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Despite forecasts that Michigan will have a budget surplus, a top state legislator on Wednesday warned that Detroit should not expect a state bailout for the struggling city that has filed the largest municipal bankruptcy in U.S. history. _0"> Michigan House Speaker Jase Bolger, a Republican, wants much of the extra money to go toward tax cuts, according to spokesman Ari Adler. "A direct bailout for the city by the state is not an option Speaker Bolger will consider, but many other options exist that deserve to be explored," Adler said in an email. "It's still too early to say what, if any, legislative action would be needed." Bolger has spoken with U.S. District Judge Gerald Rosen, the chief mediator in the bankruptcy, Michigan Republican Governor Rick Snyder and others about "the best way to resolve Detroit's bankruptcy in a way that saves the state money and alleviates future financial liabilities," Adler said. Bolger is not part o

President Barack Obama sought to build a united front with Democratic senators on Wednesday, inviting them to the White House to chat about "shared goals" heading into midterm elections in which Republicans will try to exploit Obama's woes to pick up seats. Obama urged senators to hold off on a proposed Iran sanctions bill that many support - and which he has vowed to veto. The White House has said the legislation would derail an international deal to curb Iran's nuclear program. But the discussion on sanctions was a small part of a meeting with a decidedly upbeat tone, a Senate aide said, speaking on background. Obama, not known for his tendency to schmooze, sat on a stool with a microphone in the ornate East Room of the White House, giving brief remarks before taking questions from senators for about 90 minutes. "The group discussed their shared goals for 2014, and the president expressed his desire to continue to work together to advance a number of our

A powerful business group's decision to use its legal firepower to back a bottling company in a dispute with unionized workers turned a routine labor tussle in Washington state into a high-stakes Supreme Court case that could limit the ability of U.S. presidents to make appointments to critical jobs. The case began as a complaint in December 2010 by the International Brotherhood of Teamsters Local 760 accusing Noel Canning Corp's owner, Rodger Noel, of reneging on a verbal agreement concerning a new collective bargaining agreement. But after the U.S. National Labor Relations Board (NLRB) sided with the workers, the U.S. Chamber of Commerce intervened on behalf of the company and elevated the importance of the case by putting the focus on whether President Barack Obama had exceeded his authority in appointing members of the board. The high court is set to hear longer than usual 90-minute oral argument in the case on Monday on the constitutional issue of a president's ca

U.S. Republican Representative Buck McKeon of California, chairman of the House Armed Services Committee, said on Thursday he would not seek a 12th term this year. _0"> Due to term limits on committee chairmanships, McKeon could not have led the armed services panel in the next Congress. He said at a news conference that his biggest motivation in retiring was that he did not want stay on the committee in a role that could be seen as second guessing his successor. McKeon, 75, who campaigned strongly against military spending cuts, became chairman of the armed services committee in 2011 after Republicans reclaimed a majority in the House. His district covers parts of Los Angeles and Ventura counties and is home to Edwards Air Force Base, other military facilities and several major defense contractors. "I'm not leaving the fight," McKeon said. "I will continue to speak for funding for our military, for the training that they need to give them the best chan

Michigan Governor Rick Snyder has proposed a $350 million, 20-year plan for the state to protect Detroit retiree pensions and the collection of the Detroit Institute of Arts, local newspapers reported on Thursday. _0"> Snyder's proposal would use tobacco settlement funds or bonds to finance the outlay to Detroit and would not use cash from the state's general fund, the Detroit News reported. The governor, a Republican, met with legislators on Wednesday, his spokeswoman, Sara Wurfel said, but she would not comment on details of the meeting. "It would be inappropriate and premature" to provide details on the talks, Wurfel said in an email. Snyder's reported plan would match the $330 million that several philanthropic foundations have pledged to defend the DIA and the pensions. Snyder "takes the foundation commitment seriously," Wurfel said, adding that the governor thought it was important to discuss with the legislature ways the state can

Prime Minister David Cameron said on Thursday former U.S. defense secretary Robert Gates was wrong to say that spending cuts meant Britain's armed forces were no longer able be a full military partner of the United States. His blunt response underlined how sensitive his government is to charges that Britain's close ties with the United States have been undermined by cuts to its military and parliament's refusal to okay British involvement in any air strikes on Syria . It also reflected his determination to carry out spending cuts aimed at reducing large public debts, which top generals and even senior lawmakers in his own Conservative party have suggested have been too deep. Britain is the world's fourth largest military spender after the United States, China and Russia but is cutting the army by 20,000 soldiers over this decade while its navy will lose 6,000 personnel and its air force 5,000. Earlier on Thursday, Gates, who served as defense secretary under pres

House Speaker John Boehner on Thursday said the United States should avoid a major fight over raising the federal debt ceiling that brings the United States close to a default. _0"> After passage of a $1.1 trillion spending bill, the only major fiscal hurdle facing Congress over the next nine months is an increase in the $17 trillion debt ceiling that is expected to be needed in as little as six weeks. Boehner told a news conference that the United States should not default on its debt and "shouldn't even get close to it." He did not say whether Republicans would tie an increase in the debt ceiling to demands for additional deficit reduction. An extension of U.S. borrowing authority is due to expire on February 7, but the Treasury Department has said its extraordinary cash management measures can allow it to keep issuing new debt until late February or early March. "I would hope that the House and the Senate would act quickly on a bill to increase the