Now that congressional approval of a balanced-budget amendment seems imminent, the spotlight turns to the 38 state legislatures that must ratify the legislation.
I predict it will not pass, for state officials know firsthand how easily fiscal straitjackets can be stretched. Although 48 states have balanced-budget mandates, real deficits and de facto deficits are run routinely. Operating expenses are pushed into the capital budget, tax collections are accelerated and buildings are sold to generate quick cash.
As former comptroller of New York State, I can say unequivocally that balanced-budget mandates push public officials into manipulative actions and deceptions. A constitutional amendment would encourage such duplicity at the federal level.
