Statement of Administration Policy: H.R. 3730 - Miscellaneous and Technical Social Security-Act Amendments of 1989

(House)
(Rostenkowski (D) IL and three others)

The Administration strongly opposes H.R. 3730 because:

• It extends a $190 million general fund subsidy for the railroad retirement program. The President, in a message on the program transmitted to Congress on September 29, 1989, opposed this subsidy to the rail industry.
  
  
• It includes numerous social security administrative requirements that would burden further the Social Security Administration, which has already been underfunded by Congress.
  
  
• It includes numerous objectionable Medicare provisions making substantive changes and placing restrictions on the Secretary's ability to manage the Medicare program effectively.

In addition, the bill would increase the Federal budget deficit by up to $110 million in FY 1990 and $630 million over five years.

There is no urgent need for enactment of H.R. 3730 now. Many provisions in the bill are minor and are not needed at this time (minor social security and railroad retirement coverage provisions, Family Support Act technical amendments, intergenerational demonstration authority). Some current law extensions, which are labeled time-sensitive, are not scheduled to expire until June 1990 (disability demonstration authority) or are not needed until later in the fiscal year (foster care transfers), leaving ample time for consideration in the next session.

Some provisions should be addressed in other legislation. For example, exempting Medicare maintenance-of-effort payments from FICA and certain other taxes should be addressed in the catastrophic insurance bill. Furthermore, the Administration supports liberalizing benefits for adopted children under social security, as proposed by the President, in separate legislation. Continuing disability benefits during appeal also should be enacted separately.