Reps. Doggett and Gonzalez: On the Heels of Republican Budget Cuts to Social Security Administration, Mandatory E-Verify System Would Put Burden on Retirees, Widows, and People with a Disability

CBO sayssimilar bill would cost Social Security Administration $9 billion over 10 yearsto administer

October 11, 2011

Washington—In a letter to their colleagues, Rep. Lloyd Doggett, Ranking Member of the Human ResourcesSubcommittee, and Rep. Charlie Gonzalez, Chairman of the House Hispanic Caucus,voiced their strong opposition to Rep. Lamar Smith'sattempt to make the Electronic Verification Program, or E-Verify, mandatorybecause of the undue burden it would place on retirees, widows, and people witha disability who rely on the Social Security Administration (SSA) at a time whenthe effects of Republican cuts to the SSA's operating budget are just startingto become clear. They writes that while the Department of HomelandSecurity would administer E-Verify, SSA takes on the bulk of the verificationresponsibilities because it must individually verify the name, Social Securitynumber, date of birth, and citizenship status of every worker in the countrywhose employer participates in E-Verify. In addition, the SSA must also assistworkers with correcting their records when there are errors, an extremely timeconsuming process that often involves multiple in-person visits to SSA fieldoffices.

During a hearing in April, the Waysand Means Subcommittee on Social Security found that after 2 years of Democraticinvestments in SSA's operating budget, the average wait time for an initialdisability determination was still more than 3 months, while the average waittime for a hearing was about 350 days. This means that in many cases disabledmembers of the community are waiting over a year before they have an opportunityto have their case heard before a judge. Now, with Republican budget cuts to theSSA's operating budget beginning to take effect, wait times are already startingto climb again.

"The E-Verify programas it exists today is far from satisfactory," said Rep. Doggett. "To make this system mandatory for allbusinesses hiring new employees is a mistake and a costly one at that. SSA isalready dealing with the impact of Republican budget cuts. To ask the SSA tobear the burden of administering this flawed program is a mistake that wouldcost our retirees, our widows, and folks living with disabilities dearly. We need comprehensive immigrationreform—and this is far from it."

"At a time when Republicans arealready imposing drastic cuts to Social Security Administration's budget, ourcountry cannot afford a mandatory flawed employer verification system that wouldrequire the Social Security Administration to spend most of their time andresources to perform background checks rather than helping America's seniors,disabled, and others who depend on Social Security benefits for their health andwell being," said Rep. Gonzalez.

In analyzing the budgetary impact of a billsimilar to that of Rep. Smith, the Congressional Budget Office in 2008determined that cost to the SAA of requiring verification of all employees wouldtotal nearly $9 billion over ten years. This would come at a time when SSA isalready facing a $955 million shortfall in its administrative budget for FY2011,forcing it to institute a hiring freeze, reduce field office hours, close 300field offices and contact stations, and suspend mailing annual earningsstatements to workers. In addition, the SSA's budget office has said that forevery $25 million their FY2012 operating budget is reduced below its currentlevel, they would be forced to furlough workers and close Social Securityoffices for a day, delaying the processing of approximately 19,000 retirementclaims, 11,000 initial disability claims, and 3,000 hearings.

[Full text of letter below]

We writeto bring to your attention strong concerns voiced by our friends at AARPregarding the excessive burden that would be imposed upon retirees, widows, andpeople with a disability who rely on the Social Security Administration (SSA),should the Electronic Employment Verification Program, also known as E-Verify,become mandatory as Rep. Lamar Smith is demanding. While the Department ofHomeland Security administers E-Verify, SSA takes on the bulk of theverification responsibilities because it must individually verify the name,Social Security number, date of birth, and citizenship status of every worker inthe country whose employer participates in E-Verify. In addition, the SSA mustalso assist workers with correcting their records when there are errors, anextremely time consuming process that often involves multiple in-person visitsto SSA field offices.

The current E-Verify system is voluntary and farfrom satisfactory. The new E-Verify legislation would make this system mandatoryfor all businesses hiring new employees. The Ways and Means Subcommittee onSocial Security held a hearing last April aimed at identifying costs andcollateral damage to Social Security if it were to be assigned this additionalresponsibility. The Committee found that after 2 years of Democratic investmentsin SSA's operating budget, the average wait time for an initial disabilitydetermination was still more than 3 months, while the average wait time for ahearing was about 350 days. This means that in many cases disabled members ofour community are waiting over a year before they have an opportunity to havetheir case heard before a judge. Now, with Republican budget cuts to the SSA'soperating budget beginning to take effect, wait times are already starting toclimb again.

In analyzing the budgetary impact of a bill similar to thatof Mr. Smith, the Congressional Budget Office in 2008 determined that cost tothe SAA of requiring verification of all employees would total nearly $9 billionover ten years. This would come at a time when SSA is already facing a $955million shortfall in its administrative budget for FY2011, forcing it toinstitute a hiring freeze, reduce field office hours, close 300 field officesand contact stations, and suspend mailing annual earnings statements to workers.In addition, the SSA's budget office has said that for every $25 million theirFY2012 operating budget is reduced below its current level, they would be forcedto furlough workers and close Social Security offices for a day, delaying theprocessing of approximately 19,000 retirement claims, 11,000 initial disabilityclaims, and 3,000 hearings.

We should avoid creating more delays for ourseniors, the disabled, and many others who depend on Social Security. Amandatory E-Verify system would undoubtedly result in an increase in SSA'salready heavy administrative burden and create greater backlogs, furtherhindering SSA's ability to fulfill its primary mission to serve retirees,widows, and those with disability.

Requiring the SSA to take on a newfunction that will detract from its essential work of serving Social Securitybeneficiaries is unacceptable. We urge our colleagues to review the attachedletter from AARPabout this important issue.

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