Portman Out, Nussle Tapped to Head OMB

On June 19, Office of Management and Budget (OMB) Director Rob Portman announced his resignation, effective in August. President Bush has chosen former House Budget Committee chairman Jim Nussle to be the next OMB director — a candidate whose reputation and policy record suggest the White House is prepared to clash with Democrats in Congress, particularly over the FY 2008 budget. Portman said he made the decision to leave OMB because he wanted to spend more time with his wife and children. White House Chief of Staff Josh Bolten said he had hoped Portman would stay for the rest of Bush's term but had compelling personal reasons to leave. As Budget Committee chairman, Nussle presided over the massive 2001, 2003 and 2005 tax cut bills and failed to usher through a budget resolution three out of the six years he chaired the committee. Nussle also supported radical budget process changes that would have, if enacted, cut public investments and opened the door to more irresponsible tax cuts. Nussle left Congress in 2006 to make an unsuccessful bid for governor of Iowa. While in Congress, Nussle was known for his combative style, earning him the nickname "Knuckles." He was part of a group of Republican representatives — the "Gang of Seven" — who tried to embarrass Democrats during the House banking scandal in the early 1990s. A particularly memorable sequence occurred when Nussle put a paper bag over his head on the House floor to caricature the House leadership's refusal to disclose which Democrats had overdrafts in the banking scandal. Timing of the Move Given the strong relationships Portman enjoys with members of Congress on both sides of the aisle and his months-long advocacy in Congress on behalf of the president's $2.9 trillion budget, the timing of the change at OMB appears less than ideal. The changing of the guard, which came as a surprise to almost everyone outside the White House, will occur during the heat of the FY 2008 appropriations season, as the first of 12 spending bills are just starting to make their way through Congress. The Bush administration has threatened to veto any bill that exceeds the president's discretionary spending requests, with one threat — against the recently-passed $36.3 billion Homeland Security bill — issued on the grounds that "it includes an irresponsible and excessive level of spending." The administration had requested $34.2 billion. The $2.1 billion difference represents 0.2 percent of total discretionary spending. While the change at OMB could exacerbate tensions in the relationship between the president and Congress, there maybe more to the move for Portman than spending more time with his family. Portman, who is regarded as one of the most talented and respected members of the GOP, may well be looking toward a return to electoral politics. He served for six terms as a Congressman from Cincinnati and plans to return to Ohio in August. President Bush is particularly unpopular in Ohio, which has seen thousands of jobs in its eroding manufacturing base cut or shipped overseas. Portman may be leaving quickly to break ties with the Bush administration in order to try to save a chance at running for office in Ohio. With the next statewide race not until 2010, his departure now could help his cause. Process and Politics Further complicating matters is not just the timing but also the process and politics surrounding the confirmation of Nussle. The Senate Budget and Homeland Security and Governmental Affairs Committees have joint jurisdiction over the OMB director confirmation process. If both committees take action on the nomination (whether favorably or not) within 30 days of each other, the nomination moves to the floor for consideration by the full Senate. In the two most recent OMB director nominations (for Bolten and Portman), the confirmation process took five weeks. Both Bolten and Portman were non-controversial nominees. This cannot be said about Nussle. Reaction on Capitol Hill to word of his nomination was swift and strong among some key budget process committee chairs:
  • House Appropriations Chair David Obey (D-WI) told the New York Times: "Nussle is ideological as hell...[the nomination is] an act of absolute confrontation."
  • Senate Budget Chair Kent Conrad (D-ND) commented in the Washington Post: He's "an intense partisan more given to confrontation than cooperation — he's coming here with baggage" and could have problems with his confirmation.
  • Another Democratic senator said the announcement was made at the Democrats' regular Tuesday policy lunch and told Roll Call: "There was an audible reaction" and called Nussle a "bare-knuckled brawler ... I don't think he's got very high standing with anybody in the Congress who's worked with him."
  • However, House Budget Chair John Spratt (D-SC) said in a statement: "Our relationship was one of comity and cooperation ... Even though Jim and I disagreed on policies, the disagreements never were personal. Indeed, Jim was a fair and honorable chairman."
Since Nussle is more controversial and time is limited before the upcoming month-long August recess (when Portman plans to leave), it may be difficult for the Senate to pass a final verdict on Nussle before the fall. On the other hand, the Senate may act quickly, but use Nussle's confirmation battle to serve as a proxy fight between Bush and Congress on fiscal issues. Whatever the outcome, Nussle's nomination is likely to heighten tensions over the federal budget process between the White House and Congress, who are already locked in a heated struggle over federal budget priorities and government spending.
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