President Obama and House Speaker John Boehner met privately on Sunday, as worries continue to mount over the so-called "fiscal cliff."
Just about three weeks remain before plunging over that cliff could send millions of American families into even tougher times.
All eyes are on the scenic D.C. backdrop of Capital Hill as federal lawmakers work to remedy the potential seven trillion dollars of spending cuts and tax increases.
In Wisconsin, local leaders are watching as well, and they are weighing in on what can be done to avoid falling over that edge.
Madison Mayor Paul Soglin is reminding folks to look at what seems to be a national issue from a local perspective.
"My only advice is this: Do not panic, do not make concessions that will hurt the economy," said Soglin.
Soglin said the fiscal cliff could create a deepening recession if lawmakers don't save what programs are crucial to the city.
"But it would also be a real drain in regards to the programming here," said Soglin. "With what limited federal resources we have, there are such important programs as our public transit system, and our desire to go to bus rapid transit."
Keeping state interests in mind, Gov. Scott Walker recently spent time at the White House with governors from both sides of the aisle.
"So things I talked about are similar to what others talked about," said Gov. Walker. "Concerns about the economy, concerns about the finances and really offering up suggestions that we're going to follow up on as an organization. Particularly for the Vice President, of ways that we can continue to highlight things that are good for the economy and our states and are good for our finances."
State governments could potentially also lose much needed federal aid, but Gov. Walker says for now that he's not putting together a doomsday scenario for the state budget.
"A lot of time in our states these decisions are made at crunch time, and hopefully the same will happen here," said Gov. Walker.
Gov. Walker has until February to outline his budget. If no deal is reached, federal cuts would start in January.
The non-partisan Tax Policy Institute estimates middle-income taxpayers would see their taxes go up about $2,000 per household.