President Bush used the friendly confines of the S.C. State House on Monday to send a message about his plan to permanently change Social Security: “I’m just warming up.”

Bush spoke from the former stomping grounds of one of his most visible Republican critics: U.S. Sen. Lindsey Graham. Graham, a former member of the S.C. House, has placed himself squarely at odds with Bush on one major part of the president’s plan: How to pay for it.

Bush did not address that issue during his 40-minute speech before a joint assembly of the state House and Senate.

Instead, the president, whose 2000 rise to the White House was powered largely by his GOP primary victory here, warned of the coming collapse of the Social Security system.

Fixing the problem, he said, is a question of leadership.

“It’s time to come up with a permanent solution,” Bush said. “When people bring forth their ideas in Congress, I will insist that we not have a Band-Aid approach to Social Security, that we have a permanent fix.”

Bush’s idea would allow younger workers to invest some of their Social Security payroll tax in private investment accounts. But the president has not released a specific plan on how the new system would work.

Democrats nearly universally oppose Bush’s idea, and some Republicans are skeptical, as well.

Some, such as Graham, say the president’s plan would leave a trillion-dollar hole in the federal budget unless something else is done to pay the cost of implementing the private accounts.

Graham has suggested raising the cap on income that is subject to the 12.4 percent Social Security payroll tax. The current limit is $90,000.

Bush has opposed that idea. He said Monday there are “some basic principles that must guide our efforts.”

“We should not raise the payroll tax rate,” Bush said. “That would hurt the economy and cost jobs.”

Any reform plan, he said, must “ensure that Social Security continues to provide dignity and peace of mind for Americans in retirement and include extra protections for those with low incomes.”

Failure to shore up Social Security will not impact retirees, or even those workers getting ready to retire. It is the children and grandchildren of beneficiaries who have the most to fear, Bush said. He said that by 2041, “the entire system will be bankrupt.”

“If we don’t do something to fix the system now, the students graduating this spring from the University of South Carolina ... will spend their entire careers paying Social Security taxes only to see the system go bankrupt a few years before they retire.”

Bush’s speech was part of a 60-city tour that has taken him to 22 states. But this was his first appearance at a state capitol, and it was a friendly room.

Of the 170 state lawmakers, 100 are Republicans. They were joined by Republican Gov. Mark Sanford and Republicans Graham and U.S. Sen. Jim DeMint, and several Republican congressmen.

Sanford, Graham and DeMint are no strangers to the Social Security debate. All three have made it a key part of their political lives, and Bush acknowledged that Monday.

“These men have been leaders in the debate,” he said. “They’ve stepped up and said, ‘Here are some ideas I’d like you to consider.’• ”

Reaction among the politicians in the room was mixed.

“It was a strong speech by a strong leader,” said House Speaker David Wilkins, R-Greenville.

Sanford praised Bush for tackling the issue.

“By its nature, leadership doesn’t follow the crowd,” Sanford said. “No other president has stepped to the plate the way he has.”

Yet Rep. Jerry Govan, D-Orangeburg, said, “I’m not sure people are ready to start a program like he’s talking about. Many people don’t understand investing.”

What they should understand, Bush said, is that it will make them more money than the traditional Social Security system.

“We can give every American the chance to tap into the power of compound interest,” Bush said. “That would be a good deal for younger workers.”

Staff writer Jeff Stensland contributed to this report. Reach Gould Sheinin at (803) 771-8658 or asheinin@thestate.com.