Administration Initiative to Eliminate Improper Payments Starts to Come into Focus

On March 22, the Office of Management and Budget (OMB) released new guidance for implementing President Obama's recent Executive Order 13520, which instructs the federal government to reduce improper payments to individuals and businesses. The initiative attempts to use transparency, public participation, and executive branch accountability to reduce "payment errors" and eliminate "waste, fraud, and abuse" in major federal programs. The guidance, however, is incomplete, and OMB will have to work to fill out the program's details.

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Commentary: Why Discretionary Budget Caps Are Fiscally Irresponsible

With many families around the country facing financial hardship, fiscal hawks on Capitol Hill have begun ramping up their rhetoric: If America's families are forced to make hard decisions and cut back, they argue, why shouldn't their elected leaders do the same? During the week of March 15, Sens. Jeff Sessions (R-AL) and Claire McCaskill (D-MO) introduced an amendment to H.R. 1586 that aimed to give teeth to that rhetoric. The amendment's effects on the nation's long-term debt would have been minimal, while its impacts on millions of Americans would have been severe. The amendment ultimately failed on the Senate floor.

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Recent GAO Reports Show Need for Better Data on Tax Expenditures

Two recent reports released by the Government Accountability Office (GAO), which examine the effectiveness of tax credits that target poverty and unemployment in economically distressed areas, show that Congress must require better data collection to properly assess tax expenditure programs.

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More Action Is Needed to Improve Recovery Act Data Quality

The Recovery Act may be a great step forward for spending transparency, but it is also exposing the problems of obtaining quality recipient reporting. Two new government reports show that recent revisions and additions to Office of Management and Budget (OMB) rules on recipient reporting are not necessarily "magic bullets" for addressing reporting errors. The reports also make clear that ensuring that recipients have a clear understanding of existing guidance is a crucial aspect of any data quality improvement effort.

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Commentary: Security Contracting and the Dilemma of Defining an Inherently Governmental Function

Later in March, the Obama administration plans to release new guidance to federal agencies on which jobs the government can and cannot outsource to the private sector. The federal government's latest effort to better define what qualifies as an inherently governmental function should theoretically have significant consequences for reconstruction efforts in Iraq and Afghanistan, specifically regarding security contracting. However, change is unlikely.

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Commentary: Celebrating One of the Recovery Act's Legacies: Transparency

Feb. 17 marked the one-year anniversary of the American Recovery and Reinvestment Act, commonly called the Recovery Act. Both political parties celebrated the occasion with partisan attacks. Democrats heralded the act as having saved the nation's economy, while Republicans savaged it for being an expensive government program with little to show by way of jobs. While the two parties can argue over how effective the act actually has been, both can agree on one thing: the lasting legacy of the Recovery Act’s transparency provisions.

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The Recovery Act Spending That Wasn't There

Recovery Act recipient reporting has received a great deal of attention in the media, and while some of this coverage has been critical (reporting on non-existent congressional districts or ZIP codes, unreliable job creation numbers, etc.), many news articles portray comprehensive oversight of the act because of transparency requirements in the law. However, approximately two-thirds of the spending in the Recovery Act bypasses these requirements, leading to a dearth of information about how the money is being spent. As time passes and Recovery Act spending continues, this lack of data is becoming more apparent, as highlighted by a recent Internal Revenue Service (IRS) report showing that millions of dollars in Recovery Act tax breaks are vulnerable to tax fraud.

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