[Congressional Record Volume 141, Number 29 (Tuesday, February 14, 1995)]
[Senate]
[Pages S2595-S2596]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           A NEW DIRECTOR FOR THE CONGRESSIONAL BUDGET OFFICE

  Mr. DORGAN. Mr. President, let the record show that my colleague from 
Connecticut crowed, as he said he would.
  It is probably appropriate that he talked about basketball because he 
will understand that one important element of the game is a referee. 
Nobody would go to a basketball game and wonder about the results, if 
he did not think the referee was going to be fair. Give me a referee, 
and I will win any game I ever played.
  I want to talk about referees for a second, though. One of the most 
important appointments that we are going to make in Congress is going 
to be the appointment of somebody to head the Congressional Budget 
Office. This person will, in effect, be the referee on budget issues, 
tax issues, economic issues. The referee. How can our referee, the 
Congressional Budget Office, discharge its obligation effectively? 
Well, by having the confidence of the Members of the Senate that the 
CBO will do so impartially and in a manner that is eminently fair.
  For that reason, the law with respect to the Congressional Budget 
Office says that the Director of the Congressional Budget Office shall 
be chosen ``without regard to political affiliation and solely on the 
basis of his fitness to perform his duties.'' That language is not an 
accident. That is written into the law for a very specific purpose. 
This is a critical appointment, and the appointment must be of someone 
of great substance, first of all, and second, somebody who will be 
respected as fair, nonpartisan.
  We understand that the majority has decided to appoint Prof. June 
O'Neill to that post. I will not stand here and in any way try to 
tarnish the reputation of Professor O'Neill. I have never met her and I 
do not know her. I come to express great concern about this appointment 
and to say, along with my colleague, Senator Conrad, I am sending a 
letter to the President pro tempore asking that he not effect this 
appointment of Professor O'Neill to head the CBO.
  Senator Exon, the ranking minority member of the Budget Committee, 
said in his letter to the chairman of the Budget Committee: ``It has 
been our recommendation that we should seek additional applicants 
before reaching a decision.''
  They are not comfortable with this appointment, and I am not 
comfortable with it for several reasons. I do not know much more than 
what I have read, but if what I read is accurate, then I am very 
concerned with the notion that they are finding someone who believes 
that when you score issues, they ought to be scored dynamically.
  What is dynamic scoring. This theory says that if you cut tax rates, 
economic activity will increase to such an extent that the Government 
will actually collect more revenue. If you cut capital gains taxes, for 
instance, the 
 [[Page S2596]] Federal Government will supposedly collect a lot more 
money. Well, we have seen that sort of dynamic scoring in the past. 
This theory held sway in 1980 and 1981, and the result--$3\1/2\ 
trillion later--was massive hemorrhaging of red ink in our Government. 
That is the result of dynamic scoring.
  Well, that is the kind of refereeing I do not want to see happening 
at CBO. I want scoring to be professional and to be nonpartisan. There 
is a question about the Consumer Price Index--do we put somebody at the 
head of CBO who believes the CPI radically overestimates inflation, as 
Alan Greenspan said? The consequence would be to reduce the deficit, if 
you can say the CPI is overstated. And you can cut Social Security 
payments and increase taxes, as well.
  I am concerned about this appointment, and I hope it will be held at 
this point until other Members of the Senate can review the records and 
determine whether they think this candidate has the credentials and 
capability and the nonpartisan approach we would expect for somebody to 
head the Congressional Budget Office.
  Mr. President, I yield to my friend, Senator Conrad from North 
Dakota, for further comments on this issue.

                          ____________________