I was not expecting there to be news about Social Security on New Year's Day, but there is. State budget problems have become a major headache for Social Security. States are furloughing employees and imposing hiring freezes. These actions usually affect the state disability determination agencies that make determinations on Social Security disability cases at the initial and reconsideration levels. This is happening even though the furloughs and hiring freezes do nothing to help state budgets since all salaries and costs associated with the disability determination agencies are picked up by the federal government. State governors seem to believe that the fair thing is to treat all their employees the same.
The state that has the worst budget problems is California. It was had the worst furloughs of state employees, including disability determination emploees. This has had a dramatic effect upon disability determination in that most populous of all states.
One response to this mess has been litigation. Social Security did not start this litigation but has filed a
"Statement of Interest" with the California court. It is extremely unusual for any federal agency to take an official position in a case pending in a state court other than to file papers to remove a case to federal court or to assert that a state court lacks authority to compel the federal agency to do anything. The
Los Angeles Times reports on what happened yesterday in that litigation:
An Alameda County Superior Court judge Thursday ordered Gov. Arnold Schwarzenegger to halt thrice-monthly furloughs for tens of thousands of state workers, saying the administration overstepped its authority in approving the unpaid days off. ...
He said that the governor's use of furloughs was an "abuse of discretion" and that he "violated a mandatory duty to take into account the agencies' varying needs before reducing workplace hours."
The governor plans to appeal Roesch's decision and noted that the order blocking the furloughs would be stayed until the appeal is ruled on, said Aaron McLear, a spokesman for Schwarzenegger.