Social Security nominee warns furloughs may be imminent

Facing what he called "significant operational distress" at the Social Security Administration, commissioner-nominee Michael Astrue told the Senate Finance Committee Wednesday that rolling furloughs of Social Security employees are imminent unless Congress restores about $200 million in cuts in the agency's budget.

During testimony at his nomination hearing, Astrue faced tough questioning about his views on partial privatization of Social Security payments and benefits, as well as large backlogs in processing claims for disability benefits.

On private accounts, Astrue promised the committee he will "stay out of that debate," particularly after Finance Chairman Max Baucus, D-Mont., warned that the proposal, advocated by President Bush, was "a non-starter" in the Democratic-controlled Congress.

Astrue said 10-day furloughs of the agency's workers are inevitable if enough money is not added back to the agency's budget. The money apparently would have to be incorporated in the anticipated yearlong continuing resolution that the House and Senate is expected to approve by Feb. 15, when the current CR expires.

Baucus said he intends "to work with appropriators to restore the [SSA] cutbacks ... It is critical. It would be absolutely irresponsible not to do it." Astrue testified that the money pinch has undercut morale in the agency and remains a major distraction.

A furlough of all employees, he said, "would have a serious impact on service." And, he said, the agency's managers are trying to figure out how to do it with the least damage to providing services for the millions of recipients and claimants.

"Any way you do it will be ugly," Astrue said. "It will demoralize employees and lead to backups in handling claims."

Astrue also was sharply questioned by Sen. Jim Bunning, R-Ky., who complained about the long delays in managing disability claims, some spanning four years, and delays of up to two years in checking out Social Security numbers submitted by employees to determine if new workers are using false or recycled numbers. Bunning said Astrue was simply citing long-standing problems at the agency, which appear to him to be getting worse rather than better.

"The agency has absolutely sat on its duff in our [congressional] efforts to accelerate the processing of disability claims. It's outrageous. Some people die before they get their hearings," said Bunning, who added that the problem is not simply a lack of funding. "The problem is internal to the agency and must be fixed within the agency. I am sick and tired of [SSA] appearing before Congress and saying, 'We've got this problem.' Don't tell me we need only more dollars to fix it."

On the privatization issue, Astrue acknowledged he had "huge difficulties with the transition costs" of shifting trust fund resources to help pay for private accounts.

Independent actuaries have estimated it would cost the government about $5 trillion over 20 years to cover the cost. As for making any far-reaching changes in the agency itself, Astrue told the committee: "I tend to be an incrementalist. ... I'm a highly unlikely candidate to do any sweeping reorganization."