Question

In 1939, Leon Phillips pushed through an amendment to the state constitution for a balanced budget. What does "balanced budget" mean?

a) Government was not allowed to spend more money than it collected in taxes or other revenue.
b) There was a system of checks and balances to decide where money would be spent.
c) Each month, a panel of government leaders would look over the budget.
d) Residents of the state were able to make monetary decisions

Answer 1

A 'balanced budget' means the government's expenditures do not exceed its revenues. Leon Phillips' amendment aimed to ensure the government would not engage in deficit spending. The Balanced Budget Amendment of 1995 passed in the House but narrowly failed in the Senate.

Step-by-step explanation:

The term balanced budget refers to a financial plan or budget where the revenues are equal to or greater than the expenditures. Within the context of Leon Phillips' amendment and subsequent attempts at a Balanced Budget Amendment to the U.S. Constitution, the concept translates to the government not being allowed to spend more money than it collects through taxes or other forms of revenue. This effort to prevent deficit spending has been a subject of legislative action several times, including a notable attempt in 1995 when the Balanced Budget Amendment passed in the U.S. House of Representatives but failed in the U.S. Senate by one vote. The amendment would have required each session of Congress to approve a budget that does not spend more than it collects.