[Congressional Record (Bound Edition), Volume 145 (1999), Part 19]
[Senate]
[Page 26776]
[From the U.S. Government Publishing Office, www.gpo.gov]



    A DRAFT OF PROPOSED LEGISLATION RELATIVE TO THE SOCIAL SECURITY 
               SYSTEM--MESSAGE FROM THE PRESIDENT--PM 68

  The PRESIDING OFFICER laid before the Senate the following messages 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Finance.

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 of 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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