wfn.org | Senate scales down, passes faith-based initiative

["NewsDesk" <NewsDesk@UMCOM.ORG>]

April 16, 2003	     News media contact: Joretta Purdue7(202)
546-87227Washington	10-71B{230}

WASHINGTON (UMNS) - A bill providing tax breaks for charitable giving and
more than $1 billion for social service grants to states has passed the
Senate. 

Bearing almost no resemblance to President Bush's "faith-based initiative"
proposal, the stripped-down piece of legislation encourages giving to
charities by granting non-itemizing taxpayers a tax deduction of up to $250
for their gifts. The Senate passed the bill in a 95-5 vote April 9.

The tax breaks in the bill include a provision that allows people to roll
over their individual retirement accounts directly to a charity without
paying a tax penalty.  The bill also reduces capital gains taxes on land
gifts to conservation groups. Other incentives relate to donations to food
banks and provisions that would help low-income people set up savings
accounts.

In addition, almost $1.4 billion during the next two years would be added to
the block grant that helps states fund social service programs, and $150
million would be allocated each year to assist small-community and
faith-based organizations in competing for federal funds.  

The Senate approved the bill once controversial provisions related primarily
to hiring rules were dropped. It now goes to the House of Representatives,
where bipartisan passage is expected. Objections based on church-state
separation issues had halted the faith-based initiative in the Senate last
year, and the bill was stalled until sponsors dropped provisions that critics
said allowed for federally supported proselytizing.

The bill originated as President Bush's faith-based initiative - a plan to
encourage more faith-based and community organizations to participate in
providing social services through federal grants. Although often described as
a 10-year, $90 billion proposal, administration officials insisted that it
would not have used new money. Instead, they said, it would have removed
barriers to religious groups seeking federal support for social service
plans.

At the time, officials of the United Methodist Board of Church and Society
and other agencies gave the concept a mixed review because of concerns about
maintaining constitutional separation of church and state. In June 2001, the
board joined with two other United Methodist agencies - the Board of Global
Ministries and the General Council on Finance and Administration - in
publishing a guide to faith-based initiatives because of the many questions
being asked. 

A series of executive orders were issued last year to accomplish the
president's plans to "even the playing field" so religious organizations
could compete with non-religious groups for money to fund such services as
welfare-to-work training, substance abuse programs, day care for poor
children and housing for the needy. 

Two differences exist between executive orders and congressional legislation:
Executive orders are prepared without public hearing and debate, and
subsequent presidents can undo them.

One of this bill's sponsors, Sen. Rick Santorum (R-Penn.), said he also plans
to support legislative proposals for expanding faith-based groups' access to
federal grants. He has promised to try adding those proposals to welfare
legislation that will be considered later in the session.

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United Methodist News Service
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