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House GOP Forcing 2016 Debate on Social Security’s Finances

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House Speaker John Boehner of Ohio administers a ceremonial re-enactment of the oath-of-office to Rep. Tom Reed, D-N.Y., accompanied by his wife Jean Reed and other family members, Tuesday, Jan. 6, 2015, on Capitol Hill in Washington. (AP Photo/Cliff Owen)

House Speaker John Boehner of Ohio administers a ceremonial re-enactment of the oath-of-office to Rep. Tom Reed, D-N.Y., accompanied by his wife Jean Reed and other family members, Tuesday, Jan. 6, 2015, on Capitol Hill in Washington. (AP Photo/Cliff Owen)

STEPHEN OHLEMACHER, Associated Press

WASHINGTON (AP) — House Republicans want Congress to address the troubled finances of Social Security’s disability program, setting the stage for a contentious debate that could affect 11 million people in the middle of the next presidential campaign.

The House has adopted a rule that could force lawmakers to tackle the issue by the end of 2016, when the program is projected to run out of reserves, triggering automatic benefit cuts.

An easy fix was available. Congress could have redirected payroll tax revenue from Social Security’s much larger retirement program, as lawmaker have done before.

But Tuesday’s new rule blocks such a move, unless as part of a larger plan to improve Social Security’s finances, by either cutting benefits or raising taxes.

Tinkering with Social Security never has been easy, and factoring in election-year politics makes finding votes even harder for those alternatives.

Rep. Tom Reed, R-N.Y., said he sponsored the provision to prevent Congress from “raiding” the retirement fund to prop up the disability program.

Reed said lawmakers are working on proposals to bolster the disability program’s finances, but that taking tax money from the retirement program is “a short-term Band-Aid.”

“We need to do better than that,” Reed said.

Added the chairman of the House Ways and Means Committee, Rep. Paul Ryan, R-Wis.: “We just want to make sure we improve the integrity of the Social Security trust fund all across the board.”

Advocates for older Americans say the rule could be used to help push through benefit cuts, especially because House Republicans have opposed raising taxes.

“This is a blatant attempt on the first day members take office to sneak a rule into the process that virtually guarantees devastating cuts for beneficiaries of the Social Security disability system,” said J. David Cox, president of the American Federation of Government Employees.

David Certner of AARP said it would be a mistake to eliminate the option of redirecting money from the retirement fund.

“Otherwise, we could be facing a deadline, and certainly over the last couple of years, we’ve seen Congress seemingly unable to pass bills, even with deadlines in front of them,” Certner said.

New House rules will govern the chamber for the next two years. The 36-page set of rules passed by a vote of 234-172, with all Democrats opposed and almost every Republican in favor.

On page 32 is a provision that allows any representative to raise a point of order if the House tries to pass a bill redirecting tax revenue from Social Security’s retirement fund to the disability fund. The House could vote to overcome the objection, but that could be difficult, with almost every Republican supporting the rules package.

The number of workers, spouses and children receiving Social Security disability benefits has ballooned over the past decade. Members of Congress from both political parties say fraud has played a part, too.

About 11 million people get disability benefits, nearly 40 percent more than a decade ago. By comparison, about 48 million people get Social Security retirement or survivor benefits.

Unless Congress acts, the trust fund that supports the disability program will run dry sometime during the last three months of 2016, according to projections by the trustees who oversee Social Security. At that point, the program will collect only enough payroll taxes to pay 81 percent of benefits.

That would trigger an automatic 19 percent cut in benefit payments. The average monthly payment for a disabled worker is $1,146, or a little less than $14,000 a year.

Social Security is supported by a 12.4 percent tax on wages up to $118,500. Half is paid by workers and half by employers.

Most of the payroll tax — 10.6 percent of wages — goes to the retirement fund. The remaining 1.8 percent of wages goes to the disability fund.

Social Security’s retirement trust fund is projected to run dry in 2034. At that point, it would only collect enough payroll taxes to pay about 75 percent of benefits.

Social Security has more than $2.7 trillion in reserves, but the retirement program has been paying out more in benefits than it collects in payroll taxes since 2010.

The disability program has been paying out more than it collects since 2005.

If the retirement fund and the disability fund were combined, they would have enough money to pay full benefits until 2033, giving lawmakers more time to address their long-term finances.

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Business

OP-ED: Proposition 44 Would Put a Price on Trust

The danger in Proposition 44 is not only its 90 percent figure. It is that the meaning of “qualifying” spending will be worked out later. A clinic preparing a budget today may not know whether a navigator, health educator, transportation program, outreach worker, technology upgrade, or other patient-support service will be counted the way it expects. Yet the financial consequence of getting it wrong could be immediate.

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Oakland’s public conversation about health care must begin with a simple truth: a doctor’s appointment is not the same thing as access to care.

For a mother juggling work and child care, access may mean a text-message reminder, a bus pass, an evening appointment, or someone who can explain what Medi-Cal covers. For an older patient managing diabetes, it may mean help scheduling a specialist visit and understanding new medications. For a family that has been dismissed or misunderstood in medical settings, access may begin with meeting a community health worker who knows the neighborhood, speaks their language, and treats their concerns with respect.

Community health clinics make that kind of care possible. They are part medical provider, part navigator, part educator, and part trusted local institution. Proposition 44 threatens to narrow the definition of what counts as patient care in a way that could undermine the very supports that allow patients to receive it.

The statewide measure would require covered nonprofit community clinics to spend at least 90 percent of their annual revenue on health care or qualifying program services. The ballot measure directs the Attorney General to establish more detailed guidance on what expenses qualify. Clinics that do not meet the threshold could face penalties for the difference. The Legislative Analyst’s Office reports that affected clinics currently spend an average of about 80 percent of revenue on health care services.

A percentage may look like a clean measure of accountability. But health care is not cleanly divided between what happens inside an examination room and everything that enables a patient to enter one.

Consider the work that happens before and after a visit. Clinic staff maintain confidential patient records. They follow up after missed appointments. They keep information systems secure. They recruit and train employees in an expensive and competitive health care labor market. They coordinate referrals, process claims, purchase supplies, maintain buildings, and make certain that patients are not lost somewhere between diagnosis and treatment.

Oakland families should not be asked to accept the fiction that these functions are unrelated to care.

The danger in Proposition 44 is not only its 90 percent figure. It is that the meaning of “qualifying” spending will be worked out later. A clinic preparing a budget today may not know whether a navigator, health educator, transportation program, outreach worker, technology upgrade, or other patient-support service will be counted the way it expects. Yet the financial consequence of getting it wrong could be immediate.

The Legislative Analyst’s Office says clinics falling short of the requirement could be required to pay the shortfall amount to the state and could seek to recover the money only if they show compliance within five years. The same analysis estimates state enforcement costs in the low tens of millions of dollars annually, supported by fees.

That is a troubling arrangement for organizations that are expected to provide care to people with the fewest alternatives.

Oakland has learned that trust is not built through slogans. It is built when a patient is listened to, when a parent can secure an appointment for a child, when a clinic returns a call, and when a person receives help without being shamed for their income, insurance, language, immigration history, or prior experience with the system.

For Black residents in particular, trustworthy care is not an abstract goal. Persistent inequities in health outcomes and patient treatment are real. Community-centered clinics can help bridge the gap with culturally responsive staff, patient navigators, behavioral-health programs, and partnerships that understand the conditions shaping health outside the clinic door.

Proposition 44 could pressure providers to treat those supports as expendable because they do not fit neatly into a state-enforced formula. That would be a mistake.

Accountability is necessary. Clinics that receive public resources should be transparent, well governed, and focused on their mission. But good oversight asks whether patients are being served well, whether money is managed responsibly, and whether communities can obtain needed care. It should not rely on a rigid ratio that may punish clinics for doing the hard work of reaching people who need more than a brief medical encounter.

A broad coalition of providers and community organizations opposes Proposition 44, including the California Primary Care Association, the California Medical Association, the California Hospital Association, Planned Parenthood Affiliates of California, and the California Teachers Association.

Oakland needs health policy that expands the circle of care. Proposition 44 risks drawing that circle smaller.

The Oakland Post editorial board urges a No vote on Proposition 44.

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Business

OP-ED: Proposition 40: It’s Time to Play Chess, Not Checkers

Proposition 40 would impose a one-time 5 percent tax on the wealth of Californians with more than $1 billion in assets. Most of that money would go toward health care, with the remainder supporting food assistance and education-related programs.

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I understand the frustration driving Proposition 40. I share our labor partners’ concerns about protecting health care and essential services at a time when working families are already under enormous pressure.

But labor itself is divided over Proposition 40, and there is good reason to look carefully at what this measure could mean beyond the money it promises to raise.

Proposition 40 would impose a one-time 5 percent tax on the wealth of Californians with more than $1 billion in assets. Most of that money would go toward health care, with the remainder supporting food assistance and education-related programs.

Those are worthy investments. The question is whether this is the right way to pay for them.

California’s independent Legislative Analyst says the measure could raise tens of billions of dollars in the short term. But that same analysis warns that California could eventually lose hundreds of millions of dollars a year in ongoing income-tax revenue if some wealthy taxpayers leave the state or change their financial behavior.

That matters because those dollars help support the General Fund and the broader system of programs and services Californians rely on.

So let’s be clear: This is not about feeling sorry for billionaires. Billionaires will be fine.

This is about protecting the people who will not be fine if we get the policy wrong.

For decades, those of us in Black media have watched public policy debates move from crisis to crisis. We have also watched Black communities deal with the consequences when decisions made in Sacramento or Washington did not fully consider what would happen two, three, or four moves later.

We know what happens when funding disappears. Community organizations struggle. Small businesses lose support. Programs serving young people are squeezed. Schools and local governments are asked to do more with less. The people with the fewest resources are usually the first to feel the consequences.

That history should make us cautious about making major changes to California’s tax system without considering the entire board.

If California believes billionaires should contribute more, then let’s have that conversation. There is nothing unreasonable about asking whether people who have benefited enormously from California’s economy should contribute more to sustaining it.

But we should build tax policy that is thoughtful, sustainable, and difficult to avoid. We should not create a temporary solution that could leave us confronting another revenue problem down the road.

This is also why I respect those in labor who support Proposition 40, even though I have reached a different conclusion. They are responding to very real concerns about health care and the people who depend on it. Those concerns should not be dismissed.

But neither should legitimate questions about Proposition 40.

Too often our politics tells us that if we agree with the goal, we must agree with the proposed solution. That is not how responsible public policy works.

You can believe health care must be protected and still question the mechanism being proposed to protect it.

You can believe billionaires should pay more and still ask whether this particular tax is the smartest way to accomplish that.

And you can stand with working people while insisting that California consider the long-term consequences for all of the public programs working people depend upon.

We need to stop treating complicated economic decisions like a game of checkers, where we look only at the move directly in front of us.

We need to play chess.

Look at the whole board. Think several moves ahead. Understand what happens after the first check is collected and spent.

The question before Californians is not whether billionaires can afford to pay more. They can.

The question is whether Proposition 40 is the right way to do it and whether we are confident enough in the consequences to make this kind of change.

Our communities cannot afford for us to discover the answer too late.

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Oakland Post: Week of September 30 – October 6, 2026

The printed Weekly Edition of the Oakland Post: Week of September 30 – October 6, 2026

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