[Congressional Record (Bound Edition), Volume 146 (2000), Part 15]
[Extensions of Remarks]
[Page 22696]
[From the U.S. Government Publishing Office, www.gpo.gov]



INTRODUCTION OF THE SOCIAL SECURITY ADMINISTRATION PREPAREDNESS ACT OF 
                                  2000

                                 ______
                                 

                         HON. E. CLAY SHAW, JR.

                               of florida

                    in the house of representatives

                      Wednesday, October 11, 2000

  Mr. SHAW. Mr. Speaker, today I am introducing legislation to 
modernize and strengthen the Social Security Administration in 
preparation for the oncoming baby boom retirement. This legislation 
completes the spirit of the laws Congress has enacted three times since 

1983--taking the last of Social Security expenditures off-budget and 
removing SSA's administrative funds from budgetary restraints which 
have nothing to do with Social Security's needs.
  In preparation for the upcoming retirement wave, Congress and the 
administration clearly want Social Security resources dedicated only to 
Social Security to ensure promised benefits are paid. Ensuring 
responsive public service delivery by the Social Security 
Administration is part of that promise because worker's hard-earned 
payroll taxes directly support the running of the agency.
  A recent report by the bipartisan Social Security Advisory Board 
concluded

       There is a significant gap between the level of services 
     that the public needs and that which the Agency is providing. 
     Moreover, this gap could grow to far larger proportions in 
     the long term if it is not adequately addressed.

  This world-class delivery of services will become more difficult as 
the baby boom generation enters its peak disability years and then 
reaches retirement age starting in 2008. By 2010 Social Security 
retirement benefit claims are expected to rise by 16 percent and 
disability claims by 47 percent. For an agency facing a substantial 
number of retirements in its own workforce and high expectations from 
customers, that's a great challenge.
  It may come as a surprise to both Congress and to Americans that part 
of Social Security is not wholly separated from the federal budget, but 
it is not. The administrative costs of running the agency and paying 
benefits are subject to discretionary spending caps--an on-budget 
restraint that could keep that agency from preparing for the challenge 
it will soon face as the baby boomers retire and disability cases soar.
  Subjecting the agency's administrative funding to the caps really 
doesn't make sense. After all, these costs are paid for with workers' 
payroll taxes from the Social Security Trust Fund--they are not paid 
for with general revenues. When these payroll taxes are used to pay 
benefits, they are considered off budget and not subject to the caps. 
But when the exact same payroll taxes are used to pay the 
administrative costs that support benefit payments, they are treated 
differently.
  Mr. Speaker, my bill creates a new cap for SSA's administrative 
appropriations for the two remaining years the caps exist. This is not 
unprecedented. Congress felt that Social Security's responsibility to 
do Continuing Disability Reviews was so important, that it exempted 
those management costs many years ago. Since no caps exist after fiscal 
year 2002, Social Security administrative expenses will then go off-
budget like the rest of the program.
  However, to insure the public gets the service they paid for, my 
legislation still requires the Social Security Administration to go 
through the appropriations process and to defend that request to both 
the appropriations and authorizing committees.
  Each year, new funding requests will be reviewed based upon the 
Commissioner's documentation that current and future tax dollars are 
meeting the mission and performance levels contained in the Agency's 
Strategic Plan and Annual Performance Plan. Open ended funding without 
results is not an option. Continued delivery of world-class service, 
along with ongoing progress on eliminating waste, fraud, and abuse will 
be demanded first.
  I also want the Social Security Administration to be a fully 
integrated member of the new information age, so my bill provides for 
technology investment. The agency must submit a comprehensive 
procurement plan detailing the benefits, risks and returns from the 
investment. This plan will be updated biannually and GAO will provide 
the Congress with their assessment and recommendation on SSA's 
performance to guide our funding decisions.
  The way to prepare Social Security for the future is to start now. We 
have committed ourselves to saving Social Security. Just as important 
must be our commitment to save the underlying program operation so 
critical in delivering the service needed by retirees, individuals with 
disabilities, and their families.
  Mr. Speaker, I want to thank my Ways and Means colleague, Mr. Cardin, 
for joining me as an original sponsor of this bill and note that this 
represents another bipartisan effort to strengthen the Social Security 
program for current and future retirees. I urge all my colleagues to 
cosponsor this important, bipartisan legislation.

                          ____________________