an beneficiaries time to adjust. funding thise year's report as represented by the deficits is slightly less favorable than those of by 2013. thed on the interception, deficit for the combine the social security fund increases to 2.80%% of payroll of taxable payroll on this year's report. this change can be attributed to 2014 ande from 2013 to changes in methods of assumption and starting data values. is disability insurance projected to be depleted much sooner than the combined social security funds. this used reports says it will

occur in 2016 and the absence of legislative changes. -- continuing in fun continuing income will subsist in -- will be sufficient to support. the program is a vital part of this country safety net. only of immediate importance for 11 many americans currently receiving benefits and who depend on everyday needs, it protects all insurers will and working americans who need to rely this program to replace their income if they become disabled in the future. we owe these individuals a program that provides timely payments. that may introduce -- let me --roduce >> i want to begin my remarks by thank you sec -- as secretary for us, all of the staff, as

well as the many dedicated staff of the offices of the chief .ctuary and the medicare republican,he sole i sometimes the library special responsible to the objectivity in what is produced. i want to thank secretary lose staff are managing this process fairly and the common ground of four buried people. or to thank my very -- i want to thank everyone for learning from everyone who has learned from me.

we are now but two years from the deletion of the reserves the social security, disability trust fund. upon the placing of these reserves, there will only be was sufficient resin is for 81% of the obligations. it faces distinct policy challenges, it is important to understand the trust fund is just a severe. of the two sides of social security, the old-age and survivors insurance fund faces the longest shortfall. is long-range shortfall equal to 2.55% of the program's tax base and workers actual rages whereas an disability side into 0.33%. shortfall in the hypothetical combines trust fund

is to 180% of taxable payroll or -- 2.88% of taxable payroll. the primaries and we are heading into deletion point first is the baby boomers go through the years of disability before they move on to retirement. many are in the process of converting. shifting these financial pressures to the web bofai. the bipartisan compromise is sustained. the trust funds is now substantially larger, even regulatory to the once said a than the ones were close and nine katy perry. those amendments were controversial and came far too close happening. more severe measures will be required to achieve similar success today. the longer it continues to be

deferred, lawmakers will be successfully closed to shortfall in a way that preserves the program that preserves the structure. stoppedr we delay, we making solutions and making sacrifices. 2033,le of examples -- by the required payroll tax scheduled for system security benefits will be an increase of over one third of workers. on the other hand, if we reduce benefits across the board and avoid to reduce benefits, the reductions will be 23%. that applies to the with that are already on the benefit rule. on that point, it would not be possible to balance the productions the people newly coming out of the rules even if we eliminate all the benefits. the moral of the illustration is that if there is delay, it is a solution that will not occur

police lease from the perspective of that was not be the financial structure. the method may not be perfect but it has been accepted by americans and the bipartisan effort. as we've all seen in many other instances, it is not a trivial exercise. means oftainable social security. we are putting much value if we further delay. before i close, let me see a brief word of the changes in this year's projections for those among you that are you wonky. we have price inflation reflections that reflect the policies. we have a slight and our production in the ratio of the total wages. that is slightly worse because revenues for social security are a function of task earnings whereas benefits grow in proportion to growth in the total average range index -- wage index. they average 0.1%.

this along with 0.16% increase that was by the passing year accounts for the increase of lashes estimate of 0.27% of payroll to a deficit of 2.78%. our long-term outlook is not qualitatively change. we are radically when in nano time. -- running out of time. because disability and old-age survivalist ernst is related to the basic benefit structure, it is being strained by similar factors, lawmakers will act strongly for social security as a whole. i turned over to my fellow rustee the with that -- tu with that. >> good afternoon. thank you for your remarks. i found that a trend this buzzer to work with him over the last four years.

i want to extend my excruciating -- appreciation to secretary lou for their contributions to this process. also, to the staffs. , that have are presented of them and the deliberations throughout the course of the year. the stats have shown incredible dedication, and commitment, expertise, as we have put this together. and the actuaries and their staff to of been incredibly constructive. a primaries possibility is to andre public analyses objectives that the use data available. they employ the most important assumptions. as chuck indicated, both he and

we can provide such assurance of the public without hesitation. once again, we feel we've participated in an open issuesion of numerous that have to be dealt what each year as these reports are put together. about say a few words content of these reports. -- itttom line message differs little from those of recent reports. i add my voice. both of these vitally important programs, unsustainable over the long run and require legislative intervention to correct. the sooner the policymakers address these challenges, the challenges will be less if we help the economy as a whole. thesooner lawmakers act,

broader will be the year brea policy options that they can consider and the greater the opportunity will be to make solutions that balance the government. since chuck has spoken, i will say a few words about the medicare report. one of them being quite wonky. unlikest is that previous reports -- medicare part b cost projections in this year's report are not current law projections. vision up assume there will be a sharp decline the position payment rates as called for by the sustainable growth rate mechanism which lawmakers have waived him per year since 2003. is projected baseline which the monarch or we have given to prevalent possessions shown in the report assumes that lawmakers will increase position payment by 6/10 of a percent a fix when the current sgr

runs out in march 2015 and the adjustment will continue through 2013. the increase is the average increase that lawmakers have provided over the decade that precedes march 2015 when they have waived the rules. makebaseline change should the cost projections and bit more useful than they have been in the past when they reflected the effects of sharper junctions of payments. the current law projections along with adjustments of the alternative presumptions in which the world is more pessimistic are still presented in a report. they are contrasted with the baseline of various places and then explained in more detail in appendix c of the report. the second mentioned that i that i would is --

like to comment on is what lawmakers should have on the improvement of medicare is an situation which is is a number of a fillet test these explained. is very real. cost have been essentially unchanged for two years and have grown very slowly over the past or years. --is the next for buying the it has been explained. it was in the previous years. the estimates that the 75 year deficit have declined from 1.35% to 1.1 payroll in 2012 1% of payroll in 2013 and now down to .380% payroll. projects the trust

fund will be depleted in 2030, four years later than was projected. lashes report moved to the trust fund the place and date from 20 24 to 2026. some might be tempted to conclude these good new trends that medicare will be healing the financial maladies by itself. no further actions will be needed. that will be not upper room it -- that will not be approved in conclusion. -- that will not be a prudent conclusion. the date can bounce around from year to year. the inflation rate data has years -- has moved six years over the course of the last three reports, it is worth reminding between it 2010 and 2011 reports, and moved in the other action. a decade ago, the projection

depletion rate was 11 years reports. 2012 and 2004 this volatility rises because the issue also wish the rejections are made are subject to revision and going forward, the trust fund balances are affected by the strength of the new legislation and administrative policies, developments, shifts in beneficiary behaviors, and changes in the efficiency in which health care providers deliver services both to medicare beneficiaries and to the nonelderly, nondisabled population. because of a limited ability to predict future, each of these introduces uncertainties into the estimates, uncertainty that grows with projections and extends. although i camusso with him those that are cautiously

optimistic about the recent slowdown in the growth of per capita health senate with continue, our latest projections indicate that medicare spending will grow faster than the retirees incomes or gp. admission as the well with the trustees, notwithstanding the very encouraging experience in the past few years, for the legislation will be needed to address the substantial financial shortfalls and the growing burden on part b costs on taxpayers. the sooner lawmakers face that, the better. thank you. >> i want to thank all my colleagues and trustees further work to put this together and for our staffs for supporting the effort. i think we are going to take of you questions from all of you.

for theu can wait microphone the state for you and state your name. the first question -- >> secretary lou, a couple of democrats proposed changes to the payroll tax allocation to send more money to the disability trust fund. do you't have to do -- support that? >> let me say that in the past when we had a situation like this, the measures taken in the short term at least to deal with it was to do a reallocation of the payroll tax rate to support the visibility fund. i think he be look from now there was probably no other alternative vector produces the desired results between now and then.

i think it is going to be important for there to be legislation that doesn't reallocate the payroll tax -- that does reallocate the payroll tax. as we go to the process of looking more broadly at the to dos needed in osdi with the longer-term questions -- i want to underscore we have and number of provisions that will improve the program integrity in the disability program. we're going to continue to push that forward. it will have a consulate against -- a consequence to do with the projected for call -- shortfall. >> any other questions? thank you. >> my question is with the secretary.

and report attributes the improvement in the hii trust fund to two factors -- one, i variety of features. in the slowdown of the hospitals expenditures. can you talk about the relative proportions of each and explain the improvement and the trust fund? what specifically is making any difference? thank you. >> i think what we see and we talked about which is one of the biggest piece of news is what is happening in a medic or side. it is a number of things coming together. in terms of the direct attribution in percentage terms when gdp numbers are coming out, the question at this point is our ability to get to the level of what you are asking about. it is something that is very difficult to do. we have not done that. what we do know when what the root -- and what the reflecting what we believe is the

changes that have occurred in terms of the affordable care act , in terms of some of the changes that were made in terms of the way we would implement things in terms of how they are implementing the law whether that is the medicare changes or other changes that have occurred. is we do need to focus on longer-term fixes. we are focused on social security because right in front of us we cannot ignore that we need to do a couple things to think about how to do the long-term resolution and of the same time continue the implementation of changes that have been put in place and consider other changes that i think many of you already know that and the current budget there are additional changes that would produce additional aid. >> other questions?

thei would like to ask public trustees what is behind the ongoing slowdown in health care costs and how long do you think that will continue? >> lots of things are behind the slowdown. most, know, better than there is an active debate going area.ng experts in this how much of his it is due to the weak economy, how much is it due to the legislative changes like the affordable care act. how much is it due to pressures that are being exerted both under private sector and public sector. will lowered utilization and

growth of intensity. i think we are probably many years away from being able to allocate these various factors within any kind of precision. question also involves how long this will go on. medicareok at the issues, we have quite slow growth going out for the next couple of years. think that is probably a safe assumption in respect to the private sector as well. the burdene in that is being placed on consumers outside of medicare derided dr. bull plans -- high deductible plans, increased prescriptions, providers.

it is dampening spending as well. i have no definitive answer for you but maybe chuck will. i think there are four points i will make. no one knows. there is an active debate that is going on. how much of it was changes in the health care sector. how much of it is to recent legislation. a debate trustees will settle. the second point i will make is that you have to remember we are dealing with projections of the future. ofre was a great sensitivity what we project in terms of trendlines going forward. projecting andre more favorable trends based on data received to date. israll, very little of that

a change projection for the future. that a future has improved to date is relatively slighter. correctly, we are looking at a trust fund ratio in the trust fund of 72 and set of 76. is a little better but not qualitatively better. we need to be a little bit cautious about inferring from a change of production. the reality is that much better. we are looking at a more favorable trend in project and i going forward. the third point is that i would not be too long up on the debate of hi trust fund insolvency. the hospital insurance trust fund is one piece of video care. isondly, the trust fund dimon summit hospital insurance which is never different from

the hospital insurance. we have a relatively large buildup of combined trust funds. a rather precipitous. period of drawdowns in the 20 30;'s. we have a shallow balance th to begin with. you can have a very slight nudge either favorably or unfavorably in mecca and cause that's a move by several years. the beaste nature of with hostile insurance, trust fund balances. we have had a year where it comes five years closer and -- he last point that one has to remember that the trustees methodology has been assuming it's essential slowdown in the rate of national healthcare growth over the next 75 years.

we have been assuming that. it is starting to occur but that doesn't mean that reality is going to be that much better than our projection methodology suggests. projection methodology is perhaps being validated as somewhat realistic than we anticipated. a slowdown in national outerspace and growth. on top of that, we are assuming substantial savings from the affordable care act going forward. we are assuming the projection period is assuming. we hope the continues. beenve to remember we have assumed for a long time that this is going to play out in a more payroll direction going forward. >> and that concludes our press conference. we will take a 15 minute break. we will reconvene.

--this week's q&a >> she was so beautiful and so smart and so witty that she was always irresistible to men. , richard:, age washington columnist, sat together during coffee. she stroked his beard. have ends, he said. i never met an 80-year-old deborah want to do that. she had this quality. her entire life.

>> on the life and career of -- sharing the personal relationship during his final years on sudden it at 8:00 eastern. >> president obama discuss the economy and economic opportunities for americans. representative greg walden who chairs the national republican congressional committee gave the republican address. he talked about the republican agenda and tension republican house candidates running around the country. >> hi, everybody. my top priority as president is doing everything i can to create more jobs and more opportunities for hardworking families to get ahead. on friday, we learned that our economy created over 200,000 new jobs in july. that's on top of about 300,000 new jobs in june. we're now in a six-month streak with at least 200,000 new jobs each month.

that hasn't happened since 1997. all told, our businesses have created 9.9 million jobs over the past 53 months. that's the longest streak of private-sector job creation in our history. because of you -- because of your hard work and determination -- america has recovered faster and come farther than almost any other advanced country on earth. the economy is clearly getting stronger. things are clearly getting better. and the decisions we make now can keep things moving in that direction. that's what's at stake right now. making sure our economy works for every working american. making sure that people who work hard can get ahead. that's why i've been pushing for common-sense ideas like rebuilding our infrastructure in a way that supports millions of good jobs and helps our businesses compete. raising the minimum wage. making it easier for working folks to pay off their student loans. that's why i've been pushing for fair pay and paid leave. these policies have two things

in common. all of them would help working families feel more stable and secure. and all of them have been blocked or ignored by republicans in congress. that's why my administration keeps taking what actions we can on our own to help working families -- because congress is doing so little for working families. house republicans actually got together this week and voted to sue me for taking actions on my own. and then they left town for the month without settling a bunch of unfinished business that matters to working families across america. the bottom line is this -- we've come a long way these past five and a half years. our challenges are nowhere near as daunting as they were back then. but imagine how much farther along our economy would be -- how much stronger our country would be -- if congress would do its job. i'll never stop trying to work with both parties to get things moving faster for the middle class. and i could use your help. if you see your member of

congress around home this month, tell him or her what's on your mind. ask them why they haven't passed bills to raise the minimum wage or help with student loans or enact fair pay for women. and when they return from vacation next month, instead of trying to pass partisan bills on party lines, hopefully we can come together with the sense of common purpose that you expect. and in the meantime, i will never stop doing whatever i can, whenever i can, not only to make sure that our economy succeeds, but that people like you succeed. thanks, and have a great weekend. >> no matter where you stand on the issues, this much is clear -- something has gone terribly wrong in washington. and americans have good reason to be fed up. for nearly six years now, we've had an administration that trusts government more than you, that spends rather than saves, that believes change comes from desks in washington and not kitchen counters like this one. republicans have sought to do things differently. we've focused on solutions to rein in big government, and help

grow our economy. the house has passed more than 40 jobs bills, but the president and his party refuse to give them a hearing. especially when we have an economy leaving people behind, a debt bigger than the size of our economy, a humanitarian crisis at our southern border, the irs targeting americans for their political beliefs, the rolling disaster that is obamacare. and the president denies his failures instead of learning from them. he's disengaged when he should be leading. the president is so unwilling to challenge or even manage the big bureaucracies that our government cannot provide basic services to our veterans. these are the problems he promised to solve, but instead he's become a part of them. we all hope things will get better -- but in 94 days, we get to do more than just hope. we have the chance to deliver the accountability that cannot come soon enough. it's an opportunity -- and an obligation -- that we take seriously.

our candidates for the house or people just as frustrated as you are played they are leaders who are ready to serve. we have mary nick fallon, the first female fighter pilot to fight in combat. she will fight in congress, just like she did in uniform grid will heard is a successful businessman whose district has seen firsthand the consequences of the president's failure to secure the american border. we are talking to minnesota farmers about the anti-energy and tax policies that make it harder for them. in florida, carlos cole bello, a a freshuban exiles, voice washington sorely needs. these are some of our gre