Josh Bolten Nominated as New OMB Director

As President Bush gears up for his re-election bid, a number of senior level personnel changes are occurring. One key change is the replacement of OMB Director Mitch Daniels, who reportedly is headed back to Indiana to take a run at the governorship. The President has nominated the 48-year-old Joshua Brewster Bolten to replace Daniels. As his name was announced by the White House, there seemed to be a general murmur of “Josh Who?” Bolten, a graduate of Princeton University and Stanford Law School, has been a loyal lieutenant to Bush since Bush’s presidential campaign, when he was the Policy Director both for the campaign and the transition phase between the election and Bush taking office. Since then, Bolten has been the White House Deputy Chief of Staff and has carried considerable clout. As Bush said, "[He's one of my] closest and most trusted advisers." Unlike Daniels, Bolten has shied away from the media and from being the center of attention. Some claim he is notorious for being inaccessible and operating in secret, without openness or transparency, evidenced in part by his unwillingness to grant interviews, much less letting his picture appear on public and government websites. He was a member of the National Energy Policy Development Group, whose records were refused to the public despite a subpoena. His few public appearances attempt to give a sense of moderation. As he told a U.S. Conference of Mayors Advisory Board at a dinner on January 18, 2001, “we are not your typical slash and burn Republican administration.” However, his actions seem to defy this tone of moderation. He has reportedly been the White House "traffic cop" for every Bush briefing, coordinated the legislation creating the new Department of Homeland Security including the provisions that increase government secrecy, coordinated the Columbia shuttle disaster response, and was one of the advisors present at the President's deliberation to launch first strike against Iraq. Apparently, he played a key role in recent changes to the administration’s economic team, and was one of the chief architects of the administration's tax-cutting agenda. There are many differences between Bolten and his predecessor, Daniels. Unlike Daniels, Bolten shuns the media. Whereas Daniels is a fiscally conservative numbers guy uncomfortable with ideological driven conversations, Bolten is strong on ideology. Given these differences, and given that not much is known about Bolten, it remains uncertain what style he will embrace at OMB, assuming he is confirmed as the director. Daniels antagonized members of Congress, particularly appropriators, with his zeal to cut spending. As a result, he was able to deflect congressional anger away from the President on to himself. Will Bolten be the same way? Since Bolten has strongly endorsed past and future tax cuts, it is inevitable that he will face a very difficult task as head of OMB. By all estimates, the deficit will be growing, possibly as high as 4% of GDP, breaking historical records. This will ultimately put pressure on Bolten to reduce the deficit, but how he will proceed is uncertain given his commitment to additional tax cuts. In addition, the budget crunch comes at a time when domestic priorities are being squeezed and future obligations are mounting. In his White House role, he chaired the Domestic Consequence Group, the White House working group responsible for the $15 billion airline bailout in 2001. But as OMB Director, will he be able to provide such sweetheart deals? Daniels leaves a legacy of strength on management initiatives, putting major emphasis on e-government initiatives, procurement reforms, and other efforts. Will Bolten do the same? Daniels also used the Office of Information and Regulatory Affairs to wage an anti-regulatory campaign heavily favoring corporate interests. The regulatory attack has been couched in non-ideological terms, such as using “good science.” But Bolten has reportedly helped the Pharmaceutical Research and Manufacturing of America deal with one regulatory matter. Will the gloves come off under Bolten’s tenure? While we may disagree with the direction that the Bush administration economic team is leading the country, we believe it essential that OMB operate in the sunshine with strong, effective leadership. We are eager to see how Bolten views his new, more public role, and to see if his past penchant for secrecy, deficit-increasing tax cuts, and regulatory attacks will be reversed.
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