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WASHINGTON – First District Congressman Paul Ryan and other Members of the U.S. House of Representatives today sent a letter to House leaders expressing their concern that the federal government could dip into the Social Security surplus for Fiscal Year 2001 and, depending on the level of spending, tap into it again in Fiscal Years 2002 through 2004.  The legislators' letter follows the release of midsession updates on the federal budget by the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO).

"We believe it is critical that we protect the Social Security Trust Fund and ensure that the Social Security surplus is not used to finance excessive government spending," wrote Ryan and the other legislators.

In their letter, Ryan and the other legislators request that, when Congress reconvenes, it consider legislation to ensure the protection of the Social Security Trust Fund for Fiscal Year 2001.  They also asked that, before the consideration of any additional legislation that would affect the surplus for Fiscal Years 2002 through 2004, Congress develop a fiscal plan that takes into account the impact of the economic downturn on the surplus and permits Congress to fund national priorities without dipping into the Social Security Trust Fund.  The Members of Congress also specified that this plan must ensure that Medicare funds are only spent on Medicare.

"Excess spending in Washington is the biggest threat to the surplus now and in the future," Ryan said when asked about the letter. "We're trying to draw attention to that key point and urge Congress to get rid of unnecessary spending, not dip into the Social Security surplus."

Government has grown on average 5.1 percent over the past 3 years – significantly more than inflation.

"The government ought to be able to trim several billion dollars from about a $2 trillion budget, even while funding key spending priorities," Ryan said. "Congress has made tremendous progress in recent years –  protecting the Social Security surplus and paying back $479 billion in federal debt. We should maintain this strong record by reigning in excess spending and resisting the temptation to use even a little of the Social Security surplus for unrelated government spending."

Although dipping into the Social Security surplus does not affect Social Security benefits, it prevents the government from paying down public debt as rapidly as it otherwise would.
 
 

Dear Sirs:

As you are aware, the Office of Management and Budget and the Congressional Budget Office have recently released their respective midsession updates on the federal budget.  While OMB and CBO arrive at different conclusions regarding the size of the surplus, it is clear that because of the economic downturn and the excessive levels of spending enacted last year, there is a significant risk that the federal government could dip into the Social Security Trust Fund Surplus for Fiscal Year 2001.  In addition, depending upon the level of spending, the government could again dip into the Social Security Trust Fund surplus in Fiscal Years 2002 through 2004.

We believe it is critical that we protect the Social Security Trust Fund and ensure that the Social Security surplus is not used to finance excessive government spending.  We respectfully request that when Congress reconvenes we proceed to the consideration of legislation that will ensure that we protect the Social Security Trust Fund for Fiscal Year 2001.  We further request that prior to the consideration of any additional legislation that would impact the surplus for Fiscal Years 2002 through 2004, we develop a fiscal plan that takes into account the impact of the economic downturn on the surplus and permits us to fund our national priorities without dipping into the Social Security Trust Fund.  This plan also must ensure that Medicare funds are only spent on Medicare.

One of the greatest accomplishments of the Republican Congress was ending the 20-plus year raid on the Social Security Trust Fund. We look forward to working with you to maintain our shared commitment to protecting the Social Security Trust Fund and the Medicare program.

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