| Coalition
for Budget Integrity |
|
|
RELIGIOUS ACTION CENTER
OF REFORM JUDAISM
2027 Massachusetts Ave., NW
Washington, DC 20036
Phone (202) 387- 2800
Fax (202) 667- 9070
January 1997
CONGRESS TO CONSIDER A BALANCED BUDGET AMENDMENT
TO THE U.S. CONSTITUTION
ACTION REQUIRED:
As early as the first week in February, the United States Congress is expected to vote on a
proposed balanced budget amendment (H.J. Res. 1/no Senate bill number) to the U.S.
Constitution. Based on the legislation that was defeated by the U.S. Senate in 1995 by only one
vote, this balanced budget amendment would require that total federal outlays for any fiscal year
not exceed "total receipts" for that year, and would provide that the federal budget may go
unbalanced only with a three-fifths vote of Congress. If approved by two-thirds of both houses of
Congress (constitutional amendments do not require the President's signature) the balanced
budget amendment would then go to the states, where approval by three-quarters (38) of the
states is required for ratification. The constitutional balanced budget requirement would take
effect in either the year 2002 or the second fiscal year after the amendment was ratified,
whichever was later.
The balanced budget amendment is extremely harmful for the long term health of the U.S.
economy and will only lead to ever-deeper cuts in programs that serve vulnerable
populations. Please contact your Senators and Representatives IMMEDIATELY, urging
them to vote NO on ANY balanced budget amendment legislation. Emphasize that a
balanced budget amendment to the Constitution is unnecessary given the devotion of both
parties to balancing the federal budget. Also, focus on the fact that such an amendment
will deny the federal government the flexibility it requires to cope with an economic
downturn.
To reach your Member of Congress, call the Congressional Switchboard at (202) 224-3121 and
ask for the appropriate office. If you prefer e-mail, you can find Members' addresses at
http://thomas.loc.gov.
A CONSTITUTIONAL AMENDMENT IS NOT NECESSARY TO BALANCE THE
FEDERAL BUDGET
Recent progress in lowering the debt has indicated that budget balance is likely to happen without
a constitutional amendment. In both 1990 and 1993, Congress passed large deficit-reduction
measures that substantially reduced the deficit. No constitutional requirement was needed. The
deficit has fallen from 3.9 percent of the Gross Domestic Product in 1990 to 1.4 percent in 1996.
Leaders of both parties subscribe to the goal of a balanced budget by 2002. Both parties have
advanced proposals to achieve that goal in 1996. Most observers rate as high the chances that an
agreement to balance the budget will be reached during 1997.
A BALANCED BUDGET AMENDMENT IS ECONOMICALLY UNWISE
In the event of a recession, a constitutional amendment to balance the budget would limit the
federal government's flexibility to deal with the economic crisis. Some economists have warned
that without deficit spending during a recession, financing extreme emergency needs (such as
bailing out failed savings and loans) would further depress the national economy, fueling a
dangerous downward spiral. In addition, during a recession, the government often increases
spending temporarily on programs that assist the poor and unemployed and meet increased human
needs. Yet under a balanced budget amendment, not only would the federal government face
enormous barriers to increasing funding for human needs programs, but would actually have to
cut spending on these programs to maintain budget balance. The impact on poor and low-income
families will be especially harsh given the $54 billion cuts in federal spending on human needs
programs that were enacted in last year's federal welfare reform legislation -- cuts that will shred
the safety net of support for many poor individuals and families and leave them particularly
vulnerable to economic downturns.
IMPOSING A BALANCED BUDGET AMENDMENT IS UNNECESSARY TAMPERING
WITH THE U.S. CONSTITUTION
A balanced budget amendment has no place in the Constitution of the United States. It would
inappropriately draw the judicial branch of government into the determination of fiscal and
economic policy. The amendment also undermines the important constitutional principle of
majority rule by mandating a three-fifths vote of Congress to allow a budget to go unbalanced in a
given year.
JEWISH VALUES AND THE BALANCED BUDGET AMENDMENT
A constitutionally mandated balanced budget amendment would, inevitably, come at the expense
of the weak, the poor, and the needy among us. Judaism teaches us that poverty is destructive of
human dignity and that helping people in need is a matter of fundamental principle, not an act of
charity. Precisely because the Torah recognizes that poverty is a reality, it sets up an economic
system, complete with "taxes" for the poor and remission of debts, to mitigate its effects and
restore individuals to self-sufficiency. If everyone in the community follows these laws, then, as
Moses declares, "There shall be no needy among you -- since the Lord your God will bless you in
the land..." (Deut. 15:4)
Maimonides taught that the highest degree of tzedakah is to enable a person to earn his or her
own livelihood. A balanced budget amendment will undermine our national efforts in pursuit of
this highest ideal. Given that in the event of an economic recession, having a balanced budget
amendment in effect will require the diversion of extensive resources from federal assistance
programs, we must oppose all efforts to pass a federal balanced budget amendment to the U.S.
Constitution. Such an amendment would balance the budget on the backs of the poor. Our
tradition, both written and experienced, requires us to fight any balanced budget amendment.
PLEASE CONTACT DAVID ABRAMS AT THE RELIGIOUS ACTION CENTER (202/387-
2800; e-mail 74637.277@compuserve.com) IF YOU HAVE ANY FURTHER QUESTIONS,
OR TO REPORT THE RESULTS OF YOUR CONTACTS WITH MEMBERS OF
CONGRESS.
The Religious Action Center pursues social justice and religious liberty by
mobilizing the American Jewish community and serving as its advocate in
the nation's capital.