BILL NUMBER: AJR 7 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Bonta
JANUARY 30, 2013
Relative to public social services.
LEGISLATIVE COUNSEL'S DIGEST
AJR 7, as introduced, Bonta. Social security, Medicare, and
Medicaid.
This measure would request the President and the United States
Congress to exclude social security, Medicare, and Medicaid from
being a part of any legislation to reduce the federal deficit. This
measure would express the Legislature's opposition to cuts to social
security, Medicare, and Medicaid, and call on California's
representatives to the United States Congress to vote against cuts to
social security, Medicare, and Medicaid and to consider improving
those systems in ways that would strengthen their protections.
Fiscal committee: no.
WHEREAS, Social security and Medicare are the foundations of
income and health security for older Californians and those with
severe work disabilities, providing monthly cash benefits and health
insurance to over 5 million Californians, including 3.4 million
retirees and nearly 700,000 disabled workers; and
WHEREAS, Social security is the single most important source of
life insurance protection for California's children and provides a
vital guaranteed income to 370,000 children throughout the state; and
WHEREAS, Social security prevents more than 1.1 million
Californians from living in poverty; and
WHEREAS, Social security provides benefits to more than 9 million
veterans nationwide, which is roughly four out of 10 veterans; and
WHEREAS, Social security annually contributes nearly $67 billion
dollars to California's economy by paying benefits to over 5.1
million residents in the state; and
WHEREAS, Social security's funding is independent of that of the
rest of the federal government, and has never contributed to, and by
law can never contribute to, the federal deficit; and
WHEREAS, Social security in fact has a surplus of $2.7 trillion
dollars today that is expected to grow to $3.1 trillion dollars by
2020; and
WHEREAS, Social security is not in crisis and has sufficient
resources to meet all of its obligations through 2032 and has
dedicated revenues that would -- even in the absence of Congressional
reforms -- meet three-quarters of promised benefits thereafter; and
WHEREAS, Social security's funding shortfall after 2032 is modest:
about one-half of the cost of the Bush tax cuts of 2001 and 2003;
and
WHEREAS, There are many policy options available to close social
security's funding shortfall without cutting benefits, including
eliminating the cap on earnings subject to the payroll tax, which
would eliminate about 80 percent of the 75-year shortfall, or raising
the payroll tax rate from 6.2 to 7.2 percent gradually over 20
years, which would eliminate one-half of the shortfall; and
WHEREAS, Americans prefer raising payroll taxes to cutting social
security benefits by a margin of 53 percent to 36 percent; and
WHEREAS, Social security's modest but vital benefits, averaging
just $12,930 per year in California, are critical to the economic
security of those who receive those benefits; and
WHEREAS, Losses of pensions, 401(k) balances, home equity, and
earnings have greatly diminished the retirement income prospects of
Californians; and
WHEREAS, The social security benefit cuts imposed in 1983 will,
when fully phased in, cut benefits by roughly 25 percent; and
WHEREAS, Forty-seven percent of elderly Californians are
struggling just to make ends meet and more than one-half of working
Californians will not have saved enough to be able to maintain their
standard of living in retirement; and
WHEREAS, Proposals to increase the social security retirement age
to 69 would cut benefits by an additional 13 percent on top of the 13
percent cut that occurred when the retirement age increased from 65
to 67; and
WHEREAS, The physical demands of a job differ from industry to
industry and, on average, the longevity of the lives of individuals
differ significantly according to their level of income, education,
race, and access to health care; and
WHEREAS, Social security belongs to the people who have worked
hard all their lives and contributed to the program, and it is based
on a promise that if you pay in, you and your family can collect your
money when you retire, experience a severe disability, or die; and
WHEREAS, Medicare insures almost 4 million California seniors for
health care at a fraction of the administrative costs of private
plans; and
WHEREAS, Medicare has controlled its costs better than private
insurance plans; and
WHEREAS, Although increasing the eligibility age for Medicare
would save the federal government some money, it would add billions
of dollars to what we as a country spend on health care and shift
costs onto other governmental entities, businesses, and many
individuals who cannot afford those costs; and
WHEREAS, Medicaid is a critical source of protection for over 11
million low-income children, adults, and elderly Californians, many
of whom have severe disabilities or are in need of long-term care;
and
WHEREAS, Our social security, Medicare, and Medicaid systems are
fundamental to protecting against risks to which all Californians are
subject; and
WHEREAS, Our social security, Medicare, and Medicaid systems give
expression to widely held values, including caring for our families,
our neighbors, and ourselves, personal responsibility, hard work, and
dignity; now, therefore, be it
Resolved by the Assembly and the Senate of the State of
California, jointly, That the California State Legislature urges the
President and the Congress of the United States to exclude social
security, Medicare, and Medicaid from being a part of any legislation
to reduce the federal deficit; and be it further
Resolved, That the California State Legislature opposes cuts to
social security, Medicare and Medicaid, and calls on our state's
representatives in Washington, D.C. to vote against any cuts and
consider improving those systems in ways that will strengthen their
protections; and be it further.
Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, to the
Majority Leader of the Senate, and to each Senator and Representative
from California in the Congress of the United States.