By David A. Vise
Washington Post Staff Writer
Saturday, June 20, 1998; Page B01

Alice M. Rivlin, sworn in yesterday as a member of the D.C. financial control board, said that restoring home rule is her top priority and that District residents and officials must be involved in shaping the future city government.

Rivlin -- whom President Clinton intends to name as chairman of the control board in September -- said in an interview that she will work closely with control board Chairman Andrew F. Brimmer during a transition that will last for months.

But Rivlin also said that a controversial plan Brimmer put forward recently to permanently strip the mayor and D.C. Council of considerable power after the control board's tenure ends is only one of numerous options to be considered.

Siding with control board members Constance B. Newman and Stephen D. Harlan -- who challenged Brimmer's proposal -- Rivlin said it is premature for the board to take any position on the matter. Instead, Rivlin, who will continue to serve as vice chairman of the Federal Reserve Board, pledged to focus on improving city services so that local democracy can be restored.

The control board, Rivlin said, "should act more and more like a board of directors, a policy board, and strengthen the administrative team in the city so that we really have in place, and functioning, a city that can run itself well without a board."

Rivlin also said she is upbeat about the District's future and senses the city is rebounding from the depths of a financial crisis that led Clinton to appoint a panel to oversee the District government in 1995.

"I'm quite optimistic about the District over the next several years," Rivlin said. "I think a good deal of progress has been made on the budget and certainly on assembling a management team. I think there is sort of a new spirit of . . . working together in the [Clinton] administration and Congress, and the board and the city administration."

Brimmer sparked an outcry recently by proposing that three appointed officials retain power over the city's day-to-day affairs after the control board's tenure ends in a few years. Rivlin said Congress, not the control board, has the authority to determine the future structure of the city government.

"Congress will look to the District, and the District leadership, for some input on it," Rivlin said. "It isn't a control board decision."

Brimmer said yesterday that he will not back away from his proposal and will present it to Congress. "Those are my views," he said.

Del. Eleanor Holmes Norton (D-D.C.) said Rivlin's appointment marks an important step toward the restoration of self-government in the city.

"She will hit the ground running on the nuts and bolts of both management and finances," Norton said. "I also expect Dr. Rivlin's enormous sensitivity to the importance of self-government to be helpful in my efforts to get an early return of critical aspects of home rule."

White House spokesman Mike McCurry said Clinton is glad Rivlin joined the control board. "The president . . . is confident that her leadership, economic expertise and commitment to the District of Columbia will be invaluable to the board's work," McCurry said.

Mayor Marion Barry declined comment on Rivlin's appointment.

Brimmer said he welcomes the chance to work closely with the 67-year-old Rivlin during the transition. "I was delighted it was finally done," Brimmer said of Rivlin's appointment yesterday.

D.C. Council Chairman Linda W. Cropp (D) said Rivlin's presence will accelerate the city's recovery. "Alice Rivlin has worked long and hard in many capacities for the District, and she will serve the city well," Cropp said.

Clinton's decision to name Rivlin as Brimmer's successor has been hailed by a broad spectrum of congressional and community leaders, including some who have opposed the board since its creation. Rivlin is an expert on the District and authored an authoritative study of the city eight years ago that predicted it would slide into fiscal chaos unless spending was slashed and other dramatic steps were taken.

Rivlin has lived in the city for more than 40 years. Before accepting her unpaid assignment on the control board, Rivlin served as federal budget chief for Clinton, head of the Congressional Budget Office and a senior fellow at the Brookings Institution.

Rep. Thomas M. Davis III (R-Va.) said Rivlin's appointment yesterday is great news for the District. "She is an excellent appointee, and I'm very happy about it," Davis said.

But other members of Congress, including Sen. Connie Mack (R-Fla.), question whether Rivlin can serve simultaneously as chairman of the control board and vice chairman of the Federal Reserve Board. The Clinton administration intends to propose legislation that will "clarify" any lingering legal issues posed by Rivlin's dual role, according to Linda Ricci, spokeswoman for the federal Office of Management and Budget.

Rivlin said she can handle both jobs. "I expect to work very hard," she said.

Rivlin said she hopes Newman will accept her offer to become vice chairman of the control board in the fall. While praising Rivlin's three-year appointment, Newman said yesterday that she has not decided whether to remain on the panel after August.

On her way into the Old Executive Office Building to be sworn in yesterday, Rivlin mistakenly received a "volunteer" pass rather than an official pass showing she had an appointment. During her swearing-in, Rivlin made light of the miscue.

"I'm a volunteer, and we are going to need all the volunteers we can get," she said.

Youth Program Funded

Meanwhile yesterday, Brimmer said the control board has decided to allocate $2.2 million to the mayor's youth summer jobs program.

Barry urged the board to come up with the money this week after thousands of District youths registered for the program, which lacked sufficient jobs and funds.

Brimmer said he changed his mind after Harlan urged him to find the money, which will come out of another agency's budget.

"Steve is working hard with the courts on juvenile delinquency, and Steve feels that youth working would be very helpful in keeping down infractions," Brimmer said. "That was persuasive."