By David A. Vise
Washington Post Staff Writer
Saturday, March 21, 1998; Page A01

D.C. financial control board Chairman Andrew F. Brimmer told President Clinton yesterday that he does not want to serve a second term at the helm of the presidentially appointed panel that runs the District government after his term expires in June.

In a letter to the president, Brimmer said the city has made "considerable progress" on financial matters, his main area of focus over the past three years, and he urged the administration to "maintain continuity" by persuading three of his colleagues to remain on the board. One of those members, Constance B. Newman -- a Republican who is the number two official at the Smithsonian Institution -- is under consideration by the Clinton administration to succeed Brimmer as control board chairman.

The 71-year-old economist read his three-paragraph letter to the president at a hastily called news conference after publication of a story in The Washington Post yesterday that revealed that several members of the control board, including Newman, would decline reappointment to the panel if Brimmer were again named chairman. Although Brimmer's colleagues on the board admire his financial expertise and the depth of his commitment to the volunteer post, they had grown tired of his rigid and aloof style. They questioned whether he was the right person to lead the board during a period when greater cooperation with locally elected officials will be necessary.

In an interview, Brimmer said he called federal budget chief Franklin D. Raines yesterday morning to say that he wished to withdraw from consideration because of "the atmosphere" surrounding the reappointment process. Del. Eleanor Holmes Norton (D-D.C.) and numerous D.C. Council members had strongly opposed Brimmer's reappointment in the weeks before disclosure that several of his own board colleagues had lost confidence in him.

Rep. Thomas M. Davis III (R-Va.), chairman of the Government Oversight subcommittee on the District, noted that Brimmer was fiercely independent and stood up to Mayor Marion Barry, refusing to cut deals or make compromises with the four-term mayor, who is viewed with disdain and suspicion on Capitol Hill. Brimmer, who saw Congress rather than city residents as his primary constituency, said he had no regrets about his tenure and emphasized that the once financially ailing city has made a stunning recovery on his watch.

"I've worked hard at it, and I'm very pleased with what has happened," Brimmer said. "The city not only has turned the corner in this area . . . but it has made genuine progress. . . . It is time for me to say, 'Thank you very much.' "

Control board member Joyce A. Ladner, who has criticized the chairman's heavy-handed style, said he did a terrific job leading the city's financial rebound. Chief Financial Officer Anthony A. Williams said the former Federal Reserve Board member deserved better treatment after his tireless and unpaid service on the city's behalf.

"I have tremendous respect for him," Williams said. "I think we ought to be giving the man the key to the city instead of the key to the dungeon."

Brimmer's decision leaves Raines -- the Cabinet member Clinton will rely upon most for advice on the upcoming appointment -- facing an interesting decision about who should chair the panel responsible for the capital's finances and most of its day-to-day operations.

Raines wants to maintain continuity on the control board, and the most obvious way to do that would be to pick Newman as chairman. Newman has developed close working relationships with Barry and D.C. Council members over the last few years, and numerous city officials have urged the Clinton administration to name her as chair. Control board member Stephen D. Harlan has told the White House he would consider serving on the panel again if Newman becomes its chief. Newman also is close to Ladner.

Because she is a Republican, Newman's possible appointment presents thorny political issues for a Democratic White House during an election year in the District, a city where nearly all voters are Democrats. That issue is complicated further by the recent election of a Republican to the D.C. Council and the large role a majority-Republican Congress has played in stripping city officials of power.

Davis yesterday questioned whether Newman's cordial working relationships with city officials, including Barry, and her role in Brimmer's decision to step aside made her unfit to serve as chairman of the control board.

"I'm not sure that is who I want leading the control board," Davis said. "I think it makes her independence an issue." Then Davis paused. "I don't know that she is not the best person at this point," he continued. "I want to sit down and digest it all."

Carl Rowan Jr., a lawyer who has been an outspoken critic of the board's oversight of the D.C. police, said Newman is the right choice to maintain the board's momentum. While power is slated to return to locally elected officials after the city balances its budget for three more years, members of Congress have threatened to keep the control board in place unless city services also improve significantly.

"If you want continuity, take Connie Newman and build around her," Rowan said. "There isn't anybody else who isn't easily replaced. In the other members, there are a number of glaring deficiencies that the president and Mrs. Norton would be foolish to ignore."

Norton is in the midst of writing a memo to Clinton about the changing role of the control board. The District delegate views the panel's new mission as facilitating a smooth transition of power back to locally elected officials and focusing on improving city services.

Norton has not ruled out the possibility that a Democrat who does not presently serve on the panel could be named to serve as chair. But current board members have indicated they likely would leave the panel if an outsider is named as chair, leaving the panel without the depth of experience some senior Clinton administration officials view as essential.

Yesterday, Clinton said Brimmer's strong performance reversed the city's downward slide and put the District on the path toward responsibility and "fiscal discipline."

"The first lady and I, along with the entire administration, would like to thank Dr. Brimmer for all he has done on behalf of the District," Clinton said. "His work for the District is the capstone of a long and distinguished career of public service."

Sen. Lauch Faircloth (R-N.C.), chairman of the Appropriations subcommittee on the District, also lauded Brimmer. "His no-nonsense approach has helped rescue the nation's capital from bankruptcy and brought it back to solvency."

D.C. Council Chairman Linda W. Cropp (D) said Brimmer will be missed and urged him to "leave his options open" and possibly reconsider his decision. D.C. Council member Harold Brazil (D-At Large) said he was sorry Brimmer decided not to seek reappointment.

"He was very sure of himself, and he could say, 'No,' " Brazil said. "That's something we've been lacking in the District of Columbia for years. . . . Is he irascible? Maybe so, but is that the issue?"

Others welcomed the chance for the board to be led by someone with closer ties to the community.

"This is an opportunity to bring somebody in who has a greater willingness to put the District's recovery in the context of the needs of the people," said Patricia Mullahy Fugure, executive director of the Washington Legal Clinic for the Homeless.

Lawrence Guyot, a longtime civil rights leader and vociferous control board critic, said his disdain for the board hasn't diminished his deep respect for its chairman. Guyot credited Brimmer with making "the best political move in the city of Washington" by bringing in Camille C. Barnett as chief management officer to overhaul the city's major departments and improve service delivery.

Mayor Barry issued a statement praising achievements realized under Brimmer's chairmanship and urging the president to open the selection process for a successor "and actively involve the citizens of the District of Columbia."

Brimmer's news conference announcing his decision to step aside had an air of unreality about it. With the four other control board members standing behind him and nodding, Brimmer said he had made his decision not to seek reappointment weeks ago and shared it with them.

Brimmer said in his letter to Clinton that he had told Raines earlier this year that he would prefer not to serve another term as chairman, but people familiar with the matter said Brimmer had not ruled out the possibility of serving again and was waiting to see whether he would be asked.

When asked at the news conference whether the timing of his announcement was linked to yesterday's Post story, Brimmer replied with a twinkle in his eye, "What story in The Post? What story in The Post? What story in The Post?"

Soon thereafter, the control board chairman abruptly broke off the news conference and, without breaking stride, went down the elevator to the parking garage, got into his Mercedes and drove to the airport, so he could be on time to chair a meeting of the board of trustees of Tuskegee University in Alabama.

"Thank you very much," Brimmer said on his way out. "I have a plane to make."

Staff writer Vernon Loeb contributed to this report.