Constitutional Amendment - Prohibits total outlays (except those for payment of debt) for a year from exceeding the average annual revenue (except that derived from borrowing) collected in the three prior years, adjusted in proportion to changes in population and inflation.
Requires a two-thirds roll call vote of each chamber to declare an emergency and provide by law for specific outlays in excess of such limit.
Requires the declaration to specify reasons for the emergency designation and to limit the period in which outlays may exceed such limit to no longer than one year.
Requires all revenue in excess of outlays: (1) to reduce the federal debt; and (2) upon the retirement of such debt, to be held by the Treasury to be used for the specific outlays in excess of such limit.
Prescribes a formula for reducing outlays over seven years.