[House Document 106-149]
[From the U.S. Government Publishing Office]





106th Congress, 1st Session - - - - - - - - - - - House Document 106-149
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                    LEGISLATIVE PROPOSAL ENTITLED,
        ``STRENGTHEN SOCIAL SECURITY AND MEDICARE ACT OF 1999''

                               __________

                                MESSAGE

                                  FROM

                   THE PRESIDENT OF THE UNITED STATES

                              TRANSMITTING

   A LEGISLATIVE PROPOSAL ENTITLED, ``STRENGTHEN SOCIAL SECURITY AND 
                         MEDICARE ACT OF 1999''




  October 26, 1999.--Message and accompanying papers referred to the 
 Committees on Ways and Means, Rules, and the Budget and ordered to be 
                                printed

                                -------                                

                    U.S. GOVERNMENT PRINTING OFFICE
79-011                     WASHINGTON : 1999       





To the Congress of the United States:
    I transmit herewith for your immediate consideration a 
legislative proposal entitled the ``Strengthen Social Security 
and Medicare Act of 1999.''
    The Social Security system is one of the cornerstones of 
American national policy and together with the additional 
protections afforded by the Medicare system, has helped provide 
retirement security for millions of Americans over the last 60 
years. However, the long-term solvency of the Social Security 
and Medicare trust funds is not guaranteed. The Social Security 
trust fund is currently expected to become insolvent starting 
in 2034 as the number of retired workers doubles. The Medicare 
system also faces significant financial shortfalls, with the 
Hospital Insurance Trust Fund projected to become exhausted in 
2015. We need to take additional steps to strengthen Social 
Security and Medicare for future generations of Americans.
    In addition to preserving Social Security and Medicare, the 
Congress and the President have a responsibility to future 
generations to reduce the debt held by the public. Paying down 
the debt will produce substantial interest savings, and this 
legislation proposes to devote these entirely to Social 
Security after 2010. At the same time, by contributing to the 
growth of the overall economy debt reduction will improve the 
Government's ability to fulfill its responsibilities and to 
face future challenges, including preserving and strengthening 
Social Security and Medicare.
    The enclosed bill would help achieve these goals by 
devoting the entire Social Security surpluses to debt 
reduction, extending the solvency of Social Security to 2050, 
protecting Social Security and Medicare funds in the budget 
process, reserving one-third of the non-Social Security surplus 
to strengthen and modernize Medicare, and paying down the debt 
by 2015. It is clear and straightforward legislation that would 
strengthen and preserve Social Security and Medicare for our 
children and grandchildren. The bill would:
     Extend the life of Social Security from 2034 to 
2050 by reinvesting the interest savings from the debt 
reduction resulting from Social Security surpluses.
     Establish a Medicare surplus reserve equal to one-
third of any on-budget surplus for the total of the period of 
fiscal years 2000 through 2009 to strengthen and modernize 
Medicare.
     Add a further protection for Social Security and 
Medicare by extending the budget enforcement rules that have 
provided the foundation for our fiscal discipline, including 
the discretionary caps and pay-as-you-go budget rules.
    I urge the prompt and favorable consideration of this 
proposal.

                                                William J. Clinton.
    The White House, October 26, 1999.



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