Daniel Inouye: “As the Treasury Department's analysis indicates, a balanced budget amendment alone would reduce annual Federal grants to…”

“As the Treasury Department's analysis indicates, a balanced budget amendment alone would reduce annual Federal grants to Hawaii for Medicaid, highways, Aid to Families with Dependent Children, education, job training, environmental protection, housing and other programs by $328 million. Combined with the proposed tax cuts in the Contract With America, this figure rises to $450 million in lost Federal grants annually. Hawaii would also lose another $1 billion annually in other Federal spending for Medicare, housing assistance, student loans, veterans' benefits and other programs. The Treasury Department's analysis further shows that Hawaii State taxes would have to be increased by over 9 percent to make up for lost Federal funding and to continue these programs. The American public and our constituents have a right to know about the impact of the proposal before us on their lives. Without a provision setting forth the nature and amounts of budget cuts, the balanced budget amendment measure before us would be grossly unfair to our States and our taxpayers. Why are the Republican who are the authors of this balanced budget amendment afraid to let the people know? Don't they trust their fellow Americans? The logical and appropriate way to make decisions is to know all the facts. Our constituents--the American taxpayers--and our State legislatures should be entrusted with and have the benefit of the facts before this balanced budget amendment is considered for ratification.”