AR HB1975

Arkansas enacts the Compact for a Balanced Budget, an interstate agreement requiring member states to apply to Congress for a constitutional convention limited to proposing a balanced budget amendment.

The proposed Balanced Budget Amendment requires total federal outlays not exceed total receipts unless financed by debt, with authorized debt initially capped at 105% of outstanding debt on the amendment's effective date.

Congress may increase authorized debt above the initial amount only if approved by a simple majority of state legislatures within 60 calendar days; increases require a two-thirds vote in Congress for new or increased general revenue taxes.

Each member state appoints one delegate to the convention, who is limited strictly to introducing, debating, and voting on the Balanced Budget Amendment under specified convention rules; delegates forfeit appointment if their state violates compact terms.

The compact terminates 7 years after the first state's enactment if the Balanced Budget Amendment has not been ratified, and Section 2 proposes an alternative termination date of April 12, 2031 if all member states consent.