SB 433 - This act adopts the Compact for a Balanced Budget in Missouri. The goal of the compact is the adoption of the Balanced Budget Amendment to the United States Constitution.
Once three-fourths of the state have adopted the compact, the legislatures of the member states will be deemed to have called for a convention under Article V of the United States Constitution to propose amendments. Delegates to the convention will be appointed as follows: one by the Speaker of the House of Representatives, one by the President Pro Tem of th Senate, and one jointly by the Minority Floor Leaders of the House of Representatives and the Senate. Delegates are limited in their authority to only debating and ratifying the Balanced Budget Amendment.
After the constitutional convention has adopted the Balanced Budget Amendment and Congress has referred the amendment to the state legislatures for ratification, each member state to the compact will be deemed to have ratified the amendment.
The Balanced Budget Amendment limits federal spending to revenue received by the federal government plus amounts borrowed under the debt limit. A debt limit is established which will be equal to 105% of the federal debt at the time of ratification of the amendment. The debt limit may be increased, but only for specific line items which must be approved by a majority of the state legislatures. When outstanding debt exceeds 98% of the debt limit, the President shall impound expenditures in an amount to keep debt below the limit. Congress may override an impoundments by designating a different impoundment.
The Balanced Budget Amendment would prohibit any new or increased taxes from being passed by Congress unless approved by two-thirds of the entire body of each chamber of Congress. This prohibition would not apply to a replacement of the income tax with a new sales tax or to a limitation on any tax exemption, deduction, or credit.
This act contains an emergency clause.