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By Robert Pore
From: Grand Island Independent
Sen. Ben Nelson, D-Neb., and Sen. Mark Udall, D-Colo., have introduced a balanced budget amendment to the U.S. Constitution that they say would control federal spending without weakening Social Security and Medicare.
"Other versions of balanced budget amendments would cut health care for Medicare recipients and would not protect Social Security benefits," Nelson said. "These important programs are promises we've made to seniors, and I intend to keep them."
Sen. Mike Jonanns, R-Neb., also supported a "cut, cap and balance bill" in deficit reduction debate that would have returned many government expenditures to 2008 levels; would have put a cap on future spending, limiting federal funding to a percentage of the country's economy over the next decade; and created a balanced budget Constitutional amendment to be sent to the states for ratification.
Nelson's concerns about Medicare led him to vote against the Budget Control Act that cut federal spending to allow the federal debt ceiling to be increased. In voting against the debt reduction plan, he said it would cut Medicare, "a promise we've made to Nebraska seniors that I intend to keep."
Also, Nelson said the legislation would not create the certainty markets and businesses need to pull the economy out of the ongoing recession.
On Thursday, the New York Times reported that American indexes had their largest one-day percentage drop since February 2009 as concerns spread about a further slowdown in the global economy.
As a two-term governor of Nebraska, Nelson said, he was responsible for balancing the state's budget on eight different occasions.
"A balanced budget amendment will bring down federal spending and make Washington live within a budget, just like every American family does," he said.
Nelson's and Udall's balanced budget bill will be voted on in the Senate before the end of the year. The vote is required as part of the debt negotiations that were signed into law Tuesday.
Nelson said the proposed amendment states that federal spending could not exceed revenue, except in extreme cases, such as when Congress has declared war. At that point, the amendment could be temporarily suspended if three-fifths of the members of the House and Senate agree to do so.
He said this plan "specifically sets aside Social Security benefits so they would not be subject to cuts."
"Unlike other proposed balanced budget amendments, this proposal would not force cuts to Medicare in order to balance the federal budget," Nelson said. "Washington should not balance the budget on the backs of seniors. This amendment forces the federal government to cut spending and does it in a way that is fair." It is also co-sponsored by Sens. Max Baucus, D-Mont., Bill Nelson, D-Fla., Claire McCaskill, D-Mo., and Joe Manchin, D-W.Va.
The amendment:
- Requires that the federal budget be balanced each year. Outlays may not exceed receipts.
- Requires the president to submit a budget each year that is balanced.
- If the country is under extreme circumstances, such as a war declared by Congress, the amendment could temporarily be waived if three-fifths of both the U.S. Senate and U.S. House vote to waive it.
- Creates a Social Security lockbox that protects the revenue and outlays of Social Security from any balanced budget requirement.
- Does not require cuts to Medicare in order to bring the budget into balance.
- Prohibits Congress from creating new income tax breaks for people earning more than $1,000,000 (adjusted for inflation) annually, unless the federal budget is in surplus.
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