued in recent years by reports of patient neglect and poor management, this will hopefully be the first step towards better service delivery.

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GAO Tells IRS to Improve Internal Controls

IRS

The Government Accountability Office (GAO) released a report yesterday detailing results of an audit of the Internal Revenue Service's (IRS) financial statements of the previous fiscal year. The audit identifies several internal control and management issues not addressed by previous audits. The report contains 16 recommendations for improving internal controls at IRS.

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Obama Seeks to Eliminate Tax Benefits for Multinational Corporations

The Obama Administration continues to look for ways to find tax revenue and as a result, several significant tax breaks for multinational companies may be on the chopping block.  During the Bush and Clinton Administrations, it became easier for controlled foreign corporations (CFCs) to conduct financial transactions between offshore subsidiaries at much-lower effective tax rates (or in some cases, tax-free).  If Obama gets his wish, these tax breaks will not be renewed at the end of 2010 and the Joint Committee on Taxation estimates will result in an increase of $31-86.5 billion in tax revenue from 2011-2019.

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