OMB Director Daniels Resigns . . . to Run For Indiana Governor?

U.S. Office of Management and Budget (OMB) Director Mitchell E. Daniels Jr., announced yesterday that he will step down from his post within the next 30 days. He is expected to soon launch a bid for governor of his home state of Indiana.

Nicknamed "the Blade" by President Bush for his budget-cutting penchant, Daniels was popular with the President and Republicans, but mocked by Democrats who clashed constantly with the diminutive, spirited budget director. Sen. Robert Byrd of West Virginia, the ranking Democrat on the Senate Appropriations Committee, called him “big mouth” and "Little Caesar."

It is expected that Daniels, 54, a former aide to Ronald Reagan, will be replaced by Bush’s Texas chief of staff and longtime friend, Clay Johnson, who was recently appointed to be Daniel’s deputy.

"The president appreciates his service to the nation," White House Spokesman Ari Fleischer said of Daniels. "The president will miss him."

Democrats were less friendly. "By OMB's own estimates, Daniels has presided over an era which has seen a projected $5.6 trillion [surplus] in 2001 turn into a $2.2 trillion projected deficit today," said David Sirota, Democratic spokesman for the House Appropriations Committee. "In short, Mitch Daniels is the clown that turned our fiscal house upside down. Let us pray that the era of deficit creation and fiscal destruction are over."

By all accounts, Daniels appeared to enjoy the battles with lawmakers, once quipping that their motto is, "Don’t just stand there, spend something."

With this departure, most of Bush’s economic team has turned over. But unlike the departures of Treasury secretary Paul H. O'Neill and economic adviser Lawrence B. Lindsey, Daniel’s decision appears to be entirely voluntary.

A former Eli Lilly & Co. executive, Daniels has been flying home on weekends to Indiana where his wife and daughters live. There is continued speculation that he will challenge former congressman and 2000 nominee David McIntosh for the GOP Indiana gubernatorial nomination. Democrat Frank L. O’Bannon is retiring.

You may like these other stories...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 17
In this exciting presentation Excel expert David H. Ringstrom, CPA shares tricks that you can use with pivot tables every day. Remember, either you work Excel, or it works you!
Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.