Skip to main content

View Diary: Social Security Cuts (Chained CPI): Some Basic Facts (53 comments)

Comment Preferences

  •  Gramm-Rudman-Hollings Act of 1985 (1+ / 0-)
    Recommended by:
    Bill Channing

    made SSTF temporarily off budget. That might be what youre thinking of.

    .................expect us......................... FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Sat Oct 26, 2013 at 07:11:50 PM PDT

    [ Parent ]

    •  Thanks! That's it! (1+ / 0-)
      Recommended by:
      Roger Fox

      The 1983 Amendments did provide that Social Security would be off-budget beginning FY 1985.  But the Gramm-Rudman-Hollings legislation (GRH), which required across-the-board sequestration of spending if the Federal budget exceeded certain targets, mandated that the Trust Funds would be included in the budget for the purpose of determining if the total budget exceeded the deficit targets in the law. This provision was to be in effect for the entire time that GRH was in effect (1986-1993).  Social Security's surpluses were still being used to reduce the size of the reported budget deficit for purposes of this calculation.  This would have continued until 1993 but for the OBRA 1990 legislation that changed the law to stop the use of the Trust Funds for deficit calculations. So 1990 is correct.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site