Articles On Social Security Disability

This month's Social Security Bulletin is devoted to articles about the disability programs administered by SSA. Included is an excellent history of the Social Security disability programs. Social Security's Chief Actuary, Stephen Goss, contributed an article with the following sobering news:

The latest trustees report (2006) indicates that the DI Trust Fund is projected under the trustees intermediate assumptions to remain solvent until 2025, during which year the trust fund is projected to become exhausted. If these assumptions are realized, and there is no Congressional action between now and 2025, monthly benefits scheduled in the law would no longer be payable in full on a timely basis after the exhaustion of the trust fund assets. However, even in this case, continuing tax income for the program would be sufficient to pay 82 percent of scheduled benefits for the remainder of 2025. Due to projected further increases in the cost of the program above the expected tax income, the percentage of scheduled benefits that would be payable would decline very gradually, reaching 75 percent for 2080.

More On Possible Furloughs For SSA Employees

From the minutes of an August 16, 2006 conference call of the Board of the National Council of Social Security Management Associations:

Jim Burkert reported that the Commissioner and Linda spoke at the dedication of the new Auburn WA teleservice center. There were managers in attendance from all over the region. The Commissioner stated that for every $100 million we lose in budget, it’s an extra 5 days of furlough per employee. The funding level recommended by the Senate Appropriations Committee looks like it would result in a 10-day furlough. The Commissioner also stated that the entire Agency would be furloughed at one time and mentioned the possibly of closing all offices (1) day a month rather than a straight 10-day furlough. This would allow the Agency to save on heat, guard service, etc. She stated that the Agency can’t cut everything else just to avoid furloughs. The Agency will look very closely at what makes the best sense to cut.

The Commissioner also talked about conducting a pilot to close 30 offices (1) day a week. The purpose is to determine if the Agency gains productivity by enabling offices uninterrupted time to process work.

New Edition Of My Book Available

The 2006 edition of my book, Social Security Disability Practice, is now available for purchase from the West Group. Beyond the usual updating, the new edition includes lists of common medical abbreviations and acronyms for the 61 medical conditions most commonly encountered in Social Security disability claims.

Commissioner of Social Security

According to a Social Security Press Office Fact Sheet Jo Anne Barnhart's term as Commissioner of Social Security expires on January 19, 2007. With the end of her term so near it is not surprising that rumors have already started about her future.

There was a report at one time that Barnhart hoped for another term as Commissioner. It is unclear whether she still is interested or if the President is interested. Barnhart's support for the President's Social Security "reform" proposal was half-hearted at best.

It is unclear whether Barnhart, or anyone else appointed by President Bush, could be confirmed as Commissioner. The Commissioner has a six year term. This takes the next Commissioner through the entire term of the next president. Democrats may wish to prevent anyone appointed by Bush from being confirmed so that the next president can appoint his or her own man or woman to the job. There is an easy pretext for blocking confirmation. It seems obvious that Bush will appoint someone who supports his ideas for Social Security "reform", which Democrats call privatization. Even Barnhart publically supported Bush's plan to some extent. Although the Commissioner of Social Security has little role in this debate -- and, indeed, the debate is over for all practical purposes -- Democrats can easily seize upon this as grounds for refusing to confirm someone appointed by Bush.

Regardless of whom the President nominates for Commissioner of Social Security, there will be an Acting Commissioner after January 19, 2007 for a period of at least a few months in 2007, since it will take that long for the Senate to act upon a nomination. That person could end up being Acting Commissioner for two years or more if no one appointed by President Bush can be confirmed as Commissioner.

Earlier this year, the President issued an order setting forth the following line of succession for Commissioner of Social Security:

Deputy Commissioner of Social Security (vacant)
Chief of Staff -- Larry Dye
Deputy Commissioner for Operations -- Linda McMahon
Regional Commissioner, Philadelphia -- Laurie Watkins
Regional Commissioner, Dallas -- Ramona Schuenemeyer

We may become very familiar with Mr. Dye next year, or maybe not, since he may not stay around Social Security if Barnhart leaves, or Bush could alter the succession order. Here is Dye's biography provided by NOSSCR:

Larry Dye, Chief of Staff, has worked in government and politics since 1971. His federal service includes more than 15 years on Capitol Hill. He has worked on both the House and Senate side of the Hill in a variety of capacities, including research assistant, executive assistant, professional committee staff, budget analyst and chief of staff. In the political realm, he has worked on a variety of campaigns. Larry is a sixth-generation Kentuckian and graduated from Centre College of Kentucky. He also was an Eagleton Fellow at Rutgers University before moving to Washington, D.C., to begin his first job at the Republican National Committee.

The important thing about this is that Dye is not a career Social Security employee. He is a long time Republican operative.

Video On Social Security Disability Hearings

Martin Kranitz of Annapolis, MD, who has done contract work for Social Security as a vocational expert witness, has sent out a press release promoting a video to help disability claimants prepare for hearings before Social Security Administrative Law Judges. The video is available for $37.95. Video clips are available online.

SSA Releases Monthly Stats

Social Security has issued its monthly statistical packages for Title II and Title XVI of the Social Security Act.

Social Security Budget

According to a Senate Appropriations Committee summary Social Security's budget for fiscal year (FY) 2007, which begins on October 1, 2006, has already been reported out of committee in both the House of Representatives and the Senate. Social Security's budget is part of the Labor/HHS/Education Appropriation bill It has not yet come up on the floor in either house of Congress.

Here is the portion of the Senate Appropriations Committee Report dealing with Social Security.

Appropriations, 2006 1	$9,108,606,000
Budget estimate, 2007	9,494,000,000
House allowance	9,293,000,000
Committee recommendation	9,093,000,000
1 Excludes $38,000,000 in emergency supplemental appropriations enacted pursuant to Public Law 109-234.

The 2007 budget estimate is the amount recommended by the President. The House of Representatives cut that dramatically and the Senate is threatening to cut it even further.

The Senate Report includes the following language:

The Committee encourages SSA officials to educate adjudicators at all levels about the functional impact of CFS and the application of the April 1999 CFS ruling (99-2p) to ensure that adjudicators remain up to date on the evaluation of disability that results from this condition. The Committee encourages SSA to examine obstacles to benefits for persons with CFS and to keep medical information updated throughout all levels of the application and review process.

Stark Warning On Social Security Budget

Jo Anne Barnhart, Commissioner of Social Security, sent the following letter to Senator Robert Byrd, the Ranking Minority Member of the Senate Appropriations Committee on July 19:

I am writing to express my concern about the impact the funding included for Social Security in the Labor, Health and Human Services, Education and Related Agencies Appropriations bill will have on Social Security employees and service to the public. The subcommittee mark provides $9.093 billion to the Social Security Administration (SSA) for administrative expenses in Fiscal Year (FY) 2007. This represents a $401 million reduction from the President's FY 2007 request and is $54 million belowe the FY 2006 appropriation level.

This $401 million reduction means SSA would need to cut an additional 4,000 workyears beyond the budgeted 1 for 3 replacement level in FY 2006 and FY 2007. After implementing a staffing freeze and reducing overtime to minimum operating levels in SSA and the Disability Determination Services, achieving a $401 million reduction would require employee furloughs of approximately 10 days Agency-wide.

Without this funding, SSA will reduce the number of continuing disability reviews (CDRs) processed by 486,000 from a planned level of 597,000 to 111,000. CDRs save $10 for every $1 spent administering them, so this reduction would result in a significant increase in Federal spending.

SSA's administrative expenses are used to pay for the people needed to do the work, so fewer resources mean fewer people to serve the public in all areas of SSA's operations. Because these budget reductions will affect all employees, they will result in major service disruptions across all workloads. These include delays in the public's ability to file for retirement or disability benefits, apply for a replacement SSN card, reach a representative on our 800-number or obtain decisions on pending disability claims and appeals.

I appreciate the support you and Congress have given SSA in the past. However, as Commissioner of Social Security, I believe it is my responsibility to inform you that this reduction is too large and will result in furloughs and service reductions. Once again, I hope I can count on your support for the President's request for SSA. Please do not desitate to contact me or have your staff contact Mr. Dale Sopper, Deputy Commissioner for Budget, Finance and Management at (410) 965-2914.

Sincerely
Jo Anne B. Barnhart