Minnesota Governor Seeks Limits in His State and Amendment to U.S. Constitution
Minnesota Gov. Tim Pawlenty, considered a possible 2012 Republican presidential candidate, is calling for strict spending limits as states and the federal government confront enormous deficits.
Mr. Pawlenty has proposed an amendment to the Minnesota constitution that would limit spending during any two-year budget period to the amount of revenue collected during the previous budget cycle. At a Republican fund-raiser in New Hampshire on Dec. 16, the governor also pushed the idea of an amendment to the U.S. Constitution that would force Congress to pass, and the president to sign, a balanced budget.
"Government spending in the country and in many states is progressing at an unsustainable, irresponsible and reckless pace," Mr. Pawlenty said in an interview this week. "The bathtub is overflowing onto the floor, and the first thing we need to do is shut off the faucet."
Although the U.S. economy is showing signs of improvement, states are coping with major revenue shortfalls. States' budgeted general-fund spending for the current fiscal year totaled $627.9 billion, down 5.4% from a year earlier, according to a Dec. 2 report from the National Association of State Budget Officers and the National Governors Association. Even after those cuts, state deficits total $14.8 billion for their current fiscal year, which for most began July 1.
At the federal level, the Senate voted Thursday to temporarily raise the nation's debt limit, currently $12.1 trillion, by $290 billion. The House passed the measure Dec. 16.
All states except Vermont have at least a limited requirement to balance their budgets. The federal government has no such restriction.
Previous efforts to pass a national balanced-budget amendment have foundered in Congress. Many lawmakers believe deficit spending can help boost the U.S. economy during downturns, and calls to balance the budget sometimes fade as other priorities surface.
Changing the U.S. Constitution requires a two-thirds vote in both houses of Congress, followed by approval of three-fourths of states. State legislatures have petitioned Congress about a balanced-budget amendment, but they haven't reached the threshold needed to call a constitutional convention.
Click here to continue reading.
The Wall Street Journal
Amy Merrick
|