House and Senate Return to Work – After almost four weeks, when one or both chambers of Congress were on recess, the House and Senate finally meet at the same time next week. What this situation likely portends is a flurry of energy on the budget front as negotiators in Congress and the Administration seek to agree on a baseline number to reduce the deficit, retire a chunk of the federal debt AND increase the debt ceiling level. Under normal times, this agenda would be a high hurdle. With questions about the strength of the economic recovery, the prospects of agreeing on a budget will likely carry with it the debate over goring of any number of “sacred cows”. This political dynamic was vividly illustrated by a recent communication issued by the key conservative congressional organization, the House Republican Study Committee (RSC).
In its letter, RSC members outlined their bottom line to the House GOP leadership. A budget solution, they insist, must accompany … (continue reading the full report on the ENS website or download a PDF of this newsletter)