Ceiling Tv Or Tv Ceiling

US CongressWk:As Conrad Prepares FY'12 Budget,Debt Ceiling Hit

WASHINGTON (MNI) - Fiscal issues will continue to loom large this week in Congress as Republican leaders continue to link any legislation to increase the statutory debt ceiling with measures to cut spending and institute budget enforcement reforms.

House Speaker John Boehner repeated this linkage on CBS's "Face the Nation" TV show on Sunday, saying that he has told President Obama for months that increasing the debt ceiling will require "serious changes" in U.S. fiscal policy.

"I'm serious about dealing with this and I hope he's just as serious. No gimmicks. No automatic clawbacks. I've had it with all of that. We know what needs to be done. Let's just do it," Boehner said.

Boehner repeated this linkage in a statement Monday. He said the debt ceiling increase must be coupled with "serious budget reforms and significant spending cuts."

The Speaker once again said that the spending cuts must be greater than the amount of the debt ceiling increase.

With congressional Republican leaders holding firm on this linkage of debt ceiling legislation with deficit reduction measures, Senate Budget Committee Chairman Kent Conrad continues to work on his fiscal year 2012 budget resolution.

According to a spokesman Monday, Conrad is continuing to meet with senators as he refines his FY'12 budget. It is not certain if Conrad will unveil his plan this week as had been expected.

Last week, one version of Conrad's budget was in circulation that would cut the deficit by about $4 trillion over a decade.

It would do so by raising taxes by about $2 trillion and cutting spending by $1.5 trillion. The additional savings of about $600 billion would come from reduced interest payments.

The broad elements of Conrad's plan would be to secure about $900 billion from defense programs and $300 billion in non-security spending over a decade. It would also secure about $300 billion in entitlement savings over the decade.

Senate Republicans blasted Conrad's draft as too heavy on tax increases and too light on spending cuts.

House Budget Committee Chairman Paul Ryan drafted a Republican FY'12 budget resolution that was approved by the House in April. Ryan's plan would cut spending by $5.8 trillion over a decade compared to President Obama's February budget. It would reduce budget deficits by $1.6 trillion over a decade.

As Conrad works on his budget, Vice President Biden has held three rounds of budget talks with congressional leaders to explore what kind of deficit reduction package might be developed to coincide with this summer's vote on debt ceiling legislation.

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