House rejects balanced budget amendment.

UPDATE 11/18: The House voted to reject the proposed balanced budget amendment to the U.S. Constitution, with the final tally of 261 yeas and 165 nays falling short of the two-thirds majority required for passage. 

November 17, 2011 

On November 16, National Skills Coalition joined with nearly 300 other national organizations in a letter to lawmakers urging them to oppose a balanced budget amendment to the U.S. Constitution that will be considered in the House later today or tomorrow.

The proposed amendment, which requires a two-thirds vote of both the House and Senate in order to advance to the states for ratification, would prohibit federal outlays for any given fiscal year from exceeding receipts for that fiscal year, unless both chambers agree by a three-fifths vote to exceed spending limits. The bill would also require a three-fifths vote from both chambers in order to increase the public debt limit, and require the President to submit a balanced budget proposal each year, regardless of overall economic conditions. If ratified by three-fourths of the states, the amendment could take effect as early as Fiscal Year (FY) 2018.

The national joint letter explains that the proposed amendment would have devastating impacts on the economy, forcing the federal government to implement major spending cuts or tax increases, particularly during economic downturns when federal investments are most needed to stabilize the economy and promote recovery and rebuilding efforts. The letter cites recent estimates that, if the current amendment had been implemented for FY 2012, it would have required cuts of up to $1.5 trillion in federal spending, costing as many as 15 million U.S. workers their jobs and shrinking the overall economy by 17 percent. Workforce programs, which have been targeted for steep reductions in both the FY 2011 and 2012 appropriations cycles, would likely be severely impacted by any cuts required to comply with a balanced budget amendment, further limiting access to employment and training services for U.S. jobseekers and businesses.

As part of the debt ceiling deal reached this summer, the amendment must be considered by both the House and Senate by the end of the year. The fate of the measure is still unclear. At least 48 Democratic votes would be needed to pass the House if all Republicans support the measure; while most House Democrats are opposed to the amendment, the fiscally conservative Blue Dog Coalition has endorsed it, potentially providing at least 25 Democratic votes for passage. The amendment is expected to face stiffer resistance in the Democratically-controlled Senate, though some conservative Democrats may end out supporting the measure in that chamber as well. The White House on Tuesday issued a statement strongly opposing the amendment.

National Skills Coalition will continue monitoring this issue, and will provide updates as new information becomes available.