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Thursday
Mar172011

State Budgets vs. Social Security: What's the Real Third Rail?

Comstock/Thinkstock(NEW YORK) -- While Social Security long has been seen as the deadly third rail of American politics, an ABC News/Washington Post poll finds that state budgets may in fact pose the greater hazard to axe-wielding lawmakers.

Beyond freezing pay and trimming pensions for new hires, state governments have little leeway in terms of public support for cost-cutting measures.  Sizable majorities of Americans -- six in 10 or more -- reject 10 out of 12 state deficit-cutting approaches tested in this poll.  The choices are so poor that raising or enacting taxes, while far from popular, are among the less unpopular options.

Reducing union bargaining rights -- the Wisconsin approach -- doesn't look like a popular solution either.  Sixty-seven percent of respondents in the poll, produced for ABC News by Langer Research Associates, say workers employed by state governments should have a right to form unions to negotiate their working conditions, pay, benefits and pensions.  More, 81 percent, say all workers in general should have that right.

Perhaps surprisingly, there may be a little more wiggle room for lawmakers in Washington eyeing Social Security.  Despite the system's "touch it and die" reputation, one option gets narrow majority support -- lifting the cap on the amount of income that's taxed to fund benefits.  And two others -- reducing early retirement benefits and slowing the rate of growth in benefits -- approach a split decision.

One impetus could be the sense of risk: eighty-one percent of Americans see a crisis ahead for Social Security if changes aren't made, up 10 points from six years ago.  And more than half now favor "major" changes to keep the system secure.  Given those shifts, support for proposed changes to Social Security has gained in several cases, even when it still falls short of a majority. 

Copyright 2011 ABC News Radio

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