Given the magnitude of the financial problems facing the system, the nature of the proposals for change, and the growing interest in these topics across the country, we can expect the debate over Social Security’s financing and structure to continue and intensify in the coming years. SSA is in a unique position to inform policymakers and the public about the long-term financing issues, yet we have reported that the agency has not undertaken the range of research, evaluation, and policy analysis needed to fully contribute to the debate. For example, from 1988 to 1996, SSA’s disability programs grew significantly. In its current strategic plan, SSA committed itself to a new goal: “to . . . conduct effective policy development, research, and program evaluation.” The agency is taking steps to strengthen its capacity in these areas. It has increased its funding for external research; plans to expand its ability to use modeling techniques to predict the effects of proposed program changes; and, by the end of this fiscal year, plans to have established a research consortium to advise it on relevant research and policy activities. However, these efforts have a long lead time before useful products will become available. In the meantime, SSA will not be fully contributing to the current debate on Social Security reform. The program’s complex policies and SSA’s insufficient management attention exacerbate these problems. Disability Programs Require Process Overhaul and Heightened Focus on Work

SSA’s disability programs face several challenges. We have supported SSA’s efforts to improve consistency and have also recommended that SSA develop a performance goal to measure and report its progress in doing so. Consequently, more than 4 million beneficiaries were due or overdue for CDRs by 1996. In 1997, we found that SSA’s experience in conducting CDRs was encouraging. Observations

Overall, our work suggests that SSA recognizes each of the challenges we have identified and, in almost every case, has taken some action to address them. To effect meaningful change, SSA must address the root causes of its problems and ensure sustained management oversight. The new Commissioner will need to effectively lead the agency to move with a sense of urgency to address its long-standing problems. Social Security Administration: Significant Challenges Await New Commissioner (GAO/HEHS-97-53, Feb. 20, 1997).
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed the Social Security Administration's (SSA) progress in addressing its management challenges, focusing on: (1) SSA's need to strengthen its research and policy capacity in order to address the future solvency of the Social Security Trust Funds; (2) SSA's management and oversight problems with its Supplemental Security Income (SSI) program; (3) its disability programs; and (4) its future workload demands.

What GAO Found

GAO noted that: (1) SSA recognizes the challenges GAO has identified and has taken or plans to take steps to address many of these problems; (2) in 1997, for example, SSA conducted even more eligibility reviews of disabled beneficiaries than it had planned; (3) also, after changes in the childhood disability program were enacted, SSA rapidly reviewed the cases of over 260,000 children receiving SSI benefits; (4) nevertheless, the pace at which the agency is moving does not seem adequate to resolve most of its challenges within a meaningful timeframe; (5) for example, SSA's efforts to bolster its research, evaluation, and policy analysis capabilities have a long lead time before useful products will be available; (6) in the meantime, SSA will not be able to fully contribute to the current debate on social security reform; (7) in addition, in some areas, SSA's efforts have also been too limited; (8) its steps to date, for example, to address deep-seated problems in its SSI program have been piecemeal and have not addressed the root causes of the SSI problems; and (9) given the long-standing nature of challenges SSA faces and their far-reaching implications for current and future beneficiaries, the new Commissioner will need to assert strong leadership to spell out the expected changes and marshal the agency's resources to translate SSA's plans into timely action.