To: KLP who wrote (559 ) 5/6/2003 12:52:47 PM From: LindyBill Respond to of 793964 White House Budget Director to Resign By THE ASSOCIATED PRESSYou would think he is a "Shoo-in" for Governor. WASHINGTON (AP) -- Budget director Mitch Daniels moved toward an expected run for Indiana governor, announcing Tuesday that he will leave President Bush's administration within the next 30 days. Daniels has been a favorite of conservatives for his frequent clashes with Congress over spending. Assigned the role of keeping the price tag of spending legislation in check, he has had testy relationships with lawmakers of both parties from the House and Senate committees that oversee expenditures. Clay Johnson, a longtime Bush friend whom the president named to the No. 2 job at the budget agency, is in line to replace Daniels, according to several officials who spoke on condition of anonymity. But two Republicans, also speaking on condition of anonymity, said the White House had been unable to clear his nomination past key members of the Senate. These officials declined to say what objections were raised. Daniels has held the budget post since the beginning of the Bush administration, and his departure will mean that the president's entire initial economic team is gone. Fleischer said that no decision had been made on a successor. Within the past six months, Bush replaced his first Treasury secretary, Paul O'Neill, with John Snow; and his former head of the National Economic Council, Lawrence Lindsey, with Stephen Friedman. But unlike O'Neill and Lindsey, Daniels was not forced out of the job. Daniels announced his plans to resign in a meeting of senior White House aides. ``The president appreciates his service to the nation,'' press secretary Ari Fleischer said. ``The president will miss him.'' His run for the statehouse had been widely anticipated. Daniels was not expected to formally announce his candidacy until this summer, and those close to him emphasized that a final decision had not yet been made. Under Indiana law, the current governor, Democrat Frank O'Bannon, is limited to two terms and cannot run for re-election in 2004. Several Republicans have announced plans to pursue the statehouse job, including former Rep. David McIntosh, the party's 2000 nominee. Two Democrats are seeking their party's nomination -- State Sen. Vi Simpson and former state and national Democratic chairman Joe Andrew. Daniels' departure comes as the White House is having a hard time winning congressional approval for its economic stimulus and tax-cut package. He once accused New Yorkers of ``a little money-grubbing game'' for pursuing $20 billion Bush promised -- and later provided -- to rebuild from the Sept. 11 attacks. He called congressional mandates on federal agencies ``Lilliputian do's and don'ts,'' and said, in The Wall Street Journal, about lawmakers, ``Their motto is, 'Don't just stand there, spend something.' This is the only way they feel relevant.'' Even so, Daniels showed few signs of backing down and seemed to relish his job as administration tightwad. ``The only words I've said that contribute to tension are 'no' and 'enough,''' he said. Daniels, 54, was born in Monongahela, Pa., but moved with his family to Indiana at an early age. After graduating from Princeton University, he began working for then Indianapolis Mayor Richard Lugar, and journeyed with him to Washington when the Republican became a senator in 1977. Daniels was also a political adviser to President Reagan before returning to Indiana, initially as vice president of the conservative Hudson Institute think tank. He then joined the Eli Lilly and Co., holding various top jobs at the pharmaceutical giant before becoming budget director. In his more than two years as budget chief, Daniels has rented a one-bedroom Washington apartment and commuted home on most weekends to see his wife and four daughters. When at home in Indianapolis, he has made occasional public appearances that fed speculation that he was interested in keeping his name in the local limelight in case he decided to run for governor.nytimes.com