No Cuts in Cost-of-Living Hikes for Old: White House

A White House spokesman reaffirmed today that President Reagan would not accept reductions in cost-of-living adjustments for the aged, despite statements by Senate Republican leaders that not even Social Security is safe from their efforts to cut the federal deficit.

“We’re not making any changes in Social Security,” said spokesman Marlin M. Fitzwater, when asked about assistant Senate GOP leader Alan K. Simpson’s suggestion that Congress might take the lead in trimming benefit increases.

Asked whether Reagan, who made a campaign promise not to tamper with Social Security, might accept cuts if Congress proposes them, Fitzwater said, “No.”

“We would prefer not to see a change,” he said.

Rep. William H. Gray III (D-Pa.), newly elected chairman of the House Budget Committee, said today that there is a strong sentiment in the House that if enough spending reductions can be made to “ensure economic growth and productivity, that we ought to be able to do it without Social Security.”

“I’m hopeful that we might be able to do that,” he told reporters. “At this time I’m not able to say that we are going to be able to do it.”

The warnings came Thursday after a meeting with Budget Director David A. Stockman, who told them that a slowdown in economic growth will lead to even more red ink than the projected $200 billion this year. (Story, Page 14)

Fitzwater said he had no answer to how the Administration could reconcile the latest projection of increased deficits with Reagan’s apparently set plan for $42 billion in spending cuts next year as the first step in halving the deficit over three years.

The spokesman said Stockman’s latest prediction “certainly exacerbates the problems we face, but I don’t think we’re reopening the budget process.”

Fitzwater also said Reagan has not changed his mind on opposing any new taxes to cut the deficit.

The budget process is in its last stages, with Reagan continuing to hear personal appeals from Cabinet officers whose budgets have been slashed.