The Shadow
Reconciliation, it is confusing!
Legislating spending by the Virginia legislature – never easy – was a lot less complicated than at the federal level.
In Virginia, there is a single bill that determines what the state spends.
At the federal level, however, you have a budget resolution, the potential for a reconciliation process and twelve appropriations acts, if things are going according to plan.
Last year, things did not go according to plan, and we ended up with a series of continuing resolution measures for spending.
It can be very confusing!
This year, both the House and Senate passed a budget resolution.
The budget resolution sets an overall blueprint of fiscal targets and goals for what Congress is trying to accomplish in terms of costs and savings.
On April 10, the House adopted the Senate’s budget resolution.
Now, we begin the reconciliation process.
Reconciliation is a fiscal policy tool that enacts changes to the budget. Things like government spending, revenues (tax policy) and debt-limit laws can all be amended.
Congress “reconciles” current law with the fiscal objectives of the budget resolution.
No policy can be taken up if it does not directly impact the funds being raised or spent by the United States government.
The budget resolution instructs the respective policy committees to identify ways to accomplish these goals.
These committees are required to draft up recommendations that fall in line with the directives.
The instructed committees in both chambers will hold markup hearings over the course of the next few weeks.
A markup on reconciliation is when the committee makes its recommendations to the policies it needs to enact to meet the targets of the budget resolution. Debate occurs, and then a vote in the committee is taken.
That is the step we are currently in.
The House Ways and Means Committee, which is tasked with writing the country’s tax laws, can offer changes to the tax code that comply with a budget resolution’s aims to lower or raise taxes.
The House Committee on Energy and Commerce, on which I serve, has jurisdiction over policy related to energy issues such as grant and loan programs for different energy sources, such as coal, wind and solar.
Energy and Commerce is also responsible for policy related to broadband and the internet, which includes the potential sale of Spectrum. And, of course, it deals with health care policy, including Medicaid.
Other committees involved in this process are the House Committee on Agriculture and the House Committee on Education and Workforce.
After the committees report their recommendations, the House Budget Committee puts everything together into one bill.
When the reconciliation package is finalized in each house, the bill is voted on.
If the two chambers pass different versions, then a conference must convene to hash out the differences.
Despite limited debate in the Senate, the entire process is typically slow and can take months.
This Congress, once House and Senate Republicans acted to get the ball moving on the reconciliation process, it invited increased attention and a lot of misinformation.
Some people seem to believe they have a crystal ball and are alleging that all kinds of things are happening in the reconciliation bill.
Recently, I held a tele-town hall meeting and was told by a couple of callers that I was wrong because clearly they had read something on the internet that contradicted what I was telling them.
I understood their confusion, but for anybody to say they know exactly what is in the reconciliation bill on the date of this newsletter does not fully appreciate the complexities of the process.
As an example, for hours during this past week, I have been reviewing policies, numbers and court opinions related to this reconciliation process.
None of the committees responsible for making these decisions have released a plan or held a markup.
Several weeks ago, the president and Republicans were not talking about any tax increases in the reconciliation package.
As I write, apparently there are some discussing possible limited tax increases!
As the next few weeks consume the time of lawmakers, I will monitor the reports made by each policy committee and analyze their potential impact on a reconciliation package.
Once a final reconciliation package is drafted, I will weigh its benefits to the families, businesses and communities of Virginia’s Ninth District before I cast my vote.
After reconciliation, we move to the appropriations process that will additionally reflect the decisions made in reconciliation.
If you have questions, concerns, or comments, feel free to contact my office. You can call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671. To reach my office via email, please visit my website at morgangriffith.house.gov.
