What Will It Be Like If Social Security's Operating Budget Is Cut By 25%?

From the New York Times:

The collapse of a government-wide spending package in the final days of this Congressional session sets up a politically charged fiscal showdown early next year, testing the determination of Republicans about to take over the House with promises to slash an array of domestic programs....

Republicans say that timeline will allow them to quickly put their stamp on the budget for the current fiscal year, and Mr. Boehner and his leadership team have vowed to eliminate about $100 billion in spending out of about $400 billion in domestic programs. ...

The 2011 spending fight could be complicated by the need to raise the federal debt limit to avoid a federal default — a vote that many new Republican lawmakers have indicated they would not make.

Republicans say the debt limit vote could also present an opportunity, allowing them to tie a package of spending reductions to the debt increase to make it more palatable.

FICA Tax Cut

The bill that cuts Social Security's lifeblood, the FICA tax, by 2% "temporarily" is awaiting the President's signature after both houses of Congress finished work on the bill last night. The bill calls for a transfer of funds from the Treasury to make up for the cut.

The fear among those passionate about protecting Social Security is that it will be impossible to avoid the temptation to make the cut permanent, thereby crippling the funding mechanism that has set Social Security apart from programs such as Food Stamps or Temporary Assistance to Needy Families which are perceived -- negatively -- as "welfare."

That Binder And Binder Lawsuit

I have received many questions about Binder and Binder's lawsuit seeking that Social Security be required to allow them to represent Social Security claimants at hearings solely by video appearance from their office -- meaning that they would never have to meet with the claimant in person. I have downloaded the most recent documents filed in the cases from PACER, the federal court's online system. I have uploaded the to Yousend it so you do not have to mess with PACER or pay its fees. The documents will be available for you to download from Yousendit through December 23.

Omnibus Fails

The effort to pass an omnibus spending bill for this fiscal year has failed. This means lower funding for the Social Security Administration for the rest of this fiscal year. The manner in which it failed -- nine Republicans reneged on promises to vote for the bill -- suggests massive problems in passing any appropriations bills or anything else in the next Congress. I fear that we are embarking upon a two year continuing resolution which will have terrible consequences for the Social Security Administration.

A Couple Of Nuggets

Nancy Shor, the executive director of the National Organization of Social Security Claimants Representatives (NOSSCR), spoke recently at a continuing legal education seminar put on by the Disability Advocacy Section of North Carolina Advocates for Justice. Here are a couple of news items from her presentation:

• There are now four pilots on providing encrypted CDs to attorneys representing Social Security claimants.
• Social Security expects to provide online access to cases pending at the Appeals Council by the middle of 2011 -- to attorneys who have been registered by Social Security for online access.
  

Saturday Shutdown?

From Federal Times:

The federal government could be headed for a shutdown at midnight Saturday, and the problem might not be fixed before Monday morning rush hour, Senate sources say.

Agencies currently are operating at fiscal 2010 spending levels under a continuing resolution that expires at midnight Saturday. It remains possible for the Senate to pass another short-term CR that would keep the government running for another three or four days beyond Saturday, then to vote on final appropriations for the entire fiscal year. But Senate sources, speaking on condition of anonymity, cite another scenario that could lead to a shutdown.

There is a strong possibility opponents of the $1.1 trillion fiscal 2011 omnibus funding bill will require clerks to read aloud the 1,924-page Senate document. Reading the bill is expected to start sometime on Friday, and not be finished until Sunday. Reading of the bill could be followed by another day or more of debate. Then, the Senate may not be able to vote on funding until 1 a.m. Monday, at the earliest.

Senate leaders believe a midnight Saturday shutdown of the government would cause little harm because essential employees are required to work even if there is no funding and most government workers wouldn't return to the office until Monday.

If the problem runs into Monday, federal workers likely would report to work for the day but could be sent home, Senate sources said.

The good news is the implicit assumption that the votes are there to pass on omnibus spending bill. I hope it is true that opponents can only slow it down, not stop it. Even if this passes, Social Security and other government agencies are not out of the woods. There will be a risk of a government shutdown when the debt ceiling needs to be raised. That date will apparently arrive in early Spring.

Colvin Nomination Still Moving

The nomination of Carolyn Colvin to become Social Security's Deputy Commissioner is finally moving through the Senate. It has been reported out of the Finance Committee and placed on the Senate's "Executive Calendar," whatever that is.

Personnel Changes

MEMORANDUM

Date: December 15, 2010 Refer
Refer To: S7K

To: Senior Staff

From: Michael J. Astrue /s/
Commissioner

Subject: Executive Personnel Assignments - INFORMATION

I have several announcements to share.

In the Office of Budget, Finance and Management, Mike Kramer, Senior Executive Service Candidate Development Program (SESCDP) Class V, will become the Acting Deputy Associate Commissioner for Facilities Management (Environmental, Security & Emergency Response) effective January 3.

In the Office of Operations, Linda Dorn, SES CDP Class IV, will become the Associate Commissioner for Disability Determinations. Ruby Burrell, currently serving in that role, will become the Associate Commissioner for Field Site Operations in the Office of Quality Performance effective December 19.

In Operations and Systems, I have established a second Assistant Deputy Commissioner position. Effective January 3, Terrie Gruber will move from Assistant Deputy Commissioner for Disability Adjudication and Review to the Office of Operations as Assistant Deputy Commissioner, and Debbi Russell will move from Associate Commissioner for Automation Support to the Office of Systems as Assistant Deputy Commissioner.

Jo Armstrong will move from Associate Commissioner for Electronic Services to the Associate Commissioner for Automation Support. Sylviane Haldiman will move from Deputy Associate Commissioner for Automation Support to Associate Commissioner for Electronic Services. Laura Train, SES CDP Class IV, will become Deputy Associate Commissioner for Electronic Services.

In the Office of Disability Adjudication and Review, Jim Borland, currently Associate Commissioner for Electronic Services and Strategic Information will become Assistant Deputy Commissioner. Natalie Lu, SES CDP Class IV, will become the Acting Associate Commissioner for Electronic Services and Strategic Information.

Chief Administrative Law Judge (ALJ) Frank Cristaudo has accepted a position as Associate Chief ALJ for Administrative Management.

Please join me in wishing everyone success in their new assignments.

Government Shutdown For The Holiday Season?

Republicans are threatening a government shutdown this month.

Why Social Security Cuts Don't Worry The Wealthy

From Yglesias.