Real Story on Social Security Deficits

This article identifies the misinformation out there about Social Security deficits:

…Just like the benefits themselves, administrative expenses are fully funded. Social Security has no borrowing authority. Indeed, Social Security has a $2.8 trillion accumulated surplus. In 2015 alone, it ran a surplus of $23 billion. There is plenty of money for administration. Congress does not appropriate a penny for those administrative costs. What it does is limit how much of that huge surplus and incoming revenue can be used by the Social Security Administration (“SSA”) for administration of the program in any given year. For years, Congress has been limiting drastically how much SSA can spend of Social Security’s surplus on administration.

Just since 2010, Congress has required that SSA spend ten percent less, in real dollars, than what it was spending before. Ten percent less, even though Social Security ran a surplus in every one of those years. Ten percent less, even though Social Security has trillions of dollars in reserve. Ten percent less, even though, in order to simply maintain services at their current level, SSA needs to spend an additional $300 million a year just to cover the increase in its fixed costs, such as the cost of rent, electricity and phones. Ten percent less, even though those fixed costs rise every single year.

Full story here: