Statement of the Honorable John Conyers, Jr. for the Hearing on the “Federal Government on Autopilot: Mandatory Spending and the Entitlement Crisis”

Dean of the U.S. House
of Representatives
John Conyers, Jr.

Once again, in its 7^th hearing to date, this Task Force is considering old wine in new bottles.

Unfortunately, today’s hearing is just the latest in a decades-old line of attack by conservatives on America’s longstanding commitments to aid the elderly and the poor. 

As we consider the arguments made today, we should keep a few points in mind.

To begin with, efforts to curb “mandatory spending” and stopping the so-called “entitlement crisis” are really intended to slash programs, such as Social Security, Medicare, and Medicaid.

These programs comprise the great majority of mandatory spending in the federal budget.

According to the Congressional Budget Office, Medicare and Medicaid alone made up 40 percent of all mandatory spending in fiscal year 2015.

And, Social Security, Medicare, and the federal share of Medicaid – the largest mandatory spending programs – comprised 50.6% of all federal spending.

The budget deficit and the future solvency of the trusts that fund Social Security and Medicare are important issues that merit discussion.

But instead of putting forth a serious proposal that would help raise revenue, the Majority proposes to funnel these and other important social safety net programs through the annual appropriations process, a process that often becomes mired in partisan division.

And while the Majority may protest that they would leave Social Security and Medicare alone, keep in mind that the other important social safety net programs such as Food Stamps (SNAP) and Temporary Assistance for Needy Families (TANF) only account for approximately 10 percent of mandatory spending.

If the Majority’s plan for reducing the federal deficit relies on cuts alone, you cannot do so simply by cutting funding for these other important social safety net programs through the appropriations process. 

Subjecting Social Security, Medicare, and Medicaid recipients to an annual appropriations process threatens to harm the basic economic well-being of seniors and working people in need.

According to the Center on Budget and Policy Priorities, without any government income assistance, either from safety net programs or programs like Social Security, the Nation’s poverty rate would have been 27% in 2014, almost double the recorded rate of 15%.

Imagine the harm it would do to the most vulnerable members of our society if the funding for these programs were held hostage to yearly budget negotiations or benefits were withheld because of a government shutdown.

Unfortunately, given the Majority’s track record, this scenario is entirely possible, if not likely.

Finally, Mandatory spending provisions are not an historical accident whereby Congress gave away too much power to the Executive.  Rather, they reflect Congress’ commitment to the American people to care for the elderly after a lifetime of hard work and to aid the working poor.

Mandatory spending for programs like Social Security and Medicare is based on the need to ensure stability in these and other vital programs so that the most vulnerable in our society can be assured of minimum income levels to meet their basic human needs.

Proposing to subject these and other programs to the annual appropriations process is not a serious proposal. 

It is merely another attempt to denigrate the working poor and the elderly as undeserving “takers,” something with which I will not abide. 

Nevertheless, I look forward to hearing from our witnesses today and I thank them for their participation.

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Conyers, Sanders Lead Call For Expanding Social Security

              

WASHINGTON, July 12 –Rep. John Conyers (D-Mich.) and Sen. Bernie Sanders (I-Vt.) today joined with more than 70 members of Congress in calling on President Obama to expand Social Security.

The letter to the president came on the eve of a historic conference on aging, convened once every 10 years to get the entire country talking about issues relating to older Americans.

Dean of the U.S. House
of Representatives
John Conyers, Jr.

“A clear majority of Americans support expanding Social Security,” wrote Conyers, Sanders and other lawmakers.  “As employers continue moving from a defined benefit model to a defined contribution model of retirement savings, it is critical that we fight to protect and expand Social Security – the only guaranteed source of income in retirement.”

“The aging conference that opens tomorrow,” wrote the lawmakers, “presents an excellent opportunity to open a discussion on expanding Social Security benefits.”

The conference, which is being hosted by the White House, runs all day tomorrow and includes discussions about healthy aging, long-term services, elder security and retirement security.

Joining Rep. Conyers and Sen. Sanders, the letter to the president was signed by 68 House members and Sens. Sherrod Brown (D-Ohio), Mazie Hirono (D-Hawaii) and Elizabeth Warren (D-Mass.)

Letter of Reps. John Conyers and Bernie Sanders to President to Expand Social Security

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Conyers Joins Rally Opposing Chained CPI Social Security Benefit Cut; Urges Republicans Not to Oppose Raising the Debt Limit

(WASHINGTON) – Today, Congressman John Conyers, Jr. (D-Mich.) rallied with Members of the Congressional Progressive Caucus and retiree advocates against the proposed Chained CPI Social Security benefit cut. Under the Chained CPI proposal, at age 75, a senior’s benefits would be cut by about $660 per year on average.  At age 85, those benefits would be cut by about $1,150 per year, and at age 95, by about $1,600 per year. Republicans in Congress have repeatedly demanded that any increase in the nation’s debt limit should be tied to cuts to social insurance programs like Medicare, Medicaid, and Social Security.  Following the rally, Rep. Conyers issued the following statement:

“On several occasions over the past three years, Republicans in Congress have held the full faith and credit of the United States hostage when an increase in the nation’s debt ceiling is required. They plan to once more push through unpopular cuts to Medicare, Medicaid, and Social Security as a price for raising the debt limit. Republicans support a terrible proposal, known as Chained CPI.  Under this formula, the average Social Security retiree would see his or her benefits cut by $500 a year after 10 years. After 20 years, the average benefit would be cut by about $1,000 a year. Some have argued that the Chained CPI is a necessary compromise, so that we can address the debt and end the threat posed by the sequester. I would suggest that penalizing our most vulnerable by cutting a program that, by law, cannot add to the deficit, is not a compromise worth making,” said Conyers.

“What Congress must do with the sequester is repeal it. My legislation, the ‘Cancel the Sequester Act,’ would do just that.

“Instead of penalizing seniors, veterans, youth, and young people, Congress should be pursuing policies that create full employment and strengthen the health and retirement benefits of all Americans. Why cut Social Security benefits when we can eliminate the cap on the payroll tax contributions of our wealthiest Americans?

“I suppose we shouldn’t be surprised by the callous attitude exhibited by some Republicans when it comes to the well-being of working families and middle-class Americans.  In the current government shutdown fiasco, Republicans have directed their energy toward reopening our national parks, while at the same time turning an indifferent, cold shoulder to the youngsters shut out of the Headstart program and vulnerable women and children who will lose their nutritional assistance provided by the WIC program.    

“I join my colleagues and all who believe in fundamental fairness to oppose Chained CPI and the government shutdown because my conscience will not allow me to stay silent on an issue that has the potential to harm the lives of so many. What we should do is re-open the government immediately, raise the debt limit, put forth a clean continuing resolution, and let all the new healthcare beneficiaries enroll in the Affordable Care Act – because it is now the law of the land.”

Rep. Conyers, alongside progressive Congressmen and advocates, rallying against Chained CPI.

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Majority of House Democrats Call on President Obama to Reject Benefit Cuts to Medicare, Medicaid, and Social Security Benefits

(WASHINGTON) - 107 House Democrats, a majority of Democrats in the House of Representatives, wrote President Obama today, urging him to reject any proposals to cut benefits millions of American families depend upon through Medicare, Medicaid and Social Security. The letter was led by Rep. Jan Schakowsky (D-IL),Congressional Progressive Caucus Co-Chairs Reps. Keith Ellison (D-MN) and Raúl M. Grijalva (D-AZ), Rep. John Conyers (D-MI), and Rep Donna Edwards (D-MD).

The Members specifically singled out “Chained CPI”—a proposal to reduce Social Security benefits by changing the way inflation is calculated—and raising the Medicare retirement age as policies they oppose.

“A commitment to keeping the middle-class strong and reducing poverty requires a commitment to keeping Social Security, Medicare and Medicaid strong,” the Members said in the letter. “We urge you to reject any proposals to cut benefits, and we look forward to working with you to enact approaches that instead rely on economic growth and more fair revenue-raising policies to solve our fiscal problems.”

You can read the full text of the letter below.

^^^^^^^^^^^^^^^^^

February 15, 2013

Dear President Obama:

We want to thank you for standing strong in the American Taxpayer Relief Act to protect Social Security, Medicare, and Medicaid from benefit cuts that would jeopardize the well-being of millions of Americans.

We write to affirm our vigorous opposition to cutting Social Security, Medicare, or Medicaid benefits in any final bill to replace sequestration.  Earned Social Security and Medicare benefits provide the financial and health protections necessary to keep individuals and families out of poverty.  Medicaid is not only a lifeline for low-income children, pregnant women, people with disabilities and families, it is the primary source of long-term care services and supports for 3.6 million individuals.  We cannot overstate their importance for our constituents and our country.

That is why we remain deeply opposed to proposals to reduce Social Security benefits through use of the chained CPI to calculate cost-of-living adjustments.  We remain committed to making the changes that will extend solvency for 75 years, but Social Security has not contributed to our current fiscal problems and it should not be on the bargaining table. 

Similarly, we oppose proposals to increase Medicare cost-sharing requirements or to raise the age of eligibility.  Half of all Medicare recipients live on less than $22,000 a year – yet they spend, on average, three times as much of those limited incomes on health care as other Americans.  Raising their already heavy cost-sharing burden or increasing the age of eligibility doesn’t lower health care costs, it just shifts them to those who can least afford more financial burdens – seniors, people with disabilities and their families. 

A commitment to keeping the middle-class strong and reducing poverty requires a commitment to keeping Social Security, Medicare and Medicaid strong.  We urge you to reject any proposals to cut benefits, and we look forward to working with you to enact approaches that instead rely on economic growth and more fair revenue-raising policies to solve our fiscal problems.

Sincerely,

Schakowsky, Jan

Ellison, Keith

Grijalva, Raúl M.

Conyers, John

Edwards, Donna

Barber, Ron

Bass, Karen

Bera, Ami

Bonamici, Suzanne

Brady, Robert

Braley, Bruce L.

Brown, Corrine

Brownley, Julia

Bustos, Cheri

Butterfield, G.K.

Capps, Lois

Cardenas, Tony

Cartwright, Matthew

Castor, Kathy

Christensen, Donna M.,

Chu, Judy

Cicilline, David

Clarke, Yvette D.

Clay Jr., William "Lacy"

Cleaver, Emanuel

Cohen, Steve

Conyers Jr., John

Courtney, Joe

Cummings, Elijah

Davis, Danny K.

DeFazio, Peter

DeLauro, Rosa L.

Deutch, Ted

Duckworth, Tammy

Edwards, Donna F.

Ellison, Keith

Eshoo, Anna G.

Faleomavaega, Eni F. H.

Farr, Sam

Fattah, Chaka

Frankel, Lois

Fudge, Marcia L.

Garamendi, John

Grayson, Alan

Green, Al

Green, Gene

Grijalva, Raul

Gutierrez, Luis

Hahn, Janice

Hastings, Alcee L.

Hinojosa, Rubén

Holt, Rush

Honda, Mike

Huffman, Jared

Jackson Lee, Sheila

Jeffries, Hakeem

Johnson, Eddie Bernice

Johnson, Henry C. "Hank" Jr.

Kaptur, Marcy

Kildee, Daniel

Kirkpatrick, Ann

Langevin, Jim

Lee, Barbara

Lewis, John

Loebsack, David

Lofgren, Zoe

Lowenthal, Alan

Lujan Grisham, Michelle

Lynch, Stephen F.

Maloney, Carolyn

Markey, Ed

Matsui, Doris O.

McDermott, Jim

McGovern, James

Meng, Grace

Michaud, Michael

Moore, Gwen

Nadler, Jerrold

Negrete McLeod, Gloria

Nolan, Rick

Norton, Eleanor Holmes

Pastor, Ed

Payne Jr., Donald

Pingree, Chellie

Pocan, Mark

Rangel, Charles B.

Roybal-Allard, Lucille

Rush, Bobby L.

Ryan, Tim

Sablan, Gregorio

Sanchez, Linda

Scott, Robert C.

Serrano, José E.

Shea-Porter, Carol

Sinema, Kyrsten

Sires, Albio

Slaughter, Louise

Speier, Jackie

Takano, Mark

Thompson, Bennie G.

Tierney, John

Titus, Dina

Tonko, Paul D.

Vargas, Juan

Veasey, Marc

Velázquez, Nydia M.

Waters, Maxine

Watt, Mel

Waxman, Henry

Welch, Peter

Wilson, Frederica

cc:  Speaker John Boehner

House Minority Leader Pelosi

Senate Majority Leader Reid

Senate Minority Leader McConnell

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Conyers Opposes Republican Plan to Protect Millionaires and Cut Social Security Benefits

(WASHINGTON) – Today, Representative John Conyers, Jr. (D-Mich.) issued the following statement criticizing Speaker Boehner’s refusal to accept a balanced approach to avert the end-of-year automatic spending cuts and tax increases, as well as the Speaker’s decision to include Social Security benefit cuts in these discussions:

“Despite clear evidence that the American people support balancing the deficit by requiring the wealthy to pay their fair share in taxes, Speaker Boehner announced a plan today that would allow millionaires to keep their tax cuts,” said Conyers.

“This so-called ‘Plan B’ is not a balanced approach to deficit reduction and it should be rejected.   

“I resent that Speaker Boehner has chosen to put cuts to Social Security benefits for current and future retirees on the table as a way to resolve the budget crisis.

“The change in the way Social Security calculates yearly cost-of-living-adjustments, called ‘Chained CPI,’ would place an increased  burden on elderly Americans - nearly 70 percent of whom rely on Social Security for more than half of their income and whose benefits average less than $15,000 per year.  Under this proposed policy, benefits would be cut by 0.3 percent annually and would increase over time.  As a result, the older and poorer a beneficiary becomes, the larger the benefit cut.

“The fact that Republicans would seriously consider cutting the current and future Social Security benefits of all Americans to benefit the wealthy few is unconscionable and unacceptable.  We cannot ask our seniors and the most vulnerable to bear the burden of deficit reduction.

“If Congress were to pursue this unwise course of action, we would not only be embracing a deeply unpopular policy, but also ignoring the will of the American people. A recent poll by Hart Associates in the days before the November election found that an overwhelming 84 percent of Americans said they did not want their Social Security benefits cut. 104 House Democrats have also already stated their opposition to including Social Security in any deficit reduction package. 

“Any debt deal that cuts Social Security, Medicare, or Medicaid benefits is unacceptable.”

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U.S. government paid $600 million in benefits to dead, 5-year study reports

U.S. government paid $600 million in benefits to dead, 5-year study reports

WASHINGTON — The federal government has doled out more than $600 million in benefit payments to dead people over the past five years, a watchdog report says.

Such payments are meant for retired or disabled federal workers, but sometimes the checks keep going out even after the former employees pass away and the deaths are not reported, according to the report this week from the Office of Personnel Management's inspector general, Patrick McFarland.

In one case, the son of a beneficiary continued receiving payments for 37 years after his father's death in 1971. The payments — totaling more than $515,000 — were only discovered when the son died in 2008.

The government has been aware of the problem since a 2005 inspector general's report revealed defects in the Civil Service Retirement and Disability Fund. Yet the improper payments have continued, despite more than a half dozen attempts to develop a system that can figure out which beneficiaries are still alive and which are dead, the report said.

"It is time to stop, once and for all, this waste of taxpayer money," it said.

Office of Personnel Management spokesman Edmund Byrnes said he could not immediately comment on the findings. But the report said OPM Director John Berry agrees that stopping the improper payments should be a priority.

There are about 2.5 million federal workers who receive more than $60 billion in benefit payments from the program each year.

Federal officials have tried matching the fund's computer records with the Social Security Administration's death records, checking tax records and improving the timeliness of death reporting.

OPM has also sampled its records of all recipients more than 90 years old to confirm whether they are still alive. In 2009, there were more than 125,000 recipients identified as over 90 and about 3,400 over 100 years old.

Both the Obama administration and Congress have made it a higher priority to crack down on improper government payments.

Last year, government investigators found that more than 89,000 stimulus payments of $250 each from the massive economic recovery package went to people who were either dead or in prison.