Last week the Senate confirmed Joshua Bolten as the new Director of the Office of Management and Budget. His confirmation hearing before the Senate Governmental Affairs Committee was on Wednesday, June 25. The Committee reported his nomination out unanimously by voice vote on Thursday, and the full Senate voted to confirm him later that same day without any debate. The Senate’s speed demonstrates that, while some Senators may disagree with his viewpoints, there were no serious questions about Bolten’s qualifications for the position. Bolten replaces Mitchell Daniels as the new OMB Director. Daniels left the position to run for governor in his home state of Indiana. Daniels had an often-troubled relationship with both Republicans and Democrats in Congress. Bolten, a former executive at investment bank Goldman Sachs, has said that he hopes to mend fences with top lawmakers. At Bolten’s confirmation hearing, several Democratic Senators questioned him about the growing deficit, which they implied was a result of the massive tax cuts enacted under the current administration. As President Bush’s deputy chief of staff, Bolten is credited with working behind-the-scenes to pursue the administration’s tax cutting agenda. Bolten concurred that the deficit needed to be reduced, but also argued that the tax cuts were the right thing to do to strengthen the economy. He said that Bush’s plan to cut discretionary spending and cut taxes will be the right ticket for lowering the deficit. Some Senators asked what spending cuts would be needed, but Bolten refused to identify specific areas for reduction. When Sen. Mark Pryor (D-AR) asked whether he sees a need for a tax increase to help reduce the deficit, Bolten said no. He argued that a tax increase “will actually cause a contraction of economic growth." At the same time, Bolten did not call for additional tax cuts. He said, "The President at this point has no plans for a future tax cut beyond those included in his budget." The next day, however, Treasury Secretary John Snow refused to rule out the possibility that more tax cuts might be necessary if growth fails to meet expectations. "I think it'd be too early to rule anything in or rule anything out," Snow said. Grover Norquist, the conservative head of Americans for Tax Reform and a person close to the administration, has publicly called for additional large tax cuts with at least one each year. It is unclear how this potential conflict will be resolved. Although during the confirmation hearing Bolten agreed that the deficit should be reduced, he did not think the current deficit, now estimated to be $400 billion for the current fiscal year presents a “long-term detrimental effect on our economic situation.” Sen. Carl Levin (D-MI) pressed him on this, wondering what level the deficit needs to go to before it becomes a serious problem. Bolten avoided answering, even when Levin gave a specific number of $500 billion. Bolten simply said the current deficit is “manageable.” Sen. Thomas Carper (D-DE) told Bolten he has been “sorely disappointed by the direction of our budget policy” since there was a projected $5.6 trillion surplus just two years ago. Pointing to record deficits and mounting debt, Carper said, "I sure would love it if we didn't just talk a good game." While the focus of the confirmation hearing was on budget issues, other important topics also came up. Governmental Affairs Committee Chair Susan Collins (R-ME) noted that while OMB’s budget functions are important, so too are management activities. Bolten concurred and noted that he will place a priority on continuing the good-management initiatives launched by Daniels. Sens. Frank Lautenberg (D-NJ), Daniel Akaka (D-HI), and George Voinovich (R-OH) each raised concerns about the administration’s competitive sourcing initiative, which could have the effect of out-sourcing or privatizing many governmental functions. Voinovich said the change to OMB’s Circular A-76 process is “causing unease” inside the federal workforce and announced he would explore the issue at a July 24 hearing. Bolten assured the Senators that he did not intend to require competitive bids on any “inherently governmental” functions. Earlier this month, the Senate confirmed Clay Johnson as OMB's deputy director for management; however, the deputy director position is still vacant.