S 1806 CONGRESSIONAL RECORD — SENATE January 31, 1995 These items, of course, could have been ‘‘POINT OF ORDER REGARDING EMERGENCIES BALANCED BUDGET AMENDMENT considered separately in an appropriate ‘‘SEC. 408. It shall not be in order in the TO THE CONSTITUTION appropriations bill and in a more hon- House of Representatives or the Senate to consider any bill or joint resolution, or The PRESIDING OFFICER. Under est and direct manner. the previous order, the Senate will now So this issue of emergency spending amendment thereto or conference report thereon, containing an emergency designa- resume consideration of House Joint and preventing nonemergency items tion for purposes of section 251(b)(2)(D) or Resolution 1, which the clerk will re- from being attached to emergency 252(e) of the Balanced Budget and Emergency port. spending is part and parcel of the over- Deficit Control Act of 1985 if it also provides The assistant legislative clerk read all goal of budgetary sanity and the an appropriation or direct spending for any goal of stopping the abuse that so other item or contains any other matter, but as follows: many Americans like to call putting that bill or joint resolution, amendment, or A joint resolution (H.J. Res. 1) proposing a pork into bills. conference report may contain rescissions of balanced budget amendment to the Constitu- I think it could also help make sure budget authority or reductions of direct tion of the United States. spending, or that amendment may reduce The Senate resumed consideration of that our bills that have to do with dis- amounts for that emergency.’’. asters have some credibility as they go (d) CONFORMING AMENDMENT.—The table of the joint resolution. through the process. They should not contents set forth in section 1(b) of the Con- The PRESIDING OFFICER. Under be the subject of laughter or derision gressional Budget and Impoundment Control the previous order the Senator from or prime time shows. The disaster bills Act of 1974 is amended by inserting after the Vermont is recognized. should be the expressions of the Amer- item relating to section 407 the following Mr. LEAHY. Mr. President, we are ican people’s compassion for those who new item: now, really, beginning debate on the have been unlucky and subject to dis- ‘‘Sec. 408. Point of order regarding emer- proposed amendment to the Constitu- gencies.’’. asters that they had nothing to do with tion of the United States. creating. [From the Washington Post, Aug. 22, 1994] I think before we propose to alter our This identical legislation passed the EMERGENCIES ONLY fundamental charter of freedom, in House, the other House, last session, The House voted 322 to 99 the other day in fact, the blueprint for our representa- the 103d Congress, on a bipartisan vote favor of a new budget rule that’s a good idea. tive democracy, I believe that we need as a substitute amendment, 322 to 99, The Senate should concur in it. If not, the to each step back from the political and then finally, as amended, 406 to 6. House leadership should find some other way passions of the moment. We are debat- of putting it into effect, for Congress’s own I now urge my colleagues to join me ing a constitutional amendment, not and the Senator from Arizona, in sup- good. The revolutionary notion is that emer- just a political slogan or plank of a porting this measure. As we engage in campaign platform or partisan win or this very intense debate on the bal- gency appropriations bills should be limited to * * * emergencies. There tends to be at loss or something that is supposed to anced budget amendment, let us at least one of these bills almost every year. fit on a bumper sticker. This is the least join together on a bipartisan They are used not just to provide emergency Constitution. This is the bedrock of 200 basis to get rid of the abuses that have funds, but often as vehicles for funding lesser years of the greatest democracy his- to do with emergency legislation. projects of a much more ordinary kind. What Mr. President, I ask unanimous con- better place for a little something for the tory has ever known. This is the stand- sent that the text of the bill and an folks back home than in the fine print of a ard set for the most powerful Nation on editorial from The Washington Post bill intended to rescue a region from a natu- earth, the most powerful democracy dated August 22, 1994, on this type of ral disaster? Who would sink so low as to ever imagined in history. complain about a minor extra favor in a bill legislation be printed in the RECORD. And even though we have very, very with as generous a purpose as that? carefully amended this Constitution There being no objection, the mate- The emergencies-only rule—no hitchhikers rial was ordered to be printed in the in the ambulance—is one of a series that over the past 200 years—rarely amend- RECORD, as follows: have been proposed by Reps. Charles Sten- ing, because we know that our whole holm, Tim Penny and John Kasich to tighten democracy is built on it—suddenly the S. — up the budget process. We’ve opposed some of floodgates open. We have in the first 3 Be it enacted by the Senate and House of Rep- the other changes. This one is called for. weeks of this new Congress 75 proposed resentatives of the United States of America in For the sake of the spending that matters, amendments to the Constitution—75 Congress assembled, Congress ought to learn to lay off the pork. You see the bad effects of doing otherwise, of proposed amendments. Can you imag- SECTION 1. SHORT TITLE. ine what the Founders of this country This Act may be cited as the ‘‘Emergency lapsing into self-indulgence, all the time. Spending Control Act of 1995’’. The crime bill is only the latest example of would think if they actually thought a measure in which critics have been able to that in 1 year 75 proposed amendments SEC. 2. TREATMENT OF EMERGENCY SPENDING. use questionable spending to tar and hold up would be here? Seventy-five. (a) EMERGENCY APPROPRIATIONS.—Section constructive spending as well. 251(b)(2)(D)(i) of the Balanced Budget and The Founders of our country as- In fact, the amount of pork in the budget sumed that maybe once every several Emergency Deficit Control Act of 1985 is each year is greatly exaggerated—and of amended by adding at the end the following course what seems to one man to be pork generations there might be some huge new sentence: ‘‘However, OMB shall not ad- may genuinely seem to another to be spend- matter so necessary to amend the Con- just any discretionary spending limit under ing for an essential public purpose. There’s stitution. Nobody ever assumed 75 pro- this clause for any statute that designates no magic line. But there is some line—and posals would come rushing in. appropriations as emergency requirements if some things seem to be pretty clearly on the The House has passed one. It is not that statute contains an appropriation for porky side of it. Those are the things that the extreme version supported by the any other matter, event, or occurrence, but people remember, the indefensible examples that statute may contain rescissions of that come to typify all spending. If only House Republican leadership, but they budget authority.’’. they’d cut out the pork, the public is led to still passed one. The Senate Judiciary (b) EMERGENCY LEGISLATION.—Section believe, there wouldn’t be a deficit. It isn’t Committee sent a companion measure 252(e) of the Balanced Budget and Emergency true, and some of the greatest critics of pork to the full Senate for consideration. Deficit Control Act of 1985 is amended by are also among the greatest porkers on the Indeed, we have a backlog of pro- adding at the end the following new sen- side—but that doesn’t matter. posed constitutional amendments in tence: ‘‘However, OMB shall not designate The spenders ought to clean up their act. the Judiciary Committee. After a sin- any such amounts of new budget authority, In this case, the anti-spenders are helping to outlays, or receipts as emergency require- point the way. The leadership should disarm gle day’s hearing, we have two con- ments in the report required under sub- them by doing as they suggest. Emergencies- stitutional amendments to limit con- section (d) if that statute contains any other only in emergency bills makes sense. gressional terms on the committee’s provisions that are not so designated, but f next agenda. There was also a hearing that statute may contain provisions that re- on another important topic, line-item duce direct spending.’’. CONCLUSION OF MORNING veto, on which are pending four more (c) NEW POINT OF ORDER.—Title IV of the BUSINESS Congressional Budget Act of 1974 is amended constitutional amendments. by adding at the end the following new sec- The PRESIDING OFFICER (Mr. The proposals for constitutional tion: FRIST). Morning business is closed. amendments already introduced in this January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1807 Congress range from the so-called bal- The first amendment—the separation 10 reasons to oppose the proposed con- anced budget amendments—inciden- of powers, the powers of the purse— stitutional amendment in my supple- tally, there are at least three Senate these should be supported and de- mental minority views contained in versions, six versions considered by the fended. It is the oath we all swore when the Senate Report No. 104–5. I will have House—to congressional term limit we entered service in this great and occasion to speak to these and other amendments, line-item veto amend- historic Chamber. That is our duty, not reasons during the course of our de- ments, school prayer amendments, ret- only to the Senate and the American bate. roactive tax amendments, and we are people today, but to those who forged I urge my colleagues to consider the about to receive a proposed amendment this great document, our responsibility views of Senators BIDEN, HEFLIN, and to the first amendment regarding the to those who sacrificed to protect and KYL; the minority views, including American flag. defend our Constitution, often times those of Senators KENNEDY and I have not seen an amendment to re- laying down their lives to do it, and FEINGOLD; the hearings of Senators write the taking clause of the fifth our commitment to our constituents BYRD and HATFIELD on this last year. amendment, but when you look at the today, and our legacy to those who will These are, in my view, essential back- revised name of the subcommittee, the succeed us in this body. ground for this debate. Subcommittee on the Constitution, In this constitutional amendment to Let us take a look at this. Let us Federalism and Property Rights, you try to balance the budget, there is turn away from what appears to be a have to assume it is not far away. added irony. The Republican Party has closed shop on this issue. Let us turn Some of these constitutional amend- assumed majority status in both the back from this path before partisan ments call for proposed ratification House of Representatives and the Sen- bickering and legislative gridlock over- through the State legislatures, but ate. They control the legislative agen- whelm us to the detriment of the others demand a constitutional con- da. They can pass any budget they American people. In the U.S. Senate, of vention be convened. want. We are talking about a two- all places, we should not be afraid to There is a feeling, I guess, that we thirds vote amendment, a constitu- have ideas debated, openly debated and can do far better by convening one tional amendment to balance the budg- voted on. Let us not resort to tabling than those who wrote the original Con- et in the year 2002. It only takes 50 per- stitution—Madison, Hamilton, Frank- cent plus 1 to pass a balanced budget motions on amendments, which allow lin, Morris, and Washington—that we today. There are far more Republicans you to be on both sides of an issue; but can now do much better. They did not than that. There are a majority of Re- let us vote straight up or down. You do have the advantage of radio talk publicans in the House and the Senate. not come here to vote maybe, you shows, I guess, or multi-million-dollar They could pass a balanced budget to- come to vote yes or no. That is what political consultants. morrow if they wanted and not have to we should do. I have to ask, with a new majority in fiddle with our Constitution and say, Our distinguished Judiciary Commit- both the House and the Senate, what ‘‘Maybe in the next century, the next tee chairman has called this the most are their plans for rewriting our Con- millennium, in the year 2002, whoever important matter that we will consider stitution? Why the sudden need to is standing will do it for us.’’ this year. I agree with him, but let us change our 200-year Constitution? Do They want to balance the budget, offer amendments and vote on their they want to have a host of constitu- eliminate the deficits, start paying off merits instead of engaging in proce- tional amendments come forward or the debt, including the huge debt of the dural shortcuts. one, two, or five or six? Enough. Reagan years. The Republican major- There will be much more said. But, The Constitution is a good document. ity could do that by a simple majority Mr. President, I come from a family It is not a sacred text, but it is as good vote in both Houses of Congress in a that has revered the Constitution. I a law as has been written. That is why matter of days. grew up with a father who told me how it survived as the supreme law of this I think that would show the leader- important it was because it protected land for over 200 years with few alter- ship necessary. Instead, having taken the rights of not only the majority but ations. It is binding us together rather over the majority, they propose a con- of the minority. than tearing us apart. stitutional amendment which basically I came from a family that found it- Look at the great compromise in the says we cannot trust the majority in self in the early part of this century in Constitution that allowed small States the House and the Senate. There is a religious minority and most of its life and large States to join together in a somewhat of an irony here, Mr. Presi- in a political minority in our State. spirit of mutual accommodation and dent. If they really trust themselves, But we knew the protections were al- respect, an amazing step, not done be- let us pass one right now. ways there. We knew they were always cause of the passions of the moment, I am concerned that we are too ready there for everybody. We knew we had a but by great thinkers in this country. to seek what appears to be the quick Constitution that stood the test of And it has stood the test of time. It fix. The Constitution cannot be amend- time. That was strong, that could be gives meaning to our inalienable rights ed by sound bite. Supermajority re- changed only by great effort, and only to life, liberty, and the pursuit of hap- quirements undercut our constitu- when there was an extreme need in the piness. It requires due process, it guar- tional democracy. They evidence dis- Nation to do so. antees equal protection under the law, trust not only of our Constitution but Mr. President, that is the philosophy it protects our freedom of thought and of the people who sent us here. with which I grew up. It is neither a expression, our freedom to worship or Proposed amendments to our fun- liberal nor conservative philosophy. It not to worship as we choose, and our damental charter require consideration is an American philosophy. I hope we political freedoms as well. It is the whether they are, in the language of hold to it. basis for our fundamental right of pri- article V of the Constitution, constitu- I yield the floor, and I understand vacy and for limiting Government’s in- tionally necessary. I hope that we are under the previous order that it would trusions and burdens in our lives. not going to burden the public or the go to the Senator from Minnesota. I worry that we are so bent on mov- States with a hodgepodge of poll-driv- Mr. HATCH addressed the Chair. ing so rapidly, as though we are pass- en, popular-sounding constitutional The PRESIDING OFFICER. The Sen- ing some kind of an amendment to a amendments at some helter-skelter ator from Utah. minor bill, that we can not fully debate pace to beat some artificial deadline. Mr. HATCH. Mr. President, I ask this amendment. That is not the way I hope that we will fulfill our respon- unanimous consent that as soon as I the Constitution should be amended. sibilities, not only in our individual finish my short remarks, the next per- I have to oppose what I perceive to be committees, but in the bodies of both son to be recognized be the distin- a growing fascination with laying the House and the Senate, to have fair guished Senator from Minnesota. waste to our Constitution and the pro- and open discussion. The PRESIDING OFFICER. Without tections that have served us well for I have studied the so-called balanced objection, it is so ordered. over 200 years. budget amendment. I have summarized Mr. HATCH. I thank the Chair. S 1808 CONGRESSIONAL RECORD — SENATE January 31, 1995 Now, there is nothing more impor- It is ironic that while many oppose There being no objection, the article tant we can do than improve the gen- the Balanced Budget Amendment Act was ordered to be printed in the eral welfare of all the American fami- because, they argue, it is nothing but a RECORD, as follows: lies and reduce the national debt that gimmick, the special interests are out [From the Wall Street Journal, Jan. 12, 1995] is eating away like a swarm of termites in full force to protect their favorite, on a log. The way to do that is to pass expensive, pork barrel spending pro- THE BALANCED BUDGET AMENDMENT: A the balanced budget amendment to the grams. But whatever happened to the CONTRACT WITH EVASION Constitution. To me, unless we do this, national interests? What about pro- ‘‘We propose * * * to restore the bonds of we are going to be in real trouble in tecting the economic well-being of trust between the people and their elected this country. This past week, the America and the future economic well- representatives. That is why, in this era of official evasion and posturing, we offer in- House of Representatives answered the being of our children and grand- children? We have to make these deci- stead a detailed agenda. * * * ’’—The House question: If you have to balance your Republicans’ Contract With America. checkbook every month, should not the sions now, and that is why this debate is important. ‘‘The fact of the matter is once members of Federal Government have to balance Congress know exactly, chapter and verse, Personally, I do not like to amend its books every year? the pain that the government must live with the Constitution, but we have reached Their answer was ‘‘yes,’’ 300 to 132. in order to get to a balanced government a point of no return where, if we do not They answered the question: Has Wash- [sic], their knees will buckle.’’—House Ma- amend the Constitution of the United jority Leader Richard Armey on ‘‘Meet the ington spent your tax dollars wisely? States, we do not put this fiscal mecha- Press’’ last Sunday, justifying GOP plans to And their answer was ‘‘no’’—228 Repub- nism into the process, and we do not pass a balanced budget constitutional licans and 72 courageous Democrats bit adopt a mechanism that forces Mem- amendment without specifying how it’d be the bullet and did the right thing. bers of Congress to make priority achieved. What a victory for all of us. choices among competing programs, Dick Armey probably remembers House Right now, our debt is a staggering this country will not be able to main- consideration last year of a real balanced budget measure offered by Rep. Gerald Solo- $4.8 trillion. That means that each and tain its strength as the greatest coun- every one of us in this country, includ- mon (R. N.Y.). It proposed huge cuts in try in the world and everybody, includ- health care, agriculture and income security ing every child, owes a whopping ing every special interest in this coun- for the poor, while completely eliminating $18,500, and it keeps going up every try, will suffer in the process. all aid to Russia and subsidies for Amtrak day. I have taken enough time this morn- and air service to remote areas. We can no longer saddle our children ing. I know my dear friend from Min- The Solomon proposal got a grand total of with decade after decade of unbalanced nesota is about to speak, and I will 73 votes; Republicans, by more than a 2-to-1 budgets. We have not balanced this yield the floor at this time. margin, voted against it. Passing a balanced budget in 26 years, and it appears to me Mr. WELLSTONE addressed the budget amendment may be easy; getting a that we have not balanced it but a few Chair. balanced budget isn’t. In a reasonable path to balance by 2002, the times in the last 60 years. The PRESIDING OFFICER. The Sen- budget would have to be cut by more than $1 Current interest on the national debt ator from Minnesota. trillion. This would be almost 30% larger is $300 billion a year and rising. Believe Mr. WELLSTONE. I thank my good than the 1990 deficit reduction legislation it or not, that is more than the total friend and colleague from Utah for his and more than 40% bigger than the 1993 revenues that came to the Federal Gov- graciousness, Mr. President. And he is, measure. ernment back in 1975. If the current agree or disagree, a good friend. It feels The Republicans have excluded Social Se- trends in Federal spending continue, good for me to say that. curity and defense, and discretionary domes- tic spending already is frozen. Thus a huge the Federal Government will double in MOTION INTENDED TO BE SUBMITTED burden would be borne by the budget’s fast- size and consume nearly half of our Mr. WELLSTONE. Mr. President, I est growing area, health: Medicare and Med- gross domestic product in the next 35 ask unanimous consent to have a mo- icaid now are about 3.8% of gross domestic years, where today it is consuming a tion printed in the RECORD which I in- product; by 2002, without congressional ac- lot less than that although more than tend to make at some time while House tion, these entitlements would soar to 6% of it should. Joint Resolution 1 is pending. GDP. The annual deficit causes untold There being no objection, the motion The public is solidly behind a constitu- damage to our economy. It hurts our was ordered to be printed in the tional amendment; that’s why it’s featured wages. It raises our interest. It reduces RECORD, as follows: in the Contract With America. But, as the Wall Street Journal/NBC News poll revealed the number of job opportunities for all MOTION TO REFER HOUSE JOINT RESOLUTION 1 last month, voters dramatically turn against of us. For those Americans who are re- Mr. WELLSTONE. Mr. President, I move to it if that means 20% cuts in Medicare, Medic- tired, the biggest threat to Social Se- refer House Joint Resolution 1 to the Budget aid and veterans benefits. Thus, Dick Armey Committee with instructions to report it to curity is the Federal Government’s fis- & Co. find evasion and posturing more at- the Senate accompanied by a report contain- cal responsibility—fiscal irresponsibil- tractive. ing a detailed description of a 7-year budget (Ironically, in contrast to this duplicitious ity, I should say—because they are plan that would achieve a balanced budget measure, Senate Budget Committee Chair- making the Federal dollar less and less by 2002. man Pete Domenici genuinely worries about important, and actually we will reach a Mr. WELLSTONE. Mr. President, I point where it will be worthless. If we deficits and wants to atone for the fiscal sins will in the course of my remarks re- of the early 1980s. His House counterpart, do not stop the spending binge, it will spond to some of what my colleague John Kasich, is as knowledgeable and honest kill Social Security. from Utah had to say, but first, so that as he is earnest on these matters.) Instead of supporting the balanced my other colleagues in the Senate are It’s outrageous that the GOP’s self-pro- budget amendment, the administration aware of what I intend to do on the claimed foes of the old politics whine that points to its so-called deficit reduction floor of the Senate at the right time, it’s political suicide to address Social Secu- plan as the solution to our problems, let me summarize this motion. rity now. Last year two old dinosaur Demo- crats, Dan Rostenkowski and Jake Pickle, but in fact President Clinton’s deficit I intend at some time to move to reduction plan was his 1993 tax in- specifically proposed to trim cost of living refer this resolution, House Joint Reso- increases for Social Security, raise the re- crease, the largest in history. If you lution 1, to the Budget Committee with tirement age and cut benefits for more afflu- think raising taxes is the way to solve instructions to report it back to the ent recipients. Is it too much to ask the sup- our budgetary problems, then hang Senate, accompanied by a report con- posedly fiscally responsible Republicans to onto your hats. You had better hang taining a detailed description of a 7- be as serious? onto your wallets and pocketbooks as year budget plan that would achieve a The $69 billion current trust fund surplus well. balanced budget by the year 2002. disappears in less than 20 years when the Under the President’s plan, the na- Mr. President, I ask unanimous con- baby boomers start retiring. To suggest, as some Republicans do, that it’ll be more po- tional debt will increase by $1 trillion sent that a piece by Al Hunt in the litically palatable to address Social Security in the next 5 years alone, even if all of Wall Street Journal of Thursday, Janu- when more of these baby boomers are closer his optimistic economic assumptions ary 12, be printed in the RECORD at this to actually retiring is, to be charitable, il- turn out to be true. point. logical. January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1809 Under a constitutional amendment, even if Mr. President, yesterday, in Min- in the country have a right to know unfunded federal mandates are abolished, the nesota, I called on the legislative lead- where we are heading. By the way, I states will take it on the chin. Governors ership in our State to put together a think the analysis I am about to make will embrace a 10% reduction in the 600 cat- egorical grants if they are turned into bloc task force to assess the impact of a bal- is in many ways irrefutable, just in grants with fewer strings attached. But a anced budget amendment on the State terms of the basic commitments that balanced budget amendment would neces- of Minnesota. I did this, Mr. Presi- some of my colleagues have already sitate more reductions. The big entitlements dent—and this has been met with a made. If you add the defense increases, for the states—Medicaid, food stamps and positive response by legislative leader- and you also add tax cuts—I think the welfare—would be cut drastically. Vermont’s ship—because last week I came to the defense increase was, roughly speaking, Democratic governor, Howard Dean, cal- floor with an amendment based upon a culates that state funding would be reduced $80 billion over 5 years and I think the by 40% over seven years; on a state-by-state resolution from my State of Min- tax cut was, roughly speaking, $360 bil- basis, it’s calculated that New York, for ex- nesota. This resolution was passed lion over 5 years—now we are not talk- ample, would lose $11.225 billion in fiscal unanimously by the State Senate, ing about $1 trillion, we are talking 2002, two-thirds of that from Medicaid. Democrats and Republicans alike, al- about $1.481 trillion. At least those would be real cuts and there most unanimously by the House of would be real debates. More commonplace Now we are no longer talking about Representatives, and signed by our Re- $1 trillion, we are talking about $1.481 would be gimmicks such as increased use of publican Governor, Governor Carlson, loan guarantees or unrealistic assumptions. trillion that we are going to have to on January 20. (The measure doesn’t require a balanced cut between now and 2002. That is why What this resolution said was, budget; it only requires that actual outlays I am going to move at the appropriate ‘‘when’’—I changed my amendment to don’t exceed projected outlays.) Look for a time that we refer this resolution to huge increase in the use of regulatory in- ‘‘if’’—the constitutional amendment stead of budgetary measures to meet de- passes the Congress, Congress should the Budget Committee with instruc- mands for action, affecting state and local send to the States, send to Minnesota, tions to the Budget Committee that it governments and business. an analysis of the impact of this bal- bring to the Senate a report that con- Conservative legal expert Robert Bork, an anced budget amendment on State and tains a detailed description of a 7-year eloquent opponent of this amendment, has budget plan as to how we are going to noted that ‘‘government need spend nothing local government and on the people in on a program if it can find groups in the pri- our State. cut $1.481 trillion. vate sector that can be made to spend their That amendment was defeated by es- Do we not at least owe that to people own funds.’’ He also envisions that unelected sentially a party-line vote. I think I re- in the country? Is that not called truth judges would be dealing with hundreds of ceived 45 votes for that amendment. in budgeting? Is that not called being suits to enforce—or not enforce—the amend- Talk about the right-to-know: my straightforward? Is that not called ment, as does Ronald Reagan’s solicitor gen- amendment simply said that if we pass stepping up to the plate and being clear eral, Charles Fried, who warns that the liti- gation would be ‘‘gruesome, intrusive and a balanced budget amendment, before and being honest about what we intend not at all edifying.’’ (When House Repub- we send the amendment to the States to do? Mr. President, $1 trillion says licans follow their speaker’s advice to read we should provide an analysis of its im- CBO, and in addition we have a bidding the Federalist Papers, they may glance at pact on the people of the different war to raise military expenditures, and number 78, where Alexander Hamilton pro- States. I think every single one of my in addition we have a bidding war for claims that the judiciary should have ‘‘no in- Republican colleagues voted against it. more tax cuts. Now we are talking fluence over either the sword or the purse.’’) Talk about the importance of being Remember, the Gramm-Rudman legisla- about $1.481 trillion. tion specifically promised to eventually bal- straightforward, stepping up to the Let me turn to the next graph. Here ance the budget; instead the deficits soared. plate, being direct with the people we is what I believe my colleague, Senator Democratic Rep. David Obey of Wisconsin represent. Talk about the importance CONRAD from North Dakota called—and sees that pattern re-emerging: ‘‘The cycle of the right to know—people should I say this to you always in good grace, which quadrupled the deficit in the 1980s will have the right to know what the im- ‘‘the Republican credibility gap.’’ So be repeated. The amendment says we need 60 pact of this balanced budget amend- far the spending cuts we have heard de- votes to pass a budget that’s not balanced.’’ ment will be on their lives before we When that horse trading starts, Rep. Obey tailed in the Republican Contract is ventures, all the pressures will be to add pass it. Talk about the sort of crazy about $275 billion. We have seen specif- spending to attract votes. ‘‘In all my years proposition that before you buy a used ics of $277 billion of budget cuts. Mr. as a legislator I don’t think I’ve ever seen a car you shouldn’t lift up the hood and President, $1,481 billion is what we member say I’ll vote for something if you look at the engine. I was really dis- have to cut to get to this balanced take things out. If this baby passes, I’ll mayed that this amendment was de- make a flat prediction: Three years after it budget by 2002. So far my Republican feated. colleagues have laid out budget cuts is passed we still have a deficit well over $100 What I am now saying is very con- billion.’’ totaling $277 billion. There is a long sistent with, I think, responsible public More than adding to public cynicism, that ways from $277 billion here to $1,481 bil- policy. My fundamental disagreement will debase the Constitution. Imagine a dec- lion. That is truly the Republican with some of my colleagues on the ade from now a businessman trying to col- credibility gap. And that is why at the lect $100,000 because the state has unconsti- other side of the aisle is that I think appropriate time I will move to refer tutionally taken part of his property for gov- we owe it to people in this country to ernmental use. When the country is violat- lay out a detailed 7-year plan as to this resolution to the Budget Commit- ing the Constitution by $100 billion or $200 where we are going to make these cuts tee with instructions to the Budget billion, who’s going to worry about a paltry Committee that it lay out a detailed $100,000 constitutional offense? before we pass this. I think the reason my colleagues do not want to do this is plan as to exactly where we are going Mr. WELLSTONE. His piece begins because they do not want to lay out to make these cuts. We are not going with an interesting quote: their plans. to do well with people in this country We propose * * * to restore the bonds of Let me give some context, which I once they realize we are quite unwill- trust between the people and their elected think really gets to the heart of this. ing to specify where we are going to representatives. That is why in this era of of- Using conservative estimates, the Con- make the cuts. People are going to ficial evasion and posturing, we offer instead begin to see this as a shell game, shift- a detailed agenda * * *. gressional Budget Office estimates that the interest savings that would come ing burdens to the States, to personal This is a direct quote from the House income, property, and sales taxes of Republicans’ Contract With America. from the cuts—let us factor that in, let the states. And the following comes from House us be fair—even taking that into ac- count we are talking about a little over When I was back in Minnesota yes- Majority Leader DICK ARMEY, on Meet terday I said one of the reasons why it the Press: $1 trillion worth of cuts between now and 2002. To get to a balanced budget was so important to have some truth in The fact of the matter is that once Mem- budgeting—so important that people bers of Congress know exactly, chapter and —$1 trillion worth of cuts. Where are verse, the pain that the Government must we going to make the cuts? have a right to know where we are live with in order to get a balanced budget, On the next graph, Mr. President, is heading—is because of the likely im- their knees will buckle. illustrated some real numbers. People pact on my State. S 1810 CONGRESSIONAL RECORD — SENATE January 31, 1995 The Center on Budget and Policy Pri- with every single Republican voting heard a word so far about cuts in the orities issued a report yesterday, and I against it. The first amendment, we military budget. have some preliminary figures from will not do anything that will increase Mr. President, Senator BUMPERS, that report. By 2002, in that 1 year homelessness or hunger among chil- Senator BRADLEY and I and several alone where will we in Minnesota be? dren. The second amendment said we other Senators 2 or 3 weeks ago had a We will have $143 million less in Fed- will at least provide States with finan- press conference looking at a lot of eral education. Where will we be: $1 bil- cial analysis of the impact of the bal- analysis that has been done on defense lion, in 1 year, less in Medicaid; about anced budget on them before we send it needs and potential defense and other $3 billion of cuts over the next 7 years. to them for ratification. Why were related cuts. We essentially made the This is another part of what I con- those amendments voted down? What argument that here are some military sider to be, really, a shell game. The is it that my colleagues do not want expenditures that are just simply not cuts accelerate. They are less over the people in Minnesota or Tennessee or necessary when we have to make these first 2 years and then they get deeper Utah or anywhere else in the United difficult choices, and we had cuts total- and deeper. When I say in the State of States to know about the implications ing $33 billion over the next 5 years; Minnesota we could very well be faced of this balanced budget amendment? It $114 million from 1996 to 2010. There are with $1 billion of cuts in Medicaid in 1 is the credibility gap. a lot of different programs listed. I will year alone, I want my colleagues to un- These are the parameters. We are not itemize them today. I will later on derstand that half of Medicaid expendi- talking about, roughly speaking, $1.481 in the debate. tures go to older people for nursing trillion worth of cuts, and so far my Some of these are worthy programs. home expenditures. These are our par- colleagues have specified $277 billion. For example, let me say the space sta- ents and our grandparents. I think the That is a big credibility gap. And after tion has many exciting possibilities. figures on Medicare go even higher. you raise the Pentagon budget, and But I would far prefer to feed children What do these figures mean? The after you do more by way of tax cuts— on Earth in the United States of Amer- Children’s Defense Fund estimates that and then we are saying that we are not ica than to send a station into space. such cuts in 2002 would result in almost going to be cutting Social Security; We have to start making these difficult 30,000 Minnesota babies, preschoolers, there seems to be strong agreement on choices. But I do not hear people talk- and pregnant women losing WIC nutri- that—in addition you pay interest on ing about any of these big military tion supplements; over 351,000 children the debt. Do we think people do not see contractors having to sacrifice. Oh, no. losing food stamps; over 154,000 chil- through this charade? It is clear where Oh, no. It is the children, a quarter of dren losing free or subsidized lunches; we are going to be making the cuts. whom are poor, who do not have lobby- over 2,004 blind or disabled Minnesota Mr. President, I do not know about ists, who do not have political power. children losing SSI; and over 24,000 other States, but I will tell you one So what we are going to do—which is children losing access to remedial edu- thing. When we cut the WIC Program, why we are unwilling to specify the cation. the Food Stamp Program, subsidized cuts beforehand—is we are going to I have heard my colleagues talk lunches, remedial education, law en- make cuts based upon the path of least about our children and our grand- forcement, environmental protection, political power. children and the debt. I have voted for higher education, and any number of It is interesting. Again, I borrow deficit reduction. I have voted for sev- other key areas, either our States will from the fine work of Senator BUMP- eral years in a row for the deepest cuts walk away from the people or our ERS. When I hear my colleagues say we we have seen in deficit reduction in States will end up having to assume have to raise the Pentagon budget. But decades and I will continue to do so. the costs. we will cut the School Lunch Program, But for many children, the future is These burdens are going to go back we are going to do it. The arithmetic is now. We keep talking about our chil- to the States. And I can predict what is compelling. We are not coming any- dren and the future, and I bring an going to happen. Just as we now, unfor- where close to telling people how we amendment to the floor of the Senate 2 tunately, have moved to several tiers— are going to cut $1.4 trillion. We know weeks ago asking the U.S. Senate to go people on the top and many people on where we are going to cut. That is why on record saying that nothing we shall the bottom—either we are going to we are unwilling to be clear about it. do by way of spending cuts or legisla- have States that are going to pick up That is why we are unwilling to specify tion will increase the number of home- the costs—I can tell you, I will speak before we pass the balanced budget less or hungry children in America and for Minnesotans. We are not going to amendment. I have not heard any dis- I cannot get a majority vote for that. let children go hungry. We are going to cussion about cutting military con- Let me repeat that. My colleagues make sure that our young people can tracts. talk about our children and our grand- afford higher education. We are not Just a couple of interesting figures children. Maybe our children and our going to break our contract with veter- on this chart. If we take the U.S. de- grandchildren are doing well now. We ans. If there are going to be deep cuts fense budget and you add NATO and have fairly high salaries, and do well in Medicaid and Medicare, we are going other allies, altogether we are spending economically. But a lot of our children to make sure that people continue to about $530 billion. Russia, China, and and grandchildren are not doing well have health care when they need it. all the rest of our potential adversaries now. For them the future is now. And So we are going to end up having to combined, total potential adversaries I came to the floor 2 weeks ago with a pay for it. That is the shell game to combined, only spent $121 billion. The reasonable sense-of-the-Senate amend- this. That is why my colleagues are un- United States alone has a larger de- ment that we would go on record say- willing to specify what we are going to fense budget—$280 billion—than all of ing we are not going to do anything do. My colleagues are unwilling to step our potential adversaries combined, that would increase hunger or home- forward and say what we are going to which is $121 billion. Yet some are lessness among children in America. do. talking about raising the Pentagon Mr. President, did you see the report Mr. President, for myself I have budget. We are talking about a little today that one out of every four chil- never signed on to the notion of a bal- more to cut taxes for people, and then dren in the United States of America anced budget in the year 2002 because I we say we are going to have deficit re- are poor? One out of every four chil- think it is so political—and because it duction through a balanced budget dren under the age of 6. What about would depend on the economic cir- amendment, but we are unwilling to those children now? I could not get my cumstances at the time. For example, specify where we are going to make the colleagues to vote for that amendment. we wouldn’t want to do huge spending cuts. We are unwilling to tell people in I think I understand why. cuts if we were in a recession. Of Minnesota, Tennessee, and Utah, all Let me go back to the chart on the course, we have to continue with defi- across the country where they are credibility gap for a moment, if I cit reduction. Of course, we have to going to be at 2002 and what they are could. Let me tell you why, Mr. Presi- balance the budget. But the question going to be faced with. dent, the two amendments I have in- is, What gets taken off the table and There are, of course, other choices to troduced in the last 2 weeks have failed what gets put on the table? I have not be made. I will be on the floor later on January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1811 with Senator FEINGOLD and others about is that they want to know where cent in favor. Last week, I came to the talking about this. But it does strike the cuts are going to take place. When floor with an amendment that I me as odd and politically troubling, if we hear that subsidies are going to be thought would pass. It was so reason- you look at the Republican contract, if eliminated, we are all for it if we know able. It said if we pass a balanced budg- you look at the Contract With Amer- where they are and if you give us a fair et amendment, let us send it to the ica, there is no mention of anything price in the marketplace. For those of States with a detailed analysis of how that asks large corporations, or large you who know this language—and if this will affect Minnesota or Ten- financial institutions, or any other you come from Minnesota, you cer- nessee, and the people who live in our wealthy interests, to sacrifice at all. tainly do—they are talking about the States. It was voted down, essentially a They say we are going to cut nutri- loan rate and Commodity Credit Cor- straight party vote. tion programs for children. There is no poration. Give us a fair price, that is Mr. President, over the weekend, I question about that. We are going to all we ask for. Then they say: We have have been thinking long and hard cut child care. We are going to cut not heard people talk about the fair about this. I have decided, before we higher education. We are going to cut price and about cutting back on the get too far into this debate, I should Medicaid. We are going to cut Medi- conservation program, not giving us a come to the floor before we get too far care—deep, deep cuts that will acceler- fair price. If you do that, you are tak- into the amendments and move to refer ate as we approach the year 2002. We ing a good percentage of farm income this resolution to the Budget Commit- will likely not do much the first year, of people who are barely hanging on. tee, with instructions for the Budget before the elections. It is all carefully Mr. President, under a balanced Committee to come back with a report designed. It has to happen. The arith- budget amendment there are going to that contains a detailed description of metic is clear. But we are not going to be deep cuts and a lot of people are the 7-year budget plan. That is reason- touch oil company subsidies at all. We going to be hurt. My colleagues say, able. It is consistent with being ac- are not going to go after bloated mili- well, we have to do all this, it is in the countable. It is consistent with being tary contracts. We are not going to national interest. It is in the national straightforward with people and with deal with some of the other loopholes interest to continue to reduce the defi- the people of the United States of and deductions that a variety of dif- cit. It is in the national interest to America knowing exactly what we are ferent large, powerful financial institu- move toward a balanced budget. It is in going to do. I think that is exactly tions are able to take. We are not ask- the national interest to do it by the what people believe in strongly. ing them to sacrifice at all. same standard that every single family So I have filed this motion, and a lit- That is the reason, Mr. President, we in this country lives by when they bal- tle later on I will go forward with this do not want people to know where we ance their budget, which is a standard motion. I thank my colleague from are going to make the cuts. We are of fairness, not just targeting those Utah. likely going to go forward and pass a with the least amount of political I yield the floor. balanced budget amendment without clout, or going after health care and Mr. HATCH. Mr. President, I have even being willing to be straight- education, or children and leaving all listened to my distinguished friend forward and clear with the citizens we sorts of other subsidies untouched. from Minnesota. As usual, he is an ad- represent as to what this means for That is the way we should do it. vocate for those who are poor and have their lives, as to what kinds of cuts we But, Mr. President, we are not going difficulty in our society. I admire him are going to make, in what kinds of to do it that way. Let me be crystal for that. On the other hand, I do not programs and how it is going to affect clear. We are not going to do it that think there is a person in America who them and their children. way. Instead, we are going to make thinks for one second that this vora- That is why I intend, at an appro- deep cuts, we are likely going to pass a cious, money-eating, money-grubbing priate time, to move to refer this reso- balanced budget amendment, and ulti- Federal Government does not eat up an lution to the Budget Committee with mately we may not, because I think awful lot of this money right here in instructions to report it to the Senate the longer this debate goes on and the the bureaucracy. In fact, there are accompanied by a report from the more people pay attention to this de- many authorities who seem to indicate Budget Committee containing a de- bate, they are going to say wait a that of all the billions of dollars tax- tailed description of a 7-year budget minute. payers are spending for the poor, wel- plan that would achieve a balanced Back to the chart on the credibility fare, food stamps, AFDC, you name it, budget by the year 2002. gap one more time. They are going to and the thousands of programs that we Should we not be honest with people say, wait a minute, Senators, we heard have, some believe that only 28 percent and straightforward with people? Why there was going to be a trillion dollars of all of that money we pay actually do we not do that? The answer is, we do in spending cuts, and then we hear that gets to the poor. not want to tell people where we are there are those saying they want to in- Mr. WELLSTONE. Will the Senator going to make these cuts. We want to crease the Pentagon budget by $80 bil- yield for a minute? pass perhaps the most important piece lion over 5 years; then we hear every- Mr. HATCH. I will be happy to. of legislation that has been passed in body is in this bidding war to cut more Mr. WELLSTONE. I want to make it decades, with far-reaching con- taxes which means less revenue, which clear that I know everything the Sen- sequences for the people we represent, has to be offset somewhere. Now we ator says he says in good faith, and he for the lives of people we represent, and hear that the estimate, conservatively is always rigorous in his analysis. we do not want to, before we pass the speaking, is $1.481 trillion. So far, pro- When I hear the Senator talk about balanced budget amendment, lay out ponents of the amendment have only how there are all sorts of overly cen- the plan as to where we are going to specified $277 billion worth of cuts they tralized programs and bureaucratized make the spending cuts and other pol- are willing to make. We would like to programs and there are cuts we can icy changes required, and how they are know, Senators, Democrats and Repub- make, I say to the Senator: Fine, the going to affect our States and counties licans alike, where are you going to only thing that I am going to do in this and our cities, how they are going to make the cuts? How is it going to af- motion is to say to the Budget Com- affect the people we represent. fect us? Is it going to be according to mittee, before we vote, let us be clear Mr. President, it is interesting, I some standard of fairness? Are we about where we are going to make the want to make this clear that this is not going to have to pick it up at the State cuts. just an urban issue. I was this past level? Is it going to be the property tax I do not necessarily disagree with weekend in Jackson County in south- or sales tax that now we are going to what the Senator is saying. I have to ern Minnesota meeting with corn and get hit with? see the numbers. But let us lay them soybean growers. I say to my colleague Well, people have every right to ask out. If the Senator and other members from Utah that I will bet you the vast those questions. In fact, there is over- of the Budget Committee can tell me majority of the people there are for a whelming support in the United States how we get from $277 billion to over $1 balanced budget amendment; I think of America for the right-to-know prop- trillion in cuts and where they are that is true. But what they are worried osition: Recent polls show over 85 per- going to be, that is what we should do. S 1812 CONGRESSIONAL RECORD — SENATE January 31, 1995 Mr. HATCH. I will get into that in Government. Our Governors are beg- come up with new ideas every time you just a minute. I want to make this ging us to send block grants for welfare turn around, when I see how little point, and I am glad the Senator recog- to them. They do a better job. They money gets to those people, I just nizes there may be some merit to this will make it more efficient. They will shudder. point. We, in the interest of controlling get more help to people and in the end This balanced budget amendment everybody—we liberals back here in people will be better off. will make the Federal Government Washington—and that is what you have When Reagan became President, I be- more efficient. It help us help the poor to call us—we have built such a bu- came chairman of the Labor and more. It will make every dollar count. reaucracy that we are robbing every- Human Resources Committee. That And I do not care how liberal you are; body, and very little of that money ac- committee overviews between 2,000 and I do not care how conservative you are. tually gets to the people that my 3,000 Federal programs. President You are going to have to work within a friend is worried about. And I too Reagan came to me and said, ‘‘Orrin, structure that requires us to live with- worry about those less fortunate than you have six of the seven block grants in our means, or at least go in that di- most. in your committee.’’ rection. I am the author of the child care bill, Now, it was an interesting thing, be- This amendment does not always along with Senator DODD. He and I cause I had a heck of a time getting necessarily require a balanced budget. were there at the last minute of that any block grants passed. It was still a It just puts on a fiscal mechanism particular Congress making sure it pretty liberal Congress, even though which forces us to at least move in went through. Nobody in America was the Republicans had taken over control that direction. Because if you want to more concerned about child care than I of the Senate. But the House was still increase the deficit, you are going to was, and I am a conservative. So I take controlled by Democrats. have to have a three-fifths vote to do second seat to no one on this problem. I was having a rough time. One day it. That means 60 Senators in the Sen- It is not an unknown fact that I was President Reagan called me and said, ate would have to vote for any increase the person who helped to save the Job ‘‘Orrin, what is the matter with you up in spending. If you want to increase Corps Program, which is the only pro- there? Why can’t you do what I have taxes, you are going to have to have a gram for unemployed youth in our so- asked you to do?’’ ciety. It is expensive. It costs over And I have to say that I was not constitutional majority, which means $20,000 per youth per year. On the other quite as respectful to the President as you cannot do that with less than 51 hand, if we just write them off, they I should have been—and I have always actual votes in the Senate and 218 ac- are going to cost us better than a mil- been. I said, ‘‘Wait a minute, Mr. Presi- tual votes in the House. Most impor- lion dollars a person by the time they dent.’’ I said, ‘‘Have you looked at the tantly, you are going to have to vote, die. We will all have to pay for that. makeup of our committee?’’ There where now we just hide it by voice I can name a number of other pro- were seven total liberals on the Demo- votes. We just go along with business grams I have helped to save and have crat side and two liberals on the Re- as usual. passed here that are very important. I publican side. The committee was 9 to We do not worry about these things. have just as much feeling about the 7 in favor of what Senator KENNEDY The fact is this amendment would poor and the sick and the needy and wanted. I said, ‘‘How do I put through make us worry about these things. It our senior citizens as any Senator in block grants with that kind of a line- would make us a little more concerned this body, including the Senator from up?’’ about where all the moneys go. Minnesota. I will be honest with you. We did. We If there is waste in the military, and But I know that this bureaucracy fought for them and we were able to we all know there has been—I do not back here, that this liberal Federal get some of them through. Some of think there are any more $600 toilet Government which employs an awful them were pure block grants and they seats and $500 hammers or screw- lot of people here in Washington at work magnificently. Some of them drivers—but the fact of the matter is, pretty high rates of pay compared to were hybrids. They were partly block if there is waste, we as Members of the average citizen’s salary, is eating grants and partly categorical pro- Congress can no longer blithely ignore us alive before the moneys get to those grams. And some were called block that. We are going to have to look for who really need it. And when the mon- grants but were not. it and we are going to have to get rid eys finally get there, they are minus- I give a lot of credit to Senator KEN- of it, because we are going to have to cule compared to what we taxpayers NEDY for working with me to do some live within certain economic con- have paid. of the things that we did. And they straints, which is where we ought to be I hear the distinguished Senator worked. In fact, one of the leading lib- and what we ought to do. talking about how we have to cut the erals in the Congress came to me—in (Mr. KYL assumed the chair.) military so that children can eat. No, fact, I would say one of the three or Mr. HATCH. The poor are being we have to cut the bureaucracy so both four leading liberals in the Congress— ripped off because, as the distinguished the military can be strong and children came to me and said, ‘‘Now, don’t ever Senator from Illinois has said on many can eat. And we will never do it with- quote me by name’’—and I am not— occasions, if we keep going in the di- out a balanced budget amendment. ‘‘but those block grants work.’’ They rection we are going, we are going to We get credit for these programs. We work. And the reason they work is be- have to monetize the debt. And once we get a lot more credit for spending than cause we do not go through this vora- do that, this country’s power in the we do for standing on the floor and cious grab by Federal bureaucracy for world, economic clout in the world, its conserving. everything. stability in the world will be gone, be- Having said that, I have been very in- When I see the little bit of money cause nobody will believe in the dollar trigued by colleagues on the other side, that gets back to the poor from the after that, because we will have paid almost none of whom is for the bal- programs advocated by those who off all these debts with worthless dol- anced budget amendment. Why? Be- share the viewpoint of my friend from lars, or at least very, very much de- cause they like to spend. They do not Minnesota, who has been making these valued dollars. want any hampering restrictions on wonderful arguments about how deeply Now, that is where we are headed un- their ability to do good. And I am not he feels about the poor—nobody feels less we do what is fiscally responsible, questioning their sincerity, but I do more deeply about them than I do— that which Thomas Jefferson indicated question whether they are doing good when I see the little amount of money he thought we should have put in the all the time, laundering the moneys to that gets back to them once it is Constitution from the beginning: That an all voracious eating Federal bu- laundered through the Federal bu- is, put in a fiscal mechanism in the reaucracy. reaucracy, where we see all these soci- Constitution that is not so tight that I would rather send those moneys to ologists, all these Ph.D.’s, and all these you cannot operate within it, but is not the States, where the States, who un- people who are paid pretty high wages so tight that you cannot have unbal- derstand local problems, will do a far as they manipulate, manage, fuss, and anced budgets if that is in the best in- more efficient job than the Federal bother, and work on programs and terests of the country. January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1813 If military spending is not efficient States and it is ratified by three-quar- consensus amendment that we have or unnecessary, we ought to correct ters of the States, that we will do what worked out over a period of almost 10 the military. But there are not the in- has to be done; we will live within our years now, since we passed the first centives or the pressures to do that budget limits; we will force ourselves balanced budget constitutional amend- today because we simply spend the to debate the implementing legislation ment through the Senate and lost in money the money with virtually no re- and how we get to a balanced budget by the House back in 1982. straint. We just spend the money. the year 2002, if possible; or we will A lot of us, somewhere, worked on it. If we are wasting money on social vote to either increase taxes or to in- It is important. A lot of Democrats programs, we ought to correct those crease the deficit, because it cannot be have worked on this. A lot of Repub- wastes. But we do not do it today be- done. But that will never happen. But licans have worked on this. Any one of cause we just spend the money. today that type of a debate will never us could write a tougher amendment, If there are other programs in the happen—with any hope of fruition—un- one way or the other. But this is a bi- Federal Government that are not less we have the amendment mecha- partisan consensus amendment. This is working and are not as valuable as nism in the Constitution to force Mem- the only one that has a chance of pas- some programs, we ought to bite the bers to do it. sage. It will do the job because it does bullet and get rid of them. But today Government excess spending is our three things. It does more than three we just spend the money. biggest threat, to our eyes on this side things, but three things I want to men- Now I have seen for 18 years those of the floor. To the distinguished Sen- tion. It requires a recorded three-fifths who are against the balanced budget ator from Minnesota, failure to curtail vote to increase spending. To increase amendment come on this floor time excess spending in the military is one the deficit, you will have to get a re- after time or speak in public time after of the biggest threats. Military spend- corded three-fifths vote to do so. Once time or on television shows or on the ing is now the third largest item in the you do that, everybody in America will radio, and say, ‘‘We ought to have the Federal budget. The second is that in- know who voted that way. They may guts to do what is right here. We ought terest against the national debt, that agree with it. But they may not, ei- to balance the budget and we ought to is over $300 billion and will approach ther. And everybody here will have the do it without a balanced budget amend- $500 billion shortly after the first of the ment.’’ century if we do not do something now. pressure on their backs to determine Well, we ought to. But the fact of the So, this call, to cut military spending whether or not it is the right thing for matter is, there are not the votes to do without a balanced budget amendment, them to do. Today, we generally lift it. People will not do it because there is a fruitless call. Nobody has been able the debt ceiling by a voice vote. No- is no fiscal mechanism in the Constitu- to do it so far. We have tried through body wants a recorded vote on that tion that requires them to do it. the statutory methodology. I was sit- issue, and thus raising the debt ceiling So when somebody comes on the ting right back there in 1978, and I re- has become automatic because we do floor and says, by the way, they have member when we passed the Byrd not have a recorded vote. always been an opponent of the bal- amendment that required the Senate Second, if you want to increase anced budget amendment, and almost to balance the budget in what I believe taxes, you have to have a constitu- all of these who are critics are, the new was 1980. Yet, an amendment was of- tional majority. That is important. game in town is to say, ‘‘Show us how fered that required a 51-percent major- Any legislation could be passed here by you are going to the get to a balanced ity vote for a balanced budget. This a vote of 26 to 25 because we have 51 budget in 7 years.’’ We have three or completely subverted the very impor- Senators making a quorum. Anything four plans around here that show that. tant Byrd measure that had previously else could be passed by less than 51 The problem is, we do not have the just passed by an overwhelming vote votes. Once this amendment becomes votes for any one of those plans to do on the Senate floor. There was no con- law, the only tax bills that could be it. So nobody in this context can show stitutional force or requisite to meet passed through both Houses will be exactly how we are going to get it in that challenge that Harry Byrd made. those bills that get an actual 218 Mem- the year 2002 unless we have a mecha- It went down to defeat. bers to vote for them in the House, and nism that forces us to do it. That is Then we came up with Gramm-Rud- an actual 51 in the Senate. what this is all about. man-Hollings. I cannot say that it did Third, and I have alluded to this be- So when the new methodology to de- not work at all. But in the end it was fore, we have a recorded vote to raise feat the balanced budget amendment a simple statute that we did away with the debt ceiling and there is a three- is, ‘‘Show us how you are going to get and changed its goal and timetables. fifths requirement to do so. there in 2002,’’ I can give them 20 plans Frankly, it never really worked well. Those are three very important rea- that will show them that. The point is And today we are right back where we sons why we should enact this balanced there is no incentive or power or force started. True, with the largest tax in- budget constitutional amendment. or mechanism to enact any of them in crease in history, the deficit trend line Now, there are good worries on both the current Congress without a bal- has gone down and will go down until sides of the aisle on almost every as- anced budget amendment forcing us to 1996, when it just shoots right straight pect of this. We can raise all kinds of meet these problems. back up again. hairy problems. The fact of the matter So that is why this is important. We What are we going to do, raise taxes is that this is a bipartisan amendment, do not want to put the cart before the again and solve this problem that way? done by Democrats and Republicans, horse. We need to pass the amendment. Or are we going to start working on which is the only one in history that That puts the mechanism in that priority choices between competing has a chance of passage and, for the makes Members of Congress make pri- programs in the budget? The only first time in the history of this coun- ority choices among competing pro- thing that will get Members to do that try, has passed the House of Represent- grams. is a balanced budget constitutional atives. Back in 1982, an amendment I happen to believe that Members of amendment. It is not because people in that was not quite as good as this one Congress believe in the Constitution. I Congress are bad people or they do not passed the Senate by 69 votes; in other happen to believe that they believe in want to do what is right. It is that words, 2 more than we need. We have to the oath of office that they have taken. there is so much pressure to spend have 67 votes on a constitutional I have seen a reverence for the Con- here. There is so much pressure by amendment in the Senate. stitution no matter what the philoso- every special-interest group in this I believe this amendment is worthy phy of people in the Congress. It is the country to cover their problems and of passage. I am fighting arm in arm same in the States. The State legisla- solve their difficulties. with my fellow Democrats who are tors revere their constitution. We re- We are sincere. We want to do what linking arms with me and with others vere ours. is right. But right now we do not have on this side who have worked so hard I do not think it is a naive belief to to because there is no mechanism forc- to try to pass this amendment. We are say if we pass the balanced budget ing Members to consider doing what is fighting together, side by side, trying amendment and it is submitted to the right. This amendment is a bipartisan to get it through. I believe we have a S 1814 CONGRESSIONAL RECORD — SENATE January 31, 1995 chance at doing it if the American peo- 1978—maybe it was 1979—we had a law you are going to solve a social problem ple really get on the backsides of their on the books saying that Congress just have not worked. Senators and let them know that this could not spend more than it took in. We have to stop the immoral behav- is something that has to be done. Noth- But did it do any good? No. The the- ior of passing along increased debt to ing short of that will get this done. ory is one Congress cannot bind a suc- our children and future generations There are other things I would like ceeding Congress, and I suppose that is and get out of this time warp that we to say, but I think there are others on good constitutional law. So when we are in that somehow money spent the floor who would like to speak to passed the succeeding budget that was through the Federal budget or the cre- this matter. I defer other remarks to a out of balance, it was then read as ation of some new program is going to later time. I yield the floor. overriding the Byrd-Grassley amend- solve our problems. Mr. GRASSLEY. Mr. President, I ment. A balanced budget amendment fits want to support House Joint Resolu- So after that and after Gramm-Rud- appropriately within the design of the tion 1. The significance of the No. 1 is man 1 and 2, we still did not have a bal- original document because, as the pre- very important. If Members go out and anced budget. Then there were several amble says, the Constitution was talk to people at the grassroots, they attempts on my part to merely freeze adopted by, think, to have a balanced budget, there the budget across the board, and I was We the people of the United States, in is a need for a constitutional amend- joined in that effort, let me say, by my order to form a more perfect Union, establish ment. They think this amendment is good friend, Senator BIDEN of Dela- justice, insure domestic tranquility, provide the first order of business of any Con- ware, and Senator KASSEBAUM. The for the common defense, promote the general gress. I think the last election said freeze in and of itself would not have welfare, and secure the blessings of liberty to that it ought to be the first order for brought about a balanced budget in the ourselves and our posterity. this Congress. It is very simple, par- first year, but in 21⁄2 years we would ‘‘Posterity’’ is a word that we do not ticularly for middle-class people in have had a balanced budget. But we hear much anymore. We run our Gov- America, and the small entrepreneurs could not get a majority for that. After ernment as if the only relevant consid- and to the farmers of America, that all those efforts, I have become a sup- erations are what are in today’s news- Federal spending must be controlled, porter and advocate for a constitu- papers, what we do today. We, in elec- the deficit eliminated, and the national tional amendment to require a bal- tive office, tend to be more concerned debt brought down. anced budget. about the next election just 2 years There are very important economic More so than what I have said is my away than about the next generation. reasons to balance the budget, but rationale for the constitutional amend- We consider the consequences of our more essentially, there are moral rea- ment is the fact that in my own State acts in short timeframes. Rarely do we sons to balance the budget. The moral of Iowa we have a constitutional take account of the effects that our ac- issues, in fact, now, are more impor- amendment requiring a balanced budg- tions will have on posterity’s ability to tant than the economic reasons. Early et, and I have seen our State legisla- enjoy the blessings of liberty in the on, I think we could justify the amend- tures faithfully abide by that, whether way that my generation has and the ment on economic reasons, but now the controlled by Democrats or controlled immorality of our generation living by Republicans. I think it works. So we way that the preamble presumes that high on the hog and leaving the bill to must enact an amendment to the Con- our future generations should be able our children and grandchildren to pay stitution because nothing else has or to enjoy the blessings of liberty. makes it much less an economic issue. nothing else will work. Irresponsible Among the blessings of liberty that We are borrowing the future of our debt threatens our future, not just the our constitutional system has main- children and grandchildren through the future of the young people that are our tained is a standard of living that rises bad fiscal policies. We must end this future but the very form of our society with each generation. Keys to this en- practice. and the freedom, both political and hanced economy have been productiv- Because every other means has failed economic, that is an integral part of ity, growth, and investment. In recent to produce a balanced budget, we must our society. years, productivity, investment and enact an amendment to the Constitu- I think the reason we look at it the savings rates have declined with the tion. Every other means has failed. way we should, as a moral issue, is be- concomitant negative impact upon the Gramm-Rudman I and II. I even re- cause it threatens our children’s fu- economy. member when I was a Member of the ture. Our deficits have not occurred be- The 26-year continuous string of un- House of Representatives, I worked cause Congress has not taxed the balanced budgets has contributed to very closely with another person by American people sufficiently. Rather, these poor economic results. I do not the name of Byrd, Harry Byrd, who was these deficits have developed because think it coincidental that the stagna- a Member of this body, a Senator from of runaway spending. And all you have tion of average wages over the last 20 the State of Virginia. He was very to do is look at efforts to increase years has been accompanied by high much a fiscal conservative. He taxes to reduce the deficit—and we budget deficits by our Government. thought, just pass a law that would say have had four or five of those in the pe- Moreover, economic growth in the that Congress cannot expend more riod of time I have been in this body— last 26 years of counting deficits has than the taxes raised. and the deficit does not get smaller. It fallen short of the prior 26 years. Budg- I was in the House of Representatives is still yet larger. et deficits have been run up to fund at that time, and I worked very closely The reason for that is because the current consumption. The effects of with former Senator Byrd of Virginia Government not only spends every dol- these deficits are already negatively to make sure that amendment he lar that comes in in taxes, but it bor- affecting the budget. When we last bal- passed in the Senate would get through rows another 50 cents almost to spend anced the budget—and that was in the House of Representatives. I had to, in conjunction with it. So in fact I 1969—9 cents of every dollar of Federal in a sense, camp out in the Chamber of think lower taxes, less income, is one spending went to payment of interest the House of Representatives for about less dollar to have an excuse to borrow on the national debt. a 2-week period of time to be there another 50 cents against to ratchet up Now, however, 26 cents of every dol- from gavel to gavel. I knew that the spending and ratchet up the deficit. lar goes toward paying the interest on leadership of that body would want to Washington has not only been irre- the national debt. We receive nothing avoid the membership being forced to sponsible, but I think this process of for making these payments, but we will vote upon the Byrd amendment when it our fiscal irresponsibility fosters the force future generations to pay an even came over to that body. wrong values in our society. Spending greater proportion of the budget as in- Finally, when they knew I was going is increased, and the results of the terest unless we act to pass this con- to stay in the Chamber of the House spending have not been to accomplish stitutional amendment, because all the and force a vote on a motion to in- what was promised. Programs which other acts in good faith that this body struct, they let it come to a vote, and have a philosophy that all you have to has taken have not produced the de- it was overwhelmingly adopted. So in do is tax and appropriate money and sired results of a balanced budget. January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1815 Moreover, we will have to tax future some Government bills have been paid spending, not cutting. It is toward defi- generations at incredibly high rates twice. cits, not toward a balance of the budg- just to pay the interest on the national A balanced budget amendment will et. debt if nothing is done. The figures for force us to take a tough look at Gov- We have heard it said that section 6 that problem that lies ahead for future ernment accounting as well as Govern- of the amendment which gives Con- generations vary depending on the as- ment spending. This is all to the good. gress the power to enforce the statute sumptions made. Rooting out wasteful spending is the is inconsistent with the claim that Future generations will pay the vast best way to make headway against the statutes alone will not end the deficit. majority of their lifetime earnings in deficit. But there is no contradiction. As I Federal taxes. Various assumptions Yes, there is wasteful spending to have said, in 1978 I was a part of the bring up various percentages of two- cut. Byrd-Grassley efforts by a statute that thirds or three-quarters or even 93 per- Cutting spending does not have to we got through and signed by the cent that future generations might mean that people will be hurt. We have President to require a balanced budget. have to pay in taxes just to pay inter- spent trillions on social programs, and So I think I know. Many amendments est on the national debt. the problems remain. In many in- are given life by provisions extending So it is unacceptable that we live stances, the programs have made the Congress the power to enforce them. high on the hog by masking the true programs worse. As Ronald Reagan This constitutional amendment gives costs of the programs while leaving fu- said, ‘‘We fought a war on poverty—and us a basis for what was not there when ture generations to pay the cost, mean- poverty won.’’ the Byrd-Grassley amendment was law. ing the principal plus the interest. Even when a program has good ends, Implementing legislation is nec- it is frequently mismanaged. We all That was not done to us by our essary to make the balanced budget know how much of the money is wasted grandparents or parents or great amendment function fully. But the dif- on too many bureaucrats, regardless of grandparents or any of the 11 genera- ference between statutes enacted under how well intentioned they are or how tions that we have had. It seems to me this amendment and Gramm-Rudman, much work must be done. It may be because it was not done to us, we have or Byrd-Grassley is that the Constitu- true that there are now fewer Federal even more of a responsibility to make personnel than in the past 30 years. But tion will demand that the new statutes sure we treat future generations with does anyone miss the ones no longer be adhered to, unlike earlier legisla- the same respect that past generations there? Has anyone’s life suffered as tion lacking the constitutional impera- have shown us. these surplus employees have left and tive. I am concerned that some people not been replaced? Mr. President, we need to balance the think that the deficit and the national I believe that the worthwhile and im- budget. We can only do so if we pass a debt are issues of declining impor- portant programs could grow at a constitutional amendment. The Amer- tance. While it is true that the deficit smaller rate, and could be just as effec- ican people are watching to see if we will fall this year, we cannot afford to tive, if they were critically examined make this commitment. The quality of declare victory and stop worrying and changes made. The programs that the existence of future generations is about the deficit. The deficit will rise do not measure up should be elimi- at stake. We cannot afford to fail in the near future by the administra- nated. We can balance the budget this again. We cannot afford to fail making tion’s own estimates. way under the proposed amendment. tough decisions today to lighten the Moreover, I believe that the adminis- Cutting the Washington bureaucracy is burden on our children and grand- tration’s interest rate forecasts have the key. children. We must enact this constitu- been too low. Higher interest rates will Since the deficit itself is a signifi- tional amendment to balance the budg- only increase the portion of the budget cant problem, why not just cut the def- et. spent on interest on the debt. More- icit now? Why enact a constitutional I think this is the fourth time— over, deficits themselves increase in- amendment to balance the budget? Be- maybe the fifth time—since I have terest rates in the long run, and higher cause, as I hope I made clear, I see no been in the Senate that this issue has interest rates harm renters, home buy- other way. Congress has passed stat- come before us. ers, farmers, and small business peo- utes to reduce the deficit. Congress has We have passed it at least once. It ple—maybe everybody who borrows. raised taxes supposedly to cut the defi- was by two votes. It was defeated once But it seems to me that it particularly cit. But the deficit has risen. It rose by one vote. Another time it was de- hurts those people who have to borrow after Gramm-Rudman. It rose after the feated by two or three votes, and then for need or those people who have cap- 1990 budget deal. That was a Repub- a couple of other times we could not ital-intensive industries and small lican one. get the votes to stop the filibuster. I businesses to create their own jobs. And in a few years even by our Presi- hope this time we will be successful. Deficit spending has produced other dent’s own admission, and he is a Dem- I yield the floor. negative consequences. Last year at ocrat, his 1993 tax bill and the budget Several Senators addressed the the hearings held on the amendment in agreement that went with it will still Chair. the Judiciary Committee, the former not keep the deficit from going up The PRESIDING OFFICER. The Sen- chief actuary for Social Security testi- within 2 more years, and continue to ator from Delaware. fied that deficit spending has led to lax go up unless we do something more. Mr. BIDEN. I am sorry. I did not see Government accounting. If the bal- We cannot ever eliminate the deficit the Senator from Colorado. I yield time anced budget amendment were enacted if we continue on our present path. for the Senator. this actuary testified that Congress If we are to reduce the deficit, we The PRESIDING OFFICER. The Sen- would finally have to start examining must put a binding obligation on Con- ator from Colorado. Government accounting. Just the sim- gress to balance the budget gradually Mr. CAMPBELL. Mr. President, ple accounting procedures by the Fed- until the deficit is eliminated soon thank you. I thank the Senator from eral Government are way off. There is after the passage of the amendment. Delaware. no incentive to correct the procedures Those who believe we can cut the Mr. President, I too, rise to speak on as long as the Government can borrow budget deficit down to zero without the balanced budget amendment to the and borrow and borrow and not have to this amendment should offer an effec- Constitution. As a person who has been meet a legal, constitutional require- tive plan to accomplish the result. a prime cosponsor of this legislation ment of a balanced budget. According However I believe that they will not do three different times and on the House to his testimony, one account at the it. Congress as an institution will not side voted for it, I am very perma- Department of Defense has been mis- cut spending or reduce the deficit un- nently committed to it. In fact, in the managed for 30 years. The State De- less it is forced to do so. And the only 102d Congress, as the Presiding Officer partment has lost account of billions of force I know is through the Constitu- well knows since he was also a sup- dollars worth of property. And the tion. There is plenty of will in this porter when we served together over Comptroller General has said that body, but that will is directed toward there, we missed it by just six votes. It S 1816 CONGRESSIONAL RECORD — SENATE January 31, 1995 was awfully close. A couple of times be- inundated with people who say in one ment should be flexible, able to last fore that we both signed a procedure in breath, ‘‘Balance the budget, reduce the ages, and not dictate the path to a which to take the amendment directly my taxes, and get me $10 million more balanced budget. to the floor, and we could not even get for my special project.’’ Those special Congress will pass the balanced budg- it out of committee of the 101st Con- interests, which we sometimes called et amendment this year. Passage of gress, as I remember. the third House around here, has had so this amendment will not be the silver So there have been a lot of efforts to much influence in protecting turf that bullet to kill the deficit—only tough move this along, and basically do what we simply cannot balance the budget choices will do that. I hope we can people are saying now—that is, save us by legislation. work together in a bipartisan, respon- from ourselves. I know in the course of Just look at the recently disbanded sible fashion for a balanced budget and this debate, which may last a week or Kerry-Danforth bipartisan entitlement the future of our Nation and our chil- even 2 weeks, there are going to be a commission. It spent $1.8 million but dren. lot of efforts to weaken it, lots of ef- failed to come up with a unified pro- Certainly, the challenge is enormous. forts to get us to succumb to the feel- posal on where to cut entitlement Congress has the responsibility, and I ing by some Americans that we really spending, which is the largest sector of am certainly willing to step to the do not need to balance the budget, and Government spending. plate, as many of my colleagues are. in fact will hurt jobs or hurt individ- This amendment gives Congress and I yield the floor, and just say in pass- uals. I do not subscribe to that, and the public a constitutional reason to ing that I certainly commend both bite the bullet. Congress will have to would oppose weakening this in any Senator SIMON and Senator HATCH, who way, shape, or form. bite the bullet—we will have plenty of are going to be spending an awful lot of tough choices. Clearly, popular pro- As better speakers before me have al- hours here on the floor in the next grams probably will be cut, and in fact ready alluded to on the floor, we are week, for their leadership on this bal- some good programs may be cut. We simply in a downward spiral. Last year, anced budget amendment. must make our very best effort to con- $200 billion was wasted on interest pay- Mr. SIMON. Mr. President, will my cern ourselves with the most vulner- ments. As the Senator from Utah said, colleague yield? able in our society and make sure that not one dime of that money helped Mr. CAMPBELL. Yes. they do not get unduly hurt. build a square yard of highway, or Mr. SIMON. Mr. President, I cer- According to most estimates, about helped build one cell for a hardened tainly want to commend the Senator $1.2 trillion of spending cuts are going criminal, or helped one youngster in from Colorado for being solid on this to be needed to balance the budget in need of counseling. All we got for our issue. efforts in the last few years was an the next 7 years. Already, nearly 50 percent of spend- He mentioned the GAO report—which $18,000 bill as they said for every man, has been largely ignored around here— woman, and child in America. ing programs have been removed from the new leadership’s deficit reduction that says if by the year 2001 we balance There is no question in my mind— the budget, by the year 2020 we will and I think everyone knows—that bal- plan—Social Security, defense, and net interest. have an average increase, adjusted for ancing the budget will be perceived as inflation, in income of 36 percent per hurting some people in the short run. In addition, Congress will probably be required to find more cuts to offset American. But in the long run balancing the budg- Our choices are very, very striking. I et will raise the Nation’s standard of the middle-class tax cut proposals, and other tax cut proposals, that are being happen to have that report here. I living and the rate of savings. Accord- would just like to read this: ing to GAO, a balanced budget by the circulated around the Capitol. Eliminating the budget deficit, and, if pos- year 2001 would produce a 36-percent Certainly, the challenge is enormous. Congress has a responsibility to come sible, achieving a budget surplus, should be improvement in our standard of living among the Nation’s highest priorities. Be- by the year 2020. up with spending cuts before it passes cause of the accumulating burden of interest OMB Director Alice Rivlin estimates any tax cuts, and our eyes narrowly fo- on the mounting public debt, it is important that balancing the budget within 5 cused on a balanced budget in 7 years. to move rapidly in this regard. Postponing years would raise the national savings THE RIGHT TO KNOW action only adds to the difficulty of the task. rate to 6.1 percent. Yet, if we fail to Congress also has a responsibility to Again, I want to commend our col- pass a balanced budget, the savings tell the American people how it will league from Colorado for standing up rate will be a mere 3.7 percent—that accomplish a balanced budget before it so solidly on this. I really appreciate certainly means trouble for the United passes one. That is why I support Sen- his leadership. States in a competitive global econ- ator DASCHLE and Senator EXON in Mr. CAMPBELL. If I might say, too, omy where other nations save far their efforts in the right-to-know budg- in that report, it indicates that be- more. et amendment. cause of some severe actions we have Our voters told us that it is time to Congress must be honest with voters taken in the last year or two the defi- draw the line. We know that we cannot because they have a right to know cit is going down a little bit now. But, pass a constitutional amendment to what we already know. Congress can- clearly in next few years, it is going to solve every problem. Certainly this is not allow its knees to buckle at the start to rise again. What we do legisla- not an ordinary problem. This amend- prospect of making spending cuts. tively is not going to amount to a hill ment is required because history has We have a duty to fill in the blank of beans, but it is still going to go up proven, as other speakers have said, lines of the promise of a balanced budg- without this constitutional balanced that legislation simply will not work. et, so that Americans can understand budget amendment. I remember very well the days of the what it means for their lives. I look forward to supporting this Gramm-Rudman-Hollings act in which THREE-FIFTHS TAX LIMITATION amendment, and thank the Senator for we ended up before we could finally get Some have suggested that a provision his nice comments. it passed exempting something like 72 be added to require a three-fifths ap- Mr. BIDEN addressed the Chair. percent of all spending and thereby proval for income tax increases. I op- The PRESIDING OFFICER. The Sen- trying to balance the budget on the re- pose such a provision. ator from Delaware. maining 28 percent of the revenues. It would scare away many supporters Mr. BIDEN. Mr. President, I state the And it simply will not work. If we of last year’s version which almost obvious. The Senate has begun debate make all kinds of exemptions to this passed. We have worked far too long to on a proposed amendment to the Con- legislation, this will not work either. see this opportunity missed. stitution. This is, as it ought to be, a In an ideal world, this amendment I also worry that this provision solemn moment in the life of our Con- will not be necessary. But, in the real would allow a zealous minority to hi- stitution, for what we debate today, world, it is necessary. I do not think jack our Nation’s budgetary policies. and I expect in the following weeks, is that in fact the elected officials should More importantly, I think a three- whether to change, alter, or modify the take all the blame for it because I fifths requirement undermines the basic document of governance that we know my office, like many offices, is amendment’s flexibility. The amend- have operated under. January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1817 Since 1791, the year the Bill of Rights are today. Gramm-Rudman put caps on seven, or eight of us in this place who was ratified, Members of Congress have the amount of deficits allowed and re- do not oppose the notion that we have introduced over 10,000 proposed amend- quired a balanced budget. But the re- a mechanism in the Constitution to ments to the Constitution. Admittedly, quirements changed every year, and deal with deficits. But we are very un- the new Republican majority is making the only constant in the process was sure of this mechanism. The camps their weight felt here. We have not the annual increase in the national generally divide into two areas. One only this amendment, but I do not debt and the guarantee of annual defi- suggests that it is bad policy, period, know how many more to amend the cits. to put anything in the Constitution. Constitution. But there have been over Those are not the only things that we And there are those who suggest that 10,000 proposed amendments to our have tried. Over 10 years ago, I offered this is the only answer. I am with that Constitution. Of those 10,000 since 1791, my own constitutional amendment to handful or maybe a couple of hands full we in Congress have approved just 22. balance the Federal budget—and you of people here who find myself believ- And, of the 22, just 17 have been rati- might expect me to say, parentheti- ing that it is not inappropriate but be- fied by three-quarters of the States and cally, I think it was a superior docu- lieving that what we have before us have become part of the Constitution. ment to the one we are about to vote may not do the job. I have been here We stand here again this year con- on this year. Up through my vote for long enough to realize that there are fronting one of our most profound con- Senator REID’s balanced budget amend- often unintended consequences of our stitutional responsibilities as we con- ment last year, I have held that this is actions which are sometimes worse sider a change in our fundamental an issue worthy of constitutional con- than the problem we have attempted to charter. It is one of the glories of the sideration. Many suggest that this is cure. U.S. Constitution that it has been so not an issue worthy of constitutional Where do we stand now? We have be- resilient. Its authors’ insight into consideration. fore us the balanced budget amend- human behavior and political institu- Well, the fact of the matter is, I ment, about which many of us have ex- tions have proved accurate from our think my friend from Illinois is correct pressed serious reservations, the effects early years as an outpost on the coast when he keeps quoting and referencing of which in both the short and the long of the new world to our current status Jefferson. If this is not worthy of con- term cannot be predicted with any de- of a space-aged superpower. stitutional consideration—how we are gree of certainty, although we will find Few changes have been necessary to able to bind or not bind future genera- plenty of people on the floor who will permit the Constitution to keep pace tions—I am not sure what is worthy of predict with certainty how they think with our social, economic, and techno- constitutional consideration. this will work. I think any reasonable logical revolutions that have trans- That in no way undercuts the oppos- person, though, will acknowledge that formed our Nation since its founding. ing argument that writing fiscal policy it is almost impossible to predict with But in recent decades, we have faced into a constitution or into a document a degree of certainty what will happen the problem that we do not seem to be of governance is a difficult and maybe if this passes. able to solve. We cannot balance our impossible thing. But the notion that I hope we can improve the proposal budget, or, more correctly, we will not. this is not worthy of constitutional by passing amendments. But there is a And to put it in even sharper focus, I consideration, I think, is not accurate. second refrain you will hear on the think it is much less important that The decision to encumber future gen- floor, I expect, time and time again: our budget be balanced. There is noth- erations with financial obligations is This is the best we could do. This is the ing magic about the budget being bal- one that can rightly be considered best we could do. We have to pass ex- anced. But what is critically important among the fundamental choices ad- actly what the House sent to us, be- is that our deficit continue to decline, dressed in the Constitution. cause we have never been so close be- and that we have a small deficit, if any But from the first time the resolu- fore. We have to take what is before us. deficit at all. tion before us here today was proposed, For example, I will, in my opening At the beginning of the Reagan ad- I have been concerned that it could statement here, make reference to ministration, we swerved from the bring with it problems that, taken to- some Governors and others who have course that had, since the end of World gether, could be almost as bad as the suggested that a capital budget is a War II, shrunk the national debt, and deficit problem that we are all worried good idea. When I ask people why it is we turned onto a path that has led us about. In the Judiciary Committee, I a bad idea, the Senator from Illinois to where we are today; the so-called have described some of those concerns. gives me his well-thought-out rationale Laffer curve. Speaking of ‘‘Laffers,’’ it This year, in committee a number of why it is not necessary or why it is is probably the ultimate ‘‘Laffer’’—the amendments were offered to fix what I, counterproductive. Most others look at ‘‘Laffer curve.’’ Many of us have at least, perceive to be problems in this me and say: ‘‘We cannot fool with this worked to impose disciplines needed to constitutional amendment. Some of us or tamper with this because it is the restrain the temptation to spend be- tried to make this a better proposal. only game in town now. We are getting yond what we tax. We tried to avoid tying up the courts perilously close, and we cannot change (Mr. GREGG assumed the chair.) with constitutional questions about anything at all.’’ Mr. BIDEN. When the Reagan admin- such important details as the Presi- I respectfully suggest that that is not istration deficits began, I proposed, dent’s role in enforcing the balanced a very enlightened way to deal with along with Senator GRASSLEY and Sen- budget. We tried to keep the Social Se- amending the Constitution. I cannot ator KASSEBAUM—and he mentioned curity trust fund off budget, where it is say that I am optimistic that the im- this earlier—that we freeze every sin- now and where it should stay. We tried provements, from my perspective, that gle solitary program in the Govern- to assure that the real cost of the bal- I and others will suggest will be accept- ment, anything the Government had to anced budget amendment, and not just ed. I fear that there are those who will do with, every single solitary one, that its surface lure, is known to the citi- believe that the mere fact that we will we not spend a penny more, not even zens who will be asked to ratify this suggest improvements is really de- accounting for inflation, than we spent amendment in the coming months. We signed to kill the amendment. The the year before. Although I wrote the tried to provide a capital budget to truth of the matter is that these plan with my two Republican col- treat public investments the way fami- amendments are designed to make it leagues, we received very little support lies, businesses, and States treat their better. I will speak to the specific from either side of the aisle. I think own investments. changes I would like to see. But the our high-water mark 3 years later was These and other amendments were changes I suggest will not in any way 38 votes. not accepted. The reason they were not undermine the principle of this amend- I also supported the Gramm-Rudman accepted—and you will hear it repeat- ment and would make it more work- process that has been much maligned edly; my friend from Utah referenced able, not less workable. here in the Congress. It has not it. It is the one thing that worries me Whether or not we amend this worked, but I argue that absent that most, as I am one of those undecided amendment, Mr. President, this bal- things would even be worse than they votes. I am told that there are five, six, anced budget amendment, may in fact S 1818 CONGRESSIONAL RECORD — SENATE January 31, 1995 change our ways. Perhaps we will use United States, that we will be requir- those things that everybody when I go the opportunity of a constitutional ing an increasingly larger share of home who says, ‘‘JOE, if you just cut constraint and make the tough choices every tax dollar just to pay the inter- the waste in Government’’—if we shut to restore sobriety to our budget proc- est on the debt. down every department in the Govern- ess. I devoutly hope so. And to me that is the driving force ment, we would in effect have an in- Of course, it may be that we will de- behind this amendment. To me, the be- ability to balance the budget in the cide that the economic and political ginning, middle, and end is not whether outyears because we are already talk- cost of an annual budget balance are there is a mechanism that guarantees a ing about interest on the debt equaling not worth the benefits. It may be that balanced budget amendment. It is not almost the same amount of money of we will make use of both the legiti- whether or not there is any magic all the money we spend on the Govern- mate escape clauses in this amend- about it being actually in balance. It is ment for what the average person ment, and other, unforeseen devices to not whether or not we come close. It is thinks are Government expenditures. evade the intent of the amendment. about that increasingly larger propor- They do not usually think of Social Se- Mr. President, I hope we do not, if this tion of the tax dollars collected going curity as a Government expenditure. passes. for the most useless investment of pay- They do not think of the things we We, quite frankly, cannot be sure ing interest on the debt. generally talk about as the big-ticket that a vote for this amendment will When I introduced my budget freeze items here as expenditures. have the effect the authors promise. proposal years ago, the liberals of my By the time this amendment is in- But we can be sure that if we try noth- party said, ‘‘It’s an awful thing you are tended to become law, in the year 2002, ing, we will remain on the path that we doing, Joe. All the programs we care the interest on our debt will be $344 bil- have been on for too many years now, about, you are freezing them—money lion, larger than every other category with the notable exception of the last 3 for the blind, the disabled, education in the budget except Social Security. years under the leadership of this and so on.’’ That is just interest on the debt. President. I know the stereotype is My argument then is one I make If we do nothing, our inability to that all Democrats are big spenders now, which is the strongest, most com- control the growth of debt, and the and that all Republicans are conscien- pelling reason to be for this amend- cost of carrying that debt, will tie our tious with the taxpayers’ dollars. Obvi- ment—or an amendment—that if we do hands, preventing us from shifting re- ously, history does not support that not do that, all the things I care most sources to meet changing needs, which conclusion. If we had not had the about are going to be gone—gone. So is the essence, in my view, of respon- Reagan budgets that we all voted on— what do we have? We end up with es- sible budgeting, responsible Govern- and we could have stopped them—but sentially a net reduction in the pro- ment. had we not had the Reagan budgets and grams that I cared about over the last So, Mr. President, the question be- that unusual theory of the Laffer 10 years, a net increase in other pro- fore us today and in the coming weeks curve, we would have a budget in bal- grams, and a net increase in the por- is not the simple one: ‘‘Are you for bal- ance right now. It’s out of balance just tion of the budget that goes to pay in- ancing the budget or not?’’ Under most because of the interest accumulated on terest on the debt. circumstances, everyone would agree and the debt that has occurred as a So the people I care most about—the we should balance our books. consequence of the Reagan additional reason I ran for public office in the No, it seems to me Mr. President the deficits—I should not say Reagan—the first place—are the people that got question is: ‘‘Does our repeated failure deficits produced by Reagan and the hurt the most in this process and are to balance the budget necessitate a re- Democratic Congress both. likely to get hurt the most because sponse that all of us agree is extraor- But we will hear a good deal of hy- they are the weakest in our society. dinary?’’ And that is amending the perbole on this amendment. Its sup- When an interest group like the PTA Constitution. porters promise that it is a cure-all, comes down here to support money for It is by no means that clear that the and its opponents promise that, if it education, and other interest groups amendment before us will eliminate passes, we are going to go to hell in a support money for tax expenditures for deficits. It certainly will make deficits hand basket rapidly and all our lib- major businesses, I have no doubt who more difficult—which in and of itself is erties will be taken from us. I hope we is going to win that fight. I have no a worthy undertaking—but with a keep our eye on the ball here and at doubt how that is going to turn out. three-fifths vote, we can in fact con- least have an open mind to the pros- So if this debt continues to increase, tinue to borrow. pect that we can make this amendment we will continue to tie our hands and And I hope no one is under the delu- better and still have an amendment. our ability—indeed, our responsibil- sion that by hook or by crook some fu- We will continue to add every year to ity—to set national priorities in our ture Congress, less virtuous than we, the debt burden of future generations. annual budget process because of the will not be able to find ways around We will steal today from the future, interest on the debt required to be paid the restrictions in this amendment. squeezing out the savings and invest- every year. With little faith in human nature, ments that could increase our future This year, the interest on the na- but a healthy respect for human inge- wealth if we do not do something about tional debt will cost us $235 billion. The nuity, we should have no delusions on stopping the size of these deficits, even entire domestic discretionary budget that count. if we do not actually balance the budg- will be $253 billion. I think both the supporters and the et, if we do not make a change. Now we use phrases like that ‘‘discre- opponents of this amendment quite The Senator from Iowa pointed out— tionary budget,’’ and my staff writes frankly overstate the case, though. I think I heard him say, and I stand to that stuff in. And I keep telling them I expect the supporters of this bal- be corrected—that in 1969, the last nobody in the world but people in this anced budget amendment will, as they time we balanced the budget, for every Chamber and inside the beltway know already have, proclaim it as a panacea tax dollar collected, six cents, or there- what ‘‘discretionary budget’’ means. that will cure a structural defect in the abouts, went to pay interest on the Let me translate. The discretionary way that a democratically elected leg- debt, and every tax dollar collected in budget includes everything from the islature weighs fiscal responsibility 1993 or 1994—I forget which year he FBI to education, from help for the against the demands of constituents. used, maybe it was 1991—but anyway, mentally retarded to the Library of The supporters will proclaim its pas- every tax dollar collected in the last Congress. That is everything. Every- sage as the end of deficit spending. year or so, 29 cents, I believe was the thing out there that people think is the The opponents of this amendment number he gave, or 26 cents, goes to place where we are wasting money, may agree that it will drastically pay interest on the debt. that people think is the place we can change our Government, but, they will I am sure someone has looked out cut to cut the deficit, does not include argue, for the worse. I expect they will over the next 15 years and concluded Social Security, does not include enti- describe the pain that the deep cuts that if we stay on the track, even the tlement programs, does not include in- will cause to the American people—the one predicted by the President of the terest on the debt. The point is, it is all elderly, the poor, the military, the January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1819 farmers, and the rest who depend on of the country of my friend from Illi- It seems to me that we should tell Government—and paint a bleak picture nois, he and others were in here plead- the American people. I look at the of life under a balanced budget regime. ing that we should continue to reroute polls out there. For example, I want to I say to my colleagues on both sides the Mississippi and every other river in go on record, and I am up for reelection of this debate that all these claims America and we should reimburse peo- this year, and I will remind everybody overstate the case. ple for that disaster. And most Mem- what I did at home, which will cost me This amendment will not magically bers stepped up to the ball and helped. politically. When I argued that we cause deficits to disappear. The hard Now our friends on the west coast are should freeze Federal spending, I meant work of cutting must still be done—and accurately pointing out that there is Social Security as well. I meant Medi- it should be done by us. billions of dollars worth of damage be- care and Medicaid. I meant veterans This is hard work. Evidence the fact cause of earthquakes and fires and benefits. I meant every single solitary that everybody acknowledges that the floods and rains. Are such natural dis- thing in the Government. And I not President’s budget package reduced the asters going to stop? Is anyone going only tried it once, I tried it twice, I deficit, yet everyone went out last year to suggest that this balanced budget tried it a third time, and I tried it a and ran on this gigantic tax increase. amendment will send a message to fourth time. It increased it only for the very God, as well, and say, ‘‘OK, God, we Somebody has to tell me in here how wealthy. The middle-class taxpayers balance our budget, now you hold off we are going to do this hard work with- paid no more. In fact, they got reduc- from here on.’’ out dealing with any of those sacred tions in some cases. And those who Our population will age, and the need cows, some deserving more protection were low- or middle-class income tax- to support the medical and social needs than others. I am not quite sure how payers with children, they got an ac- of those who supported us when we you get from here to there. I am sure tual reduction in their taxes. needed it will not diminish. It will that we should tell the American peo- But yet this thing, this horrible grow. Costs will grow. And on and on ple straight up that such an amend- thing we did, which touched the top 1 and on and on. ment is going to require some big percent of all the taxpayers in America I predict that from time to time— changes. in any meaningful way, was so horrible perhaps more frequently—three-fifths The balanced budget amendment will and so bad—even though, by the way, of Members in Congress will agree that not end our deficit in one fell swoop, in that same document the President nor will it cause our Nation to turn its some need of our people is so great that said and we voted that we would freeze back overnight on those who depend on we will agree that this year we will not spending; we would freeze spending in us. All it means, as the Senator from balance the budget, or this year we will all these other categories—it was so Utah said, is that we will have to stand screw up the courage to have people bad the other side could not even mus- up more often and be counted on these pay for what they say they want ter up the courage to give one single, things. I find that a good thing, not a through the Tax Code. solitary vote for reducing the budget bad thing. I realize, incidentally, that is a hor- deficit by a half-trillion dollars over As we begin this debate, let Members rible thing to suggest. I always find in- the outyears. And the deficit went keep a decent perspective on the true teresting, everything that we hear down. It actually went down. consequences of this amendment. It is about the balanced budget—with the Yet, if they could not muster the important that we not overstate nor courage for that vote—which obviously notable exception of my friend from Il- overpromise what the amendment will cost a lot politically because if you no- linois and a few others that are the do. Let Members debate this amend- tice there are fewer desks on this side chief sponsors of this—is always in ment with all the seriousness that a of the aisle than there are on that side terms of ‘‘cut spending.’’ constitutional amendment requires, to of the aisle; obviously they were right, Whatever happened to the old con- ensure that the amendment we propose politically anyway. If they could not servative discipline about paying for to the States and the American people muster the courage for that vote, how what you spend? Paying for what you merits the honor of being included in are we going to find over $1 trillion to spend. I thought that meant that if we our most fundamental covenant of self- cut? spend, then we ought to tell people how rule. I mean, this is incredible. It is in- much it will cost to spend. If they do So what, then, are the concerns that credible the degree of self-delusion you not want Members to spend, then we many Members, those so-called unde- will see us all engage in over the next should not spend. But if they want to cided voters, bring to this debate? couple days, the next couple weeks. spend, we should be honest, must tell First and perhaps foremost, it seems But this amendment will not magically them what it will cost. to me we must examine whether the cause deficits to disappear. Which brings me to the argument amendment is likely to shift the bal- Nor will this amendment turn demo- raised by some that before passing this ance of power between the branches of cratically elected officials in Congress, amendment we should tell the Amer- Government to an extent never experi- as the opponents say, into hardhearted ican people how we intend to balance enced or expected by our forefathers. It authoritarians who will ignore the the budget. There are those who claim was the wise position of the drafters of cries of their constituents. That is that this is just a sham on the part of the Constitution in 1787 that the Con- what my friends opposed to this the opponents of the balanced budget gress, being the most representative amendment basically will say. amendment. Well, I am not an oppo- branch, the most democratic, and the Even under this amendment, the nent of that amendment, but I want to most sensitive to—and ironically that economy will falter and need shoring tell Members it does not seem to be un- is why we are needing this amendment. up. That is going to happen no matter realistic for someone to lay out in Everybody should not lose sight of what we pass. I do not think anyone broad details at least how it will work. that. We say that Congress is not re- can tell me that this amendment is Those people say, ‘‘Wait a minute; if sponsive, and that we should be more going to take us out of the cycles we you are for the balanced budget amend- responsive to people; and then we are have been in for the of the past 200 ment, you ought to say how to balance told the reason we need this amend- years, particularly the past 60 years. it.’’ Most people who are against the ment is we are too responsive to the The economy will falter at some point balanced budget amendment are not people. Whatever they come and ask and it will need shoring up. saying that we have to balance the for we give to them in a painless way. Foreign dictators will rattle their budget; they are saying that our budg- Kind of fascinating how we sort of turn swords and we will be called upon to re- et should be somewhere around 19 per- these arguments to whatever benefit spond by spending billions of dollars to cent of GNP, that we should not put the moment allows. send armies somewhere. ourselves in the position where we are The fact is we are the most rep- Rains will fall and plains will flood, out of whack. They argue, like many resentative branch. We do respond to and Federal disaster relief will be economists, that balancing the budget the people, and that is how we were called for, to the tune of billions of dol- in and of itself is not a sacred under- supposed to respond based on what our lars. I remember when, in the section taking and could be counterproductive. Founders intended. And we are the S 1820 CONGRESSIONAL RECORD — SENATE January 31, 1995 most democratic and most sensitive to States get their fair share. Let me be point of the amendment. Nobody dis- the public needs. parochial for a moment. I am a Senator agreed with the point of the amend- Because of all that, the drafters of from Delaware, one of the smallest ment. Some said not to worry, it can- the Constitution spent a lot of time de- States in the Union, the fifth smallest not happen, or it probably will not hap- bating this little point on the second population in the Union. pen, or it is unlikely to happen. But ev- floor in Philadelphia, because they did When we pass bills here to make sure eryone acknowledged that if it hap- not want the debate to take place on that all persons benefit, whether they pened, it would be a bad thing. And yet the first floor. They were afraid people live in New Hampshire or Delaware or a majority, all the Republicans and a would eavesdrop and hear what is going Utah or Wyoming or Alaska or other couple of Democrats, voted en bloc to on. This was before ‘‘Government in small States, we sit and we make sure defeat this amendment claiming it was the sunshine.’’ The delegates to the the formulas we write into the bills do not necessary, that after-the-fact legis- Constitutional Convention sat in the not let all of the money go just on a lation could take care of the problem, second floor so people could not walk per capita basis. We usually get to- the so-called enabling legislation. by and eavesdrop. What they were say- gether—and there are probably some- I sure would like to know that before ing on the second floor is, ‘‘Look, if we where between 18 and 20 of us, that is, we pass this. I would like to know are going to give the power to tax and States who find themselves in that po- whether or not a President can do that. spend, we better give it to the outfit sition. Well, if the President gets to Why do we not just make it clear that that will most directly respond to the the end of the line here, the budget is Congress has the power to resolve any people. Taxes, we will give that to not in balance, we have not passed a discrepancy between spending and rev- those guys in the House that get elect- balanced budget—I might add we will enues that is left at the end of the ed every 2 years. We do not want the not know whether or not this will be in year—the Congress, not the President. Senators—who were not popularly balance as we go along because it is Now, maybe that is what the Con- elected in those days—to do that. They based upon predicted revenues. So we gress will do. Maybe the President will can only respond to a tax bill proposed spend based on predicted revenues. not over-reach. But I have never seen, by the House.’’ That does not account for emergencies. as a student of history, any time where So there was a real solid reason why, That does not count significant in setting out the balance of power, downturns in the economy, or a lot of there has been a vacuum in power cre- taxing and spending was put in the other things that come into play. ated that the administration, Demo- Congress. James Madison, who is rec- But if, at the end of the line, we pass crat or Republican, has not stepped in ognized as the father of the Constitu- a budget that we thought was in bal- to fill. And I have seen very few times tion, called this power of the purse ance but, in fact, was out of balance, when the Congress on its own volition ‘‘the most complete and effectual that means the President, under this has stepped up to the ball to fill a vac- weapon with which any Constitution amendment, arguably, could say, uum when filling the vacuum would re- can arm the immediate representatives ‘‘That is my job. I will redo this.’’ I quire them to make hard decisions. of the people for obtaining a redress of know what I would do if I were Presi- And so I do not think it is unreason- every grievance and for carrying into dent and I wanted to balance the budg- able to suggest that future Presidents effect every just and salutary meas- et. I would pick off the smallest States may seek this authority to impound. ure.’’ and cut the moneys that were allocated It’s not necessary to spell out in the That power of the purse has remained for them. They are the least powerful amendment that the President should with the Congress for over 200 years. in Congress. They cannot do much. not have this power? Well, I say that a This amendment threatens to take They do not have that many Rep- principle as important as preserving away a good deal of that power and to resentatives. Over here, because we the balance of power should be stated share it with the President, a fun- make up a minority, we might find as plainly and boldly as possible in the damental shift of authority that will ourselves in difficulty. balanced budget amendment itself. irretrievably alter the balance of power Now maybe a President would not do Now, as we debate this, I will be established in the Constitution. that. But he would have that power, happy to hear anyone say that the Senators might say, well, how, in under the amendment. The President President should have that power. I fact, does this amendment threaten to could change detailed policy set by suspect everyone is going to say he shift the power to the President? Be- Congress; he could conclude on his own should not and this amendment does cause, I am convinced, Presidents will that Congress put, for example, too not give it to him. seize on the language of this amend- many military bases in South Carolina Well, if that is true, what is the big ment to claim a constitutional power or Kansas or was spending too much on deal of including it in the amendment? to impound; that is, to refuse to spend medical treatment in Utah or Mis- It is not inartful. It can be artfully money that Congress has duly appro- sissippi. done. It does not ruin the symmetry of priated. This power to impound would Do we really want to give the Presi- the amendment. It does not go to the give the President wide-ranging au- dent that kind of power? I think not. heart of whether we have to balance thority to undo or redo Congress’ Along with this power to spend, ac- the amendment. It merely says we are spending priorities without limits, or cording to Walter Dellinger, a noted not going to shift the balance of power, at least so a President would claim. constitutional scholar and now the no doubt about it. Now, you may say no President will President’s top constitutional adviser, Our Constitution, that durable and do that, JOE, and as a Democrat I am this amendment could even be con- flexible document, has endured for over happy that this guy downtown is of my strued to give the President the power 200 years. The chief reason it has en- party. I am sure he would not do that. to levy taxes, to raise needed revenues. dured is because the self-correcting But let me ask you, what do you think I think that is much more unlikely, checks and balances that have kept one Nixon did? What do you think old Lyn- quite frankly, although it is arguably branch from dominating the other have don Johnson would have done? What do possible. been maintained. In the days to come, you think Franklin Roosevelt would Do we want to give the President I will support, if not offer, efforts to have done with his power? Now, maybe that kind of power? I do not think we modify this amendment to ensure that we are not going to have any more do. in addressing this important issue we Roosevelts—I hope that is not true—or In committee, I supported Senator do not risk undoing 200 years of his- Johnsons or Nixons, but we just may KENNEDY in offering an amendment to tory. very well. make it absolutely clear that the bal- The second concern that I have is not What does it mean for a President to anced budget amendment is not in- a constitutional one. It is a very prac- wield this power? It means the Presi- tended to shift to the President a tical one but no less important for that dent could decide to change the way major piece of Congress’ historical fact. The balanced budget amendment the Congress had allocated funding in power to tax and spend. makes no provision for a capital budget spending bills; for example, taking Not a single one of my colleagues to pay for long-term capital improve- away money that ensures that small that I am aware of disagreed with the ments. This amendment will require January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1821 the Federal Government to pay for cap- cash for your house and paid cash for more money for drug treatment pro- ital improvements—roads, bridges, your car, you do not balance your grams. schools, aircraft carriers, all of which budget. You do not balance your budg- I know when I hear a mallet going are designed to last for decades—on a et like this amendment requires it to down; I can tell it. pay-as-you-go basis. be balanced. I yield to the President, obviously. Now, this is not the way States or I want the Federal Government to The PRESIDING OFFICER. Under local governments or our families or have to balance their budget the way the previous order the hour of 12:30 businesses, for that matter, treat these households have to balance their budg- having arrived, the Senate will stand sorts of long-term items. No. All of ets, the way States have to balance in recess until the hour of 2:15. these recognize that it is permissible, their budgets. And that is with a cap- Mr. BIDEN. Mr. President, I ask even prudent, to go into debt to pay for ital budget. I have a capital budget—I unanimous consent, unless it is con- long-term items such as a house, a fac- have a mortgage on my house. I have a trary to a standing rule, that I be able tory, or a road or an aircraft carrier. capital budget—well, I do not have a to take 10 more minutes to finish my State and local governments that are capital budget on my car, but most statement, unless someone objects to required to balance their budgets every people, when they buy a new car, have that. year are permitted by their balanced a capital budget. I meet that by paying The PRESIDING OFFICER. Without budget rules to set up capital budgets. as everyone does and the States do, objection, it is so ordered. They are permitted to borrow money paying on it monthly, in my case, and Mr. BIDEN. We used to do that in the to pay for long-term capital items even the States yearly, the cost of that bor- bad old days when the Democrats con- though they must balance the rest of rowing and the principal. We pay it trolled. down. We pay it off. But the Federal their budget. The PRESIDING OFFICER. Without budget, under this amendment, would Now, we hear the phrase used all the objection, it is so ordered. not allow that. time: ‘‘States do this; why can’t we do Mr. BIDEN. Without a capital budget it?’’ States do not do this. If you look Now, Gov. Mike Leavitt of Utah, a provision, I fear, this amendment could at the numbers, the total accumulated prime supporter of enacting the bal- skew the way we spend money, and in debt of the States over a comparable anced budget amendment, testified be- a way that could hurt the long-term fu- period for the Federal Government fore the Judiciary Committee that his ture investments this country needs. It over the last two decades, the States State has a capital budget provision does not have to be this way. have increased debt more rapidly than and recommended that we look further In committee I offered an amend- the Federal Government—almost a 2- into the question before enacting ment to provide for a capital budget. It to-1 margin. House Joint Resolution 1. was modeled on the capital budget pro- So before you get on the floor and My own Governor, Gov. Tom Carper, visions in the States, including my own pound your chest about how your State former Congressman of 10 years here in State of Delaware. balances its budget, say how would Washington, the strongest supporter your State balance this budget if it had from my delegation for a balanced My amendment established a capital the same exact amendment as this. budget amendment, a Democrat, told budget for major public physical cap- Now, some States may. Mine does our Constitutional Subcommittee the ital investments. It limited that budg- not. Mine is a little tighter, quite same thing last year. et to 10 percent of total outlays—about frankly, but we are smaller and we are But despite that good advice, this what the Federal Government has more manageable. Most States that balanced budget amendment does not spent on such items in recent years. It have balanced budget amendments do follow that almost universal practice required a three-fifths vote of both not, do not, in fact, balance their budg- of capital budgets because it fails to Houses to place any item within that ets. They have a capital budget which set up a separate capital budget for capital budget. allows them to go in debt. I believe the major physical improvements. It will My amendment was not designed to Federal Government should have the surely mean less of those improve- build a loophole into a balanced budget same ability to borrow to pay for cap- ments, or we will make those improve- amendment. Under my amendment, it ital items as State and local govern- ments and we will further cut in other would not be easier to treat an item as ments do and that we should amend areas of the budget or raise taxes in a capital budget item as opposed to a the balanced budget amendment to as- other areas of the budget which will current item. It would be harder. It sure that we give proper weight to our cause more great pain, when the more would require a three-fifths vote. But long-term needs. reasonable way to do it would be to do it would be right. I am not alone in this view. The Wall it the way the States and households My amendment failed in committee. Street Journal editorial page, that bas- do it. After all, if families could not Without a capital budget provision, I tion of conservative thought, has criti- borrow to pay for their houses, there fear that, not right away but as the cized the balanced budget amendment would be many fewer homeowners. And years go by, this amendment may skew because it lacks such a capital budget. if States could not borrow to build the way the country invests for the fu- Here is what the Wall Street Journal their roads, there would be many fewer ture and we may be able to balance our had to say. roads. budget in the end, but we will not To understand the economics, start here: Why enact a balanced budget amend- spend our money as wisely as we ment and fail to distinguish between should. Referring to the balanced budget projects that merit long-term financ- A third concern about this balanced amendment. ing and those that should be funded budget amendment relates to the way Start here. If all American households from year to year? Under this balanced this amendment treats a program that were required to balance their budgets every budget amendment, the incentive will is arguably the most important and year, no one would ever buy a house. Of course, households don’t think about be to focus only on those spending pri- most depended-upon program in the their budgets that way; they figure ‘balance’ orities that have short-term payoffs, Federal Government. means meeting their mortgage payments. economically and politically. That is I am talking about Social Security. Similarly, State and local governments with not good for rebuilding the infrastruc- As we all know, the Social Security a ‘‘balanced budget’’ requirement can still ture of this country, which we all say trust fund is designed to spread costs borrow money for capital improvements. we have to do to compete internation- over many years of caring for working So I say to everyone here in the gal- ally. Because that is where the politi- people after they retire. We pay in lery as they walk out and say, ‘‘We bal- cal pressure will come. today, so 10 or 20 or 40 or 50 years from ance our budget; why doesn’t the Fed- If, in my State, they come to me and now we can live out our lives, knowing eral Government do it the way we do,’’ say why do you not vote to spend more that we have that minimum Social Se- well, unless you are a very wealthy money for the Corps of Engineers that curity payment. person—even then it would not be good will allow them to dredge the Delaware The Social Security fund is not sup- economics to do it this way—unless River and the Port of Wilmington, why posed to be in balance every year or you are a very wealthy person and paid do you not do that versus spending even every 10 years. It is meant to be S 1822 CONGRESSIONAL RECORD — SENATE January 31, 1995 balanced over the decades. As this gen- anced budget amendment does not deal now, and that is to vote for a balanced eration of working people pays its So- with Social Security, it is not able to budget amendment. cial Security taxes the Social Security use the surpluses and not deal with the I thank the Chair for its indulgence trust fund is gathering in a surplus of deficits. We should be more honest and I yield the floor. tens of billions of dollars. Because the about it with people because Social Se- Mr. HATCH. Mr. President, I would Presiding Officer and myself and others curity is at stake, in my view. like to respond to the comments of are of a generation that is the baby For all the reasons I have stated I Senator BIDEN. Although Senator boom generation, or just before that supported Senator FEINSTEIN’s amend- BIDEN has enunciated many reasons for generation, we pay in tens of billions of ment in the Judiciary Committee to and against the balanced budget dollars in excess of what is drawn down keep Social Security right where it is amendment, I want to respond to an by present Social Security recipients— now: off budget. The Feinstein amend- amendment he intends to proffer, one my mom and dad and my uncles and ment recognizes Social Security is not he made at the Judiciary Committee aunts. So there is a surplus. A surplus designed to balance its budget every markup on Senate Joint Resolution 1. of $100 billion will be paid in each year, year but over the years, and it recog- This proposed exemption for so- more than is taken out, around the nizes we cannot honestly balance the called capital investments could help year 2000—$100 billion surplus. rest of our Federal budget if Social Se- evade the purpose of the balanced Right now $60 billion more is paid in curity and its huge swings are in- budget amendment or make it substan- this year by those of us paying our cluded. It recognizes that Social Secu- tially more difficult for future Con- FICA tax than is paid out to Social Se- rity is a unique institution that de- gresses to make capital investments. I curity recipients—$60 billion. My mom serves unique protection. confess that I am not certain of the and dad think that money goes into an The fourth concern I have is this purpose of the amendment as it is account. They think that is over there amendment will shift power to the drafted. It appears to be a provision at for Social Security. A lot of people in large States at the expense of small war with itself. The first sentence my generation who in 15 years will be States. By imposing supermajority re- seems to encourage capital invest- eligible for Social Security think that quirements of three-fifths on both ments by taking it out of the balanced money is being put in an account. Houses it permits a minority of two- budget rule. But the last two sen- Guess what, folks? We are spending it. fifths plus one to block an unbalanced tences, seem to be designed to discour- We are spending it now. budget, no matter how necessary for age capital investments. But before the year 2014, that Social our fiscal and economic health it may I believe such an exemption raises Security trust fund will have generated be. This minority veto could be mar- real problems for five reasons. a great surplus. But after 2014, we will shaled by representatives of just the First, this provision opens up a loop- have substantial deficits. The reason five or six largest States in America. If hole in the balanced budget rule and for that is that the baby boom genera- the five or six largest States in Amer- unduly limits Congress’ ability to tion will be collecting Social Security ica get together and agree on some- make capital investments. There would and my sons and daughter will be pay- thing that they need that the rest of be a powerful incentive for Congress ing into it. There are fewer of them the States do not want, they can pre- and the President to help balance the than there are of us. So fewer people vent us from acting on a national budget by redefining more programs as will be paying in and more people will emergency by all of them voting as a capital investments. A gimmick cap- be taking out. It sounds like I am stat- block—just six or even five of our 50 ital budget exemption could actually ing what is obvious to everyone but it States. endanger capital investments as fake is not obvious to everyone, obviously. The fifth and final concern is that investments crowd out real capital in- The fact of the matter is, after the nothing in this amendment forces Con- vestment. year 2014 we will be in deficit in the So- gress to begin the work of cutting the Furthermore, the 10-percent limit cial Security System. budget before the year 2002, the first ties the hands of future Congresses The balanced budget amendment year we require. What will happen which may choose among the compet- makes no provision whatsoever for the when Congress tries to balance the ing programs to fund more capital in- unique characteristics of the Social Se- budget all of a sudden in fiscal year vestments than this limit would allow. curity trust fund. Instead, it treats So- 2002? I fear it will be cause an economic With all the talk about the need for in- cial Security revenues and outlays as disaster. This amendment ought to frastructure investment from my ordinary Federal budget. have some mechanism to guarantee our friends on the other side of the aisle, I This means in the years that Social Government and our economy moves am surprised they would want to tie Security is generating hundreds of bil- toward a balanced budget on a ‘‘glide Congress’ hands this way. A future lions of dollars in surplus revenues it path,’’ a gradual descent in the deficit Congress may justifiably decide to will be used to cover hundreds of bil- that will get us to a balanced budget make greater investments in this area. lions of dollars worth of deficits that without forcing a crash landing in the Moreover, I do not understand what the rest of the Federal budget is creat- final year. But this amendment does the three-fifths vote requirement adds ing. not do that. It is possible it could be to the amendment other than to make After 2014, when the trust fund goes done by enabling legislation but I it procedurally harder for Congress to into deficit to the tune of tens or hun- would sure like to see it. make any capital investments, regard- dreds of billions of dollars a year, we in In the days ahead I and my col- less of their effect on the deficit. If a Congress will have to cut that much leagues will be offering amendments to given capital investment were to cre- from the rest of the budget to make up address these and other legitimate con- ate a deficit and had support of three- for the deficit. cerns. I hope these amendments receive fifths of the Members of each House, it What does it mean? It means that for the full debate they deserve. There are could be passed under the balanced the next 20 years or so, revenues from none in this body, I hope, who will budget amendment as it stands with- the Social Security trust fund will argue that an amendment to the Con- out this amendment. If a capital in- make it look like we have balanced the stitution is not worthy to receive that vestment was paid for and did not in- budget when in fact we have not, and full and open debate. crease the deficit, I do not know why after that the huge outlays from the Under the watchful eyes of our fore- the proponents of this amendment trust fund will force drastic reductions fathers and with the humility that this would want to require a three-fifths in the rest of Federal spending, or dras- awesome task engenders, as the debate vote to make that investment. For tic reductions in Social Security. And unfolds in the days to come I will lis- what possible purpose would we want that means the pain of cutting will be ten to my colleagues, I will support to discourage future Congresses from delayed by years from the effective amendments designed to improve this enacting such investments? date of this amendment, but it will be amendment, and I will urge my col- The proponents must think that a that much sharper when it comes. leagues to do the same. large part of our problem is that we So we should get Social Security out I hope at the end of the process I will spend too much on ‘‘major public phys- of this mix, make it clear that the bal- be able to do what I intend on doing ical capital investments’’ as opposed to January 31, 1995 CONGRESSIONAL RECORD — SENATE S 1823 simple transfer payments or social pro- ing. The balanced budget amendment Senator Moseley-Braun is a possible ‘‘no.’’ grams. Apparently, whatever three- seeks to foster an atmosphere in which Please contact her to be against this amend- fifths of the membership of future Con- Congress prioritizes spending options. ment. gresses think, the proponents of this Senate Joint Resolution 1 does not pre- So I want to clarify the record, and I amendment believe that in no case vent the creation of a separate operat- want early on to take this opportunity should the United States invest more ing and capital accounts, but any im- to tell those of you in this body and my than 10 percent of its budget in ‘‘major plementing legislation which creates constituents listening at home on C– public physical capital investments.’’ such separate accounts must leave the SPAN why I so strongly believe it is Otherwise, I see no reason for this total budget in balance, since imple- imperative that Congress pass the bal- amendment. It is surely a mistake to menting legislation cannot subvert the anced budget amendment and without put such limits on future Congresses. clear mandate of the amendment. And delay. Second, the loophole problem is ag- such accounting techniques should not I come from a working class family. gravated by the fact that there is no subvert prioritizing function of the My father was a Chicago police officer. standard definition of a capital budget. amendment. The proposed exemption My mother was a laboratory techni- For example, in President Clinton’s allows the entire budget to be used for cian. We were not what you would call proposed fiscal year 1995 budget, OMB noncapital investment, like simple wealthy, or upper-middle class. We did lists four broad categories of programs transfer payments, and then allows a not have a lot of material goods, and that may or may not be considered 10-percent increase in Federal spend- my parents couldn’t afford to send us capital expenditures—OMB, Analytical ing—and debt to fund it—for capital in- to fancy private schools. My parents Perspectives, Proposed fiscal year 1995 vestments. The General Accounting Of- had to keep track of every dollar to Budget, p. 114. Even within those four fice saw the fallacy implicit in this ex- keep us fed, clothed, and housed. Yet, broad categories there are questions emption when it said, ‘‘The choice be- like hundreds of thousands of other about what programs should be in- tween spending for investment and children of working class families in cluded. The amendment’s attempt to spending for consumption should be this Nation, I was able to get ahead in cure the definitional problem only seen as setting of priorities within an life, to succeed, because the sacrifices raises new definitional problems. The overall fiscal constraint, not as a rea- my parents made provided me with the definition given is circular. And just son for relaxing that constraint and opportunity to do better. what does ‘‘major public physical cap- permitting a larger deficit.’’ I was able to get a first-rate edu- ital investment’’ mean? Each term is To the extent that the three-fifths cation by attending quality public subject to substantial debate. It is par- vote requirement for capital invest- schools on the south side of Chicago. I ticularly inappropriate to place capital ments replicates the general provisions got my first job when I was just 15 budgeting in the Constitution when of the balanced budget amendment, years old. To earn extra money for col- there is no agreement on what con- this amendment is simply pointless. To lege, I worked as a clerk at the Chicago stitutes a capital budget. the extent it goes further, it is a Post Office. I attended the University Third, the Constitution is not the meritless straitjacket on the competi- of Illinois at Chicago, and then the place to set budget priorities. The bal- tion between legitimate spending op- University of Chicago Law School, be- anced budget amendment seeks to cre- tions in the overall budget process. cause student loans were available to ate a process in which programs com- f help me pay the tuition. All of these pete for a limited pool of resources. A opportunities—opportunities that constitutional amendment should be RECESS would not have been available without timeless and reflect a broad consensus, local, State, and Federal Government The PRESIDING OFFICER. The Sen- not make narrow policy decisions. This assistance—gave me the tools I needed ate stands in recess until 2:14 p.m. exemption creates in the founding doc- to achieve in life. Thereupon, at 12:39, p.m., the Senate ument a new constitutional budget The fact that the public—through recessed until 2:14 p.m.; whereupon, the subdivision with a percentage cap and Government—helped broaden my op- Senate reassembled when called to a procedural limitation on using it. We portunities is part of what led me to order by the Presiding Officer (Mr. should not place technical language or choose a career in public service. I ran STEVENS). insert statutory programs into the for the Senate in 1992 for the same rea- Constitution and undercut the simplic- f son I ran for the State legislature in ity and universality of the amendment. 1978—because I am fundamentally com- Fourth, a capital budget exemption BALANCED BUDGET AMENDMENT mitted to ensuring that future genera- is unnecessary. Total Federal spending TO THE CONSTITUTION tions have the same opportunities I en- has generally been above 20 percent of The Senate continued with the con- joyed. Every child born in this coun- GDP, and less than 4 percent of Federal sideration of the joint resolution. try—whether black or white, whether outlays are for nondefense physical in- The PRESIDING OFFICER. The rich or poor—should have the chance to vestment, one of the possible defini- pending business is House Joint Reso- achieve his or her dreams. Every per- tions of ‘‘capital investment’’. Given lution 1, the balanced budget amend- son should have a chance to contribute the relatively small and constant share ment. to society, to the maximum extent that such capital expenditures have in Ms. MOSELEY-BRAUN addressed the their talent or ability will allow. a very large Federal budget, there is no Chair. Government should play an active need to remove capital expenditures The PRESIDING OFFICER. The Sen- role in expanding people’s opportuni- from the general budget. ator from Illinois. ties. The Government should be able to One example illustrates the lack of Ms. MOSELEY-BRAUN. Thank you, invest in technology and infrastruc- need for a capital budget. Although Mr. President. ture, in job creation and training, and President Eisenhower initially pro- Mr. President, in 1992, I campaigned in education, in order to raise the peo- posed that the Federal Interstate High- for the Senate as a supporter of the ple’s living standards. The Government way System be financed through bor- balanced budget amendment. I was an should help unemployed Americans get rowing, Congress decided to keep it on original cosponsor of the amendment back on their feet, it should help those budget and finance it through a gas tax voted on in the last Congress, Senate who want to work to find jobs, it at the suggestion of Senator Albert Joint Resolution 41, and I am an origi- should ensure that high-quality, afford- Gore, Sr. We are unlikely to have a nal cosponsor of the amendment being able health care is available to all capital expenditure of this magnitude considered today. Yet, despite my con- Americans, and it should protect our again. But if we do there is no reason sistent, outspoken record on this issue, environment. Government is not the to create an exemption for such invest- my backing of the balanced budget enemy of society; it should be a part- ment or to limit the percent of the amendment surprises some people. ner, an instrument of the people’s will, budget that goes for such investment. In fact, Mr. President, I would add and a facilitator of our public inter- Fifth, capital spending should com- that I went to mass on Sunday, and the ests. But if the Government does not pete in the budget like all other spend- social justice committee had: get its fiscal house in order—if we