Statement for the Record by Barbara B. Kennelly, President and CEO National Committee to Preserve Social Security and Medicare

Senate Committee on Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies

Hearing on Funding for the Social Security Administration in Fiscal Years 2011 and 2012

March 9, 2011

As President and Chief Executive Officer of the National Committee to Preserve Social Security and Medicare, I appreciate the opportunity to submit this statement for the record. With millions of members and supporters across America , the National Committee is a grassroots advocacy and education organization devoted to the retirement security of all citizens.

Chairman Harkin, Ranking Member Shelby and members of the Subcommittee on Labor, Health and Human Services, Education, and Related Agencies , the National Committee appreciates your holding this hearing to examine funding for the Social Security Administration in Fiscal Year (FY) 2011 and FY 2012.

The National Committee is committed to preserving and strengthening Social Security. This includes ensuring a strong and stable Social Security Administration that delivers high-quality, prompt service to the public. We are certainly concerned about the tremendous funding challenges facing the Social Security Administration for the remainder of Fiscal Year (FY) 2011 and for FY 2012. It is crucial that SSA be provided with adequate funding so that they are able to provide the American people with the level of service they expect and deserve, one that also prevents workloads from spiraling out of control.

As you know, 54 million Americans receive Social Security benefits each month. The benefits they receive from this program constitute a vital lifeline that is critical to their economic well-being. Given the essential nature of Social Security, and the increasing demands of an aging population, I believe it is extremely important that the Social Security Administration be provided sufficient funds for operating expenses so it can meet the needs of the American people.

In FY 2010, the last time Congress enacted an appropriation for SSA, a total of $11.5 billion was made available for administering the Social Security program. The President, in his FY 2011 budget, requested an appropriation of $12.4 billion. Instead, Congress has enacted a series of continuing resolutions that essentially freeze the Agency's funding at the FY 2010 level.

The House of Representatives recently passed a continuing resolution for the remainder of the fiscal year that proposes significant reductions in funding, including elimination of funds for vital systems improvement projects. The FY 2011 continuing resolution being considered by the Senate increases funding over the House-passed amount, providing needed resources to this important Agency. While the President's FY 2011 budget request would minimize service reductions and continue the Agency's progress toward reducing processing backlogs in the disability program, the Senate proposed funding level is a dramatic improvement over the funding cuts passed by the House.

Staying within the reduced spending levels authorized in previously-enacted continuing resolutions has been challenging for the Social Security Administration. The hiring freeze imposed on the Agency's field offices has resulted in significant staffing imbalances that have stretched the capability of the staff to provide timely and effective levels of public service.

Further cuts would exacerbate these problems, resulting in longer waiting times for appointments to file for benefits, or for processing address changes or direct deposit info rmation, delays in receiving Agency decisions, and busy signals at the Agency's toll-free 800 number. In addition, we understand that further cuts may mean employee furloughs or even office closures, resulting in even greater reductions in service to America 's seniors.

While we believe the President's funding request would best serve the American people, we believe the funding levels proposed in the Senate's continuing resolution would provide the Agency with sufficient funding to avoid major service disruptions. We therefore urge all Senators to show their commitment to Social Security by providing the SSA with the resources it needs to do its job.

Going forward, in order for SSA to fully meet its multitude of responsibilities, the agency will require no less than the $12.667 billion recommended in the President's budget for its FY 2012 administrative funding. This level of funding is necessary due to the increase in requests for assistance from the American public due in large part to the economic downturn. SSA teleservice centers, hearing offices, Disability Determination Services (DDSs), and the nearly 1,300 field offices are in critical need of adequate resources to address their growing workloads. Without this level of funding, SSA will be unable to cope with the continued increase in demand for services and maintain the progress it has already made in providing satisfactory service delivery to senior citizens, people with disabilities and others who rely on Social Security.