WASHINGTON -- State and local governments would suffer a devastating blow if Congress approves $600 billion of federal spending cuts that would balance the budget under a constitutional amendment some say will pass this year, according to a House Budget Committee study released yesterday.

If the near-$400 billion deficit were to be eliminated by 1997, as required under the amendment, without tax increases and entirely through spending cuts, Congress would have to mount a large-scale assault on the federal government's portion of the infrastructure programs, said committee chairman Leon Panetta, D-Calif., in releasing the study.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.