Budget director's personal life becomes public

President Obama has been big on family values ever since the campaign, presenting a lovey-dovey image with first lady Michelle Obama and lecturing parents about making sure their kids learn.

But he might need to talk to someone in the West Wing.

White House budget director Peter Orszag has acknowledged that just weeks before he got engaged to an ABC News correspondent nine years his junior, his ex-girlfriend had his baby.

The 40-year-old Orszag -- Obama's youngest Cabinet-level appointee and a nerdy hunk in DC social circles -- announced his engagement last week to Bianna Golodryga. On Wednesday, he disclosed that his ex, Claire Milonas, gave birth out of wedlock to a girl on Nov. 17.

"We were in a committed relationship until the spring of 2009. In November, Claire gave birth to a beautiful baby girl. Although we are no longer together, we are both thrilled she is happy and healthy, and we would hope that everyone will respect her privacy," the new parents said in a joint statement.

The Reliable Source, the Washington Post's political gossip outlet, reported, "A source close to Orszag (who has two kids from a previous marriage) told us his relationship with Milonas ended before he met the journalist at the White House Correspondents' dinner in May -- though a friend of Milonas's told us the breakup came later."