2007 Annual Report of the SSI Program

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IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM

E. THE SSI PROGRAM'S SHARE OF SSA'S ADMINISTRATIVE COSTS
AND BENEFICIARY SERVICES COSTS

The SSI program is administered by the Social Security Administration. Section 201(g)(1) of the Social Security Act provides that administrative expenses for the SSI program, including Federal administration of State supplementation payments, may be financed from the OASDI Trust Funds. The trust funds are reimbursed from the General Fund of the Treasury for any such SSI administrative expenditures. These reimbursements include adjustments for any interest losses the trust funds may have incurred as a result of such expenditures. The legislative history of the 1972 amendments (which established this funding mechanism) indicates a desire to obtain economy of administration by giving SSA the responsibility for the SSI program because of its existing field office network and its administrative and automated data processing facilities. Because of the integration of the administration of the SSI and OASDI programs, it was desirable to fund them from a single source, with reimbursement to the trust funds based on a Government Accountability Office-approved method of cost analysis of the respective expenses of the SSI and OASDI programs, and a final settlement by the end of the subsequent fiscal year required by law. Table IV.E1 provides historical data on selected administrative costs of the SSI program.

Table IV.E1.—Selected SSI Administrative Costs, Fiscal Years 1978-2007
[Outlays in millions]  
Fiscal year
Payments to the
trust funds 1
Beneficiary
services 2
     
1978
$539
$31.6
1979
611
57.0
1980
668
33.1
1981
717
37.3
1982
780
12.0
1983
846
8.0
1984
864
3 84.0
1985
956
3.0
1986
1,023
7.2
1987
977
9.5
1988
976
12.9
1989
1,052
20.0
1990
1,075
28.3
1991
1,230
33.1
1992
1,426
36.0
1993
1,468
32.3
1994
1,780
33.8
1995
1,978
48.2
1996
1,953
71.8
1997
2,055
77.3
1998
2,304
46.0
1999
2,493
52.0
2000
2,321
53.7
2001
2,397
43.9
2002
2,522
54.0
2003
2,656
37.0
2004
2,806
38.6
2005
2,795
30.4
2006
2,916
38.9
2007 (estimated)
3,029
90.0

1 This activity funds the reimbursement to the OASI and DI Trust Funds from the General Fund of the Treasury for the SSI program's share of SSA's administrative expenses, as well as reimbursements from participating States for SSA's administration of the SSI State Supplementation Program.

2 Includes payments to State Vocational Rehabilitation (VR) agencies and Employment Networks for VR services and payments under the Ticket to Work program. Payments for referral and monitoring services for Drug Addicts and Alcoholics are also included through December 1996. These payments were terminated effective January 1997. The increase in the estimate for fiscal year 2007 reflects an assumption that State budgets will continue to improve, enabling the States to restore some lost vocational rehabilitation service capacity and serve a greater number of SSI beneficiaries.

3 Reflects a one-time payment to State VR agencies for prior year expenses.


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