TITLE: B-305349, Social Security Administration--Use of the Gallup 
Organization to Poll the Public on Social Security, December 20, 2005
BNUMBER: B-305349
DATE: December 20, 2005
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B-305349, Social Security Administration--Use of the Gallup Organization 
to Poll the Public on Social Security, December 20, 2005

   B-305349

   December 20, 2005

   The Honorable Frank R. Lautenberg
   United States Senate

   Subject: Social Security Administration--Use of the Gallup Organization to
   Poll the Public on Social Security

   Dear Senator Lautenberg:

   This responds to your request for our legal opinion regarding the Social
   Security Administration's (SSA) use of the Gallup Organization to poll the
   public on Social Security. Among questions included in recent Public
   Understanding Measurement Systems (PUMS) polls conducted by Gallup on
   behalf of SSA, Gallup surveyed the general public on its familiarity with
   how the Social Security program is financed and on elements of various
   proposals to reform Social Security. You requested our legal opinion on
   whether the agency may have violated 5 U.S.C. sect. 3107 by using
   appropriated funds to pay for the polling. Section 3107 provides that
   "appropriated funds may not be used to pay a publicity expert unless
   specifically appropriated for that purpose."

   As we explain below, SSA did not violate section 3107 by hiring the Gallup
   Organization to survey the general public, because Gallup is not a
   "publicity expert" within the meaning of section 3107. SSA's authority to
   survey the general public on its knowledge of the Social Security program
   and program financing stems from the agency's authority to administer that
   program. 42 U.S.C. sect. 901(b).

   Consistent with our customary practice when rendering opinions, upon
   receipt of your request, we wrote a letter to SSA's General Counsel to
   establish a record on the matter you put before us. Letter from Susan A.
   Poling, Associate General Counsel, GAO, to Lisa de Soto, General Counsel,
   SSA, July 12, 2005. We requested factual information and official copies
   of recently conducted PUMS polls and posed a series of questions to the
   General Counsel designed to permit us to assess SSA's legal authority to
   conduct the polling in question. We received responses from SSA on August
   11, 2005, including copies of all PUMS surveys conducted to date and
   subsequent reports prepared by the Gallup Organization, SSA's Performance
   and Accountability Reports (PAR) for fiscal years 1998 through 2004, and
   three Strategic Plans covering the years 1997 through 2008. Letter from
   Thomas W. Crawley, Deputy General Counsel, SSA, to Susan A. Poling, GAO,
   Aug. 11, 2005 (Crawley Letter). We also received copies of a "Library
   Bookmark Project" survey and an "Electronic Wage Reporting" survey, which
   were both conducted in fiscal years 2004 and 2005, and a "Medicare Part D
   Subsidy Outreach Survey" then underway. Id.

   BACKGROUND

   According to SSA, it first conducted Public Understanding Measurement
   Systems (PUMS) surveys in 1998 to meet strategic goals and objectives that
   the agency had developed under the Government Performance and Results Act
   (GPRA) of 1993. Crawley Letter. GPRA requires federal agencies to develop
   and submit to the Congress a strategic plan covering a period of at least
   5 years.[1] 5 U.S.C. sect. 306. Among GPRA goals established in SSA's
   first strategic plan, the agency undertook "[t]o strengthen public
   understanding of the social security programs." Social Security: Keeping
   the Promise, Strategic Plan 1997-2002, at 31-32 (September 1997). As SSA
   explained in that strategic plan, one of the agency's "basic
   responsibilities to the public is to ensure that they understand the
   benefits available under the Social Security programs to them individually
   and to the population as a whole. . . [T]he achievement of this goal
   supports every other goal of the organization." Id.

   To achieve its GPRA goal of strengthening public understanding, SSA
   adopted as an agency objective that--

   "[b]y 2005, 9 out of 10 Americans will be knowledgeable about the social
   security programs in five important areas: basic program facts; financial
   value of programs to individuals; economic and social impact of the
   programs; how the programs are financed today; [and] financing issues and
   options."[2]

   Id. SSA sought to measure "the percent[age] of individuals who are
   knowledgeable in each of the five subject areas as demonstrated by
   responses to an objective test." Id. It was with the PUMS surveys that SSA
   intended "to elicit from the public information that [SSA] might use in
   meeting its strategic plan objectives." Crawley Letter. SSA has also used
   the PUMS survey results to assess the effectiveness of the agency's
   communications strategies and products, including the Social Security
   Statement,  which SSA mails annually to over 140 million workers age 25
   and older. Id.

   Beginning in the fall of 1998 and continuing through the fall of 2004, the
   Gallup Organization (Gallup) conducted six PUMS surveys on behalf of SSA.
   Id. All surveys were conducted as recorded telephone interviews, typically
   between August and December.[3] Id. The surveys asked a series of general
   demographic questions designed to ensure a representation of specific
   demographic groups--Caucasians, African-Americans, Hispanic-Americans, and
   Asian-Americans.[4] See PUMS VI National Survey, prepared by The Gallup
   Organization for SSA, Office of Communication, March 2005 (PUMS VI
   Report).

   The PUMS surveys also posed a series of approximately 24 to 32 substantive
   questions. Among these, Gallup pollsters would ask respondents questions
   such as:

   .        What type of benefits does Social Security provide;

   .        What is the youngest age at which someone can retire and receive
   full Social Security retirement benefits;

   .        Were Social Security retirement benefits, by themselves, designed
   to provide enough money for retirees to live on;

   .        What percentage of Social Security tax dollars goes towards
   paying administrative and other expenses; and

   .        Had they contacted SSA for information in the last year?

   Beginning in 2003 the PUMS survey was significantly revised consistent
   with the agency's new strategic goals and objectives under GPRA, and to
   provide SSA "with a baseline measure of the `percentage of Americans who
   are knowledgeable about the current social security program and related
   issues, including long range financing.'" Fiscal Year 2003 PUMS V National
   Survey, prepared by The Gallup Organization for SSA, Office of
   Communication (December 2003), at 4 (PUMS V Report). Among the goals in
   SSA's current strategic plan, the agency seeks "[t]o achieve sustainable
   solvency [of the Social Security trust funds] and ensure [that] Social
   Security programs meet the needs of current and future generations." SSA,
   Strategic Plan 2003-2008, at 29.[5] To achieve this goal, SSA undertook a
   strategic objective to support reforms, through education and research
   efforts, to ensure sustainable solvency and more responsive retirement and
   disability programs. Id. The PUMS survey was also substantially revised to
   include information to help SSA gauge the interest level of Americans in
   getting information about Social Security. PUMS V Report.

   As Commissioner Barnhart expressed in SSA's fiscal year 2004 Performance
   and Accountability Report, "[a]s the debate moves forward on how best to
   strengthen social security for the future, the agency must continue to
   educate the public about long-range financing issues affecting solvency,
   ensuring the program meets the needs of today's and tomorrow's
   beneficiaries." [6] Crawley Letter (referring to SSA, Performance and
   Accountability Report for Fiscal Year 2004 (Nov. 10, 2004), at 2). See
   also Social Security Improvements for Women, Seniors and Working
   Americans: Hearing before the House Ways and Means Committee, Subcommittee
   on Social Security, 107^th Cong. 22-23 (Feb. 28, 2002) (testimony of SSA
   Commissioner Jo Anne B. Barnhart describing the PUMS surveys and
   expressing concern that the general public does not understand social
   security's current pay-as-you-go funding system).

   Besides the general demographic questions, and substantive questions
   similar to those discussed above, PUMS V and PUMS VI included additional
   questions such as:

   .        "Currently, Social Security takes in more money in taxes each
   year than it needs to pay benefits for that year. Which of the following
   do you think best describes what happens to the excess tax money? [The
   pollster was directed to read the following three statements.]

   1        The money is kept by the government as cash in the bank.

   2        The money is invested in government treasury bonds.

   3        The money is invested in the stock market." PUMS V, App. A, q. 15
   (Statistical findings omitted.)

   .        "Currently, the government loans out the extra money from the
   bonds to help pay for other government programs. Do you believe that
   Social Security would be able to pay all future benefits if the government
   did not loan out the extra money?" PUMS VI q. 21.

   .        "Currently, the government uses the money from the bonds to pay
   for other government programs. Some people believe that Social Security
   would be able to pay all planned benefits if the government held the money
   specifically for Social Security instead of using it for other government
   programs. Do you agree or disagree with this statement?" PUMS V, App. A,
   q. 21 (statistical findings omitted.)

   .        "Now, I'm going to read [to you] several ways that have been
   suggested for changing social security. Please tell me whether you have
   ever heard about any of the following ideas: [The pollster was directed to
   read and rotate six ideas, and to ask a follow-up question.] Have you
   heard a lot or a little?

   Letting workers decide whether to shift some of their Social Security tax
   payments into personal Savings Accounts that they would invest on their
   own

   Allowing workers to pay an extra tax into personal [savings] accounts that
   they would invest on their own

   Having the government invest a portion of Social Security [trust funds] in
   the stock market

   Increasing the tax rate employers and employees pay to Social Security

   Making workers pay Social Security taxes on all of their earnings

   Raising the age at which people are eligible to receive their full Social
   Security benefits." PUMS V App. A, q. 23; PUMS VI q. 23 paraphrased
   (statistical findings omitted.)

   ANALYSIS

   You asked us to determine whether the Social Security Administration (SSA)
   violated 5 U.S.C. sect. 3107 by hiring the Gallup Organization to conduct
   public understanding polls. Section 3107 provides that "[a]ppropriated
   funds may not be used to pay a publicity expert unless specifically
   appropriated for that purpose." 5 U.S.C. sect. 3107. This restriction
   applies to the use of all appropriated funds.[7] The provision, which is
   now section 3107, was enacted in 1913 and has not been amended.

   The language of section 3107 focuses on paying a "publicity expert." While
   we have had few occasions to address section 3107, our cases have noted
   difficulty in applying the provision due to the lack of definitional
   guidance in the statute and the need to protect an agency's legitimate
   interest in informing the public regarding its activities and programs.
   See B-302992, Sept. 10, 2004; B-139965, Apr. 16, 1979 (noting the lack of
   definitional guidance in section 3107); A-82332, Dec. 15, 1936 (noting
   that the provision was not intended to restrict legitimate informational
   activities). Given the absence of definitional guidance in the statute, we
   referred to the legislative history of the provision to ascertain what
   Congress meant to prohibit when it passed in 1913 what is now section
   3107. The legislative history of section 3107 suggests that the provision
   seeks to prohibit the hiring of publicity experts "to extol or to
   advertise" the agency or individuals within the agency. B-302992. Our
   decisions have applied this standard in analyzing section 3107 cases.

   In the circumstances at issue here, we do not view the Gallup Organization
   as a "publicity expert" within the meaning of section 3107. Id. SSA did
   not hire  Gallup to--nor did Gallup in fact--extol or advertise SSA or
   individuals within SSA. SSA hired Gallup to survey the general public on
   its familiarity with the Social Security program and how that program is
   currently financed, and on its familiarity with various proposals to
   reform the program. In fact,  SSA hired Gallup to engage in the legitimate
   agency activity of collecting information that the agency needs in order
   to carry out its Social Security program responsibilities.

   SSA's authority to survey the general public on its knowledge of the
   Social Security program and program financing is inherent in the agency's
   authority to administer that program, 42 U.S.C. sect. 901(b). As a general
   matter, an agency may use appropriations to engage in information
   gathering related to its specific program authorities. Indeed, our
   decisions reflect societal values favoring a robust exchange of
   information between the government and the public it serves. See, e.g.,
   B-184648, Dec. 3, 1975 (discussing an agency's "legitimate interest in
   communicating with the public").

   Further, SSA's reference to the Government Performance and Results Act
   (GPRA) as a basis for conducting such polling is reasonable and consistent
   with the Act's provisions and purpose to "improve Federal program
   effectiveness and public accountability by promoting a new focus on
   results, service quality, and customer satisfaction." Pub. L. No. 103-62,
   sect. 2(b)(3), 107 Stat. 285 (Aug. 3, 1993).

   CONCLUSION

   The Social Security Administration did not violate 5 U.S.C. sect. 3107 by
   hiring the Gallup Organization to survey the general public on its
   familiarity with the Social Security program and how that program is
   currently financed, and on its familiarity with various proposals to
   reform the program. For this purpose, Gallup is not a "publicity expert"
   within the meaning of section 3107. SSA's authority to survey the general
   public on its knowledge of the Social Security program and program
   financing derives from the agency's authority to administer that program.

   /signed/

   Anthony H. Gamboa
   General Counsel

   B-305349

   DIGEST

   The Social Security Administration did not violate 5 U.S.C. sect. 3107 by
   hiring the Gallup Organization to survey the general public on its
   familiarity with the Social Security program and how that program is
   currently financed, and on its familiarity with various proposals to
   reform the program. For this purpose, Gallup is not a "publicity expert"
   within the meaning of section 3107. SSA's authority to survey the general
   public on its knowledge of the Social Security program and program
   financing derives from the agency's authority to administer that program.

   ------------------------

   [1] The strategic plan must contain a comprehensive mission statement
   covering the major functions and operations of the agency, general goals
   and objectives for those major functions and operations, and how those
   goals and objectives are to be achieved. 5 U.S.C. sect. 306. See also 31
   U.S.C. sect. 1115 (requiring agencies to submit annual performance plans).

   [2] This opinion does not consider SSA's development of, or whether the
   agency achieved, its GPRA goals and objectives. Rather, we address here
   the legal question of whether SSA violated 5 U.S.C. sect. 3107 in
   conducting recent PUMS surveys.

   [3] PUMS I survey was conducted October through November 1998; PUMS II,
   November 1999-January 2000; PUMS III, October-December 2000; PUMS IV,
   August-October 2001; PUMS V, August-September 2003; PUMS VI,
   November-December 2004.

   [4] For example, respondents were asked their age, race, ethnicity,
   highest level of education, employment status, income bracket, marital
   status, number of adults living in their household, whether they have
   internet access, and the number of telephone lines in their home. The
   Gallup pollster would also note the respondent's gender. This opinion does
   not evaluate, nor did GAO verify or test, the Gallup Organization's
   methodology for conducting the PUMS surveys.

   [5] Available at www.ssa.gov/strategicplan.html (last visited Nov. 15,
   2005). GPRA requires federal agencies to update and revise their strategic
   plans at least every 3 years. 5 U.S.C. sect. 306(b).

   [6] The serious solvency and sustainability challenges facing the social
   security trust funds have been widely reported. See, e.g., GAO, Social
   Security Reform: Early Action Would Be Prudent, GAO-05-397T (Washington,
   D.C.: Mar. 9, 2005); Social Security Reform, Answers to Key Questions,
   GAO-05-193SP (Washington, D.C.: May 2005); Social Security: Restoring
   Long-Term Solvency Will Require Difficult Choices, GAO/T-HEHS-98-95
   (Washington, D.C.: Feb. 10, 1998). See also The 2005 Annual Report of the
   Board of Trustees of the Federal Old-Age and Survivors Insurance and
   Disability Insurance Trust Funds, H.R. Doc. No. 109-18, at 1-3 (2005).

   [7] SSA paid Gallup to conduct the PUMS surveys from its Limitation on
   Administrative Expenses appropriations. Crawley Letter. See, e.g., Labor,
   Health and Human Services, and Education, and Related Agencies
   Appropriations, 2004, Pub. L. No. 108-199, div. E, title IV, 118 Stat. 3,
   274-75 (Jan. 23, 2004). The costs of carrying out the functions of SSA are
   derived from the Social Security trust funds, as appropriated annually by
   Congress. See 42 U.S.C. sect. 401(g); Pub L. No. 108-447, div. F, title
   IV, 118 Stat. 2809, 3161 (Dec. 8, 2004).