June 26, 1986 The conference agreement on the budget resolution would alter the President's priorities. For example, it cuts too much from defense and international affairs in fiscal year 1987 and is way too limiting in the outyears. Moreover, it increases domestic spending by more than the President recommended. However, the conference report does not call for a tax increase as did both earlier resolutions. While the President reserves judgment on individual authorization and appropriation bills and the use of the special reserve fund, he nevertheless finds the overall conference agreement generally acceptable and commends the conferees for their efforts in producing a report that meets the fiscal year 1987 deficit-reduction target of Gramm-Rudman-Hollings.