[Congressional Record Volume 150, Number 31 (Thursday, March 11, 2004)]
[Senate]
[Pages S2727-S2728]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SHELBY:
  S.J. Res. 29. A joint resolution proposing an amendment to the 
Constitution of the United States which requires (except during time of 
war and subject to suspension by the Congress) that the total amount of 
money expended by the United States during any fiscal year not exceed 
the amount of certain revenue received by the United States during such 
fiscal year and not exceed 20 per centum of the gross national product 
of the United States during the previous calendar year; to the 
Committee on the Judiciary.
  Mr. SHELBY. Mr. President, as we continue to debate the Federal 
Government's fiscal year 2005 budget, I can think of no better time to 
discuss the need for a balanced budget amendment to the Constitution. 
It is for that reason that I stand before you today--to introduce a 
balanced budget amendment to the Constitution.
  This is the same amendment that I have introduced in every Congress 
since the 97th Congress. Throughout my entire tenure in Congress, 
during the good economic times and the bad, I have devoted much time 
and attention to this idea because I believe that one of the most 
important things the Federal Government can do to enhance the lives of 
all Americans and future generations is to balance the Federal budget.
  Our Founding Fathers, wise men indeed, had great concerns regarding 
the capability of those in government to operate within budgetary 
constraints. Alexander Hamilton once wrote that ``. . . . . there is a 
general propensity in those who govern, founded in the constitution of 
man, to shift the burden from the present to a future day.'' Thomas 
Jefferson commented on the moral significance of this ``shifting of the 
burden from the present to the future.'' He said: ``the question 
whether one generation has the right to bind another by the deficit it 
imposes is a question of such consequence as to place it among the 
fundamental principles of government. We should consider ourselves 
unauthorized to saddle posterity with our debts and morally bound to 
pay them ourselves.''
  I completely agree with these sentiments. History has shown that 
Hamilton was correct. Those who govern have, in fact, saddled future 
generations with the responsibility of paying for their debts. Over the 
past 30 years, annual deficits have become routine and the Federal 
Government has built up massive debt. Furthermore, Jefferson's 
assessment of the significance of this is also correct: 
intergenerational debt shifting is morally wrong.
  Over the years, we have witnessed countless ``budget summits'' and 
``bipartisan budget deals,'' and we have heard, time and again, the 
promises of ``deficit reduction.'' But despite all of these charades, 
the Federal budget remains severely out of balance today. The truth is, 
it will never be balanced as long as the President and the Congress are 
allowed to shortchange the welfare of future generations to pay for 
current consumption. This is evidenced by the fact that I stood in this 
same place, introducing this same legislation during both the 106th and 
the 107th Congresses while the Federal budget was actually in balance. 
But alas, I stand here today with an enormous Federal deficit and a 
ballooning Federal debt.
  A balanced budget amendment to the Constitution is the only certain 
mechanism to break the cycle of deficit spending and ensure that the 
Government does not continue to saddle our children and grandchildren 
with the current generation's debts.
  A permanently balanced budget would have a considerable impact in the 
everyday lives of the American people. A balanced budget would 
dramatically lower interest rates thereby saving money for anyone with 
a home mortgage, a student loan, a car loan, credit card debt, or any 
other interest rate sensitive payment responsibility. Simply by 
balancing its books, the Federal Government would put real money into 
the hands of hard working people. Moreover, if the government demand 
for capital is reduced, more money would be available for private 
sector use, which in turn, would generate substantial economic growth 
and create thousands of new jobs.
  More money in the pockets of Americans and more job creation by the 
economy can become a reality with a simple step--a balanced budget 
amendment.
  On the other hand, without a balanced budget amendment, the 
Government will continue to waste the taxpayers' money on unnecessary 
interest payments. In fiscal year 2003, the Federal Government spent 
more than $318 billion just to pay the interest on the national debt. 
That is more than the amount spent on all education, job training, and 
crime programs combined.
  We might as well be taking these hard-earned tax dollars and pouring 
them down the drain. I believe that this money could be better spent on 
improving education, developing new medical technologies, finding a 
cure for cancer, or even returning it to the people who earned it in 
the first place. But instead, about 15 percent of the Federal budget is 
being wasted on interest payments because advocates of big government 
continue to block all efforts to balance the budget.

[[Page S2728]]

  A balanced budget amendment to the Constitution can be the solution 
to this perpetual problem. A balanced budget amendment will put us on a 
path to paying off our national debt, which is currently more than $7 
trillion. This amendment will help ensure that taxpayers' money will no 
longer be wasted on interest payments.
  Opponents of a balanced budget amendment treat it as if it is 
something extraordinary. They are right, a balanced Federal budget 
would be extraordinary. And I believe that adopting an amendment that 
would require the Federal Government to do what every American already 
has to do--balance their checkbook--is exactly what this country needs 
to prove that Washington is serious about accomplishing this 
extraordinary feat. A balanced budget amendment is simply a promise to 
the American people that the Government will spend their hard-earned 
tax dollars responsibly. I think that we owe our constituents and 
future generations of Americans that much.
  We do not need any more budget deals or false promises from 
Washington to reduce the deficit. What we need is a hammer to force 
Congress and the President to agree on a balanced budget, not just this 
year, but forever. A constitutional amendment to balance the Federal 
budget is the only hammer forceful enough to make that happen.
  I urge my colleagues to join with me in supporting this important 
legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                              S.J. Res. 29

       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 following article is 
     proposed as an amendment to the Constitution of the United 
     States, to be valid only if ratified by the legislatures of 
     three-fourths of the several States within 7 years of the 
     date of final passage of this joint resolution:

                              ``Article --

       ``Section 1. The total amount of money expended by the 
     United States in any fiscal year shall not exceed the total 
     amount of revenue received by the United States during such 
     fiscal year, except revenue received from the issuance of 
     bonds, notes, or other obligations of the United States.
       ``Section 2. The total amount of money expended by the 
     United States in any fiscal year shall not exceed the amount 
     equal to 20 per centum of the gross national product of the 
     United States during the last calendar year ending before the 
     beginning of such fiscal year.
       ``Section 3. Sections 1 and 2 of this Article shall not 
     apply during any fiscal year during any part of which the 
     United States is at war as declared by the Congress under 
     section 8 of Article I of the Constitution.
       ``Section 4. Sections 1 and 2 of this Article may be 
     suspended by a concurrent resolution approved by a three-
     fifths vote of the Members of each House of the Congress. Any 
     suspension of sections 1 and 2 of this Article under this 
     section shall be effective only during the fiscal year during 
     which such suspension is approved.
       ``Section 5. This Article shall take effect on the first 
     day of the first fiscal year beginning after the date of the 
     adoption of this Article.
       ``Section 6. The Congress shall have power to enforce this 
     Article by appropriate legislation.''.

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