Chart l.-Expenditures per inhabitant -for public assistance from State and low of 11 cents in the District of local funds in relation to income payments, by State,fiscal year 1954 Columbia and Virginia to a high of RANX IN $1.60 per $100 of income payments in INT PER INHABITANT IN DOLLARS ,953 PER PERCENT OF 1953 INC;OME PAYMENTS Colorado: the median State, New 20 15 IO 5 0 CAPITA .O 1.5 2.0 - INCOME -l York, spent for assistance 43 cents U. 5. AV per $100 of income payments. Five COLQ 20 131 OKLA. ‘38 q States spent less than 20 cents, 16 LA 41 spent 20-39 cents, 17 spent 40-59 MASS. 15 WASH. I I cents, 7 spent 60-79 cents, 3 spent CALIF. 8 80-99 cents, and in two States ex- MINN. 25 MONT 19 penditures from State and local OREG. I7 funds for public assistanceamounted UTAH 28 IDAHO 31 to $1 or more for every $100 of in- KANS. 24 come payments. R. I. I6 N. OAK 39 MO. 21 MAINE 33 IOWA 27 Trust Fund Operations, WIS. 16 1954 N. H 23 5. DAK 35 The old-age and survivors insur- ARIZ. 30 WYO. 22 ance system carries on its financial N MEX. 37 operations through the Federal old- ILL. 7 N. Y 4 age and survivors insurance trust GA 43 fund. Sums equivalent to 100 percent 32 40 of current collections under the Fed- ARK. 48 eral Insurance Contributions Act and CONN. ‘2 under chapter 21 of the Internal NEBR 26 FLA. 34 Revenue Code of 1954 are trans- MICH. IO ferred under permanent appropria- MISS. 49 TENN. 42 tion to the trust fund on the basis of OHIO 9 estimates made by the Secretary of NEK 3 KY 44 the Treasury. To the extent that esti- TEX. 29 mates are found to differ from the 5. c 46 PA. I4 amounts of contributions actually pay- N. G. 45 able on the basis of reported earn- ALA 47 INO. 13 ings, adjustments are made periodi- N. J. 6 cally. Contributions received under MR I2 DEL. I voluntary agreements with States for D. C. 5 the coverage of State. and local gov- VA 36 -I- - ernment employees are deposited directly into the trust fund. 12 of these States, income payments ratio of State and local assistance In 1954, contributions amounting increased at a greater rate than as- expenditures to income payments to to $5,068 million, which excludes. sistance expenditures, and in 16 individuals was as follows: amounts reimbursed to the general States the increases in income pay- funds of the Treasury for refunds ments accompanied declines in State of excesstaxes collected, were appro- Number of States priated to and deposited in the Fed- and local assistanceexpenditures. with specified Fiscal effort increased in 1954 in pefcentsge change eral old-age and survivors insurance 22 States. Most (17) of these States Percentage change m flscal effort trust fund. The trust fund received $447million in interest on its invest- had larger increases percentagewise 10. De- in assistance expenditures than in oremes creases ments. It also received $21 million income payments, and five States in- during the year as a result of the creased their assistanceexpenditures Total ____________________- 22 23 financial interchange provision of the Less than 5 ___________________- 13 1951 amendments to the Railroad while income payments declined. The 641s ____________________------- range of percentage changes in fiscal 10-14..---..------..----------- -2 Retirement Act. 15-19 ____________________------ --------i effort went from a decrease of 30.0 20 and over ____________________ Expenditures for old-age and sur- vivors insurance benefits in 1954 percent in Hawaii to an increase of Median percentage change ____ _________, 1.8 22.2 percent in Virginia; the median totaled $3,670 million, and adminis- change was -1.8 percent. The CiiS- trative expenses amounted to $92 tribution of States by PerCentage The fiscal ,effort of the individual million. Total assetsof the trust fund change between 1953 and 1954 in the States varied considerably-from a were $20.6 billion at the end of 1954, Bulletin, April 1955 19 Table l.-Znvestments of social se- of these accounts amounted to $196 obligations are to be redeemedat par curity trust funds and interest- million. Withdrawals for benefit pay- bearing public debt at end of speci- plus accrued interest. fied period, 193654 ments totaled $2,032 million. At the Although the unemployment trust end of the year the net balance in fund is composed of the separate [Smoulkts in millionz] the State accounts was $8,176 mil- State accounts, the railroad unem- Social security trust lion-$712 million less than at the ployment account, and the Federal fund investments end of 1953. unemployment account, investments ---------- ----- The railroad unemployment insur- are made by the Secretary of the At ance account declined in 1954 at a Treasury for the fund as a unit. In- end Of- somewhat more accelerated pace terest earned on the funds invest- than in previous years. Since Janu- ments is distributed quarterly among ary 1, 1948, the contribution rate for all accounts on the basis of the aver- this program has been % of 1 per- age daily balance of each account. -,-_---I-_-_,_--,._--- ,____ cent; the rate is varied, under the Permissible types of investments are I 1936.. $33,699 S64 0. 2 provisions of the 1948amendments to the same for the unemployment trust 193i... 36,715 1,138 3. I $513 g; 1938... 38,899 1,926 5. 0 8W 1.064 the Railroad Unemployment Insur- fund as for the old-age and survivors 1939-.. 41.445 2,944 7. 1 1 , 4% 1,509 insurance trust fund. 1940.. 44,458 3,962 8.9 2,Olti 1,945 ance Act, in relation to the size of 1941... 57,451 5,468 9. 5 2. Zfi 2.782 the reserve. Deposits into the account During 1954, net investments for 1942... 107,.308 7,342 6. R 3, G55 3,637 1943... 164,508 9,874 6. 0 4,779 5,095 totaled $17 million, interest amounted the old-age and survivors insurance 1944.. 228.891 12,546 5. 5 5,967 6.579 1945... 275,694 14.563 5. 3 7,054 7,508 to $16 million, and transfers from the trust fund amounted to $1,571 mil- 1946.. 257,649 15,6G 6. 1 8.079 7,H4 railroad unemployment administra- lion. At the end of the year the fund 1947. ~. 254,205 17,371 a. 8 9,268 8,102 194%. 250,579 19,oa 7. 6 10, 55G 8,496 tion fund were $3 million. Benefit held $19,863 million invested in 1949.. 255,019 19,424 i. G 11,725 7,696 payments rose from $92 million in Treasury bonds and special certifi- 195&. _ _ 254,283 ;!j$j 8. 2 13,331 7,639 1951... _ 257,070 9. 1 15,017 8,427 1953 to $206 million in 1954. During cates of indebtedness. The invest- 19.a.. 265,293 25 ) 983 9. 8 16. !xiO 9.023 1953.. 272,881 27,836 10. 2 IX, 291 9,545 1954 the net balance of the account ments of the unemployment trust 1954: June 10.5 19,340 8,989 decreased $169 million (25 percent) fund decreased during 1954 by $805 DE- million, and by the end of the year can to $504 million, compared with a bw- 10.4 19.863 8,740 drop of only $53 million from 1952 they amounted to $8,740 million to 1953. (table 1). Source: Daily Statement OJ the U. S. Treasury and other Treasury Department releases. Under the provisions of the Social The net acquisitions of the two Security Act, as amended, the Fed- social security trust funds, taken to- a net increase of $1,869million from eral old-age and survivors insurance gether, thus totaled only $766 mil- the amount at the end of 1953. trust fund is administered by a Board The unemployment insurance trust of Trustees composed of the Secre- Table 2.-Average interest rate on so- fund is composed of the 51 accounts tary of the Treasury as Managing cial security trust fund investments Trustee, the Secretary of Labor, and and interest-bearing public debt at for the State unemployment insur- end of specified period, 1936.54 ance programs, the railroad unem- the Secretary of Health, Education, ployment insurance account, and- and Welfare. The Commissioner of Computed average interest Social Security is Secretary of the rate (percent) beginning December 23, 1954-the _--..- - Federal unemployment account. On Board. The Managing Trustee invests the that date, the first deposit ($64.3 At end of- “@lge UIleUl- portion of the old-age and survivors Interest- survivors ployment million) in the Federal unemploy- bearing insurance 1.rust fund insurance trust fund that, in his public >rust fund invest- ment account was made according to debt invest- ments the provisions of Public Law No. 567 judgment, is not required for current mm’s (83d Congress,2d session), signed by expenditures for beneAt payments and administrative expenses.The act 1936...-....- 2.570 . ..~.... a. 50 the President on August 5, 1954. The 1937.. -_. 2.563 3.04 2.54 restricts permissible investments of 1938..-- . 2.536 3. ofl 2.50 new law provides for establishment 1939..--..... 2.598 3.00 2.50 of a reserve account of $200 million, the trust fund to interest-bearing ob- 1940. _ _. _. 2. 566 2. ‘+I 2.50 ligations of the United States Govern- 1941.---....