President Obama hasn't, in fact, conditioned agreeing to a budget deal on simultaneously increasing the debt limit. And the White House's official position is that Speaker John Boehner (R-OH) will have to raise it, whatever the context, without expecting that the administration will meet any of his demands for doing so.
But the question of where the debt ceiling falls into ongoing budget deliberations will be moot if those deliberations don't yield an agreement by the end of the year. And Reid became the first party leader to publicly admit that the negotiations have been a letdown thus far.
"The problem -- [the first White House meeting] was before Thanksgiving, after the election," he told reporters, "and since that time there has been little progress with the Republicans, which is a disappointment."