/ y S. Hrg. 103-423 Senate Hearings \efore the Committee on Appropriations YUP 6/2; S, HRG. 103-423 Balanced Budget AneDdneBt-S.J. Res. i Balanced Budget — Amendment Res. 41 SJ. Fiscal Year 1995 1 Q CONGRESS, SECOND SESSION ^</ SPECIAL HEARINGS [ERRATA] S. Hrg. 105-423 ' \\^ BALANCED BUDGET AMENDMENT-S.J. RES. 41 Y 4. AP 6/2: S. HRG. 103-423/ ERRATA Balanced Budget Anendnent-S.J. Res HINGS BEFORE THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE ONE HUNDRED THIRD CONGRESS SECOND SESSION ON S.J. Res. 41 A JOINT RESOLUTION PROPOSING AN AMENDMENT TO THE CONSTITU- TION OF THE UNITED STATES TO REQUIRE A BALANCED BUDGET Special Hearings Printed for the use of the Committee on Appropriations e.'!« «*%te. '^^^ %J^ %^ =>-. 'yt:o^ 'SOT-if-fD/- U.S. GOVERNMENT PRINTING OFFICE 76-565cc WASHINGTON : 1994 ForsalebytheU.S.GovemmeniPnniingOffice SuperintendentofDocuments.MailStop: SSOP.Washington.DC 20402-9328 ISBN 0-16-0A3667-2 •^ ERRATA Balanced Budget Amendment S.J. Res. 41 Fiscal Year 1995 The above referenced hearing before the Senate Committee on Appropriations was inadvertently printed with an incorrect contents page. New contents pages have been provided for reprinting. 23 CONTENTS Tuesday, February 15, 1994 p^^ Office ofManagement and Budget: 1 Prepared statementofLeon E^ Panetta ^^ ^'^ISSlnt rfSmey General JanetReno ...................;•;;;;;;;;;;;;;;;:;::;:::::: 30 DepaSrttamtePenrtme'eoonaftreHodefaslDttoahntne-madenEtH.^bh-a^iafi•ae•,m^c;e. ^ ^^ ^^^^^ ^^^ ^^^,, Serv- ^^ ices ; 52 Prepared statement .......•• Questiomng by SenaU)r Nickles DepaSrttamteenmten^tJVo^fJHfo;n;^"d^ejsisfe^B^r^ouwn,' Secretary ofVeterans Affairs .••••• ^6^4 LPertetpearrefdrosmtacotnesmteinttutoifonHaolnscJheosasres-o^r^u^^^^ Questioningby Senator Nickles ^^ ^""tStSSS'^SSSr Charles Fried. Harvard1^ School .............•••••^^ g^ Prepared statement ^^ °''sSSint^S^'WilliamJ. Perry, Secretary loi ^^D^^^^!:;::::::::::::::::::::::: Prepared statement Se-Ury N°"f,lSnTnfoftrfaines Schlesinger. former Defense Jtnder 11' wSSn andFord administrations ::;::.:;;.::;::::.. PPrreeppaarreeda ssttaatteie"mciein>t. Additional prepared_sta_tements.^^ ^^ Cisneros, Secretary, Department ot ^^^ -?rTpt?"''strtfr^--f'Hen,T G^^ ^De- of TransPO-t,on, ^^^ Prfe^sta-ttmeropFrSPe^arSecreta,, partmentofTransportation Wednesday, February 16, 1994 131 Prepared statement ofWalter Uemnger ^^^ "^'^s't^temTnfo1;^cSSCox, HarvardUniversity professor •••••••••••••••;:;;•;; 154 A^oi^y General, StatS^^^S^Ka^zentach: J^ farmer; administration _ ,^ Sta.rS"o?ffleersSwan:proteiso;:stanfordUm^^^^^^^^^ 193 Statr^YnroVp^rslSBuritrMarshaiirYaie-^^^^^^^^^^^^^ CT • V Prepared statement (Ill) •^ IV \ Page Thursday, February 17, 1994 Nondepartmenta] witnesses: Statement of Henry Aaron, Ph.D., director of economic studies program, OpTehneinBgrosotkaitnegmsenItnsotfitSuetniaotnor B>Td ^2^0^9 Prepared statement ofHenry Aaron 214 Statement ofEdward V. Regan. Jerome Lev>- Economics Institute 217 Prepared statement 221 Statement ofHerbert Stein, American Enterprise Institute 226 Prepared statement 229 Statement of Max B. Sawicky, Ph.D., economist, Economic Policy Insti- tute 232 Prepared statement 234 Statement of Stanley E. Collender, director, Federal budget policy. Price Waterhouse 267 Prepared statement 272 Statement ofLouis Fisher, Congressional Research Service 275 Prepared statement 279 Statement ofNorman Omstein, American Enterprise Institute 289 Prepared statement 293 Statement ofAlan Schick, University ofMaryland 296 StatPermeepnatreofdHsotna.teTmheontmas Eagleton, St. Louis, MO 239185 Prepared statement 318 Friday, February 18, 1994 Congressional witness: Statement ofHon. Paul Simon, U.S. Senator from Illinois 321 Opening statement ofHon. Robert C. Byrd 321 Nondepartmental witnesses: Statement of Paul R. Huard, senior vice president. Policy and Commu- nications Division. National Association ofManufacturers 337 Prepared statement 338 Statement of Martha H. Phillips, executive director. The Concord Coali- tion 340 Prepared statement • 341 Statement ofJames D. Davidson, chairman. National Taxpayers Union ... 342 Prepared statement 345 Statement ofRobertJ. Myers 350 Prepared statement 357 Statement ofRobert Ball, former Commissioner, Social Security Adminis- tration 359 Prepared statement 363 Article: Don't Means-Test Social Security! 364 Additional prepared statements: Prepared statement ofSenator Conrad Bums 378 Prepared statement ofSenator Larry E. Craig 379 Questions and answers about the balanced budget constitutional amend- ment 385 Section-bv-section analysis of the bipartisan, bicameral consensus bal- anced budget amendment to the Constitution S.J. Res. 41/H.J. Res. 103 389 Prepared statement ofSenatorJohn C. Danforth 397 Prepared statement ofSenator Bob Graham 399 S. Hro. 103-^23 BALANCED BUDGET AMENDMENT-S.J. RES. 41 HEARINGS BEFORE THE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE ONE HUNDRED THIRD CONGRESS SECOND SESSION ON S.J. Res. 41 A JOINT RESOLUTION PROPOSING AN AMENDMENT TO THE CONSTITU- TION OF THE UNITED STATES TO REQUIRE A BALANCED BUDGET Special Hearings Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PRINTING OFFICE 76-565cc WASHINGTON : 1994 ForsalebytheU.S.GovernmentPrintingOffice SuperintendentofDocuments,MailStop:SSOP.Washington,DC 20402-9328 ISBN 0-16-0A3667-2 COMMITTEE ON APPROPRIATIONS ROBERT C. BYRD, West Virginia, Chairman DANIEL K. INOUYE, Hawaii MARK O. HATFIELD, Oregon ERNEST F. ROLLINGS, South Carolina TED STEVENS, Alaska J. BENNETT JOHNSTON, Louisiana THAD COCHRAN, Mississippi PATRICKJ. LEAHY, Vermont ALFONSE M. D'AMATO, New York JIM SASSER, Tennessee ARLEN SPECTER, Pennsylvania DENNIS DeCONCINI, Arizona PETE V. DOMENICI, New Mexico DALE BUMPERS, Arkansas DON NICKLES, Oklahoma FRANK R. LAUTENBERG, New Jersey PHIL GRAMM, Texas TOM HARKIN, Iowa CHRISTOPHER S. BOND, Missouri BARBARA A. MIKULSKI, Maryland SLADE GORTON, Washington HARRY REID, Nevada MITCH McCONNELL, Kentucky J. ROBERT KERREY, Nebraska CONNIE MACK, Florida HERB KOHL, Wisconsin CONRAD BURNS, Montana PATTY MURRAY, Washington DIANNE FEINSTEIN, CaUfomia James H. English, StaffDirector Mary S. Dewald, ChiefClerk J. Keith Kennedy, Minority StaffDirector (IT) CONTENTS Tuesday, February 15, 1993 Page Office ofManagement and Budget: Statement ofLeon G. Panetta, Director 1 OpeningstatementofHon. Robert C. Byrd 1 Excerpt from statement before the Committee on the Budget on the Economic and Budget Outlook: Fiscal Years 1995-1999, Jan. 27, 1994, by RobertD. Reischauer, Director, Congressional Budget Office 12 Prepared statementofLeon E. Panetta 14 DepartmentofJustice: Statement ofAttorney General JanetReno 27 Prepared statement 30 Department ofHealth and Human Services: Statement of Donna E. Shalala, Secretary of Health and Human Serv- ices 39 Prepared statement 43 Questioningby SenatorNickles 52 DepartmentofVeterans Affairs: StatementofHon. Jesse Brown, SecretaryofVeteransAffairs 61 Letterfrom constitutional scholars 61 Prepared statementofHon. Jesse Brown 64 Questioningby SenatorNickles 73 Nondepartmental witness: StatementofProfessorCharles Fried, Harvard Law School 81 Prepared statement 86 DepartmentofDefense: StatementofHon. WilliamJ. Perry, Secretary ofDefense 93 Prepared statement 101 Nondepartmental witness: Statement of Dr. James Schlesinger, former Defense Secretary under Nixon andFord administrations 113 Prepared statement 117 Additional prepared statements: Prepared statement of Henry G. Cisneros, Secretary, Department of Housing andUrban Development 126 Prepared statement of Federico Pena, Secretary of Transportation, De- partmentofTransportation 128 Wednesday, February 16, 1993 DepartmentofJustice: Statement ofWalter Dellinger, AssistantAttorneyGeneral 131 Opening statementofHon. Robert C. Byrd 131 Prepared statementofWalter Dellinger 139 Nondepartmental witnesses: StatementofArchibald Cox, HarvardUniversity professor 149 Prepared statement 154 Statement of Nicholas Katzenbach, former Attorney General, Johnson administration 162 Prepared statement 167 StatementofKathleen Sullivan, professor, Stanford University 177 Prepared statement 184 Statement of Professor Burke Marshall, Yale University, New Haven, CT 193 Prepared statement 198 (III) IV Page Thursday, February 17, 1993 Nondepartmental witnesses: Statement ofHenry Aaron, Ph.D., director ofeconomic studies program, The Brookings Institution 209 Opening statementofSenatorByrd 209 Prepared statementofHenryAaron 214 StatementofEdwardV. Regan, Jerome LevyEconomics Institute 217 Prepared statement 221 StatementofHerbertStein, AmericanEnterprise Institute 226 Prepared statement 229 Statement of Max B. Sawicky, Ph.D., economist. Economic Pohcy Insti- tute 232 Prepared statement 234 Statement ofStanley E. CoUender, director, Federal budget policy, Price Waterhouse 267 Prepared statement 272 StatementofLouis Fisher, Congressional Research Service 275 Prepared statement 279 Statement ofNorman Ornstein, AmericanEnterprise Institute 289 Prepared statement 293 StatementofAlan Schick, UniversityofMaryland 296 Prepared statement 298 Statement ofHon. Thomas Eagleton, St. Louis, MO 315 Prepared statement 318 Frtoay, February 18, 1993 Congressional witness: Statement ofHon. Paul Simon, U.S. Senatorfrom Illinois 321 OpeningstatementofHon. RobertC. Byrd 321 Nondepartmental witnesses: Statement of Paul R. Huard, senior vice president. Policy and Commu- nications Division, National AssociationofManufacturers 337 Prepared statement 338 Statement ofMartha H. Phillips, executive director. The Concord Coali- tion 340 Prepared statement 341 StatementofJames D. Davidson, chairman, NationalTaxpayers Union ... 342 Prepared statement 345 StatementofRobertJ. Myers 350 Prepared statement 357 Statement ofRobert Ball, former Commissioner, Social Security Adminis- tration 359 Prepared statement 363 Article: Don'tMeans-TestSocial Security! 364 Additional prepared statements: Prepared statementofSenator Conrad Burns 378 Prepared statementofSenator Larry E. Craig 379 Questions and answers about the balanced budget constitutional amend- ment 385 Section-by-section analysis of the bipartisan, bicameral consensus bal- anced budget amendment to the Constitution S.J. Res. 41/H.J. Res. 103 389 Prepared statementofSenatorJohn C. Danforth 397 Prepared statementofSenatorBob Graham 399