Obama: Stimulus not as big as some want

by Frank James

President-elect Barack Obama said he expected his economic stimulus package wouldn't be near the top end of economists estimates because of growing concerns about federal deficits.

At a Washington press conference where he announced his administration's chief performance officer, Obama also waded into the Roland Burris controversy, saying he would work with him if the Senate chose to seat him.

Asked by a reporter about the size of an economic stimulus meant to jumpstart the economy, Obama indicated it would be at the top end of the range his transition officials have discussed, $775 billion, not as large as the more than $1 trillion many economists say would be necessary to provide an adequate stimulus.

We expect that it will be on the high end of our estimates, but will not -- will not be as high as some economists have recommended, because of the constraints and concerns we have about the existing deficit.

Obama's mention of deficit concerns came on the same day the Congressional Budget Office reported that this fiscal year's deficit would be a record $1.2 trillion.

On the matter of seating Burris, Obama made clear he intended to step no further into the Burris controversy. He had earlier announced his opposition to Gov. Rod Blagojevich's appointment of anyone to fill the senate seat from Illinois the president-elect is vacating.

Obama appeared reconciled, however, to the possibility that Burris would eventually be seated by Senate Democrats. Obama said:

"You know, that is a Senate matter. But I know Roland Burris. Obviously, I've -- he's from my home state. I think he's a fine public servant. If he gets seated, then I'm going to work with Roland Burris, just like I work with all the other senators, to make sure that the people of Illinois and the people of the country are served."

At the press conference, Obama introduced Nancy Killefer who will hold the new job of chief performance officer. Her job will be to make the federal government more efficient, squeezing out unnecessary costs.

Obama said:

"For nearly thirty years -- as a leader at McKinsey & Company and as assistant secretary for Management, chief financial officer, and chief operating officer at Treasury under President Clinton -- Nancy has built a career out of making major American corporations and public institutions more effective, more efficient and more transparent.

Nancy is an expert in streamlining processes and wringing out inefficiencies, so that taxpayers and consumers get more for their money."