Michael Astrue has been testifying today before the Senate Appropriations Committee. His
written remarks talk about about what is already happening because his agency is operating under a Continuing Resolution (CR) that freezes the operating budget at last year's levels and what will happen if this freeze continues:
Because of the uncertainty of our budget and the length of the CR, I have had to make choices that will begin to erode service. Our employees continue to churn out work, but they are disappointed and are becoming demoralized about the prospect of watching what they have worked so hard to achieve slip away. I regret that we may not be able to keep our commitments to the American people because we do not have the necessary funding to continue moving forward. ...
While we regret the resulting loss in service, we have tried to prepare for the CR. In July, we instituted a full hiring freeze for all headquarters and regional office staff, and then we further restricted hiring to allow only those components critical to the backlog reduction effort to replace staffing losses. Under a CR, we will continue – and likely expand – the hiring freeze. We will reduce or eliminate, overtime, which our front line employees depend on to keep up with their work.
We have decided not to open eight needed hearing offices, and we will not have staff to open our new Jackson, Tennessee Teleservice Center this year, and perhaps not even next year. We are discontinuing service in over 300 remote service sites throughout the United States. Most of these sites are contact stations housed in locations like libraries, senior centers, or other facilities where a Social Security employee travels, typically once or twice a month, to take applications for Social Security cards or benefits, as well as answer questions. We have also begun looking at field office consolidation where that decision makes fiscal sense.
Each year we send Social Security Statements to non-beneficiaries who are over age 25. These annual Statements cost us approximately $70 million each year to print and mail. In order to conserve funds, we will suspend the current contract and stop sending out these Statements.
The Commissioner also talks about what would happen if the appropriations bill passed by the House of Representatives, which would cut funding well below last year's levels, becomes law:
[T]here is a direct nexus between our funding and our service level. We want to prepare you for what a deep cut would mean. Our backlogs will skyrocket, and people will wait considerably longer to receive decisions. As our backlogs grow, it will become more difficult, expensive, and time-consuming for us to eliminate them. Waiting times in field offices and on our 800-number will increase dramatically. Deep cuts will cause billions of dollars of payment errors that will take years to address, hardly a wise use of taxpayers’ dollars. Even if we have specific funding for program integrity work, we need the people to do that work plus all of their other fundamental responsibilities. ...
I hope the House Appropriations Committee has a chance to hear this.