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Show Balance federal budget amendment action grows Growing public concern about mounting federal deficits is bringing renewed pressure on Congress to propose a constitutional amendment requiring a balanced federal budget. This was pointed out in a study prepared by Utah Foundation, the private research organization. By the end of 1979. 30 states, including Utah had requested that a constitutional con-stitutional convention be called to amend the U.S. Constitution so as to require that Congress balance the budget each year. After 1979. the movement for a constitutional convention con-vention appeared to bog down for a time. The prospect of federal budget deficits approaching and possibly exceeding $100 billion during each of the next several years, however, has brought renewed interest to the budget-balancine budget-balancine movement The Foundation notes that earlier this year Alaska became the 31st state requesting a constitutional convention for the purpose of drafting a balanced budget amendment. In addition, resolutions calling for such a convention con-vention have been passed in one house of several other states. Under Article V of the U.S. Constitution. Congress must call a constitutional convention if two-thirds two-thirds (341 of the state legislatures seek one. Foundation analysts doubt that such a convention will ever be held, however. They indicate that the petitions by the states are being used mainly to pressure Congress into passing an amendment on its own. It is feared by many that it would be difficult dif-ficult to restrict a constitutional convention con-vention solely to the balanced budget issue, and that the gathering could become a "runaway convention" in which many other matters would be considered. Amendments to the U.S. Constitution may be proposed either by Congress, whenever two-thirds of the members of both houses deem it necessary, or by application of the legislatures of two-thirds two-thirds of several states calling a con- vention for proposing amendments. In either case, the proposed amendments must be ratified by the legislatures of three-fourths 1381 of the states of by conventions in three-fourths thereof before they become effective. Historically, all amendments to the U.S. Constitution thus far adopted were first proposed by Congress and then ratified by the states. The constitutional con-stitutional convention never has been used, except in the drafting of the original Constitution in 17S7. According to the Foundation, the idea of a balanced federal budget was standard doctrine during the first 140 years of the nation's history'. Between 1790 and 1930. the federal budget recorded surpluses in 94 of the years and deficits in only 46 of the years. Since 1930. the federal budget has been balanced only nine times and deficits have been reported 43 times. Federal deficits incurred during the past four years 11978-1981) have exceeded those registered during World War II ( 1942-1945). 1942-1945). Advocates of the constitutional amendment for a balanced budget contend that such an amendment is needed to control excessive government govern-ment growth and reduce inflationary pressures. They maintain that deficit financing has allowed politicians to curry public favor with new and increased in-creased spending programs and avoid public displeasure that comes with higher taxes. Government, by financing finan-cing these deficits through an expansion ex-pansion of the money supply, has been one of the major causes of inflation during recent years. Opponents, on the other hand, claim that such a constitutional amendment would destroy the flexibility needed to deal with rapidly-changing developments develop-ments in an uncertain world. Moreover, they argue that the U.S. Constitution was intended to be a brief statement of fundamental principles, and that a budget balancing amendment could impare what they see as the automatic stabilizing (anti-cyclical) features of the federal budget. |