Sep 9, 2010

Priorities

Social Security's Office of Inspector General (OIG) has issued a report on how Social Security spends its appropriated funds. There are a couple of interrelated issues covered. One issue is the appropriated money that remains unspent each year. Towards the end of each fiscal year the Office of Management and Budget (OMB), which is part of the White House, has been allowing Social Security to transfer funds that will not get spent before the end of the fiscal year to a "no-year" account that Social Security can spend in later years. This is nothing new. It has been going on for decades. At least lately, these transfers have not been nickle and dime affairs. Social Security just transferred $280 million to a "no-year" account. That is something like 2.5% of its total budget for the year. At least lately, the transferred money has been going into an account that can only be spent on information technology. The second issue is the return on investment of the money spent on information technology. Social Security is not able to document much return on investment on some of its technology expenditures.

I had concerns about technology expenditures during the term of the previous Commissioner. Even though the agency was collapsing around Commissioner Barnhart, she kept diverting more and more of the agency's scarce resources to long term information technology projects. My fear was that she wanted to make sure that as much money as possible went to contractors (who are more likely to be Republicans) than to employees (who are more likely to be Democrats and union members as well.)

OIG is asking pertinent questions about what is going on today. The service that Social Security is giving the public is not as bad as it was but it is still far from satisfactory. More money is being spend on hiring employees but still there are not enough of them to get all the work done. Huge sums are being spent or committed to information technology projects. There are still huge backlogs in continuing disability investigations and Supplement Security Income (SSI) redeterminations. Why is so much money remaining unspent at the end of each fiscal year? Why is so much money being diverted to information technology? What is the return on investment on Social Security's information technology? Is a proper balance being struck between having enough personnel to get the work done and having good technology to help get the work done?

I wonder how Social Security's operating budget would be spent if Michael Astrue had resigned as Commissioner at the end of 2008 and been replaced by a Democrat. Would Social Security's operating budget be spent differently? To ask this is not to suggest that Commissioner Astrue's decisions on spending have been politically motivated or that he does not care about the service that his agency delivers to the public. However, personal beliefs inevitably impact the decisions made by agency heads. It is only a slight oversimplification to say that it has been an article of faith among Republicans in recent decades that federal employees are bad and private contractors are good. It is reasonable to ask questions about how such a philosophy might be impacting spending decisions at Social Security.

Sep 8, 2010

Frightening

The Republican leader in the House of Representatives, who may become the Speaker of the House next year, is proposing that federal spending levels be returned to what they were in fiscal year 2008. Returning Social Security's budget to its 2008 level, would be a massive cut. There would be layoffs. The agency would go into free fall with dramatic reductions in public service. It would be a nightmare.

Bed Bugs In Jamaica


From Federal News Radio:

Bed bugs have infested the Social Security Administration's regional offices in Queens, N.Y. According to a post on FedBizOpps.gov, the agency is looking for a company to provide it with extermination services, including the use of a Bed Bug Heat Treatment Oven.

An SSA executive tells Government Computer News the bed bugs are affecting several offices in the Joseph P. Addabbo Federal Building and that the problem will be addressed as quickly as possible.

The ovens would be used to clean items such as clothing, books, papers, chairs and file cabinets in the office.

This isn't the first time the bugs have been found in that particular space. In December 2009, seven large file cabinets on five different floors in the building were infested.

Sep 7, 2010

Increasing The Retirement Age In France

From CBS:
French strikers disrupted trains and planes, hospitals and mail delivery Tuesday amid massive street protests over plans to raise the retirement age. ...

[P]eople poured into the streets in 220 cities, setting off flares and beating drums ...

French protesters are angry about the government's plan to do away with the near-sacred promise of retirement at 60, forcing people to work until 62 because they are living longer. ...

One sign in Paris showed a raised middle finger with the message: “Greetings from people who will die on the job.”

HEART Act Regs

From today's Federal Register:
We are revising our regulations to incorporate improvements to the Supplemental Security Income (SSI) program made by the HEART Act. The HEART Act changes the way we treat certain cash payments to members of the uniformed services and veterans and the way we treat cash and in-kind payments to AmeriCorps volunteers. In addition, we are making a technical change to our rules to reflect the correct section of the Internal Revenue Code.

Number Of Social Security Employees Jumps

Below are the June 2010 figures for the number of employees at Social Security recently released by the Office of Personnel Management (OPM), along with earlier figures for comparison purposes.
  • June 2010 69,600
  • March 2010 66,863
  • December 2009 67,486
  • September 2009 67,632
  • June 2009 66,614
  • March 2009 63,229
  • December 2008 63,733
  • September 2008 63,990
  • September 2007 62,407
  • September 2006 63,647
  • September 2005 66,147
  • September 2004 65,258
  • September 2003 64,903
  • September 2002 64,648
  • September 2001 65,377
  • September 2000 64,521
  • September 1999 63,957
  • September 1998 65,629

Sep 6, 2010

Not On My Watch

President Obama speaking in Milwaukee today:
And to those who may still run for office planning to privatize Social Security, let me be clear: as long as I'm President, I'll fight every effort to take the retirement savings of a generation of Americans and hand it over to Wall Street. Not on my watch.

Labor Day



Sep 5, 2010

Social Security Opens New Office In Paris

The Paris (TX) News reports that Social Security is opening a new office in their town.

SSI Report

Social Security has issued its Annual Statistical Report on the Supplemental Security Income program. Some highlights:

Size and Scope of the Supplemental Security Income Program

  • About 7.7 million people received federally administered payments in December 2009.
  • The average monthly payment in December 2009 was $499.
  • Total payments for the year were more than $46 billion, including almost $4 billion in federally administered state supplementation.

Profile of Recipients

  • The majority were female (55 percent).
  • Sixteen percent were under age 18, 58 percent were aged 18 to 64, and 26 percent were aged 65 or older.
  • Most (85 percent) were eligible on the basis of a disability.
  • Six out of 10 recipients under age 65 were diagnosed with a mental disorder.
  • More than half (57 percent) had no income other than their SSI payment.
  • Thirty-four percent of SSI recipients also received Social Security benefits.
  • Of the people receiving SSI benefits, about 2 percent were residing in a Title XIX institution where Medicaid was paying more than half of the cost.
  • Despite their disabilities, about 340,000 recipients (5.2 percent) were working in December 2009.