Watcher: October 4th, 2004

Federal Budget

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Is there lead in YOUR drinking water?

A stunning Washington Post exposé reveals that the nation's capital is not alone in hiding from the public the news that unsafe levels of lead are in the drinking water: Cities across the country are manipulating the results of tests used to detect lead in water, violating federal law and putting millions of Americans at risk of drinking more of the contaminant than their suppliers are reporting.

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Fox Guarding the Clearinghouse on Contracts Data

On October 1, a downsized government office turned over key data on roughly $290 billion worth of government contracts to a private company to provide online access. Critics on the left and right predict this move could raise barriers to public disclosure and undermine the public's ability to hold federal contractors and government officials accountable for the way taxpayer dollars are spent.

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House Committee Drops Balanced Budget Amendment -- for Now

The House Judiciary Committee convened in mid-September to consider a constitutional amendment to balance the budget but failed to make headway on the proposal. When the committee met Sept. 22 to debate and vote on the measure, Democrats clearly demonstrated their opposition and offered several amendments, including one by John Conyers (D-MI) to exempt Social Security. The committee adjourned before voting on the amendment, and upon reconvening did not have a quorum, and thus could not complete the vote. There was brief speculation that the amendment would go straight to the House floor; however, it appears House Republicans have dropped their work on the amendment for now.

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Economy and Jobs Watch: The Lost Years -- by the Numbers

Over the past 4 years there has been a dramatic shift in the nation's fiscal policy. Has the new strategy worked? The numbers indicate it has not.

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Congress Spends $146 Billion To Extend Certain Tax Cuts Without Offsets

Congress voted to extend so-called "middle-class" tax reductions last week, and chose not to offset any of the cost of the $146 billion measure. In addition, the bill also includes $13 billion in tax cuts for businesses. When factoring in the additional interest costs, the bill will increase the deficit by over $200 billion.

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Large Corporations May Receive More Tax Breaks

The House and Senate continue to move forward on a substantial corporate tax bill. The Foreign Sales Corporation and Extraterritorial Income Exclusion (FSC/ETI) bill is designed to remove certain corporate tax subsidies that were ruled illegal by the World Trade Organization. Repealing the subsidies would increase federal revenue by approximately $50 billion over the next 10 years. (The bill is currently in conference. See a summary of the differences between the House and Senate version.)

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Continuing Resolution Passes, Omnibus Bill Expected

After much speculation, and on the final day of the fiscal year, the House and Senate passed a continuing resolution (CR) (H.J. Res. 107) to fund non-defense government programs and agencies, and other expiring programs, at current levels through Nov. 20. The CR was needed because Congress failed to perform one of its key duties on time -- the appropriation of funds for government programs. Democratic Whip Steny Hoyer (MD) observed, "The Republicans' failure to pass appropriation bills on time has real-world consequences to real people, to states, localities, municipalities, and every individual."

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Congressional Report on Data Quality Act Supports OMB Watch Findings

The Congressional Research Service (CRS) recently updated a report on the Data Quality Act (DQA) entitled The Information Quality Act: OMB's Guidance and Initial Implementation." The report summarizes the history of the DQA from its passage as an appropriations rider, through development of information quality guidelines, to the Office of Management and Budget's (OMB) annual report to Congress. Several of the report's conclusions coincide with observations and recommendations made by OMB Watch in an analysis of OMB's annual DQA report to Congress.

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Court Strikes Down Part of the Patriot Act

Federal District Judge Victor Marrero ruled Sept. 29 that surveillance powers under the USA PATRIOT Act were unconstitutional, marking a significant victory for civil liberties groups.

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