The House Judiciary Committee convened in mid-September to consider a constitutional amendment to balance the budget but failed to make headway on the proposal. When the committee met Sept. 22 to debate and vote on the measure, Democrats clearly demonstrated their opposition and offered several amendments, including one by John Conyers (D-MI) to exempt Social Security. The committee adjourned before voting on the amendment, and upon reconvening did not have a quorum, and thus could not complete the vote. There was brief speculation that the amendment would go straight to the House floor; however, it appears House Republicans have dropped their work on the amendment for now.

This amendment has been brought up in the House several times and was part of the Republicans' "Contract With America" in the early 1990's. Rep. Ernest J. Istook Jr. (R-OK) pushed for the amendment, hoping the House would vote on it before adjourning for the elections.

The policies put forth in the Balanced Budget Amendment are fiscally and economically irresponsible. According to OMB Watch Economist and Senior Budget Policy Analyst John Irons, the amendment could "destabilize the economy by amplifying downturns in the business cycle. It would also restrict the nation's ability to invest in projects that would yield significant benefits in the future." (See press release.) In 1997, over 1,000 economists, including 11 Nobel Prize winners, signed a statement opposing the policies laid out in the Balanced Budget Amendment.

Max B. Sawicky, an Economic Policy Institute budget and fiscal policy expert, registered his opposition to the proposed policy in a letter to House Judiciary Committee Chairman James Sensenbrenner (R-WI). Sawicky points out that the growth seen in the recent recovery, weak as that growth has been, would probably not have occurred if the amendment had been in place.

The Balanced Budget Amendment was likely floated for its political value with constituents, even though well-designed budget rules and responsible legislation are more effective for preserving a healthy economy. For now, House Republicans have dropped work on the amendment; we hope that the issue is not picked up again in a post-election lame-duck session.

For more information on House proceedings concerning the amendment, see a Sept. 30 Washington Post article, "GOP Drops Work on Balanced Budget."