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Wednesday, December 17, 2008 11:03 AM

Blue Dogs Hopeful Obama Will Back Pay/Go

By HUMBERTO SANCHEZ, CongressDaily

Leaders of the fiscally conservative Democratic Blue Dog Coalition said Tuesday that they have high hopes the Obama administration will join their fight to ultimately balance the budget by supporting legislation that would make the House's pay/go rule a law.

"We have had communications with the Obama administration and are encouraged by their commitment to fiscal responsibility over the long term, understanding that we have an economy that we have to revive here first," Rep. Baron Hill, D-Ind., said on a conference call today.

Hill, the group's co-chairman for policy, added the Obama team has indicated it favors "statutory pay/go," which would make the House budget rule a law and therefore more difficult to circumvent. Pay/go requires that any tax cut or entitlement spending increase be offset so the deficit does not increase.

Rep. Charlie Melancon, D-La., the group's co-chairman for communications, said on the call that a well-written statutory pay/go bill would make it simpler to effectively allocate federal dollars. Without statutory pay/go, "you get into micromanagement of trying to find money every time you have a bill," Melancon said. "We are hoping we can devise a pay/go... that will work over a long period of time as well as for the short term; or else every bill becomes laborious."

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