THE BUDGET RECONCILIATION PROCESS - Hannity Video-1:45

Created in a budget resolution in 1974 as part of the congressional budget process, the reconciliation process is utilized when Congress issues directives to legislate policy changes in mandatory spending (entitlements) or revenue programs (tax laws) to achieve the goals in spending and revenue contemplated by the budget resolution. First used in1980 this process was used at the end of a fiscal year to enact legislation to fine tune revenue and spending levels through legislation that could not be filibustered in the Senate. The policy changes brought about by this part of the budget process have served as constraints on the levels of mandatory spending and federal tax revenues which also has served since 1981 as a vehicle for deficit reduction. The reconciliation process is an optional procedure and not a required action by Congress every fiscal year as is passage of the concurrent budget resolution. However, during the eighteen year period from 1980 to 1998 thirteen reconciliation measures have been enacted into law and numerous others have been considered by Congress. Occasionally, reconciliation legislation has included certain such enforcement mechanisms as extensions of the discretionary spending limits and PAYGO requirements or even reforms to the budget process. Whether for tax reduction, tax increases, deficit reduction, mandatory spending increases or decreases or adjustments in the public debt limit, this process has been used to focus many agents on one goal.