Legislative Alert

The Republican leadership of the 105th Congress, as its first major act of this legislative session, has introduced the Balanced Budget Amendment (BBA). Although their target for adoption by both the House and Senate is late February 1997, they have the measure on an even faster track. In order to derail the ability of opponents to mount a counter-attack, House Speaker Newt Gingrich plans for debate to begin immediately when Congress returns on February 3 with an eye to a vote by the full House possibly as early as February 10. That means we must mobilize immediately.

ADA strongly opposes the Balanced Budget Amendment. It is a dangerously, irresponsible idea that should not be enshrined in the U.S. Constitution. This proposal, if adopted, would end the American system of majority rule in adopting the federal budget. It is totally undemocratic because it would mean that a minority in both Houses of Congress could prevent Congress from carrying out its Constitutional duty to fight recessions or depressions by making changes in the budget. And, it would cripple the ability of the majority to meet the nation's needs in times of crisis, i.e. war, storms, droughts, etc. Perhaps worst of all, a minority in both Houses would call the tune in the event of an economic crisis. This nation grew to be the richest nation the world have ever seen under majority rule; this is not the time to destroy that road.

In addition, the Balanced Budget Amendment is unnecessary because nothing in present law prevents Congress from adopting a balanced budget. It is a highly ironic that the most vigorous supporters of the BBA are the very same political figures who helped drive the federal deficit to unprecedented peacetime heights during the Reagan/Bush Administrations. Now, however, they are trying to fool the public into thinking they are behaving responsibly by ignoring their own history and turning a blind eye to the successes of the Clinton Administration in lowering the deficit. In doing so, we believe that they are misjudging the American public. In 1996, we challenged these same demagogues and we won on Medicare and the Minimum Wage, for example. We can win again this year but we must move quickly.

Remember, the BBA will make it difficult, if not impossible, to make sound economic policy as needed. It will weaken substantially government's counter-cyclical role -- over in economic down turns in fighting recessions and depressions. Indeed, government would be forced -- in the face of diminished resources -- to raise taxes or cut needed programs, or both, to meet the constitutional requirements of BBA. This solution is exactly the opposite of what is needed.

At risk will be every federal program (and that means many state and local programs as well). The 104th Congress demonstrated clearly its intent when it cut the budget. Programs for low-income persons were hit the hardest even as they were granting tax cuts to the rich. While conservative Congressional leadership believes that the new Congress will pass the BBA, we believe that considerable opposition exists. Even such confirmed conservatives as Federal Reserve Chair Alan Greenspan and columnist George Will have declared their opposition as have many conservative economists.

We can defeat the BBA. The White House, with the strong leadership of Secretary of the Treasury Rubin, has spoken out against the BBA. ADA is working with one of the broadest legislative coalitions ever organized to oppose the BBA. At the moment the "conventional wisdom" expects the amendment to be adopted by Congress. ADA's analysis is that we can defeat the BBA, but that we must win public support.

To do so we must rally all our resources. Our best resource is our membership in states and communities across the country. Members of Congress must hear from each of us and they must hear from us immediately. The enclosed memorandum and supporting documents provide information about both the BBA and the positions of individual Representatives and Senators. There is every reason to believe that we can influence the vote by making clear why the BBA would be a disaster. We can do that best by constituents showing they understand what is at stake in this political struggle to preserve the federal government's ability to function adequately and under majority rule.

For further Information: Contact ADA's Legislative Department

Darryl Fagin/Leon Shull
(202) 785-5980
(202) 785-5969 (FAX)
e-mail: adaction@ix.netcom.com