Treasury Sec.: Budget Amendment Would Be Opposed

WASHINGTON (AllPolitics, Nov. 14) -- Not only did President Bill Clinton not mean to show support for a balanced budget amendment, he plans to actively oppose it. That was the line given to reporters late Wednesday by Treasury Secretary Robert Rubin who, along with other White House aides, urged congressional Democrats to oppose the measure.

Rubin, in comments to reporters, indicated that congressional Democrats should focus on opposing the measure, which he told The Associated Press "is poor economic policy." Economic advisor Gene Sperling was also sounding similar themes.

Their main worry was that Democratic lawmakers, perceiving a shift in White House strategy, would throw their support behind the politically popular amendment.

Clinton, on Tuesday, seemed to be backing off his opposition, musing to reporters about a possible "escape hatch" in the measure which would nullify the requirement for balance during recessions.

"That's the only thing I would consider," Clinton said. "The escape hatch is good, and we'll manage it the best way we can." But Rubin said even with an escape clause, a balanced budget requirement would pose undue risk to fiscal policy.

After passing the House in 1995, a balanced budget amendment failed in the Senate by one vote, thanks in part to Clinton's lobbying effort. An constitutional amendment does not require a presidential signature, but needs ratification by 38 states to become law.

Congressional Republicans are expected to bring a balanced budget amendment up for another vote early in the new Congress. Having added to their numbers in the Senate, passage seems more likely. While GOP lawmakers have yet to respond to the administration's backpedaling, they have in the past complained that the president too often sends confusing signals about his intentions and views.

Related Sites:

AllPolitics home page

Treasury Sec.: Budget Amendment Would Be Opposed

Related Stories:

Related Sites: