DeLauro Opening Statement at Hearing on Future of Social Security

Budget Cuts Put Basic Functions at Risk; AgencyAlready Struggling To Keep Up

WASHINGTON, DC-- Congresswoman Rosa DeLauro (D-CT), seniorDemocrat on the Labor, Health, and Human Services Appropriations Subcommittee,made the following opening statement at the subcommittee's hearing today. Thehearing focused on how the Social Security Administration is dealing withbudget cuts in an already-tight fiscal atmosphere.

The following remarks are as prepared for delivery:

"Social Security is the ultimate legislative expression ofour nation's shared values. For over 75 years, it has tied generation togeneration. It ensures that seniors have a secure retirement after decades ofservice to their communities. And it provides a safety net for those who can nolonger work due to an accident or disability.

"As soon as the first Social Security check was issued,poverty among the elderly began to drop, from more than thirty percent ofelderly Americans in the 1950s to ten percent today. Two out of threeseniors today rely on Social Security as the prime source of monthly income,including three-quarters of all elderly women.

"But, as on so many other fronts, the Majority's recklessdecision to let sequestration go through puts the basic functions of SocialSecurity at risk. These cuts come at a time when agencies have beendealing with funding that has not kept up with inflation and demand over theyears.

"In the case of the Social Security Administration, fundingover the past two fiscal years for routine operations has been essentiallyflat. In each of these years the funding level provided was below thePresident's request by $924 million, or 8 percent. These cuts have a realimpact on our ability to serve our seniors, and to ensure they get the properbenefits they have earned.

"Efforts to prevent waste, fraud, and abuse and to ensurethat benefits only go to eligible individuals have not been fully funded. TheBudget Control Act permits additional funding to be provided above the spendingcaps for continuing disability reviews and SSI redeterminations. If this hadbeen fully funded in 2012, it would have provided an additional $140 millionfor program integrity.

"The 2013 House subcommittee bill provided none of thisfunding – effectively cutting this work by $483 million. In other words,while the majority claims to want to save money by cutting out program wasteand inefficiencies, their rhetoric is not matched by their action. Rather, itsuggests that they would prefer to see Social Security falter in its basicresponsibilities to Americans.

"Let's be clear: The only thing SSA uses its funding for isto get Social Security benefits to the seniors and others who deserve them in atimely fashion. We are talking about retirees that have worked their entirelives for their retirement benefits, individuals with disabilities, and seniorsliving in poverty.

"Right now, people are waiting desperately for resourcesthey deserve, earned, and need to get by. But with these deep cuts, fewerapplications will be processed, backlogs will grow, more erroneous paymentswill be made, and people will have to wait even longer in offices, or to havetheir phone calls answered.

"The Social Security Administration is already understaffed,and these cuts will only make things worse. Due to limited resources, theSocial Security Administration has already taken measures such as curbinghiring and closing offices.

"Meanwhile, a record number of individuals filed retirementclaims in FY 2012. And while the Social Security agency should beapplauded for completing 820,000 disability appeals hearings last year, thebacklog still grew by 29,000 to 817,000. Despite some recent progress, theaverage wait for a disability appeals hearing is nearly a year.

"I understand the Social Security Administration has beentaking advantage of technology to cushion some of the effects of these deepfunding cuts. We definitely want to hear about those efforts. Buttechnology can only go so far, since so much of this work is lengthy,complicated, and requires individual attention. This kind of work demands atrained, knowledgeable employee, a real person, actually working with a beneficiaryto assist them.

"This combination of more work and fewer staff has stretchedthe agency to near a breaking point. Unfortunately the future looks evenbleaker. In less than ten years, the cuts made through existing BCA caps willtake non-defense discretionary spending to the lowest level on record as ashare of GDP. Some people are demanding further reductions in the caps, whichwould mean that these shortfalls will just get worse. We simply cannot dothat and properly provide our seniors and others with the benefits theydeserve.

"So, I would like to welcome today's witness. And I hopethat she can help the subcommittee understand the real impact of thesemisguided budget policies on seniors and families. Thank you."