Bush and GOP Leaders Call for More Budget Cuts

In a news conference yesterday, President Bush put pressure on Congress to pay for as much of the hurricane relief as possible by cutting spending. He urged that funding be cut in both non-defense discretionary spending and entitlement spending. His comments prompted House Budget Committee Chairman Jim Nussle (R-IA) to claim that he will seek even more cuts in entitlement expenditures than those laid out in April's budget resolution. Currently the resolution instructs that entitlement spending be cut by $35 million over the next five years. Nussle said in an interview that Gulf Coast reconstruction costs should be partly offset through across-the-board reductions in discretionary spending, beginning with a 2 percent "haircut" from the $843 billion agreed to under the FY06 budget." The Coalition on Human Needs has an analysis highlighting how those cuts will affect human needs programs. One has to wonder where these gestures of fiscal responsibility were when Congress passed trillions of dollars worth of tax cuts in 2001 and 2003, which were not offset by any spending cuts. That Congress also wants to push ahead with extending reduced rates for capital gains and dividends taxes -- tax breaks which benefit primarily the wealthy -- further serves to illustrate that these spending cuts could be avoided. Bush also asserted yesterday that even though Congress has a "diminished appetite" for overhauling Social Security, he has not taken the issue off the table. Bush said, "Social Security for me is never off. It's a long-term problem that's going to need to be addressed." However, the solutions he claimed to support a few months ago would lower guarenteed benefits and cost $700 billion over the next decade. Not exactly a great way to cut down federal spending.

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OMB Watch Comments on FEC's Review of its Electioneering Communications Exemption for 501(c)(3)s

OMB Watch filed comments to the FEC on September 30, 2005 asking the agency to continue protecting the right of nonpartisan organizations to broadcast grassroots lobbying and educational messages that refer to federal office holders during the 60 day period before an election or 30 days before a primary. See the full text of the comments.

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Watcher: October 4, 2005

Federal Budget
  • Scrambling to Offset Katrina Costs, Republicans Continue Dangerous Fiscal Policy
  • Congress Passes Stark Continuing Resolution; Many Programs Will See Funding Cuts

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Goverment Cracks Down on Fake Katrina Charities

From the Washington Post Concerned that the Gulf Coast hurricanes are spawning an unprecedented number of bogus appeals to help victims, law enforcement officials and charities have launched aggressive efforts to prosecute fraud. State and federal officials have filed charges in at lease four cases involving fraudulent appeals. They expect that number to rise sharply in the coming weeks as investigators examine thousands of suspicious fundraising Web sites, "phishing" schemes that steal financial information from donors and people falsely claiming to be raising money for hurricane funds.

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New Study Shows Importance of Louisana Nonprofits

According to a new study by the Urban Institute, nonprofits in Louisiana and New Orleans, many of which were devastated by Hurricane Katrina, play a critical role in providing health and human services to residents. "The Aftermath of Katrina: State of the Nonprofit Sector in Louisiana" analyzes the state of nonprofits in Louisiana. Louisiana is home to about 3,200 charities, which spend a total of $8.7 billion each year and report combined assets of $13.8 billion.

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Latest Watcher

Be sure to check out the latest issue of our biweekly newsletter, The Watcher. Articles related to Hurricane Katrina and the aftermath include the following: EPA May Be Next for Power to Waive Law Scrambling to Offset Katrina Costs, Republicans Continue Dangerous Fiscal Policy Katrina Update: Government's Inadequate Response Continues Early Reports of FEMA Reimbursement Policy Misleading

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Latest Watcher

Be sure to check out the latest issue of our biweekly newsletter, The Watcher. Reg policy articles this time: EPA May Be Next for Power to Waive Law House Effort to Create Sunset, Results Commissions Meets Resistance

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CARE Act Re-Introduced in the Senate and House

On September 27, Sens. Rick Santorum (R-PA) and Joe Lieberman (D-CT) introduced S. 1780, the Charity, Aid, Recovery and Empowerment Act (CARE). The legislation includes charitable giving incentives such as tax-free charitable contributions from Individual Retirement Accounts (IRA), and partial deductions of charitable contributions for taxpayers who do not itemize their tax returns. In an attempt to neutralize the charitable reform package expected to come from the Senate Finance Committee, Santorum also included accountability provisions designed to improve oversight of charities.

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Congress Passes Stark Continuing Resolution; Many Programs Will See Funding Cuts

With the end of the fiscal year looming before them, lawmakers were forced to adopt a stopgap funding measure last week to avoid a government shutdown. The measure -- called a continuing resolution (CR) -- will fund government operations for the next seven weeks. Because of the unusual structure of the CR, however, it will result in the dramatic under-funding of programs, setting spending levels at the lowest of three possible levels: the enacted totals for Fiscal Year 2005 (FY05), or either of the completed levels of the House or Senate FY06 spending bills.

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Supreme Court, FEC Take on Regulation of Issue Advocacy

On Sept. 27, the Supreme Court accepted an appeal from the Wisconsin Right to Life Committee (WRTL) that challenges the constitutionality of federal campaign finance restrictions as applied to genuine grassroots lobbying communications. Oral argument in the case is expected in early 2006. Meanwhile, more than 100 nonprofits submitted comments to the Federal Election Commission (FEC) on its reconsideration of an exemption from its "electioneering communications" rule for groups that are exempt under Section 501(c)(3) of the tax code.

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