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. BAR-
TON of Texas, Mr. HERGER, Mr. TAYLOR of Mississippi, Mr. LARGENT,
Mr. BURR, Mr. SCARBOROUGH, and Mr. ZIMMER) introduced the follow-
ing joint resolution; which was referred to the Committee on the Judici-
ary
JOINT RESOLUTION
Proposing a balanced budget amendment to the Constitution
of the United States.
Resolved by the Senate and House of Representatives
of the United States of America in Congress assembled
(two-thirds of each House concurring therein), That the fol-
lowing article is proposed as an amendment to the Con-
stitution of the United States, which shall be valid to all
intents and purposes as part of the Constitution when
ratified by the legislatures of three-fourths of the several
States within seven years after the date of its submission
for ratification:
•HJ 74 IH
‘‘ARTICLE —
‘‘SECTION 1. Except as provided in this article, total
outlays of the United States Government shall be limited
as follows:
‘‘(1) Total outlays in any fiscal year shall not
increase by a percentage greater than the percentage
increase in nominal gross domestic product in the
last calendar year ending prior to the beginning of
such fiscal year.
‘‘(2) Total outlays in any fiscal year shall not
exceed the ratio of the outlays in the fiscal year at
the time of submission of this proposed amendment
to the States to gross domestic product in the last
calendar year ending prior to the fiscal year at the
time of submission to the States, times gross domes-
tic product in the last calendar year ending prior to
the fiscal year for which this limitation is being cal-
culated.
‘‘SECTION 2. Total receipts shall include all receipts
of the United States except those derived from borrowing,
and total outlays shall include all outlays of the United
States, both on-budget and off-budget, except those for
the repayment of debt principal. Inflation shall be meas-
ured by the gross domestic product deflator. Total outlays
shall include the cost to any State or local government
•HJ 74 IH
of engaging in any activity or service mandated by any
law of the United States beyond that required by existing
law or this Constitution at the time of the submission of
this proposed amendment to the States, unless an appro-
priation is made and disbursed to pay that State or local
government for such cost.
‘‘SECTION 3. When, for any fiscal year, total receipts
received by the United States exceed total outlays, the sur-
plus shall be used to reduce the public debt of the United
States until such debt is eliminated.
‘‘SECTION 4. Prior to each fiscal year, the President
shall transmit to Congress a proposed statement of re-
ceipts and outlays for such fiscal year consistent with the
provisions of this article.
‘‘SECTION 5. Following the declaration of an emer-
gency by the President, Congress may authorize, by a two-
thirds vote of both Houses, a specified amount of emer-
gency outlays in excess of the limit for the current fiscal
year.
‘‘SECTION 6. For each of the first 4 fiscal years after
ratification of this article, total grants to States and local
governments shall not be a smaller fraction of total outlays
than the average of the 3 fiscal years prior to the ratifica-
tion of this article.
•HJ 74 IH
‘‘SECTION 7. This article may be enforced by one or
more Members of the Congress, or by the President, in
an action brought in the United States District Court for
the District of Columbia, and by no other persons. The
action shall name as defendant the Treasurer of the
United States, who shall have authority over outlays by
any unit or agency of the Government of the United States
when required by a court order enforcing the provisions
of this article. The order of the court shall not specify
the particular outlays to be made or reduced. Changes in
outlays necessary to comply with the order of the court
shall be made no later than the end of the first full fiscal
year following the court order.’’.
Æ