November 20, 1999
Web posted at: 10:10 p.m. EST (0310 GMT)

WASHINGTON (CNN) -- Now that Congress has passed a federal budget for fiscal year 2000, did it do anything to ensure that Social Security will be solvent when baby boomers retire?

John Rother, of the AARP, says the answer is no. "Congress missed the chance to save Social Security this year," he said. "(It) did not really debate how to keep the program strong in the future."

House Minority Leader Richard Gephardt (D-Missouri) said, "Despite the chest beating, the button wearing and the commercial airing of the Republicans, this Congress failed to extend the life of Social Security by one day."

Republicans promised not to use the Social Security surplus to finance additional government spending.

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White House Correspondent Kelly Wallace reports on the Social Security surplus and the budget deal Real 28K 80K Windows Media 28K 80K

"We didn't dip into the Social Security trust fund," said House Speaker Dennis Hastert (R-Illinois).

So who's right?

The nonpartisan Congressional Budget Office is calculating whether the new spending plan will require dipping into the trust fund. The answer won't be reached until next week at the earliest.

It is already known, however, that $130 billion of income taxes collected from Social Security benefits will likely go toward reducing the national debt. Some experts say that might help extend the life of Social Security down the road.

"The more debt retirement we do now, the better the government will be positioned to meet its obligations later," said Carol Cox Wait of the Committee for a Responsible Federal Budget. "It's very simple logic."

Television adds aired by the Republicans attacking the Democrats and the president's budget plans

Obligations growing quickly

Those obligations are growing quickly. In the not-too-distant future, the number of workers paying into Social Security won't be enough to offset the number of retiring baby boomers collecting benefits.

President Clinton proposes using a projected budget surplus to pay down the national debt, and then reinvesting the interest saved on the payment. Money from the reinvestment would go toward extending the life of Social Security.

Republicans advocate placing extra Social Security tax revenues into so-called lockboxes, instead of using it to pay down the national debt. The locked away money would be used only to extend Social Security benefits.

Gephardt: "Despite the chest beating, the button wearing and the commercial airing of the Republicans, this Congress failed to extend the life of Social Security by one day"

Tough decisions called unavoidable

Budget analysts say more politically difficult reforms than what either party is proposing are necessary.

"The only way you can save Social Security is either to raise the taxes to pay benefits in future years or to modify the benefits that we promise people," said Wait.

The future of Social Security, it seems, is up to the next president -- and the next Congress.

White House Correspondent Kelly Wallace contributed to this report.

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