Newly-minted OMB director Jim Nussle dropped his charm offensive as nominee like a rock yesterday, insisting that the president will fight for this $933 billion domestic discretionary topline, come what may from Congress. His rhetoric with reporters raised the specter of a government shutdown, to which he replied, "I don't choose to speculate about a train wreck."

Instead, he sought to bring clarity and harmony to the discussions of when Congress and the White House will be able to come together and complete work on a budget for a fiscal year that begins in a dozen days, referring to how long a continuing resolution (CR) might be needed to tide them over and keep the government open during peace talks.

"If you make the CR go all the way to Thanksgiving ... that provides different pressure points than if you make the CR just go for about a month. So where are the backstops to help produce pressure in order to help produce results, is really often what conversations [involve]."

Hard to say if this is empty talk... or if Nussle's glass is really full of it. It seems to be emitting smoke signals.

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Take nine unfinished Senate appropriations bills, throw in twelve unscheduled conference negotiations, add a handful of presidential veto threats thus far and counting, and count at most a dozen legislative days until the end of the 2007 fiscal year. You do the math -- it equals at least one continuing resolution (CR).

Most discussions center around a CR that would give Congress until Nov. 9 or 16 to complete work on the FY 2008 budget. Without a stopgap agreement by Oct. 1, government agencies could not operate at full strength after the start of the new fiscal year.

Congress had originally hoped to adjourn at the end of October. But its congested agenda -- including another Iraq war supplemental funding bill, an AMT package, and authorizing measures such the FAA, the farm, and SCHIP bills, not to mention the budget, of course -- makes it likely that Congress will be at work beyond Thanksgiving and possibly until close to the bitter end, shortly before Christmas.

Just like the rest of us.

Yesterday, the Senate voted 69-24 to confirm former Rep. Jim Nussle (R-IA) as director of OMB. Every GOP Senator voted in favor of Nussle; 23 Democrats did likewise while 23 opposed him.

The vote sets up a looming battle between Congress and the Bush administration over how much to spend on the 12 FY 2008 appropriations bills. Congress' budget resolution calls for $22 billion more in overall discretionary spending than the $933 billion the president has requested, drawing veto threats from Bush. Additional struggles are expected over extending farm subsidies, SCHIP, and renewing more than 40 expiring tax cuts.

The Center on Budget characterized the looming budget fight as follows:

... the Administration is insisting on cuts and is threatening to veto appropriations bills unless those cuts are made. Claims that Congress's rejection of those cuts represents "spending lust" are unfounded. The question is not whether there should be large increases in domestic appropriations — since large increases are not on the table — but whether domestic programs should be cut (as the President demands) or increased modestly (as the Congressional majority favors)... All of this indicates that in the emerging battle over the fiscal year 2008 appropriations bills, the Administration and its supporters are misrepresenting a disagreement over budget priorities as a disagreement over fiscal responsibility.

Among the more impassioned statements from Senators such as Budget Committee chair Kent Conrad (D-ND), Appropriations chair Robert Byrd (D-WV), and Majority Leader Harry Reid (D-NV) seeking to signal their disapproval of the Bush fiscal policy and performance was this one from freshman Sen. Bernie Sanders (I-VT): "We need a budget director who will make this president understand what the ordinary American family is going through. Unfortunately, there's nothing in former Congressman Nussle's background to suggest that he is that person."

As our name suggests, we will be watching carefully to see if Mr. Nussle is more interested in compromising with Congress and completing work on the FY 2008 budget, or in confrontation, conflict, continuing resolutions, and threatening to close down the federal government.

President Bush, August 2, 2007:

Unfortunately, Democratic leaders in Congress want to spend far more. Their budget calls for nearly $22 billion more in discretionary spending next year alone. These leaders have tried to downplay that figure. Yesterday one called this increase -- and I quote -- "a very small difference" from what I proposed. Only in Washington can $22 billion be called a very small difference.

Far be it from me to suggest that $22 billion isn't a lot of money. I will, however, agree that a difference of $22 billion can be "a very small difference." Allow me to illustrate:

In the Huffington Post, Sen. Bernie Sanders (D-VT) objects to OMB Director nominee Jim Nussle.

The Senate votes Tuesday on the nomination of former Iowa Congressman James Nussle to be the White House budget director. Personally, I like Jim Nussle. We came to Washington together and I worked with him for 16 years in the House of Representatives. He's smart. He is passionate. My strong opposition to Jim Nussle becoming Director of the Office of Management and Budget has much less to do with Mr. Nussle and much more to do with the current failed trickle-down economic policies of the Bush administration. The problem is that the president and his advisors have become increasingly isolated and out of touch with the economic realities facing ordinary Americans. While the middle class continues to shrink, poverty is increasing, the gap between the rich and everyone else is growing wider and wider, and millions of Americans are working longer hours for lower wages.

OMB Watch has released a statement on the Nussle nomination.