SENATE CONCURRENT RESOLUTION No. 118
STATE OF NEW JERSEY
INTRODUCED MARCH 20, 1997
By Senators LESNIAK, Casey, Girgenti, Sacco, McGreevey, Lipman, Kenny, Baer, Bryant, Zane, Rice, Lynch, Codey and Adler
A Concurrent Resolution ratifying a proposed amendment to the Constitution of the United States to require that the federal budget shall be balanced, except under certain circumstances.
Whereas, The government of the United States has had a budget deficit during 33 of the last 34 years; and
Whereas, As a result of these deficits, the federal government's debt now exceeds $5 trillion, or more than $20,000 for every citizen; and
Whereas, The funding of this debt greatly burdens the economic development of the United States by diverting money from productive investments to the purchase of government obligations; and
Whereas, The debt also affects public policy, because an increasing portion of federal revenues must be used for debt service and is therefore unavailable for programs to benefit people in need; and
Whereas, The growth of the federal budget deficit takes a toll on the nation's prosperity by limiting the fiscal independence of future generations; and
Whereas, The fiscal limitations imposed by the federal deficit represents a betrayal of those principles of liberty upon which this nation was founded and to which its laws and government are dedicated; and
Whereas, The following article has been proposed in the Congress of the United States as an amendment to the Constitution of the United States;
"ARTICLE --
"Section 1. Total outlays of the United States for any fiscal year shall not exceed total receipts for that year, unless three-fifths of the whole number of each House of Congress shall provide by law for a specific excess of outlays over receipts by a roll call vote.
"Section 2. Total receipts shall exclude those derived from borrowing. Total outlays shall include all outlays of the United States Government except those for repayment of debt principal and those dedicated to a capital budget. The capital budget shall include only investments in major public physical capital that provides long-term economic benefits.
"Section 3. The receipts (including attributable interest) and outlays of the Federal Old-Age and Survivors Insurance Trust Fund and Federal Disability Insurance Trust Fund shall not be counted as receipts or outlays for purposes of this article.
"Section 4. The limit on the debt of the United States held by the public shall not be increased, unless three-fifths of the whole number of each House shall provide by law for such an increase by roll call vote.
"Section 5. Prior to each fiscal year, the President shall transmit to the Congress a proposed budget for the United States Government for that fiscal year in which total outlays do not exceed total receipts.
"Section 6. No bill to increase revenue shall become law unless approved by a majority of the whole number of each House by a roll call vote.
"Section 7. The Congress may waive the provisions of this article for any fiscal year in which a declaration of war is in effect. The provisions of this article may be waived for any fiscal year in which the United States faces an imminent and serious military threat to national security and is so declared by a joint resolution, which becomes law.
"Section 8. The Congress shall enforce and implement this article by appropriate legislation, which may rely on estimates of outlays and receipts.
"Section 9. This article shall take effect beginning with fiscal year 2002 or with the second fiscal year beginning after its ratification, whichever is later."; and
Whereas, The proposed amendment protects Social Security by excluding it from the calculation of receipts and outlays, and makes the sensible differentiation of the capital budget from the operating budget by excluding outlays dedicated to a capital budget; and
Whereas, In accordance with the provisions of Article V of the Constitution of the United States, the resolution proposing the Constitutional amendment hereinabove set forth provides that the amendment "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"; now, therefore,
Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):
1. The Legislature of the State of New Jersey, on behalf of the State of New Jersey, does hereby ratify the proposed amendment to the Constitution of the United States, as reproduced in the preamble to this concurrent resolution.
2. The Secretary of the State of New Jersey is directed to notify the Archivist of the United States of the action taken by the Legislature of the State of New Jersey with respect to this proposed amendment to the Constitution of the United States.
STATEMENT
This concurrent resolution ratifies a proposed amendment to the United States Constitution to require that the annual budget of the United States shall be balanced, unless three-fifths of the members of each House of Congress shall provide by law for a specific deficit amount by a roll call vote. In addition, the limit on the federal debt could not be increased unless three-fifths of the members of each House provides by law for such an increase. The proposed amendment provides that Congress may waive these restrictions for any fiscal year in which a declaration of war is in effect or any fiscal year in which the United States is engaged in military conflict which causes an imminent and serious military threat to national security (as declared by a joint resolution, adopted by a majority of the whole number of each House, which becomes law). The proposed amendment further provides that no bill to increase revenue shall become law unless approved by a majority of the whole number of each House by a roll call vote. The proposed amendment protects Social Security by excluding it from the calculation of receipts and outlays, and makes the differentiation of the capital budget from the operating budget by excluding outlays dedicated to a capital budget.
Ratifies federal balanced budget amendment to U.S. Constitution.