A.2(e). Budgetary and Debt-Reduction Transition Plan

Immediately switching to the budgeting and debt-management plan outlined in Article II would have disastrous consequences for the national economy. Since that’s the case, a gradual reduction in debt and transition to balanced budgeting will follow the following scheme.

A.2(e₁). Preparation. Within one hundred eighty (180) days of ratification of this Charter, the Congressional Budget Office will establish a baseline number that expresses the federal budget deficit at that time. This figure will be called the “Deficit Baseline.” This figure must be made widely available to Congress and to the American People. This will be communicated electronically, through radio advertisements, and via social media, because the American People must know exactly the state of the national finances.

A.2(e₂). Phase I Budgeting. During the second through sixth fiscal years after ratification, Congress may ignore the requirements of Article II. Instead, each year, Congress must pass a budget that reduces the deficit by one-fifth (¹/₅) of the Deficit Baseline. During these five years, no emergency spending is authorized.

In the sixth year, no later than June 30, The CBO will also establish a separate baseline number that expresses the federal debt to gross domestic product (GDP) at that time. That figure will be called the “Debt Reduction Baseline.” A third figure, called the “Reduction Target,” will be calculated by subtracting sixty (60) percent from the Debt Reduction Baseline, and dividing the difference by twenty-five (25). These figures must be made widely available to Congress and to the American People. As with the Deficit Baseline, they will be communicated electronically, through radio advertisements, and via social media.

A.2(e₃). Phase II Budgeting and Spending. Beginning in the seventh year after ratification, Congress will begin following the budgeting scheme outlined in Article II, Section 4.C.1.

From the seventh to the thirty-first year after ratification, Congress must budget so that the percentage of debt to GDP is reduced by the Debt Reduction Target.

Each year that Congress must enact emergency spending under Article II, the deadline for completing this debt reduction is extended by one year. The total number of years of debt reduction under Phase II will be twenty-five years of active reduction, not counting any interruptions due to emergency spending.

A.2(e₄). Finalization. No later than one year before the completion of Phase II, Congress must establish in law the specific debt reduction and control plan necessary to comply with Article II, Section 4.C.2. At the end of the twenty-fifth year of active debt reduction under this transition, Congress will transition to acting solely within the parameters of Article II, Section 4.C of this Charter.