Overview
Title
Proposing a balanced budget amendment to the Constitution requiring that each agency and department’s funding is justified.
ELI5 AI
In a plan called H. J. RES. 11, there's a big rule that says the government shouldn't spend more money than it has unless a lot of people in charge agree, and every part of the government has to explain why they need money. This rule can change in special times, like wars or big storms.
Summary AI
H. J. RES. 11 proposes an amendment to the U.S. Constitution that requires the government to maintain a balanced budget, meaning annual spending should not exceed revenues unless approved by a three-fifths majority in Congress. It sets a limit on how much of the GDP can be spent each year, with a gradual reduction over time, and restricts increases in public debt unless specifically approved by Congress. Furthermore, the amendment mandates that the President submits a budget where expenses do not surpass earnings and requires detailed justification for funding proposed by each government agency or department. Exceptions to these rules can be made in times of war, military conflict, or severe natural disasters.
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AnalysisAI
Summary of the Bill
House Joint Resolution 11 proposes an amendment to the United States Constitution aimed at mandating a balanced federal budget. The main idea is that the federal government should not spend more money than it earns in a given fiscal year. There are exceptions, but these require a substantial consensus: a three-fifths majority in both the House and Senate. The bill sets specific spending limits relative to the country's Gross Domestic Product (GDP) and also restricts how often the national debt can be increased. The President must present a budget where spending does not exceed revenue, and each government department must justify its budget requests.
Significant Issues
One critical issue with this proposed constitutional amendment is the requirement for a supermajority vote for several financial decisions, such as spending beyond revenue, increasing the debt limit, and passing revenue-increasing bills. This requirement adds a layer of difficulty to addressing fiscal emergencies or reacting to unforeseen economic conditions. Furthermore, the bill's definition of "total outlays" and "total receipts" excludes borrowing and debt repayment, which could lead to an incomplete understanding of the government's fiscal health.
The requirement that each department justifies its budget based on its impact on GDP and mission completion may introduce subjectivity and inconsistency into budget assessments. The broad terms used to describe possible exemptions—such as "military conflict" or "natural disaster"—also leave room for interpretation, potentially affecting how the waiver provision could be applied.
Impact on the Public
For the general public, this amendment could mean a more stable fiscal approach by the federal government, reducing the likelihood of unsustainable deficit spending. However, it could also curb the government's ability to react swiftly in economic downturns or emergencies, potentially exacerbating hardship in such times. Taxpayers may face fewer instances of the federal government increasing debt, which could be seen as a positive by fiscally conservative individuals. However, it could also mean tighter constraints on public services and infrastructure investment if funds are limited by revenue, especially during economic crises.
Impact on Stakeholders
Stakeholders such as federal departments and agencies might find themselves needing to adjust to stricter budget constraints and be more thorough in justifying their budget requests. This could lead to increased transparency but might also burden agencies with additional paperwork and administrative tasks.
Politicians could face challenges reaching the required supermajority for critical financial decisions, leading to potential legislative gridlock. This situation might foster a more bipartisan approach to budgeting, but it could also lead to stalemates that delay necessary fiscal actions.
For economists and budget analysts, the push for a balanced budget amendment could be seen as a double-edged sword. While it enforces fiscal discipline, it might also restrict necessary economic maneuvers that rely on strategic deficit spending during specific economic cycles.
Overall, the goal of fiscal responsibility and transparency is clear, but the pathways to achieving these goals present potential challenges and unintended consequences that require careful consideration by policymakers and the public alike.
Issues
The requirement in Sections 1, 2, and 4 for a three-fifths majority for rollcall votes to approve excess outlays, increase the debt limit, or pass revenue-increasing bills is significant as it could hinder fiscal flexibility and responsiveness, particularly in urgent or unforeseen circumstances, potentially leading to legislative gridlock.
The definitions of 'total outlays' and 'total receipts' in Section 6 exclude borrowing and debt repayment, which could present an incomplete picture of the government’s financial status and may lead to manipulation or misunderstandings about fiscal health.
Section 3's mandate that the President's proposed budget must ensure total outlays do not exceed total receipts may restrict necessary deficit spending during economic downturns or emergencies, posing a risk to economic stability.
Section 5 requires each department or agency to justify funding based on its effect on GDP and mission completion, which could introduce subjective and inconsistent interpretations, potentially turning budget assessments into political rather than economic evaluations.
The ambiguity in Section 8 regarding what constitutes 'military conflict,' 'imminent and serious military threat,' or 'natural disasters' allows for broad interpretation and potential misuse of the waiver provision by a two-thirds majority joint resolution vote.
The complexity of the amendment process to increase the debt limit in Section 2, involving a three-fifths majority vote, might be a barrier to necessary fiscal adjustments, especially during economic crises or when urgent funding is needed.
Section 9 outlines complex conditions under which the article takes effect, which could lead to delays or confusion about the enforcement timeline, adding potential challenges to fiscal planning.
Section 1 contains complex language and sentence structure that might be difficult for the general public to understand, impacting transparency and accessibility of the bill’s implications.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
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Summary AI
The proposed amendment to the United States Constitution aims to balance the federal budget by ensuring that government spending does not exceed its income, with specific conditions allowing for exceptions. It requires a three-fifths majority in Congress for any spending beyond revenue, limits national debt increases, and imposes conditions for revenue bills and budget submissions, while allowing exceptions for war or significant threats to national security.
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Summary AI
For any fiscal year, total spending by the government cannot be more than the total income unless three-fifths of Congress agrees to allow more spending through a vote. Spending can't exceed 20% of the GDP in the first year, and afterwards, it must be reduced by 0.1 percentage point each year, but it can't go below 16% of the GDP.
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Summary AI
To increase the United States' public debt limit, a law must be passed by a three-fifths majority vote in both the House of Representatives and the Senate, and it must be done through a rollcall vote.
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Summary AI
The President is required to present a budget to Congress each year that ensures the country's spending does not exceed its income.
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Summary AI
A bill designed to raise revenue can only become a law if it is approved by at least three-fifths of the members in each House of Congress through a rollcall vote.
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Summary AI
The section requires that any budget plan submitted to Congress by the President must include a detailed explanation from each government department or agency for the funding requested. This explanation should show the impact of the budget's line items on the agency's mission and the U.S. GDP, as well as a funding level below the requested amount that would still allow the agency to complete its critical functions.
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Summary AI
Total receipts refer to all the money the United States Government collects, except for what it borrows, while total outlays include all the money it spends, except for paying back borrowed money.
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Summary AI
Congress has the authority to enforce and implement this article by creating appropriate laws, and they can use estimated budgets and revenues in doing so.
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Summary AI
Congress can choose to ignore the rules of this article if the country is at war, involved in a military conflict, facing a serious military threat, or during a natural disaster. This decision must be approved by two-thirds of both the House and the Senate in a joint resolution that becomes law.
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Summary AI
The section states that the article will become effective at the start of the earlier of two fiscal years: either the tenth fiscal year after it is approved or the first fiscal year following any year when the U.S. budget does not have a deficit.