In its 1996 informal staff-level estimate, CBO said it would cost SSA about $512 million to issue an enhanced card. CBO estimated the cost of issuing an enhanced card to 172 million number holders. SSA Estimates Are Reasonable for a Mass Issuance to All Number Holders

SSA’s 1997 estimates of the cost for issuing a more enhanced card generally appear to be reasonable if a new card is to be given to all 277 million current number holders. This relationship is particularly significant because it shows that regardless of the material from which the card is made or the technology used on the card for security purposes, reissuance of a new card to all number holders will cost a minimum of approximately $4 billion, using SSA’s current procedures. This estimate is based on cost and workload data associated with SSA’s current process for issuing or reissuing cards. SSA’s estimate applied the unit cost to all 277 million current number holders, which it believes was required by the mandate. However, we identified four alternative approaches that would cost less than the approach SSA evaluated: extending the mandated issuance time frame, issuing cards only to individuals who change jobs, issuing enhanced cards to new applicants and those requesting replacement cards, and using drivers’ licenses as an alternative to the Social Security card. However, this option would delay improving controls over the work authorization process. This alternative maximizes control over illegal workers and reduces the impact on SSA resources. But the overall cost savings from prospective issuance of the new card would be substantial. This approach could save significant SSA resources, and could make the reissuance of an enhanced Social Security card unnecessary. Doing so would likely help eliminate some of the burden on state MVAs because SSA may be able to provide citizenship information to the states for up to 87 million number holders whose work eligibility status SSA has already established. Ultimately, the costs associated with meeting the congressional goals of work eligibility verification and public confidence in the Social Security system will be dependent on a congressional decision as to the specific role of a new Social Security card. Illegal Immigration Reform and Immigrant Responsibility Act of 1996

Scope and Methodology

The objectives of our work were to explain differences in CBO’s and SSA’s estimates for replacing the Social Security card; evaluate SSA’s 1997 estimates of the cost of issuing a more secure Social Security card, including the feasibility and cost implications of charging user fees for a new card; and presenting additional card issuance options. Current List of Acceptable Documents for Employment Eligibility Verification

	Documents that establish both identity and employment eligibility

U.S. Social Security card issued by SSA (other than a card stating it is not valid for employment)
Certification of Birth Abroad issued by the Department of State (form FS-545 or form DS-1350)
Alien registration receipt card with photograph or permanent resident card (INS form I-551)
Unexpired temporary resident card (INS form I-688)
Unexpired employment authorization card (INS form I-688A)
U.S. citizen identification card (INS form I-197)
Unexpired employment authorization document issued by INS, which contains a photograph (INS form I-766)
Identification card for use of resident citizen in the United States (INS form I-179)
Unexpired employment authorization document issued by INS, which contains a photograph (INS form I688B)
Unexpired employment authorization document issued by the INS (other than those listed under A list)

Breakdown of SSA’s Estimates of Cost to Issue Enhanced Social Security Cards

SSA’s 1997 Estimate of Cost and Work Years for Processing Social Security Number Applications

Number of applications (millions)
Total cost of processing (millions)
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Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Social Security Administration's (SSA) and the Congressional Budget Office's (CBO) estimates of the costs of issuing a counterfeit-resistant card social security, focusing on: (1) the differences in CBO's and SSA's estimates for replacing the social security card; (2) SSA's estimates of the cost of issuing a more secure card; and (3) additional issuance options.

What GAO Found

GAO noted that: (1) the wide variation between SSA's and CBO's estimates is due primarily to the different issuance assumptions used by each agency in its estimates; (2) CBO's estimate was an informal staff-level estimate of the cost to issue an enhanced card to 172 million number holders who it believed would request the new card; (3) SSA's estimate is based on issuing enhanced cards to 277 million number holders; (4) SSA's 1997 estimates of the cost for issuing an enhanced card generally appear to be reasonable if a new card were to be given to all 277 million current number holders; (5) regardless of the material from which the card is made or technology used for security purposes, issuing an enhanced card to all number holders using current procedures would cost a minimum of about $4 billion or more; (6) ultimately, SSA's costs will depend on how Congress decides to implement the issuance of a new card; (7) alternatives to the high cost associated with a mass issuance of new cards exist; (8) one alternative would be to issue a new enhanced social security card only to those who need it to verify work eligibility; (9) Bureau of Labor Statistics data suggest this approach could involve up to an estimated 118 million individuals--about 43 percent of the 277 million current number holders; (10) this option would help maximize control over illegal workers while significantly reducing SSA's costs; (11) in a second approach, SSA could issue the new card only to those applying for a new social security number and those who normally request replacement cards; (12) this option would also substantially reduce the cost of card issuance but provides no new employment authorization internal controls for many current number holders; (13) a third alternative could use state drivers' licenses and identity cards instead of social security cards for work eligibility verification purposes; (14) states renew these documents every few years and already include security features and a photograph; (15) the states could obtain current citizenship information from SSA for up to 87 million individuals for work authorization purposes; and (16) this option would avoid the enormous costs associated with reissuing the current social security card but would likely impose a significant burden on the states to make work eligibility determinations for the remaining 190 million individuals, and moreover, it would not necessarily enhance public confidence in the social security system.