OMB POLICY STATEMENTS
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OMB: Social Security Report
A new report by the OMB states that the Social Security program does not have as much financial trouble as most people believed. According to the report, the fund will not run out of funds completely until the year 2052. The new model to estimate generated revenue used higher rates of productivity and earnings, while using lower inflation and higher interest rates than those used in previous models. As of now, the Social Security program is running on a surplus, but the report states that in 2019 the program will begin to start running a deficit.
“The chairman of the House subcommittee, Representative E. Clay Shaw Jr., Republican of Florida, said the report showed that "Social Security's Depression-era pay-as-you-go financing cannot sustain the program for future generations."
“President Bush has strongly suggested that given Social Security's problems, he will make a major effort to overhaul the system if he is re-elected.”