Social Security Statement

Social Security Statement

 Thank you Senator Gregg for heading up the Budget Committee's effort to examine the challenges that face the Social Security program. I fully endorse the direction you have chosen as the chair of our Task Force. The first priority we are addressing is identifying the source of the trouble in Social Security. The General Accounting Office has done extensive work in this area and their research will provide credibility to the recommendations this Task Force will be making next year. To the extent that we can utilize the findings of the GAO and broadcast those findings to the our colleagues and the public at large, we will achieve more success.<P> Our second priority is looking at various reforms that have been proposed. Some proposals take the approach of maintaining the structure of the current system and focus on the financial woes. Other proposals are much more ambitious. They take the approach that the system is unsustainable without structural reform. We need to begin making some headway to describe reform options to the public and identify the trade offs which are associated with these options. <P> As we review the various options, I think it is important to remember that our constituents do not have the benefit of hearing objective Social Security experts talk about the challenges the program faces on a regular basis. They must rely on news articles or interest group mailings which often don't present the full picture. There is still much to be done to raise the awareness of the affected public. We need to emphasize two points:<P><UL><LI> The reasons for Social Security's fiscal problems<LI> And that Social Security's insolvency is only one threat to retirement security in this country.<P></UL> Of course there are some people who are way ahead of the curve on resolving the Social Security dilemma. Just this summer, we enacted the Balanced Budget Act of 1997 ? putting the country on course to have a deficit of zero by 2002. Just a short time after passage of the Act, we heard that economists in investment houses in New York were predicting much lower budget deficits sooner than was thought realistic. Not long after, legislation was introduced proposing a variety of uses for any subsequent surplus. <P> One proposal contemplates using any surplus to begin paying off the long-term promises we have made to American workers and their families. Since the Social Security trust funds will add to a unified budget surplus figure, contributing more than 80 billion dollars in 1999, this is not irrational. I would suggest that first, running a budget surplus may not be a bad thing. Second, if we do choose to utilize the surplus ? and if we don't start funding the currently unfunded social security promises ? public cynicism over trust fund accounting will continue to grow.<P> I am looking forward to reviewing Chairman Greenspan's testimony especially on issues such as:<P><UL><LI> the forecast for the budget deficit<LI> the dilemmas facing the Social Security program <LI> national savings,<LI> and the choices we face in scaling back entitlement spending to minimize the negative impact on our economy.<P></UL> Chairman Greenspan has been in the trenches working to protect the Social Security program for nearly two decades. He was a driving force behind the 1983 Commission, and he can share his observations of the program in the years since those reforms have been in place. His testimony will be an invaluable source of information for this task force. Thank you for being here.<P> I am committed to the work of this Task Force. Hopefully, our efforts will lead to a process that will put reforms in place promptly. Baby Boomers and their children need time to absorb the changes that may affect their preparations for retirement.