FILE NUMBER........

Whereas, The Social Security system provides benefits to 44 million

Americans, including over 27 million retirees, 4 1/2 million people with

disabilities, almost 4 million surviving children and over 8 million

surviving adults, and is essential to the dignity and security of a large

number of the residents of this country; and

Whereas, The Trustees of the Federal Old-Age and Survivors

Insurance and Disability Insurance Trust Funds have reported to Congress

that the "total income" of the Social Security system "is estimated to fall

short of expenditures beginning in 2019 and in each year thereafter . . .

until [trust fund] assets are exhausted in 2029"; and

Whereas, Intergenerational fairness, honest accounting principles,

prudent budgeting and sound economic policy all require saving Social

Security to ensure that our country may better afford the demands placed

on Social Security upon the retirement of the "baby boomer" generation

beginning in 2010; and

Whereas, If efforts were expended to save the Social Security system,

the national savings would be expanded, interest rates would be reduced,

private investments would be enhanced, labor productivity would increase

and the economy of this country would grow; and

Whereas, The Social Security system produces an annual surplus that

is invested in government bonds and the United States Department of

Treasury currently borrows the "surplus," which is projected to approach

$100 billion dollars by the end of 1999, and spends this money on

programs that are unrelated to Social Security; and

Whereas, The United States House of Representatives introduced a bill

into Congress 1 year ago, designated H. R. 3207, that would have created

the "Save Social Security First Reserve Fund" into which the Secretary of

the Treasury would be required to deposit budget surpluses pending Social

Security reform; and

Whereas, This bill was referred to the Subcommittee on Social

Security on February 19, 1998, but died in committee; and

Whereas, Similar bills have been introduced to protect the Social

Security system, but to date none have been acted upon; now, therefore, be

it

Resolved by the Assembly and Senate of the State of Nevada,

Jointly, That the members of the 70th session of the Nevada Legislature

hereby urge the Federal Government to invest all surplus money from

Federal Old-Age and Survivors Insurance for the benefit of the Social

Security system; and be it further

Resolved, That such investments must be in public debt securities with

suitable maturities and bearing interest at rates determined by the Secretary

of the Treasury, taking into consideration current market yields on

outstanding marketable obligations of the United States of comparable

maturities; and be it further

Resolved, That the income on such investments must be credited to

and form a part of the fund for use in the future; and be it further

Resolved, That the Chief Clerk of the Assembly prepare and transmit a

copy of this resolution to the Vice President of the United States as the

presiding officer of the Senate, the Speaker of the House of

Representatives, the Secretary of the Treasury and each member of the

Nevada Congressional Delegation; and be it further

Resolved, That this resolution becomes effective upon passage and

approval.

~