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Obtain information about the income and resources of those Zebley class

members who are determined to be disabled, and make a determination as to

whether they meet the means test of the SSI program;

Reevaluate the new disability determinations of those class members who are

denied and who appeal the new decision; and

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Using the newly published regulations, reevaluate all childhood disability claims

that we have denied under the interim standards for determining childhood

disability, which we put into place after the Supreme Court decision.

Although the district court has yet to rule on the effective date of class relief for the

Zebley case, we have based our estimates for these appropriation requests on the

assumption that nationwide class relief will go back to January 1980. Under this

assumption, SSA would expect to make new disability determinations for

237,000 Zebley class members and to reevaluate 60,000 childhood disability claims

denied sir..3 the Supreme Court decision.

Under current processing assumptions, the entire workload resulting from the Zebley

case will require about 1,800 Federal workyears and $232 million, including

$120 million for the State Disability Determination Services. We expect to begin

processing these claims in the spring of 1991, and that we will completely finish all the

work, including administrative appeals, within about three years. To provide SSA with

flexibility in processing these anticipated workloads, the timing of which cannot be pinpointed, we are requesting that these supplemental funds remain available until the

end of FY 1993. Costs for start-up and planning activities incurred prior to enactment

of the supplemental will be charged back to the supplemental.

38-711 0-91--11

Relationship of the Supplemental Security Income account

and the Limitation on Administrative Expenses

SSA administers the Social Security trust fund programs and the SSI program on an

integrated basis for the purposes of economy and efficiency. The Social Security Act

authorizes advances from the Social Security trust funds to pay the administrative

costs of the SSI program through the Limitation on Administrative Expenses. The

advances are fully repaid from the SSI appropriation. Thus, we are requesting a

supplemental for the Limitation on Administrative Expenses to carry out the SSI work

related to the Zebley case, and we are requesting a supplemental for the SSI account

in order to reimburse the trust funds for the cost of this work.

Conclusion

The ruling of the Supreme Court in Sullivan v. Zebley mandates additional work for

SSA, for which no appropriated resources are available. Enactment of these

supplementals will enable SSA to carry out the work required of it, and to properly

serve needy disabled children.

BIOGRAPHICAL SKETCH OF GWENDOLYN S. KING

Gwendolyn S. King was sworn in as the 11th Commissioner of Social Security August 1, 1989, by Health and Human Services Secretary Louis W. Sullivan, M.D. She was nominated by President Bush on July 14, 1989, and confirmed by the Senate on July 26.

As Commissioner of Social Security, she administers the nation's Social Security programsOld Age Survivors Insurance and Disability Insurance-as well as the means-tested Supplemental Security Income Program for low-income elderly, blind, and persons with disabilities. These combined programs provide monthly income to more than 44 million people at an annual cost of about $282 billion.

Before taking the top post in the Social Security Administration, Mrs. King had worked since April 1988 as Ěxecutive Vice President of the Washington firm of Gogol and Associates.

Mrs. King is a veteran of White House, Capitol Hill, Federal and State government service. From 1986 to 1988, Mrs. King served as Deputy Assistant to the President and Director of the Office in Intergovernmental Affairs at the White House. In that capacity, Mrs. King had the primary responsibility of working with the nation's governors, mayors, and State legislators to keep the White House lines of communication open to elected officials.

While on the President's staff, Mrs. King was appointed to the additional posts of Commissioner, Advisory Commission on Intergovernmental Relations; Member, Interagency Committee on Women's Business Enterprise; and Director, White House Task Force on Puerto Rico. Three months after her departure from the White House, the President nominated her to membership on the board for International Food and Agricultural Development.

Mrs. King was appointed in 1979 by newly elected Governor Dick Thornburgh to direct Pennsylvania's first full-time, professionally staffed Washington, D.C. office, a cabinet level position she held until April 1986.

From 1978 through 1979, Mrs. King served as senior legislative assistant to U.S. Senator John Heinz, R-Pa., and advised the senator on aging, education, health, human rights, and environmental issues. She also was the principal staff person for the senator on health care finance (Medicare and Medicaid), Social Security, and disability matters before the Senate Finance Committee.

During 1976-1978, Mrs. King was director of the newly established Division of Consumer Complaints at the U.S. Department of Housing and Urban Development.

From September 1971 to March 1976, Mrs. King was with the U.S. Department of Health, Education, and Welfare where her duties included coordinating health policy matters for then-Secretary Casper Weinberger.

A cum laude graduate of Howard University in 1962, she taught school in Niagara Falls, New York, and Washington, D.C., before doing graduate study in public administration (1972-1974) at the George Washington University and starting her 18-year career in public service, In June 1990, she was awarded an honorary doctorate of public service degree by the University of Maryland, Baltimore County. Her other awards include-the 1990 Drum Major for Justice Award from the Southern Christian Leadership Conference, the 1990 Denver Urban League Special Recognition Award, and the 1991 Howard University Alumni Award for Postgraduate Achievement.

Mrs. King was born in East Orange, New Jersey, and now makes her home in Washington, D.C. She is married and has three children.

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Education

Graduate of West Virginia University and received a Master's Degree from George Washington University

Personal

Wife, Dianna, and their three children,
Dan, Marsha and Tany, now reside in
Sykesville, Maryland

BIOGRAPHICAL SKETCH OF JOHN ROBERT DYER

John Dyer currently is the Deputy Commissioner for Finance, Assessment and Management in the Social Security Administration (SSA), Department of Health and Human Services (HHS). He is responsible for providing executive leadership and direction with respect to SSA financial, program assessment and administrative service activities. Mr. Dyer recommends, negotiates and implements actions to ensure that SSA's full range of program and management services are effectively and efficiently administered. He is the key official who participates with the commissioner in developing budgetary and fiscal policies for the Agency and in carrying out the full range of management responsibilities and acts with full authority, when designated, over the total work of the Administration during the Commissioner's absence or unavailability. SSA has about 65,000 employees located in offices throughout the country and is responsible for administering programs having a projected budget for fiscal year 1991 of almost $300 billion. Mr. Dyer recently received the 1990 Presidential Meritorious Rank Award. Mr. Dyer previously worked for the Health Care Financing Administration (HCFA), HHS, as the Director of the Office of Management and Budget from June 1984 to March 1988. He was responsible for the budget, personnel and management systems in the Agency: HCFA has 4,000 employees located in 12 metropolitan areas and is responsible for the $100 billion Medicare and Medicaid Programs.

Mr. Dyer has also worked for the Office of Management and Budget (OMB) in the Executive Office of the President from 1973 to 1984. Mr. Dyer held the position of budget examiner for health and environmental related programs until 1980. He became a member of the Senior Executive Service in 1981 and headed the OMB unit that had budget oversight over the Department of Commerce and the Small Business Administration. The budget and policy areas for which he was last responsible at OMB included: economic development, "industrial" and trade policy, environmental satellites and weather science programs, minority and small business, general government statistics programs, and ocean natural resource management.

He was a

Mr. Dyer has also held positions in health affairs in HHS and
office of Economic Opportunity from 1972-1973.
Psychiatric Child Care Worker at children's Psychiatric Hospital,
Ann Arbor, Michigan (1970-1971).

Mr. Dyer has a Master's Degree in Public Health (1972) from the University of Michigan and Bachelor's Degree (1969) from the University of Notre Dame, South Bend, Indiana.

USE OF CONTINGENCY RESERVE Senator HARKIN. Thank you very much, Mrs. King.

Senator BUMPERS. Mr. Chairman, I am going to have to leave for a pretty important hearing, would you yield to me for 2 minutes.

Senator HARKIN. I sure will Senator Bumpers.
Senator BUMPERS. I appreciate that.

Mrs. King, first of all, what have you heard from OMB about the $146 million contingency?

Mrs. KING. I received a call the day before yesterday, Senator Bumpers, which led me to believe that our request is being favorably considered. In addition, when Mr. Darman was testifying the other day before the House Ways and Means Committee, he made it clear that he was in support of the effort to provide funding.

In fact, I believe we can anticipate that, if there is quick resolution of our supplemental request, the administration, including OMB, will support it. If not, we are being assured that we can expect release of contingency fund moneys in very short order.

Senator BUMPERS. Well, you are in good company. Just about every U.S. Senator, from Senator Harkin to me on down, has sent a letter to Mr. Darman strongly urging the release of these funds.

Mrs. KING. Senator, you are looking at the most appreciative Social Security Commissioner you are ever going to find.

DISABILITY WORKLOADS Senator BUMPERS. You anticipate 94,000 backlog cases on disability in 1990, correct?

Mrs. KING. That is about right.

Senator BUMPERS. And do you expect that to climb again? Now, is that because of the Zebley decision or is that yet to hit us?

Mrs. KING. No; that is outside of the Zebley decision. Remember, the Zebley decision is only going to deal with cases in the class.

Senator BUMPERS. Of children who are being reevaluated?

Mrs. KING. That is exactly right. But what we are anticipating with the publication of our recent regulation, is that we will continue to get new cases which will continue to increase our workload.

Senator BUMPERS. So you think next year when you come back here, instead of 395,000 cases pending, you are going to have 553,000

Mrs. KING. The number you see there, Senator, reflects what will be the case if we do not get release of the contingency funds this year.

Senator BUMPERS. This is in the event you do not get those contingency funds?

Mrs. KING, That is exactly right. That 553,000 will be fact. And what is not shown there is that, instead of approximately 3 months for us to handle a claim, that processing time will almost double.

Senator BUMPERS. To 6 months.
Mrs. KING. To about 6 months at the end of fiscal year 1992.

Senator BUMPERS. And they get nothing during that 6-month period, right?

Mrs. KING. That is true, Senator.

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