Appropriation Coming Soon -- Expect Service To Get Worse

     You may have heard that there was a "budget deal" in December and thought that it took care of the Social Security Administration. If so, like the vast majority of Americans, you don't understand the way Washington works. A "budget" just sets the top line numbers, that is the total amount to be appropriated and the share going to broad categories of spending. It's the appropriations bills that actually give agencies money to spend. The federal fiscal year began on October 1, 2013. Since the government shutdown ended, agencies have only been permitted to spend money under a "Continuing Resolution", knows as a "CR.". Under the CR, agencies can only spend at the rate they were spending in the prior fiscal year.
     It looks like we'll get something called the Consolidated Appropriations Act, 2014 passed by Congress and signed by the President by the weekend. Here's the House Appropriations Committee's summary of the Social Security Administration provisions of this bill:

Social Security Administration (SSA) – The bill includes $11. 7 billion to administer SSA activities, which is a $265 million increase above the fiscal year 2013 enacted level. This level is sufficient to allow the SSA to continue prompt processing of Social Security checks and claims , and will help ensure that all eligible recipients get their benefits on time and in the proper amount. Within the total, the bill devotes $1. 2 billion to program integrity activities to ensure that disability and other benefits are properly paid.

     Social Security had asked for $12.3 billion. The $1.2 billion for program integrity is the same amount that Social Security had asked for. Even the amount in the President's recommended budget, which was somewhat less than what Social Security had asked for, assumes continued deterioration of service at Social Security. Here's some data from the President's budget proposal:

Key Performance Targets:

• Initial Disability Claims Completed (thousands) FY 2012 3,207, FY 2013 2,970, FY 2014 2,851;

• Reconsiderations Completed (thousands) FY 2012 809, FY 2013 803, FY 2014 725;

• SSA Hearings Completed (thousands) FY 2012 820, FY 2013 836, FY 2014 807;

• Average Speed of Answer (ASA) [on Social Security's 800 number] (seconds) FY 2012 294, FY 2013 455, FY 2014 482

     Since the amount in the appropriation bill to be passed is significantly less than the President's proposal, we should expect a significantly greater degradation in service.

     I find it frustrating that so little attention is paid to Social Security's appropriation while enormous attention is paid to the chained CPI debate, if you can call it that. I wish the President had never talked about chained CPI but there isn't now nor was there ever the slightest chance that chained CPI would come to pass. However, a dramatic decline in public service at Social Security that is actually happening draws almost no national attention. Appropriations must seem so abstract if you don't personally deal with Social Security's operating components.