Update: According to Politico, the basic deal described below has been struck but the devil is in the detail for Social Security and we probably won't know the details until early September.
The Washington Post reports that Congressional leaders are nearing agreement on a Continuing Resolution to fund government operations in the first half of the 2013 fiscal year (FY), which begins on October 1, 2012. Under the agreement, agencies would suffer an across the board reduction in their budgets in the percentage specified by last year's budget agreement. According to the article:
The Washington Post reports that Congressional leaders are nearing agreement on a Continuing Resolution to fund government operations in the first half of the 2013 fiscal year (FY), which begins on October 1, 2012. Under the agreement, agencies would suffer an across the board reduction in their budgets in the percentage specified by last year's budget agreement. According to the article:
Congressional leaders are likely to announce that they have reached an agreement in principle but leave passage of the deal until after Congress returns from its August recess. The timeline would allow some details and budget crunching to take place, but it also would provide a window for the deal to go awry if outside groups pressure Republicans to fight for deeper spending cuts.
For Social Security, the key language here is "details and budget crunching." This means there would be some departures from the across the board spending cuts. Social Security is in bad need of a major departure from the across the board spending cuts. According to a Senate Finance Committee report if the across the board spending cuts are applied to Social Security:
Social Security would lose 5,000 employees and all of the agency's employees and all Disability Determination Services employees would suffer approximately six weeks of furloughs. The average processing time at the initial level on disability claims would raise from 111 days to 180 days and the number of pending disability claims would nearly double from 861,000 to almost 1.5 million by the end of the fiscal year.
You simply cut those numbers in half for a six month continuing resolution. Two and a half days a month of furloughs for ALL Social Security employees. I don't think you can lose 2,500 jobs without a significant reduction in force (RIF). This all starts on October 1, 2012 without Congress taking special action to protect Social Security. Other agencies are facing the same issues and are seeking the same sort of special exemptions from the appropriations cuts.