Gone With the Wind

John Graham, administrator of the Office of Information and Regulatory Affairs in the White House Office of Management and Budget, will be leaving that post to become dean of the RAND Graduate School, effective March 1. Perhaps he will teach his students to do a better job in public policy than he did at OIRA. “John Graham comes to RAND with an outstanding track record," RAND insists, but his legacy at the White House is a brutal one for the public:
  • OMB Role in Fuel Economy Change Exposed
  • Administration Asks Manufacturers for Regulatory Hit List

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Government Reports $319 Billion Deficit for FY 2005

This month, the federal government reported its third-highest budget deficit in history for fiscal year 2005, which ended on September 30. The deficit, at $318.6 billion, was 2.6 percent of gross domestic product. Bush administration officials praised the report, citing the improvement over last year's $412.8 billion deficit and are continuing to claim the president will still meet his goal of reducing the deficit in half by 2009. Yet as we have previously reported, President Bush's policies will drastically increase the deficit beyond 2009. This has been confirmed by the Congressional Budget Office, which has projected the deficit doubling to $640 billion in 2015; the national debt rising to $9.2 trillion; and interest paid on that debt almost tripling, going from $182 billion last year to $458 billion in 2015 if we continue the President's policies.

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Radical House GOP Group Gain Upper Hand, Push Budget Cuts

It seems the most "fiscal conservatives" in the House, the extremely right-wing Republican Study Committee, has gained the upper hand in their push for increased budget cuts in reconciliation. This week House GOP lawmakers will begin taking steps to cut as much as $50 billion from the FY 2006 budget. These cuts will effect areas such as health care programs for the poor, food stamps, and farm supports, and may also include across-the-board cuts in other programs. A month ago, when the RSC first called for stepped-up budget cuts in the wake of Hurricane Katrina, House leaders tried to terminate their efforts behind closed doors. However, now House leaders are embracing this call for extensive budget cuts. With the leadership in turmoil because of Majority Leader Tom Delay's (R-TX) indictment, leaders, according to the Washington Post, "had no choice but to firm up support with their conservative base... according to lawmakers and leadership aides." Part of what is driving the Republican Study Commitee, which is headed by Rep. Mike Pence (R-IN), is a concern regarding spending in the wake of Hurricane Katrina, which is projected to possibly exceed $200 billion. This group has, on occasion, criticized the administration and their Congressional colleagues for participating in what they call run-away spending. Since Bush came to office, federal spending has increased by approximately one-third, from $1.86 trillion to $2.47 trillion, and deficits have risen. What does not add up is that this same group supports the tax cut measure slated for passage in reconciliation, which amounts to $70 billion in un-offset federal spending. They also support the extension of Bush's 2001 and 2003 tax cut provisions, which would cost over $1 trillion in lost revenue over a decade. It seems that the $200 billion cost of Katrina - a one-time expenditure that will not add to the deficit for more than one year, is nothing but an excuse for these members to gain some traction for their real goal: shrinking the size of government significantly by defunding public programs which serve to help millions of people every year. It is a push for cold-hearted disinvestment in our country during a time when so many people -- both Katrina victims and others -- are in need. And it is masked in the cloak of "fiscal responsiblity." In reality, it would be difficult for the RSC's definition of fiscal responsibility to be any less responsible, both in regards in to the well-being of citizens and in regards to future deficit projections.

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Resource Center: New Nonprofit Gag Provision in House GSE Bill

A Resource Center devoted to information on H.R. 1461, the Federal Housing Finance Reform Act of 2005, a bill originally intended to reform Fannie Mae and Freddie Mac, which passed the House on Oct. 27. The bill now contains a provision that would disqualify nonprofits from receiving money from a new affordable housing fund if they have engaged in voter registration and other nonpartisan voter participation activities or lobbying for certain groups within 12 months of applying for the money. They would also be barred from these activities during the grant period, even if non-federal funds were used to pay for it. More specifically, the bill would sweepingly restrict any group that affiliates with an organization that engages in such activities from applying for funds under the affordable housing fund.

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Bills to Dismantle Government

Hurricane Katrina revealed more dramatically and tragically than ever before in recent memory just how much we need public institutions to protect the public and meet critical needs. There are bills pending in Congress that go in completely the wrong direction -- dismantling government rather than creating the public institutions we need. The common themes are (1) shutting down government programs through mandatory sunsets, and (2) giving the White House the power to reorganize government with no effective oversight from Congress.

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H.R. 973 - Program Reform Commission Act

Download bill text Version introduced in House

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H.R. 3277 - Federal Agency Performance Review and Sunset Act

Download bill text Version introduced in House

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