
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, July 17, 1995                   TAG: 9507180004
SECTION: EDITORIAL                    PAGE: A-6   EDITION: METRO 
SOURCE: DOUG STRICKLAND
DATELINE:                                 LENGTH: Medium

IT'S TIME TO SECURE SOCIAL SECURITY

IN 1995, 15 percent of the federal budget will go just to pay interest on the national debt (the sum of all annual deficits). Without this annual interest payment, our nation would have a balanced budget. But, of course, we would still have an additional $4.9 trillion debt, which, compared with the annual deficit, is not the focus of much discussion today.

One step at a time: First control the annual deficit that, for 1995, is projected at approximately $175 billion. Congress is finally moving in the right direction. The message that the public wants greater fiscal responsibility has reached Washington, but much work remains.

Congress hopes to produce a balanced budget in seven years, yet proposed legislation will not achieve this goal because Social Security surplus funds are used as general revenue to reduce the gap in each of the annual budgets. These borrowed Social Security surplus funds have the effect of making the actual deficit appear smaller. But, like other borrowed money, the money has to be repaid by the borrower - in this case, the taxpayer. So while a ``balanced'' budget sounds good, and Congress has finally tackled the deficit (our last balanced budget was 1969), a true balanced budget will not be achieved by 2002.

The opportunity to use Social Security surplus funds is projected to expire around 2010 or sooner when then outgoing Social Security payments will exceed contributions. At that time, Congress will be faced with the additional challenge, unless changes are made, of finding revenue to cover the Social Security deficit.

The continued mixing of Social Security contributions in general revenue brings forth an important question: When will Congress begin work toward assuring the long-term solvency of Social Security? This attention is needed to regain the confidence particularly of younger workers, many of whom say they never expect to receive Social Security anyway, yet they must contribute.

Because of demographics, the number of workers supporting one Social Security recipient will continue to decline. If present practice continues - spending Social Security surpluses now, rather than permitting them to accumulate to offset increasing program costs - those employed in another decade or so will most likely be saddled not only with higher taxes to repay borrowed surpluses. They will also face substantially increased contributions to cover a Social Security deficit, unless, of course, Social Security recipients would be willing to settle for reduced payments.

There are alternatives already proposed for ensuring Social Security's future, yet Congress thus far has been unwilling to tackle this political hot potato. Last year's Bipartisan Commission on Entitlement and Tax Reform demonstrated this point clearly. It's time Social Security received priority attention to preserve its future. And it's time actual dollars, rather than IOUs, were found in what is commonly referred to as a trust fund.

Doug Strickland, of Roanoke, is director of the Roanoke Valley Graduate Center.

by CNB