RECONCILIATION INSTRUCTIONS

The process begins with the inclusion of reconciliation instructions in the budget resolution. These instructions require authorizing committees with jurisdiction over mandatory spending and revenue policies (usually more than one) to make legislative changes in those programs to effect a specified level of budgetary savings provisions. The instructions typically cover the same fiscal years as the budget resolution, with separate dollar amounts specified for each of the years in the budget resolution. While the Budget Committees develop these instructions based on policy assumptions for changes in programs and laws (which are often printed in the committee reports on the budget resolution), the authorizing committees have complete discretion over the specific programs to be changed and the substance of those changes. An authorizing committee must only meet the specified spending and/or revenue directive given it. The budget resolution normally includes a timetable by which the authorizing committees must report legislation that meets these saving targets. These committees generally hold hearings and mark-up these legislative products, which are sent to the Budget Committees.