2. POLITICS:

GOP proposal ties lifting of debt ceiling -- and lawmakers' paychecks -- to budget passage

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WILLIAMSBURG, Va. -- House Republican Conference Chairwoman Cathy McMorris Rodgers (R-Wash.) announced at the close of her party's retreat here today that she plans to offer legislation next week that would tie a three-month extension of the debt ceiling to the passage of a federal budget.

As extra motivation, McMorris Rodgers' bill would suspend members' salaries if their chamber fails to pass a budget resolution.

House GOP leaders began hinting yesterday that they were considering a short-term deal that would stave off a looming default by the federal government and allow time for broader negotiations between the White House and Congress to succeed.

Without a debt ceiling increase, experts say, the country could default on its bills between Feb. 15 and March 1. That would put the United States in line for a credit downgrade.

In discussing the legislation this afternoon, a GOP leadership aide said leaders decided to tie the budget issue to the debt ceiling because passing a budget resolution represents "a necessary first step" toward dealing with the country's long-term debt and deficit.

"American families have to budget, especially in difficult times, and it is time for Washington to be put on a budget that cuts out-of-control spending," McMorris Rodgers said.

The chairwoman noted that while the House has passed budgets in recent years with deep cuts, the Senate has been unable to move a budget.

"The United States Senate is approaching four years without having passed a budget, and that must end because the Democratic majority in Washington is shortchanging the American people," she said.

Currently both chambers are required by law to pass a budget resolution by April 15. The GOP aide said that by tying the budget deadline to members' pay, McMorris Rodgers' legislation simply provides enforcement for current law.

Under the bill, if one chamber passes a budget and the other doesn't, only the members of the chamber that passed a budget would get paid.

The White House responded with a statement this afternoon: "The President has made clear that Congress has only two options: pay the bills they have racked up, or fail to do so and put our nation into default. We are encouraged that there are signs that Congressional Republicans may back off their insistence on holding our economy hostage to extract drastic cuts in Medicare, education and programs middle class families depend on. Congress must pay its bills and pass a clean debt limit increase without further delay. And as he has said, the President remains committed to further reducing the deficit in a balanced way."

E&ENews PM headlines -- Friday, January 18, 2013

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