House Passes State Recovery Oversight Funding Bill; Senate Committee Approves Companion

On Tuesday, May 19, the House of Representatives passed by voice vote a bill (H.R. 2182) that has been bouncing around that chamber for about a month. The Enhanced Oversight of State and Local Economic Recovery Act, which was introduced by Rep. Edolphus Towns (D-NY), would help state and local governments fund Recovery Act oversight activities, such as audits, data collection and reporting responsibilities, and fraud and waste investigations. In particular, it allows state and local governments to set aside up to 0.5 percent of their Recovery Act money to fund these activities.

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IRS Commissioner Doug Shulman Not Really Grilled by Subcommittee

Congressional Hearing

Yesterday morning, I attended a House Appropriations subcommittee hearing to listen to Douglas H. Shulman, Commissioner of the Internal Revenue Service (IRS), provide testimony on the funds Congress will supply to his agency this upcoming fiscal year. I had hoped that subcommittee members would question Shulman over the deteriorating quality of the agency's audits over the past few years – especially those performed on corporations and wealthy individuals – and the insufficient level of services provided to those who claim the overly complicated Earned Income Tax Credit (EITC). Despite the absence of any of these inquires, there were two interesting exchanges during the hearing.

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States Slow to Request Recovery Funds

It seems that one of the themes running through the recovery effort is the (relatively) blazing speed of the Recovery Act as it passed through Congress versus the considerably slower pace of Recovery Act funds disbursement from Washington. Last week, the New York Times reported that only a "sliver" of the stimulus money has been distributed ($36.8 billion has been disbursed so far, according to the latest data from Recovery.gov), most of which was in the form of one-time Social Security checks, Medicaid supplements, and unemployment benefits. But while the rate and types of spending were prescribed by law -- $115 billion in spending was appropriated through the end of September of this year -- other factors are a slowing the rate of fund disbursal into the economy.

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Meager DOD Acquisition Reform Moves to Conference

F-35 JSF

Following up on my previous week's post on DOD reform, the House unanimously passed its version of a bill for defense acquisition reform (H.R. 2101) last Wednesday. With the Senate version of the bill (S. 454) having already passed, both houses quickly moved into conference, as President Obama has asked that the legislation be on his desk before lawmakers break for their Memorial Day recess next week. With important differences between the two bills, the conference process will largely determine whether the final product helps create genuine reform within the Pentagon or merely provides lawmakers with another "accomplishment" to tout to their constituents when they return to their respective districts or states. As things look right now, the latter seems much more likely.

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Quid Pro Quo at the Department of Energy?

nuclear waste

The Washington Post ran an article this morning about Recovery Act funding for environmental clean-up being given to contractors with less than stellar performance records. On the surface, this is yet another example of the desperate need for a fully public contractor misconduct database to help prevent awarding contracts to bad actors. But something else jumped out at me from the article that points to a larger problem that I don't think a misconduct database would solve: contractors and executive branch staff are far too cozy.

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Earmark Transparency Takes a Step Backwards

Kool-Aid ManI came across an article ($) in Roll Call this morning detailing the House Transportation and Infrastructure Committee's plans for submitting and posting earmark requests for the next transportation reauthorization bill, which is likely to be worked on this fall. The Committee, under the now suspect leadership of Rep. James Oberstar (D-MN), will roll back earmark transparency protocols adopted by the House and Senate Appropriations committees in January this year. Hasn't Oberstar gotten the message? Transparency is all the rage these days.

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IRS to Receive More Funding in Some Critical Areas

1040 Form

I wanted to follow up on Matt's blog post from last week about how regulatory agencies fared in President Obama's FY 2010 budget proposal. As Matt pointed out, the administration is making major investments in some agencies while shortchanging others. One of the agencies Matt didn't cover was the Internal Revenue Service (IRS), which is a microcosm of the larger trend Matt was pointing out.

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Changes to PART Referenced in Obama Budget

ExpectMore.gov

President Obama released more details of his FY 2010 budget request last week and I've been spending some time flipping through it today. I didn't have to flip far to find some encouraging news about how the new administration will tackle performance assessment over the next four years and what they plan to do with the Program Assessment Rating Tool (PART). Front and center on page 9 in the most important volume in the budget release - the Analytical Perspectives - is a section called "Building a High-Performing Government." This gives the first details about administration plans to replace PART with a new performance system the administration refers to as a "performance improvement and analysis framework."

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Congress Moves Forward with Imperfect Reform of DOD Acquisition Process

F-22 Raptor

Yesterday, Congress took an imperfect step forward with overhauling the Defense Department's major weapons acquisition process. The House Armed Services Committee moved their reform bill, H.R. 2101, the Weapons Acquisition System Reform Through Enhancing Technical Knowledge and Oversight (WASTE TKO) Act, through mark-up by a 59-0 margin. A similar acquisition reform bill introduced by Senator Carl Levin (D-MI) unanimously passed the full Senate. Before passage of the bill, however, senators agreed to an amendment that, if strengthened in conference, would essentially nullify the purpose of acquisition review.

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How Do Regulatory Agencies Fare in Obama’s Budget?

President Obama’s FY 2010 budget proposal, released yesterday, makes major investments in a few agencies critical to protecting the public but shortchanges others. Let’s dive in.

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