WASHINGTON, DC - Dean of the U.S. House of Representatives, John D. Dingell expressed his outrage at the House Republicans 2011 spending plan that leaves the Social Security Administration (SSA) $1.7 billion short of what is needed to operate Social Security this year. The proposed bill would leave the already cash-strapped agency with fewer resources with which to process claims for seniors, widows and people with disabilities. In fact, SSA says that the GOP proposal is equivalent to up to four weeks of furloughs at the agency. During a furlough, field offices would be closed, phones would go unanswered and claims processing would be halted. Over half a million new retirees, disabled workers and survivors could be forced into a backlog before they could receive the benefits they earned.
“I will not stand-by idly and watch the Republicans dismantle Social Security,” said Dingell. “This long-standing and successful program already operates at very low cost; defunding it will leave thousands of Michaganders in the dark and bring the claims processing to a screeching halt. Is this how we create jobs and move America forward? It certainly is not—their plan to cut Social Security is outrageous. I will continue to vigorously fight to protect Social Security.”
SSA is already operating under a partial hiring freeze because of the current continuing resolution, which is likely to result in nearly 3,500 lost jobs for 2011. The new cuts proposed by Republicans this week could lead to SSA offices closing their doors, stopping all claims processing, and not answering the phones for about a month – one month out of the seven remaining in fiscal 2011.
If the Republican plan is adopted and Social Security has to shut down for a month, this is what would happen in Michigan this year:
Impact on people who depend on Social Security
· 19, 518 people who have applied for Social Security benefits (retirement, disability, and survivor) would not have their applications processed while SSA is shut down, consequently delaying their benefits.
· 5,922 disabled workers would not have their appeal of a benefit denial move forward – adding to already lengthy delays in the disability appeals process
· 30,678 babies wouldn’t be assigned Social Security numbers in a timely manner
· 115,271people would visit their local Social Security office and leave without receiving assistance.
· 76,119 people would call the Social Security office and get no answer.
Impact on the local economy
· 82 jobs would be lost
· The local economy would lose $4.7 million
Impact on taxpayers
Social Security periodically reviews cases to make sure that beneficiaries are still entitled to benefits and are receiving the right amount. Even though these reviews only find overpayments in a small percentage of cases, they generate a very high return on Social Security’s investment in fighting waste, fraud, and abuse.
· 958 fewer Social Security disability cases would be reviewed for medical improvement. These reviews save $10 for every dollar Social Security spends performing them.
· 5,359 fewer Supplemental Security Income (SSI) cases would be reviewed to make sure recipients aren’t over the income limit. These reviews save $7 for every dollar Social Security spends performing them.
Click here for a comparison of the President’s FY 2012 budget and the Republican 2011 continuing resolution.
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