IA

104TH CONGRESS

1ST SESSION H. J. RES. 74

Proposing a balanced budget amendment to the Constitution of the United

States.

IN THE HOUSE OF REPRESENTATIVES

MARCH 3, 1995

Mr. SMITH of Michigan (for himself, Mr. SHADEGG, Mr. HANCOCK, Mr. BARTON of Texas, Mr. HERGER, Mr. TAYLOR of Mississippi, Mr. LARGENT,

Mr. BURR, Mr. SCARBOROUGH, and Mr. ZIMMER) introduced the following joint resolution; which was referred to the Committee on the Judiciary

JOINT RESOLUTION

Proposing a balanced budget amendment to the Constitution

of the United States.

1 Resolved by the Senate and House of Representatives

2 of the United States of America in Congress assembled

3 (two-thirds of each House concurring therein), That the fol4 lowing article is proposed as an amendment to the Con5 stitution of the United States, which shall be valid to all

6 intents and purposes as part of the Constitution when

7 ratified by the legislatures of three-fourths of the several

8 States within seven years after the date of its submission

9 for ratification:
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1 ‘‘ARTICLE—

2 ‘‘SECTION 1. Except as provided in this article, total

3 outlays of the United States Government shall be limited

4 as follows:

5 ‘‘(1) Total outlays in any fiscal year shall not

6 increase by a percentage greater than the percentage

7 increase in nominal gross domestic product in the

8 last calendar year ending prior to the beginning of

9 such fiscal year.

10 ‘‘(2) Total outlays in any fiscal year shall not

11 exceed the ratio of the outlays in the fiscal year at

12 the time of submission of this proposed amendment

13 to the States to gross domestic product in the last

14 calendar year ending prior to the fiscal year at the

15 time of submission to the States, times gross domes16 tic product in the last calendar year ending prior to

17 the fiscal year for which this limitation is being cal18 culated.

19 ‘‘SECTION 2. Total receipts shall include all receipts

20 of the United States except those derived from borrowing,

21 and total outlays shall include all outlays of the United

22 States, both on-budget and off-budget, except those for

23 the repayment of debt principal. Inflation shall be meas24 ured by the gross domestic product deflator. Total outlays

25 shall include the cost to any State or local government
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1 of engaging in any activity or service mandated by any

2 law of the United States beyond that required by existing

3 law or this Constitution at the time of the submission of

4 this proposed amendment to the States, unless an appro5 priation is made and disbursed to pay that State or local

6 government for such cost.

7 ‘‘SECTION 3. When, for any fiscal year, total receipts

8 received by the United States exceed total outlays, the sur9 plus shall be used to reduce the public debt of the United

10 States until such debt is eliminated.

11 ‘‘SECTION 4. Prior to each fiscal year, the President

12 shall transmit to Congress a proposed statement of re13 ceipts and outlays for such fiscal year consistent with the

14 provisions of this article.

15 ‘‘SECTION 5. Following the declaration of an emer16 gency by the President, Congress may authorize, by a two17 thirds vote of both Houses, a specified amount of emer18 gency outlays in excess of the limit for the current fiscal

19 year.

20 ‘‘SECTION 6. For each of the first 4 fiscal years after

21 ratification of this article, total grants to States and local

22 governments shall not be a smaller fraction of total outlays

23 than the average of the 3 fiscal years prior to the ratifica24 tion of this article.
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1 ‘‘SECTION 7. This article may be enforced by one or

2 more Members of the Congress, or by the President, in

3 an action brought in the United States District Court for

4 the District of Columbia, and by no other persons. The

5 action shall name as defendant the Treasurer of the

6 United States, who shall have authority over outlays by

7 any unit or agency of the Government of the United States

8 when required by a court order enforcing the provisions

9 of this article. The order of the court shall not specify

10 the particular outlays to be made or reduced. Changes in

11 outlays necessary to comply with the order of the court

12 shall be made no later than the end of the first full fiscal

13 year following the court order.’’.

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