Using General Accounting Office estimates for total non-covered payroll, the five-year Social Security costs are $24 billion.

Full details of the estimate can be found in Section V of the report. This analysis includes both the employer and

employee cost of mandatory coverage.

Sources:

Number not Covered* Based on Social Security Administration, Office of Research and Statistics, Table 1-5 — Estimates

of Social Security Administration of Non-Covered State and Local Government Workers. 1992 (unpublished)

Assumptions: 9% terminations include retirements, death and job turnovers; 3% salary increase

New Hire Pay: U.S. Bureau of the Census, 1997 Statistical Abstract of the United States Government

*Note: When system reports of number of uncovered employees differed, those report numbers are shown and the

differences are footnoted.

Appendix B

State-by-State Cost Analysis Of Mandatory Social Security

State

Employees Not Covered by Social Security

Annual Number of Employee Terminations (9%) Average Annual Pay for New Hires First Year Employer SS Tax First Year Employee and Employer Year 2-Cumulative

Year 3-Cumulative

Year 4-Cumulative

Year 5-Cumulative

Alabama

27,911

2,512

26,226

$ 4,084,537

$ 8,169,073

$ 24,997,364

$ 50,997,073

$ 86,703,340

$ 132,675,159

Alaska

33,325

2,999

48,301

8,981,798

17,963,596

54,968,603

112,141,339

190,658,562

291,749,488

Arizona

11,908

1,072

33,010

2,193,427

4,386,854

13,423,774

27,385,814

46,560,350

71,247,564

Arkansas

15,902

1,431

24,798

2,200,408

4,400,816

13,466,496

27,472,972

46,708,532

71,474,316

California

903,027

81,272

25,074

126,344,526

252,689,053

773,228,502

1,577,461,950

2,681,942,553

4,103,961,329

Los Angeles teachers estimates a $440 million 10-year cost; school districts statewide will have a $3.8 billion 10- year cost; CALPERS estimates a $5.5 billion 10-year cost and also estimates 750,000 employees not covered by Social Security.

Colorado

180,076

16,207

34,397

34,562,462

69,124,923

211,522,266

431,526,159

733,664,840

1,122,668,391

Colorado PERA estimates a $137.4 million three-year costs, and $275 million when including the members’ Social Security tax. PERA covers about 152,000 active members. FPPA and Denver Public Schools have not explicitly estimated these costs.

Connecticut

61,228

5,511

42,480

14,513,537

29,027,074

88,822,847

181,207,316

308,081,986

471,433,124

Delaware

3,632

327

34,060

690,276

1,380,551

4,224,487

8,618,367

14,652,629

22,421,741

Florida

61,817

5,564

30,345

10,467,320

20,934,640

64,059,997

130,688,674

222,192,058

340,002,664

Georgia

102,120

9,191

27,682

15,774,002

31,548,004

96,536,892

196,944,724

334,838,147

512,375,928

Hawaii

14,209

1,279

34,153

2,707,883

5,415,766

16,572,243

33,809,001

57,480,815

87,958,275

Idaho

3,741

337

30,191

630,222

1,260,445

3,856,961

7,868,578

13,377,866

20,471,075

Illinois

351,845

31,666

38,875

76,323,448

152,646,895

467,099,500

952,928,773

1,620,134,309

2,479,161,437

Illinois system estimates a $1.6 billion first year cost, but that assumes ALL are in Social Security. Illinois reported 351,845 not in Social Security. Social Security reported 342,969 not covered. This number included State systems, City of Chicago, Cook County, Downstate Systems.

Indiana

48,530

4,368

30,801

8,340,740

16,681,480

51,045,329

104,137,475

177,050,690

270,926,454

Iowa

21,702

1,953

30,678

3,715,036

7,430,071

22,736,018

46,383,706

78,859,864

120,672,918

Kansas

19,512

1,756

28,898

3,146,285

6,292,570

19,255,263

39,282,625

66,786,868

102,198,581

Kentucky

64,120

5,771

30,962

11,077,801

22,155,603

67,796,144

138,310,781

235,150,882

359,832,512

Teachers have 75,000 active and retired members; Social Security shows 64,120 actives not covered.

Louisiana

220,876

19,879

23,800

29,333,216

58,666,433

179,519,284

366,236,939

622,662,518

952,810,452

Louisiana Association of Public Employee Retirement Systems (LAPERS) estimates the 5-year costs (when totaled for each division) to be $950 million. The study reported 220,876 were not covered; Social Security reported 217,054. Average salary of new hires taken from the LAPERS report was $23,800.

Maine

37,838

3,405

29,845

6,301,404

12,602,807

38,564,590

78,675,545

133,761,257

204,684,110

Maryland

28,126

2,531

38,113

5,981,614

11,963,228

36,607,477

74,682,842

126,973,010

194,296,602

Mass.

301,520

27,137

36,985

62,226,892

124,453,784

380,828,580

776,927,638

1,320,903,679

2,021,272,832

Massachusetts estimates 300,000 not covered under Social Security.

Michigan

85,808

7,723

40,665

19,470,699

38,941,399

119,160,680

243,099,469

413,308,740

632,453,176

Minn.

72,948

6,565

36,351

14,796,496

29,592,992

90,554,554

184,740,169

314,088,413

480,624,277

Mississippi

17,722

1,595

24,285

2,401,510

4,803,020

14,697,241

29,983,813

50,977,371

78,006,577

Missouri

59,992

5,399

28,276

9,465,447

18,930,893

57,928,533

118,179,886

200,925,078

307,459,512

Montana

12,666

1,140

29,751

2,102,677

4,205,354

12,868,383

26,252,762

44,633,977

68,299,791

Nebraska

10,294

926

30,037

1,725,320

3,450,640

10,558,960

21,541,313

36,623,745

56,042,377

Nevada

75,000

6,750

37,286

15,604,400

31,208,800

95,498,929

194,827,177

331,237,972

506,866,870

Nevada PERS has 75,000 not in Social Security; Social Security shows 53,564 not covered

Appendix B (Continued)

State-by-State Cost Analysis Of Mandatory Social Security

State

Employees Not Covered by Social Security

Annual Number of Employee Terminations (9%) Average Annual Pay for New Hires First Year Employer SS Tax First Year Employee and Employer Year 2-Cumulative

Year 3-Cumulative

Year 4-Cumulative

Year 5-Cumulative

New Hamp.

11,039

994

30,718

1,892,184

3,784,368

11,580,165

23,624,671

40,165,793

61,462,488

New Jersey

39,264

3,534

44,260

9,697,060

19,394,119

59,346,004

121,071,667

205,841,577

314,982,836

New Mexico

22,269

2,004

27,549

3,423,276

6,846,552

20,950,449

42,740,969

72,666,617

111,195,889

New York

90,680

8,161

42,833

21,673,420

43,346,840

132,641,329

270,601,316

460,066,364

704,002,614

N. Carolina

37,034

3,333

29,539

6,104,189

12,208,378

37,357,637

76,213,242

129,574,940

198,278,126

N. Dakota

7,831

705

29,337

1,281,932

2,563,863

7,845,422

16,005,429

27,211,840

41,640,094

Ohio

921,404

82,926

23,800

122,366,137

244,732,274

748,880,757

1,527,790,165

2,597,492,417

3,974,734,068

Ohio report shows 921,404 for all 19 congressional districts not covered; Social Security showed 644,961 not covered

Oklahoma

13,633

1,227

25,706

1,955,486

3,910,973

11,967,577

24,415,031

41,509,534

63,518,707

Oregon

14,288

1,286

34,826

2,776,575

5,553,149

16,992,636

34,666,643

58,938,947

90,189,538

Pennsylvania

42,004

3,780

36,636

8,586,848

17,173,697

52,551,512

107,210,237

182,274,885

278,920,620

Rhode Island

9,852

887

39,552

2,174,329

4,348,658

13,306,895

27,147,370

46,154,955

70,627,222

S. Carolina

23,175

2,086

27,684

3,580,014

7,160,029

21,909,689

44,697,913

75,993,741

116,287,119

S. Dakota

2,266

204

21,855

276,341

552,683

1,691,210

3,450,234

5,865,960

8,976,207

Tennessee

41,549

3,739

27,894

6,466,944

12,933,888

39,577,697

80,742,382

137,275,216

210,061,241

Texas

515,751

46,418

28,317

81,492,777

162,985,554

498,735,794

1,017,469,916

1,729,864,776

2,647,073,158

Texas Association of Public Employee Retirement Systems (TEXPERS) estimates the 10-year cost at $9.55 billion.

Utah

14,559

1,310

31,281

2,541,281

5,082,562

15,552,641

31,728,912

53,944,325

82,546,669

Vermont

1,664

150

27,381

254,240

508,480

1,555,948

3,174,287

5,396,805

8,258,297

Virginia

38,517

3,467

30,992

6,661,010

13,322,021

40,765,383

83,165,378

141,394,705

216,364,963

Washington

49,868

4,488

40,259

11,202,735

22,405,470

68,560,737

139,870,626

237,802,872

363,890,640

W. Virginia

6,220

560

25,804

895,608

1,791,217

5,481,123

11,182,029

19,011,272

29,091,423

Wisconsin

46,579

4,192

36,685

9,534,851

19,069,701

58,353,286

119,046,424

202,398,334

309,713,918

Wyoming

7,035

633

27,997

1,099,028

2,198,056

6,726,051

13,721,804

23,329,304

35,698,960

TOTALS

4,803,876

432,349

32,564

801,099,646

1,602,199,293

4,902,729,836

10,002,049,526

17,005,115,233

26,021,562,331

Using General Accounting Office estimates for total non-covered payroll, the five-year Social Security costs are $24 billion. Full details of the estimate can be found in Section V of the report. This analysis includes both the employer and employee cost of mandatory coverage.

Sources:

Number not Covered* Based on Social Security Administration, Office of Research and Statistics, Table 1-5 — Estimates of Social Security Administration of Non-Covered State and Local Government Workers. 1992 (unpublished)

Assumptions: 9% terminations include retirements, death and job turnovers; 3% salary increase

New Hire Pay: U.S. Bureau of the Census, 1997 Statistical Abstract of the United States Government

*Note: When system reports of number of uncovered employees differed, those report numbers are shown and the differences are footnoted.