[Weekly Compilation of Presidential Documents Volume 35, Number 43 (Monday, November 1, 1999)]
[Pages 2155-2156]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress Transmitting the Proposed ``Strengthen Social 
Security and Medicare Act of 1999''

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

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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:
<bullet>    Extend the life of Social Security from 2034 to 2050 by 
            reinvesting the interest savings from the debt reduction 
            resulting from Social Security surpluses.
<bullet>    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.
<bullet>    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.