OMB chief offers support to House GOP on spending limits

Office of Management and Budget Director Mitch Daniels met with House Republican Conference members Thursday, offering support for conservative GOP efforts to hold the line on fiscal 2003 spending and the administration's opinions on the fiscal 2002 supplemental currently in conference.

He said the president wants to maintain spending at the level in the House-passed budget resolution, some $759 billion, which includes a $10 billion contingency fund for defense.

On that issue, he said the White House was preparing to release the funds to appropriators to help them write the 2003 Defense spending bill, which is due for a subcommittee markup next week. Daniels mentioned that OMB would be making a specific request for those funds "soon," possibly by the end of the week.

Daniels also praised House Republican leaders for not caving to Senate demands to use an extra $10 billion for appropriations bills.

"The House leadership has been terrific," noted Daniels, who said Republicans in the meeting "sent a strong message" that they would back the president later this year if he vetoed any bill because it spent too much money.

On the supplemental, Daniels was less specific about what must be kept out of the supplemental in order to prevent a veto of that legislation. However, he said the administration's central priority was securing the $14 billion for defense, which both bills provide.

He also noted the administration's opposition to lawmakers' projects funded in the Senate bill and to loading up the conference with money that cannot be spent before the end of FY02 anyway, including extra money for homeland security.

"It's not a disagreement over the issue," said Daniels, noting he would rather see that money included in 2003 appropriations bills.