    [Public Papers of the Presidents of the United States: WILLIAM J. CLINTON (1999, Book II)]
    [October 26, 1999]
    [Page 1886]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Transmitting Proposed Legislation To Strengthen
    Social Security and Medicare
    October 26, 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.