OMB chief confident House will pass Bush's budget

Following a meeting Thursday with the House Republican Policy Committee, Office of Management and Budget Director Mitchell Daniels declared himself "more than optimistic" the House will pass a fiscal 2002 budget resolution that tracks President Bush's budget proposal, and expressed confidence that, even with the recent economic slowdown, "there is far more than enough room [in the budget] to give overcharged taxpayers a refund."

House Budget Committee Chairman Jim Nussle, R-Iowa, confirmed the budget resolution his committee marks up next Wednesday will replicate Bush's tax and spending numbers. Nussle said, "the tax number in the budget resolution will be $1.62 [trillion]," and the discretionary spending total will be $661 billion. The House floor vote, he said, will be timed "to complete the budget by the 28th." Nussle added that he has spoken with appropriators about using Bush's spending number, and they told him "it is one they can live with, work with and achieve and that the President will enforce."

As for whether the House should go higher than $1.6 trillion on the tax cut number, Nussle indicated he wants to provide "as much flexibility as possible." Past budget resolutions have included reserve funds for more tax relief if the Congressional Budget Office's mid-session review forecasts a larger surplus than is now projected. Daniels suggested, "It's at least as likely the surpluses will be larger over the next 10 years than smaller." Should Congress want to cut taxes further based on larger surplus projections, Daniels said the administration will "remain flexible. If that happens, you would probably hear a lot of calls for a 're-look,' and we'd listen to that." But Daniels continued touting the president's $1.6 trillion tax cut figure as "the right size."

Daniels shot down the idea of a "trigger" tying tax cuts to future debt reduction and surplus targets--something many Senate moderates favor. "The more this notion is discussed, the more the flaws become apparent," he said. In an interview with CongressDaily Thursday, a leading Repbulican moderate, Rep. Sherwood Boehlert of New York, said House moderates "are still enamored [by] the concept," but added, "We are not going to expend excess energy on something that is not doable." Whether the trigger is ultimately accepted, Boehlert said, "all depends on how it plays out in the Senate."

Nussle confirmed Thursday that he will not include trigger language in the House budget resolution; earlier this week, Senate Budget Chairman Pete Domenici, R-N.M., indicated he is likely to have some type of trigger language in the budget plan he brings to the floor, given its importance to key moderates such as Budget member Olympia Snowe, R-Maine.