Unrelenting Austerity

     The President's proposed budget for the Social Security Administration for Fiscal Year (FY) 2013, which begins on October 1, 2012, is out. It calls for a near complete freeze in Social Security's administrative budget, with total outlays of $11.723 billion compared to $11.678 billion for the current FY (2012) and $11.888 billion for FY 2011.

     By law, the White House has to submit to Congress the Commissioner of Social Security's own budget request for the agency. I have not yet been able to find that number. Can anyone point me to it?
     Update: Found it.  The Commissioner is asking for $12.622 billion which I would call modest but which the White House and Congress would call out of the question.
    Further update: Social Security's own summary of the President's budget shows $444 million more than what the Office of Management and Budget (OMB) summary shows. The difference is attributable to a "program integrity base adjustment" and a "user fee" adjustment. I cannot say why there is this difference between the two versions of the President's budget. At best, one of these versions is misleading. Understanding the federal budget is difficult enough without this sort of thing.

New Visual Listings Proposed

     Social Security has published proposed new visual impairment listings in the Federal Register for public comment. These are an important element in disability determination although they are not the only way a person for be found disabled. Social Security must consider comments made on the proposal before publishing final regulations. 

     I do not immediately notice any significant change in the proposed listings.

Don't Take Those Jobs For Granted, Baltimore

     From the Baltimore Sun:

Despite budget cuts and anti-government rhetoric in Congress, Maryland officials say the two huge federal agencies based in Woodlawn — which have long helped buoy the region's economy — may be better positioned than others to ride out the political turbulence expected over the next several years.

An aging baby boomer generation should insulate the Social Security Administration and the Centers for Medicare and Medicaid Services from looming cuts, economists say. And there will be even more work at the Medicare-Medicaid office, known as CMS, if the nation's new health care law takes effect.

The fate of the two agencies, which have been based in Baltimore County for decades, will have a significant impact on the entire regional economy. Social Security has more than 10,000 workers in the county, making it the fifth-largest employer in the region — bigger than Northrop Grumman or Walmart, for example — state figures show. ...

Though there is not a great deal of development immediately surrounding the campus today, economists say the two agencies have a major impact on the region's economy.

"Many Baltimoreans don't even realize that our region has been very fortunate throughout the downturn," said Anirban Basu, chairman and chief executive officer of the Sage Policy Group. "It's something we take for granted."

     I don't live there but it is obvious to me that those in the Baltimore region take having Social Security's headquarters in their midst for granted and the Baltimore Sun is itself a huge reason. It's your largest employer, for goodness sake! If you ignored Johns Hopkins the way you ignore Social Security, people would think you were nuts. This is important. Being ignored by local media can only give Social Security headquarters employees the impression that what they do is unimportant. That cannot be good for employee morale.

Statistical Supplement Released

     Social Security has released its Annual Statistical Supplement for 2011, chock full of all the stats about Social Security that you could desire, other than stats on Social Security operations, which, as always, are almost completely absent. I have never understood that.

Major ERE Upgrade

     Social Security had made no secret of its intention to add a report feature to its Electronic Records Express (ERE) system that allows attorneys and other representing Social Security claimants to review their clients' records online. With no fanfare, Social Security added this feature today.  Previously, one could only look at one case record at a time. Now, an attorney can look at a list of all of his or her cases and see their case statuses listed. It's not ideal (the ability to click on a listed case and go to that case record would be nice) but it's a big step forward.

    I like the concept of underpromising and overdelivering. It's a nice change from what we saw when ERE was being planned and first implemented.

What Would You Expect?

     From a study by Adele Kirk of the Center for Retirement Research at Boston College:

This study uses SSA [Social Security Administration] administrative data linked with National Health Interview Survey data (NHIS) to examine health status, labor force participation at time of NHIS interview, and linked mortality data to examine mortality during the period following NHIS interview. The self-reported health status data present two strong and consistent patterns: denied applicants report being in considerably worse health than non-applicants, and beneficiaries appear to be sicker yet.

Unemployment Benefits And Social Security

     Stephan Lindner and Austin Nichols at the Center for Retirement Research at Boston College have done a study, dealing, in part, with the effects of receipt of unemployment benefits on Disability Insurance Benefits claims at Social Security. The result, which is no surprise to me, is that the receipt of unemployment benefits decreases Disability Insurance Benefits claims.
     What I have observed is that many people delay, delay, delay in filing claims for Disability Insurance Benefits. They make do with whatever other income they can find and only apply for Social Security disability benefits when they are near the end of their rope. I think the reason in most cases is an unwillingness to accept that they are disabled -- people tend to have unrealistic recovery hopes -- and because the prospect of dealing with the Social Security Administration is too daunting. As an attorney who represents Social Security claimants, I then have to tell people who are desperate for income and medical care that they are starting a process that may take two years with an outcome which cannot be reliably predicted.

Commissioner's Broadcast Message On Budget

From: ^Commissioner Broadcast

Sent: Wednesday, February 08, 2012 5:18 PM

Subject: COMMISSIONER'S BROADCAST--02/08/12

A Message To All SSA And DDS Employees‪

Subject: Budget

I just wanted to take a few moments to talk to you about the rest of this fiscal year in light of our budget. The good news is that Congress passed the omnibus appropriations bill four months earlier than it did last year. We were surprised that Congress did not stick to the substantially higher level of continuing disability reviews called for in the debt ceiling legislation passed last August. This lower level of funding, combined with substantially more people filing hearings requests, requires us to shift resources. I have asked some employees who have been helping the State agencies to redirect their support to hearing offices. That transition has started smoothly, and I want to thank everyone who is helping our fellow Americans who have been waiting too long for a hearing decision. In addition, we hope to start the next administrative law judge class by June.

It can be hard for people outside the agency to appreciate just how much more work we have and how rapidly our work force is contracting. We had a net loss of over 4,000 Federal and State employees in FY 2011, and we expect a net loss of over 3,000 employees this fiscal year. As we continue to lose staff, it means that in 2013, we will likely have about the same number of employees we had when I arrived in 2007, even though the volume of our work continues to increase.

While we are doing some very limited hiring, we are relying on retired annuitants and overtime at least until next year’s budget situation clarifies. I appreciate the help our recent retirees are giving us, and I encourage newer employees to learn as much as possible from these experts. Given the budget uncertainty, we are delaying a decision about offering early out retirement. We will revisit this issue in the fall when we have a better sense about our FY 2013 resource level.

There is no silver bullet, but we can’t ignore fiscal reality and assume that we can go on doing business as usual. As Deputy Commissioner Colvin has said, we will do less with less. We continue to look for ways to streamline and simplify work and identify what work we can stop doing. We have put forward several workload simplifications, and we are hopeful that they will receive support. We will also continue to consolidate offices where it makes sense—facing a choice between buildings and people, I’ll take the people every time.

I know you are familiar with some of the recent simplifications, such as elimination of subsequent disability applications and giving disability examiners the flexibility to move from Step 4 to Step 5 in the disability determination process when it is appropriate to do so. A more recent initiative is mandating authorized claimant representatives to file appeals online using our improved iAppeals application. This change, which will take effect on March 16, will eliminate work in field offices and speed the progress of cases for claimants.

I know that fiscal shortfalls create stress in our offices, especially when there are fewer of you to handle more work. Our inability to timely handle work makes the public more frustrated, and you endure that frustration. I also know that outcomes like pay freezes may cause you to question your career choice. Nevertheless, I know that you are proud to be part of our family, proud to be part of this venerable program, and proud to serve your communities. Please know that I, and more importantly, the American public, appreciate that you continue to deliver the best possible service.

It is because of you that I can say this year is off to an impressive start. Thanks again for all you do each day.

Michael J. Astrue

Commissioner