Statement of Congressman John E. Baldacci

H J Res 9, Line Item Veto Constitutional Amendment

March 23, 2000



Mr. Chairman: Thank you for holding this hearing today to discuss legislation introduced by Rep. English and myself. As you well know, our bill proposes an amendment to the US Constitution to give the President line item veto authority.

The Subcommittee is well aware of the history of this issue. In brief, the Line Item Veto Act was enacted in 1996 to give the President authority and procedures by which to cancel discretionary budget authority provided in an appropriation or any item of new direct spending or certain limited tax benefit contained in any law. President Clinton first invoked the new law in 1997.

However, on June 25, 1998, the Supreme Court held the Line Item Veto Act to be unconstitutional on the grounds that it violates the presentment clause. The Majority noted that the procedures prescribed in the Act were not authorized by the Constitution's requirements for lawmaking. The Majority went on to state, "If there is to be a new procedure in which the President will play a different role in determining the final text of what may 'become law,' such a change must come not by legislation but through the amendment procedures set forth in Article V of the Constitution." (Clinton at 2108)

And so, we are here before you today, seeking to amend the Constitution to reinstate the President's line item veto authority. When we started this effort, our nation was facing crippling annual budget deficits and a mounting level of debt. Today, through hard work and fiscal discipline - and a particularly robust economy - we are discussing this issue with a budget that is in surplus and payments being made to reduce our outstanding debt. We should all be proud of the great progress we have made in getting our nation's fiscal house in order.

However, I do not believe we should rest on our laurels. I am pleased to be part of this effort to ensure that our government has all the tools available to maintain fiscal discipline well into the future. The Line Item Veto should be one of those tools.

We often refer to the States as the laboratories of democracy. We look to them for best practices and innovative ideas. On the subject of fiscal discipline, we can certainly learn a lot from them.

Unlike the Federal government, the States by and large do not run deficits. They keep their books in order and spend only what they have each year. They pass realistic budgets and stick to them.

An important tool in this process is the line item veto. In fact, in 44 states and 4 territories, the Governor has the authority to veto dollar amounts in appropriations bills. I am convinced that this authority is a crucial part of keeping spending in check. While it may not be used with great regularity in many states, the fact that it is available encourages the legislatures and the Governors to reach agreement on spending issues and not to crowd appropriations bills with extraneous spending.

At the Federal level, we could certainly use that incentive. While many worthy projects are funded each year, I think we can all admit that many less worthy projects are funded as well. Passage and ratification of a Line Item Veto amendment would allow the President to reach into these bills and separate the wheat from the chaff. Congress would of course retain the ability to reinstate any projects that it continued to believe were worthy of funding by overriding the President's veto.

I do not take amending the Constitution lightly. However, I am convinced in this case that it is the only way to provide the President with the same authority that 44 Governors already have to influence spending. I thank the Subcommittee for holding this hearing today, and hope that you will help us to move this legislation forward.