A Balanced Budget Constitutional Amendment: Procedural Issues and Legislative History (CRS Report for Congress)
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| Release Date |
Aug. 5, 1998 |
| Report Number |
98-671 |
| Report Type |
Report |
| Authors |
James V. Saturno, Government Division |
| Source Agency |
Congressional Research Service |
Summary:
One of the most persistent political issues of recent years has been the federal budget of the
United
States and its deficit. Since the 1930s, dozens of proposals have called for laws or constitutional
amendments that would require a balanced budget and/or limit the size or growth of the federal
budget or of the public debt. The accumulation of large deficits since the 1970s has heightened the
feeling of some policymakers and other observers that the Constitution should be amended to require
the federal government to balance revenues and expenditures.
The chief debate has been on the necessity of making such a requirement a part of the
Constitution, but other questions have arisen as well. How would such a requirement affect the
balance of power between the President and Congress? If Congress and the President failed to pass
a balanced budget, how would the requirement be enforced? Should there be exceptions or
circumstances when the requirement would not be enforced?
In the 104th Congress, the House Republican leadership placed a balanced budget constitutional
amendment on the agenda as part of its "Contract with America." The House passed
H.J.Res. 1 , as amended, by the necessary two-thirds majority (300-132) on January 26,
1996. However, votes in the Senate on a balanced budget amendment fell short of achieving the
necessary two-thirds majority vote on two occasions -- March 2, 1995, 65-35; and June 6, 1996,
64-35.
Consideration of a balanced budget constitutional amendment has been renewed in the 105th
Congress. The Senate Judiciary Committee held hearings on S.J.Res. 1 on January 17
and 22, 1997, and ordered it reported on January 30. The Senate began debating the measure on
February 5, 1997, and on March 4 it was defeated when it fell short of the necessary two-thirds
majority, 66-34. In the House, consideration in the 105th Congress has not advanced as far. After
hearings by the Judiciary Committee (on February 3, 1997) and the Budget Committee (on February
5, 1997), the Judiciary Committee began a markup of H.J.Res. 1 on February 5, but
recessed without coming to any conclusion. No further action has been taken.
While the debate on a balanced budget amendment has continued, both Congress and the
President have also worked towards the goal of achieving a balanced budget. The combined effect
of the growth of the U.S. economy and efforts to restructure spending and revenues is a
Congressional Budget Office (CBO) projection that the federal budget is expected to be balanced in
1998 and is likely to remain so for several years. On February 2, 1998, President William Clinton
submitted the first proposed balanced budget since 1970. Subsequently, both the House and the
Senate adopted concurrent resolutions on the budget, projecting a surplus.
