    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of Veterans Affairs]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 2008

                         DEPARTMENT OF VETERANS AFFAIRS

        The 2008 budget provides $41,769 million in gross discretionary
    funding for veterans health, benefits, and other services, including
    $39,417 million in net discretionary budget authority and $2,352 million
    in anticipated medical collections. The 2008 budget estimates reflect
    the reorganization of Information Technology (IT) functions within VA to
    improve the management of the IT program. The reorganization
    consolidates all IT personnel performing operations and maintenance
    functions throughout VA under the control of the VA Chief Information
    Officer. Based on the funding authority under the continuing resolution,
    this IT realignment is not reflected in the 2007 estimates.

                         VETERANS HEALTH ADMINISTRATION

                                  Federal Funds

                                 Medical Services

                          (including transfer of funds)

         For necessary expenses for furnishing, as authorized by law,
    inpatient and outpatient care and treatment to beneficiaries of the
    Department of Veterans Affairs and veterans described in 38 U.S.C.
    1705(a), including care and treatment in facilities not under the
    jurisdiction of the Department, and including medical supplies and
    equipment, food services, and salaries and expenses of health-care
    employees hired under title 38, United States Code, and aid to State
    homes as authorized by 38 U.S.C. 1741; $27,167,671,000, plus
    reimbursements of which not to exceed $1,100,000,000 shall be available
    until September 30, 2009: Provided further, That, notwithstanding 38
    U.S.C. 1705, the Secretary of Veterans Affairs shall establish a
    priority for treatment for veterans who are service-connected disabled,
    lower income, or have special needs: Provided further, That
    notwithstanding 38 U.S.C. 1710, the Secretary of Veterans Affairs shall
    give priority funding for the provision of basic medical benefits to
    veterans in enrollment priority groups 1 through 6: Provided further,
    That notwithstanding 38 U.S.C. 1710, the Secretary of Veterans Affairs
    may authorize the dispensing of prescription drugs from Veterans Health
    Administration facilities to enrolled veterans with privately written
    prescriptions based on requirements established by the Secretary:
    Provided further, That the implementation of the program described in
    the previous proviso shall incur no additional cost to the Department of
    Veterans Affairs: Provided further, That for the Department of Defense/
    Department of Veterans Affairs Health Care Sharing Incentive Fund, as
    authorized by 38 U.S.C. 8111(d), a minimum of $15,000,000, to remain
    available until expended, for any purpose authorized by 38 U.S.C. 8111.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............         156         169         169
                                               ---------   ---------  ----------
    01.99 Balance, start of year............         156         169         169
        Receipts:
    02.20 Pharmaceutical co-payments, MCCF..         723         842         915
    02.21 Enhanced-use lease proceeds, MCCF.           3           1           1
    02.22 First party collections, MCCF.....         136         138         138
    02.23 Third party collections, MCCF.....       1,096       1,173       1,254
    02.24 Parking fees, MCCF................           3           3           3
    02.25 Compensated work therapy, MCCF....          40          36          36
    02.26 MCCF, Long-term care copayments...           4           4           4
    02.40 Payments from compensation and
            pension, MCCF...................           2           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..       2,007       2,198       2,352
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       2,163       2,367       2,521
        Appropriations:
    05.00 Medical services..................      -1,994      -2,198      -2,352
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         169         169         169
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Acute hospital care...............       4,906       6,600       6,858
    00.02 Rehabilitative care...............         313         355         365
    00.03 Psychiatric care..................         796         962       1,014
    00.04 Nursing home care.................       2,265       2,450       2,590
    00.05 Subacute care.....................          91         122         129
    00.06 Residential care..................         212         256         265
    00.07 Outpatient care...................      14,469      14,116      16,819
    00.08 CHAMPVA...........................         631         765         913
                                               ---------   ---------  ----------
    00.91   Total operating expenses........      23,683      25,626      28,953
    01.01 Acute hospital care...............         223          23         126
    01.02 Rehabilitative care...............          17           2           9
    01.03 Psychiatric care..................          36           4          20
    01.04 Nursing home care.................          82           8          47
    01.05 Subacute care.....................           5           1           3
    01.06 Residential care..................           8           1           5
    01.07 Outpatient care...................         631          63         357
                                               ---------   ---------  ----------
    01.91   Total capital investment........       1,002         102         567
                                               ---------   ---------  ----------
    02.93   Total direct program............      24,685      25,728      29,520
    09.01 Reimbursable program..............         148         156         163
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      24,833      25,884      29,683
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         949         401
    22.00 New budget authority (gross)......      24,287      25,483      29,683
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      25,236      25,884      29,683
    23.95 Total new obligations.............     -24,833     -25,884     -29,683
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         401
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      22,970      23,129      27,168
    40.20   Appropriation (special fund)....       1,994       2,198       2,352
    40.35   Appropriation permanently
              reduced (P.L. 109-234)........        -198
    41.00   Transferred to other accounts...        -627
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............      24,139      25,327      29,520
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         138         156         163
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          10
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         148         156         163
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      24,287      25,483      29,683
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,717       3,474       4,005
    73.10 Total new obligations.............      24,833      25,884      29,683
    73.20 Total outlays (gross).............     -24,015     -25,353     -29,113
    73.40 Adjustments in expired accounts
            (net)...........................         -73
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -10
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          22
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       3,474       4,005       4,575
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................      19,628      21,821      25,598
    86.93 Outlays from discretionary
            balances........................       4,387       3,532       3,515
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      24,015      25,353      29,113
    ----------------------------------------------------------------------------

    [[Page 890]]

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -80         -78         -82
    88.40     Non-Federal sources...........         -80         -78         -81
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -160        -156        -163
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -10
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      24,139      25,327      29,520
    90.00 Outlays...........................      23,855      25,197      28,950
    ---------------------------------------------------------------------------

        For 2008, the budget requests total resources for the VA Medical
    Services appropriation of $29.5 billion. This includes $27.2 billion in
    appropriated budget authority and $2.3 billion to be collected in the
    Medical Care Collections Fund.

        The budget is proposing a set of revenue legislative proposals that
    are not reflected in the Medical Services appropriation request. These
    proposals are discussed at the end of the narrative for Medical
    Services. The appropriation request reflects the full funding request
    for Medical Services to care for our veterans.

        Medical Services.--Provides for a comprehensive, integrated health
    care delivery system that addresses the needs of eligible veterans and
    beneficiaries in VA medical centers, outpatient clinic facilities,
    contract hospitals, State homes, and outpatient programs on a fee basis.
    Hospital and outpatient care is also provided by the private sector for
    certain dependents and survivors of veterans under the Civilian Health
    and Medical Programs for the Department of Veterans Affairs (CHAMPVA).

        In 2008, VA will realign 5,689 full-time equivalents and $400
    million for food service operations from the Medical Facilities
    appropriation to the Medical Services appropriation. The cost for food
    service operations will support hospital food service workers,
    provisions, and supplies which are related to the direct care of our
    patients rather than the operations of the VA medical facilities.

        Medical Care Collections Fund (MCCF).--VA estimates collections of
    more than $2.3 billion, representing 6 percent of available resources.
    VA has the authority to collect inpatient and outpatient co-payments,
    medication co-payments, and nursing home co-payments; authority for
    certain income verification; authority to recover third-party insurance
    payments from veterans for nonservice-connected conditions; and
    authority to collect revenue from enhanced use leases. These collections
    also include those collected from the Compensated Work Therapy Program,
    Compensation and Living Expenses Program, and the Parking Program.

                                    WORKLOAD

        Provision of Veterans Health Care.--
            Acute hospital care.--Costs for 2008 are estimated to be $6,984
        million for operating medical, neurological, surgical, contract and
        State home hospital beds.
            Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Patients treated............        528,143        548,470         553,521
      Average daily census........          8,426          8,874           8,925
      Average employment..........         31,304         31,560          34,469

            Rehabilitative care.--Costs for 2008 are estimated to be $374
        million for the provision of rehabilitative care, including spinal
        cord injury care.
            Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Patients treated............         14,175         14,431          14,262
      Average daily census........          1,119          1,138           1,126
      Average employment..........          3,045          3,070           3,498

            Psychiatric care.--Costs for 2008 are estimated to be $1,034
        million for the inpatient care of veterans with problems related to
        mental illness, including alcohol and drug problems.
            Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Patients treated............        101,895        104,194         102,807
      Average daily census........          4,394          4,141           4,038
      Average employment..........          7,507          7,876           8,392

            Nursing home care.--Costs for 2008 are estimated to be $2,637
        million for the care of residents in VA nursing homes, contract
        nursing homes and State nursing homes.
            Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Patients treated............         87,945         90,729          90,104
      Average daily census........         34,137         34,040          34,175
      Average employment..........         16,148         16,279          17,496

            Noninstitutional extended care.--Costs for 2008 are estimated to
        be $491 million for noninstitutional extended care programs such as
        adult day care; home based primary care, skilled nursing and
        rehabilitation care; and home health aids.
            Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Average daily census........         29,489         37,237          44,336

            Subacute care.--Costs for 2008 are estimated to be $132 million
        for the treatment of veterans who require a level of care between
        acute and long-term care, as provided in VA hospital intermediate
        bed sections.
            Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Patients treated............         12,726         12,062          11,820
      Average daily census........            372            324             314
      Average employment..........            833            833             833

            Residential care.--Costs for 2008 are estimated to be $270
        million for the care of veterans in locations other than their own
        homes, such as domiciliary care programs.
            Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Patients treated............         28,715         29,653          29,307
      Average daily census........           8483          8,380           8,297
      Average employment..........          1,653          1,667           2,286

            Outpatient care.--Costs for 2008 are estimated to be $16,847
        million for outpatient medical and dental care provided by staff,
        physicians, and dentists participating under a fee basis arrangement
        for certain eligible veterans.
            Estimated operating levels are:

                  NUMBER OF MEDICAL VISITS AND DENTAL WORKLOADS

                                         2006 actual  2007 est.   2008 est.
      Medical visits (in thousands):
      Staff visits................         53,381         57,279          59,619
      Fee visits..................          5,643          5,949           6,604
      Readjustment counseling.....          1,170          1,185           1,200
                                        ------------------------------------
            Total.......................   60,194         64,413          67,423
                                        ====================================
      Dental:
        Staff:
          Examinations............        507,812        588,000         630,000
          Treatments..............        336,402        392,658         420,144
                                        ------------------------------------
            Total.......................  844,214        980,658       1,050,144
                                        ====================================

    [[Page 891]]

        Fee: Cases completed......         37,707         42,000          42,000
                                        ====================================
      Average employment..........         74,696         76,363          76,840
                                        ====================================

            Civilian health and medical program of the Department of
        Veterans Affairs (CHAMPVA).--Costs for 2008 are estimated to be $913
        million for private hospital and outpatient care for dependents and
        survivors of certain veterans.

        Estimated operating levels are:

                                         2006 actual  2007 est.   2008 est.
      Average daily hospital
        census....................            628            683             743
      Outpatient (in thousands)...          5,724          6,175           6,728

                              PERFORMANCE MEASURES

            Provide High Quality Health Care.--Use of clinical practice
        guidelines in treating patients results in improved health of
        veterans and reduced use of services. The prevention index
        spotlights and summarizes a variety of evidenced based measures for
        high quality preventive health care. VHA's strategy to monitor
        satisfaction through patient surveys will identify areas of
        improvement in all medical services.

                                         2006 actual  2007 est.   2008 est.
      Clinical Practice Guidelines
        Index II..................            83%            84%             85%
      Prevention Index III........            88%            88%             88%
      Percent of patients rating VA
        health care service as very good
        or excellent:
      Inpatient...................            78%            78%             79%
      Outpatient..................            78%            78%             79%

            Access to Medical Care.--VA's strategy is to improve access and
        timeliness of service by reducing waiting times in specialty and
        primary care clinics in medical centers nationwide, and by relying
        more extensively on non-institutional forms of long-term care.

                                         2006 actual  2007 est.   2008 est.
      Percentage of primary care
        appointments scheduled
        within 30 days of desired
        date......................            96%            96%             96%
      Percentage of specialty care
        appointments scheduled
        within 30 days of desired
        date......................            94%            95%             95%
      Annual percent increase of
        non-institutional, long-
        term care average daily
        census using 2006 as the
        baseline..................       baseline          26.3%           19.1%

            VA DoD Sharing.--VA's strategy is to improve collaboration and
        exchange with DoD.

                                         2006 actual  2007 est.   2008 est.
      Documented increases in the
        use of joint procurement
        contracts.................           152M           170M            200M

        Revenue Cycle Improvement.--VHA is seeking to improve its
    performance in the area of medical care collections. The revenue cycle
    improvement plan includes initiatives that will improve efficiency and
    accuracy.

                     MEDICAL SERVICES LEGISLATIVE PROPOSALS

        The budget is proposing a set of legislative proposals that are not
    reflected in the Medical Services appropriation request. Authorizing
    legislation for these proposals will be transmitted separately from the
    budget to the authorizing committees of Congress. This legislation will
    propose three changes to VA's fee structure that will result in
    additional receipts to the Treasury. These additional receipts will be
    classified as mandatory and will not reduce the Medical Services
    appropriation request, which has been made in full.

        These proposals will: assess a tiered annual enrollment fee based on
    the family income of the veteran; increase the pharmacy co-payment from
    $8 to $15 for all Priority 7 and Priority 8 veterans; and eliminate the
    third-party offset to first-party debt.

        The first proposal is the tiered annual enrollment fee which is
    structured to charge $250 for veterans with family incomes from $50,000
    to $74,999; $500 for those with family incomes from $75,000 to $99,999;
    and $750 for those with family incomes equal to or greater than
    $100,000. This proposal is estimated to contribute over $138 million to
    the Treasury annually, beginning in 2009, and will increase receipts
    over five years by $526 million.

        The second proposal is the pharmacy co-payment proposal which is
    projected to contribute $311 million to the Treasury beginning in 2008
    and will increase receipts by $1.6 billion over five years.

        The third proposal eliminates the current practice of VA offsetting
    or reducing third-party billings to insurance companies based upon the
    direct co-payment responsibilities of the veteran. This proposal will
    increase receipts by $44 million beginning in FY 2008 and $217 million
    over five years.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       8,381       9,092      10,309
    11.3      Other than full-time permanent         176         192         219
    11.5      Other personnel compensation..         963       1,044       1,183
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..       9,520      10,328      11,711
    12.1    Civilian personnel benefits.....       2,597       2,815       3,166
    13.0    Benefits for former personnel...          12          20          47
    21.0    Employee travel.................          35          37          38
    21.0    Beneficiary travel..............         199         207         215
    21.0    All other.......................          43          44          46
    22.0    Transportation of things........          13          14          14
    23.3    Communications, utilities, and
              miscellaneous charges.........         175         182         190
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other contractual services......       2,193       2,449       2,840
    25.6    Outpatient dental fees..........          73         100         140
    25.6    Medical and nursing fees........         707         735         764
    25.6    Community nursing homes.........         317         343         363
    25.6    Contract hospitalization........         672         699         783
    25.6    Civilian Health and Medical
              Program of the Department of
              Veterans Affairs (CHAMPVA)....         457         574         685
    26.0    Medical supplies and materials..       6,139       6,485       7,280
    31.0    Equipment.......................       1,000         102         567
    32.0    Medical land and structures.....           2
    41.0    Medical grants, subsidies, and
              contributions.................         466         501         563
    41.0    Medical grants to private
              organizations.................          64          92         107
                                               ---------   ---------  ----------
    99.0      Direct obligations............      24,685      25,728      29,520
    99.0  Reimbursable obligations..........         148         156         163
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      24,833      25,884      29,683
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0160-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................     133,145     135,570     141,642
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................       2,041       2,078       2,172
    ---------------------------------------------------------------------------

                    DOD-VA Health Care Sharing Incentive Fund

                         (including transfer of funds)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0165-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program activity...........          28          32          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          28          32          20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          55          57          25
    22.00 New budget authority (gross)......          30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          85          57          25
    23.95 Total new obligations.............         -28         -32         -20
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          57          25           5
    ----------------------------------------------------------------------------

    [[Page 892]]

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.          30
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          30
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4          25          34
    73.10 Total new obligations.............          28          32          20
    73.20 Total outlays (gross).............          -7         -23         -15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          25          34          39
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           7          23          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30
    90.00 Outlays...........................           7          23          15
    ---------------------------------------------------------------------------

        The purpose of the fund is to enable the Departments to carry out a
    program to identify and provide incentives to implement creative sharing
    initiatives at the facility, intra-regional and nationwide levels. The
    Departments have established the fund and developed processes and
    criteria to solicit and select projects. Section 721 of the FY 2003
    National Defense Authorization Act, Public Law 107-314, established the
    fund and requires VA and Department of Defense (DoD) to establish a
    joint incentive program. In FY 2008, each Secretary shall contribute a
    minimum of $15 million to the fund after the appropriation is enacted.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0165-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.1  Advisory and assistance services..           8           9           5
    26.0  Supplies and materials............                       1           2
    31.0  Equipment.........................          19          20          12
    32.0  Land and structures...............           1           2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          28          32          20
    ---------------------------------------------------------------------------

                              Medical Administration

         For necessary expenses in the administration of the medical,
    hospital, nursing home, domiciliary, construction, supply, and research
    activities, as authorized by law; administrative expenses in support of
    capital policy activities; and administrative and legal expenses of the
    Department for collecting and recovering amounts owed the Department as
    authorized under chapter 17 of title 38, United States Code, and the
    Federal Medical Care Recovery Act (42 U.S.C. 2651 et seq.);
    $3,442,000,000, plus reimbursements, of which $250,000,000 shall be
    available until September 30, 2009.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          Direct program:

            Operating expenses:
              Provision of veterans health
                  care:
    00.01     Acute hospital care...........         712         934         978
    00.02     Rehabilitative care...........          61          66          69
    00.03     Psychiatric care..............         162         199         212
    00.04     Nursing home care.............         346         365         362
    00.05     Subacute care.................          18          23          25
    00.06     Residential care..............          53          65          68
    00.07     Outpatient care...............       1,995       1,309       1,697
                                               ---------   ---------  ----------
    00.91     Total operating expenses......       3,347       2,961       3,411
            Capital investment:
              Provision of veterans health
                  care:
    01.01     Acute hospital care...........           7                       7
    01.02     Rehabilitative care...........           1                       1
    01.03     Psychiatric care..............           1                       1
    01.04     Nursing home care.............           3                       3
    01.05     Residential care..............           1                       1
    01.06     Outpatient care...............          17           2          18
                                               ---------   ---------  ----------
    01.91     Total capital investment......          30           2          31
                                               ---------   ---------  ----------
    02.93   Total direct program............       3,377       2,963       3,442
    09.01 Reimbursable program..............          40          42          44
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,417       3,005       3,486
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          98         152
    22.00 New budget authority (gross)......       3,471       2,853       3,486
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,569       3,005       3,486
    23.95 Total new obligations.............      -3,417      -3,005      -3,486
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         152
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,858       2,811       3,442
    42.00   Transferred from other accounts.         573
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,431       2,811       3,442
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          39          42          44
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          40          42          44
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,471       2,853       3,486
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         840         489         648
    73.10 Total new obligations.............       3,417       3,005       3,486
    73.20 Total outlays (gross).............      -3,739      -2,846      -3,359
    73.40 Adjustments in expired accounts
            (net)...........................         -31
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         489         648         775
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,974       2,292       2,847
    86.93 Outlays from discretionary
            balances........................         765         554         512
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,739       2,846       3,359
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -40         -40         -42
    88.40     Non-Federal sources...........          -3          -2          -2
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -43         -42         -44
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,431       2,811       3,442
    90.00 Outlays...........................       3,696       2,804       3,315
    ---------------------------------------------------------------------------

        For 2008, the budget requests total resources for the VA Medical
    Administration appropriation of $3.4 billion.

        The Medical Administration appropriation finances the expenses of
    management, security, and administration of the VA health care system
    through the operation of VA medical

    [[Page 893]]

    centers, other facilities, Veterans Integrated Service Network offices
    and facility director offices, chief of staff operations, quality of
    care oversight, legal services, billing and coding activities,
    procurement, financial management, and human resource management. This
    appropriation also finances the National Program Administration, VHA
    headquarters, which provides corporate leadership and support to VA's
    comprehensive and integrated health care system with a Headquarters'
    staff that includes a capital facilities management and development
    process.
                                         2006 actual  2007 est.   2008 est.
    Average employment............         36,244         36,240          32,653

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........       1,857       1,946       1,839
    11.3      Other than full-time permanent          42          44          42
    11.5      Other personnel compensation..         211         221         209
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..       2,110       2,211       2,090
    12.1    Civilian personnel benefits.....         597         638         588
    13.0    Benefits for former personnel...           4           2           9
    21.0    Employee travel.................          44          20          45
    21.0    All other.......................           1           1           1
    22.0    Transportation of things........           8           3           8
    23.3    Communications, utilities, and
              miscellaneous charges.........          80          12          83
    24.0    Printing and reproduction.......          11           7          12
    25.2    Other contractual services......         428          47         498
    25.6    Medical and nursing fees........           3           2           3
    26.0    Medical supplies and materials..          61          18          74
    31.0    Equipment.......................          29           1          31
    32.0    Medical land and structures.....           1
    43.0    Interest and dividends..........                       1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,377       2,963       3,442
    99.0  Reimbursable obligations..........          40          42          44
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,417       3,005       3,486
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0152-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................      35,972      35,968      32,408
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         272         272         245
    ---------------------------------------------------------------------------

                                Medical Facilities

         For necessary expenses for the maintenance and operation of
    hospitals, nursing homes, and domiciliary facilities and other necessary
    facilities for the Veterans Health Administration; for administrative
    expenses in support of planning, design, project management, real
    property acquisition and disposition, construction and renovation of any
    facility under the jurisdiction or for the use of the Department; for
    oversight, engineering and architectural activities not charged to
    project costs; for repairing, altering, improving or providing
    facilities in the several hospitals and homes under the jurisdiction of
    the Department, not otherwise provided for, either by contract or by the
    hire of temporary employees and purchase of materials; for leases of
    facilities; and for laundry services, $3,592,000,000, plus
    reimbursements, of which $250,000,000 shall be available until September
    30, 2009.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0162-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Acute hospital care...............         628         867         831
    00.02 Rehabilitative care...............          65          79          74
    00.03 Psychiatric care..................         182         238         232
    00.04 Nursing home care.................         410         457         405
    00.05 Subacute care.....................          19          28          27
    00.06 Residential care..................          79         104          99
    00.07 Outpatient care...................       1,514       1,334       1,230
                                               ---------   ---------  ----------
    00.91   Total operating expenses........       2,897       3,107       2,898
          Capital investment:

            Provision of veterans health
                care:
    01.01     Acute hospital care...........         115          67         154
    01.02     Rehabilitative care...........          13           8          17
    01.03     Psychiatric care..............          32          18          42
    01.04     Nursing home care.............          70          41          93
    01.05     Subacute care.................           4           2           5
    01.06     Residential care..............          15           9          20
    01.07     Outpatient care...............         275         159         363
                                               ---------   ---------  ----------
    01.91     Total capital investment......         524         304         694
          Grant Program:

    02.93     Total direct program..........       3,421       3,411       3,592
    09.01 Reimbursable program..............          26          27          28
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,447       3,438       3,620
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         102          38
    22.00 New budget authority (gross)......       3,384       3,400       3,620
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,486       3,438       3,620
    23.95 Total new obligations.............      -3,447      -3,438      -3,620
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,298       3,373       3,592
    42.00   Transferred from other accounts.          60
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,358       3,373       3,592
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          26          27          28
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,384       3,400       3,620
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         921         990       1,054
    73.10 Total new obligations.............       3,447       3,438       3,620
    73.20 Total outlays (gross).............      -3,367      -3,374      -3,577
    73.40 Adjustments in expired accounts
            (net)...........................         -12
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         990       1,054       1,097
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       2,593       2,991       3,192
    86.93 Outlays from discretionary
            balances........................         774         383         385
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,367       3,374       3,577
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -10         -10         -10
    88.40     Non-Federal sources...........         -16         -17         -18
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -26         -27         -28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,358       3,373       3,592
    90.00 Outlays...........................       3,341       3,347       3,549
    ---------------------------------------------------------------------------

        For 2008, the budget requests total resources for the VA Medical
    Facilities appropriation of $3.6 billion. Medical Facilities provides
    for the operations and maintenance of the capital infrastructure
    required to provide health care to the Nation's veterans. These costs
    include utilities, engineering, capital planning, leases, laundry
    services, grounds maintenance, trash removal, housekeeping, fire
    protection, pest management, facility repair, and property disposition
    and acquisition.

        In 2008, VA will realign 5,689 full-time equivalents and $400
    million for food service operations from the Medical Facilities
    appropriation to the Medical Services appropriation.

    [[Page 894]]

    The cost for food service operations will support hospital food service
    workers, provisions, and supplies which are related to the direct care
    of patients rather than the operation of the VA medical facilities.

                                         2006 actual  2007 est.   2008 est.
    Average employment............         26,470         26,348          20,650

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0162-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         992       1,032         830
    11.3      Other than full-time permanent          23          23          19
    11.5      Other personnel compensation..         111         116          93
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..       1,126       1,171         942
    12.1    Civilian personnel benefits.....         338         348         298
    13.0    Benefits for former personnel...           3           1           1
    21.0    Employee travel.................           7           8           8
    21.0    All other.......................          23          24          25
    22.0    Transportation of things........          14          15          15
    23.1    Rental payments to GSA..........          15          15          16
    23.2    Rental payments to others.......         115         120         125
    23.3    Communications, utilities, and
              miscellaneous charges.........         488         559         620
    25.2    Other contractual services......         474         546         564
    26.0    Medical supplies and materials..         212         217         228
    26.0    Provisions......................          81          82
    31.0    Equipment.......................         103         133         166
    32.0    Medical land and structures.....         421         171         583
    43.0    Interest and dividends..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,421       3,411       3,592
    99.0  Reimbursable obligations..........          26          27          28
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,447       3,438       3,620
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0162-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................      26,293      26,171      20,512
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         177         177         138
    ---------------------------------------------------------------------------

                         Medical and Prosthetic Research

         For necessary expenses in carrying out programs of medical and
    prosthetic research and development as authorized by chapter 73 of title
    38, United States Code, to remain available until September 30, 2009,
    $411,000,000, plus reimbursements.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Bio-medical laboratory science
            research........................         204         222         206
    00.02 Rehabilitation research...........          45          48          45
    00.03 Health services research..........          59          65          60
    00.04 Clinical science research.........          63          68          63
                                               ---------   ---------  ----------
    00.91   Total operating expenses........         371         403         374
          Capital investment:

    01.01   Bio-medical laboratory science
              research......................          25          27          25
    01.02   Rehabilitation research.........           6           6           6
    01.03   Health services research........           2           3           2
    01.04   Clinical science research.......           4           4           4
                                               ---------   ---------  ----------
    01.91     Total capital investment......          37          40          37
                                               ---------   ---------  ----------
    01.92   Total direct program............         408         443         411
    09.01 Reimbursable program..............          56          55          55
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         464         498         466
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          41          44          10
    22.00 New budget authority (gross)......         468         464         466
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         509         508         476
    23.95 Total new obligations.............        -464        -498        -466
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          44          10          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         412         409         411
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          56          55          55
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         468         464         466
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         140         138         178
    73.10 Total new obligations.............         464         498         466
    73.20 Total outlays (gross).............        -462        -458        -459
    73.40 Adjustments in expired accounts
            (net)...........................          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         138         178         185
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         287         331         333
    86.93 Outlays from discretionary
            balances........................         175         127         126
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         462         458         459
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -45         -55         -55
    88.40     Non-Federal sources...........         -11
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -56         -55         -55
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         412         409         411
    90.00 Outlays...........................         406         403         404
    ---------------------------------------------------------------------------

        For 2008, the total budgetary resources of $1.8 billion are
    comprised of $411 million in direct appropriations, $411 million in
    medical care support and $975 million in federal and private sector
    grants. The Research program will support 3,000 FTE through direct
    appropriation and a total of 15,400 research staff through all funding
    sources.

        This account is an intramural program whose mission is to conduct
    research focused on the special health care needs of veterans and to
    balance the discovery of new knowledge and the application of these
    discoveries to advance the health and care of veterans and the Nation.
    VA research brings scientific discovery from bedside to bench and then
    back to the bedside, making this program one of our most effective tools
    to improve the quality of care. Embedding research within an integrated
    health care system with a state-of-the-art electronic health record
    creates a national laboratory for the discovery of new medical knowledge
    and the translation of that knowledge into improved health.
    Additionally, VA Research & Development (VA R&D) has a unique program,
    the Quality Enhancement Research Initiative, which creates durable
    partnerships between VA researchers, policy-makers, and clinical
    researchers to accelerate the implementation of research evidence into
    routine practice. Although VA R&D is an intramural program, through VA's
    academic affiliations as well as collaborations with other federal
    agencies, it is fully integrated with the larger biomedical research
    community. Veterans' health issues are addressed comprehensively in the
    following four program divisions and the medical care research support
    required for these programs:

        Biomedical Laboratory.--Supports preclinical research to understand
    life processes from a molecular, genomic, and physiological level in
    regard to diseases affecting veterans.

    [[Page 895]]

        Clinical Science.--Administers investigations (i.e., human subject
    research such as drug, surgical, single subject, pilot and multi-center
    cooperative studies as well as feasibility trials) aimed at instituting
    new, more effective clinical care.

        Health Services.--Supports studies to identify and promote effective
    and efficient strategies to improve the delivery of health care to
    veterans.

        Rehabilitation.--Develops novel approaches to restoring veterans
    with traumatic amputation, central nervous system injuries, loss of
    sight and/or hearing, or other physical and cognitive impairments to
    full and productive lives.

        VA's Medical and Prosthetic Research programs are included in the
    Federal Science & Technology (FS&T) budget.
                                           Performance Measure

                                                        2006        2007        2008     Strategic
                                                                                           Target
    Progress towards development of one new
        treatment for post-traumatic stress disorder
        (PTSD) over a 5 year period.................         47%         67%         80%        100%
    Progress towards development of a standard
        clinical practice for pressure ulcers over a
        6 year period...............................         61%         74%         78%        100%
    Study subject accrual rate for multi-site
        clinical trials.............................         40%         35%        38%*         50%
        *The most challenging phases for recruitment for some on-going trials is
    anticipated to be in 2007 and 2008.

                          SUMMARY OF PROGRAM RESOURCES

                            [In millions of dollars]

                                         2006 actual  2007 est.   2008 est.
    Medical and prosthetic
    research appropriation........            412            409             411
    Federal resources.............          1,041          1,133           1,180
    Other non-federal resources...            198            202             206
                                        ------------------------------------
          Total program resources.          1,651          1,744           1,797
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         133         140         135
    11.3      Other than full-time permanent          14          15          14
    11.5      Other personnel compensation..          28          29          28
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         175         184         177
    12.1    Civilian personnel benefits.....          50          53          51
    21.0    Employee travel.................           4           4           4
    21.0    Travel and transportation of
              persons.......................
    23.1    Rental payments to GSA..........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................         126         145         126
    26.0    Supplies and materials..........          31          33          31
    31.0    Equipment.......................          19          21          19
                                               ---------   ---------  ----------
    99.0      Direct obligations............         408         443         411
    99.0  Reimbursable obligations..........          56          55          55
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         464         498         466
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0161-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       2,813       2,841       2,664
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         380         352         336
    ---------------------------------------------------------------------------

                          Canteen Service Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Reimbursable operating expenses...         146         149         149
    09.02 Reimbursable direct operations....          98          99         100
    09.10 Reimbursable capital investment:
            Sales program: Purchase of
            equipment and leasehold.........           8           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         252         253         254
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7           2           2
    22.00 New budget authority (gross)......         247         253         253
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         254         255         255
    23.95 Total new obligations.............        -252        -253        -254
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         247         253         253
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          30          32          31
    73.10 Total new obligations.............         252         253         254
    73.20 Total outlays (gross).............        -250        -254        -254
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          32          31          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         247         252         252
    86.98 Outlays from mandatory balances...           3           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         250         254         254
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -247        -253        -253
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           3           1           1
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          26          26          26
    92.02 Total investments, end of year:
            Federal securities: Par value...          26          26          26
    ---------------------------------------------------------------------------

        The Veterans Canteen Service was established to furnish, at
    reasonable prices, meals, merchandise, and services necessary for the
    comfort and well-being of veterans in VA medical facilities.

        Financing.--Operations will be financed from current revenues.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          45          45          46
    11.3    Other than full-time permanent..          36          37          38
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          81          82          84
    12.1  Civilian personnel benefits.......          22          22          22
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................           3           4           3
    26.0  Supplies and materials............         136         137         137
    31.0  Equipment.........................           8           6           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         252         253         254
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-4014-0-3-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................       2,965       2,970       2,975
    ---------------------------------------------------------------------------

    [[Page 896]]

                      Medical Center Research Organizations

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4026-0-3-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Operating expenses................         202         215         225
    09.02 Capital investments...............           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         204         218         228
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          23          46          28
    22.00 New budget authority (gross)......         227         200         215
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         250         246         243
    23.95 Total new obligations.............        -204        -218        -228
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          46          28          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         227         200         215
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  18
    73.10 Total new obligations.............         204         218         228
    73.20 Total outlays (gross).............        -204        -200        -215
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                      18          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         204         200         215
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -204        -200        -215
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............         -23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        These nonprofit corporations provide a flexible funding mechanism
    for the conduct of approved research at Department of Veterans Affairs
    medical centers. These organizations will derive funds to operate
    various research activities from Federal and non-Federal sources. No
    appropriation is required to support these activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4026-0-3-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
    21.0  Travel and transportation of
            persons.........................           5           5           6
    25.2  Other services....................         180         192         199
    26.0  Supplies and materials............          17          18          20
    31.0  Equipment.........................           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         204         218         228
    ---------------------------------------------------------------------------

                                   Trust Funds

                        General Post Fund, National Homes

                          (including transfer of funds)

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............           1           1           3
                                               ---------   ---------  ----------
    01.99 Balance, start of year............           1           1           3
        Receipts:
    02.00 General post fund, national homes,
            Interest on investments.........           2           3           3
    02.60 General post fund, national homes,
            Deposits........................          30          33          34
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          32          36          37
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          33          37          40
        Appropriations:
    05.00 General post fund, national homes.         -32         -34         -34
                                               ---------   ---------  ----------
    05.99   Total appropriations............         -32         -34         -34
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           1           3           6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Religious, recreational, and
            entertainment activities........          29          29          28
    00.03 Therapeutic residence maintenance.           1           2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          30          31          29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          63          65          68
    22.00 New budget authority (gross)......          32          34          34
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          95          99         102
    23.95 Total new obligations.............         -30         -31         -29
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          65          68          73
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          32          34          34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           5           6
    73.10 Total new obligations.............          30          31          29
    73.20 Total outlays (gross).............         -30         -30         -30
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           6           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                      30          30
    86.98 Outlays from mandatory balances...          30
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          30          30          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          32          34          34
    90.00 Outlays...........................          30          30          30
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          64          66          66
    92.02 Total investments, end of year:
            Federal securities: Par value...          66          66          66
    ---------------------------------------------------------------------------

        This fund consists of: gifts, bequests, and proceeds from the sale
    of property left in the care of the facilities by former beneficiaries;
    patients' fund balances; and, proceeds from the sale of effects of
    beneficiaries who die leaving no heirs or without having otherwise
    disposed of their estate. Such funds are used to promote the comfort and
    welfare of veterans at hospitals, nursing homes, and domiciliaries where
    no general appropriation is available. Public Law 102-54 authorizes
    compensation work therapy and therapeutic transitional housing and loan
    programs to be funded from the General Post Fund. (38 U.S.C. chs. 83 and
    85.)

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8180-0-7-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    21.0  Travel and transportation of
            persons.........................           1           1           1
    25.2  Other services....................          11          11          11
    26.0  Supplies and materials............          14          15          14
    31.0  Equipment.........................           3           3           2
    32.0  Land and structures...............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          30          31          29
    ---------------------------------------------------------------------------

    [[Page 897]]

                                BENEFITS PROGRAMS

                                  Federal Funds

                            Compensation and Pensions

                          (including transfer of funds)

         For the payment of compensation benefits to or on behalf of
    veterans and a pilot program for disability examinations as authorized
    by law (38 U.S.C. 107, chapters 11, 13, 18, 51, 53, 55, and 61); pension
    benefits to or on behalf of veterans as authorized by law (38 U.S.C.
    chapters 15, 51, 53, 55, and 61); and burial benefits, the Reinstated
    Entitlement Program for Survivors, emergency and other officers'
    retirement pay, adjusted-service credits and certificates, payment of
    premiums due on commercial life insurance policies guaranteed under the
    provisions of title IV of the Servicemembers Civil Relief Act (50 U.S.C.
    App. 540 et seq.) and for other benefits as authorized by law (38 U.S.C.
    107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61),
    $41,236,322,000, to remain available until expended: Provided, That not
    to exceed $25,033,000 of the amount appropriated under this heading
    shall be reimbursed to ``General operating expenses'' and ``Medical
    administration'' for necessary expenses in implementing the provisions
    of chapters 51, 53, and 55 of title 38, United States Code, the funding
    source for which is specifically provided as the ``Compensation and
    pensions'' appropriation: Provided further, That such sums as may be
    earned on an actual qualifying patient basis, shall be reimbursed to
    ``Medical care collections fund'' to augment the funding of individual
    medical facilities for nursing home care provided to pensioners as
    authorized.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0102-0-1-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Veterans..........................      26,470      30,368      32,416
    01.02 Survivors.........................       4,363       4,506       4,666
                                               ---------   ---------  ----------
    01.91   Compensation sub-total..........      30,833      34,874      37,082
                                               ---------   ---------  ----------
    02.00   Other compensation expenses.....      30,833      34,874      37,082
    02.01 Chapter 18........................          18          18          19
    02.02 Clothing allowance................          53          58          61
    02.03 Misc Assistance (EAJ, SAFD).......           6           4           3
    02.04 Medical exam pilot program........          80          87          88
    02.05 OBRA payment to VBA...............           2           2           2
    02.06 Reinstated Entitlement Program for
            Survivors.......................           4           4           4
                                               ---------   ---------  ----------
    02.91   Total other compensation
              expenses......................         163         173         177
                                               ---------   ---------  ----------
    02.93   Total compensation..............      30,996      35,047      37,259
    03.02 Veterans..........................       2,747       2,814       2,883
    03.03 Survivors.........................         778         831         890
                                               ---------   ---------  ----------
    03.91   Pensions sub total..............       3,525       3,645       3,773
    04.01 Reimbursements to GOE and VHA.....          22          26          24
                                               ---------   ---------  ----------
    04.92   Total pensions..................       3,547       3,671       3,797
    06.02 Burial allowance..................          29          35          37
    06.03 Burial plots......................          15          21          21
    06.04 Service-connected deaths..........          22          29          31
    06.05 Burial flags......................          16          19          19
    06.06 Headstones and markers............          37          42          43
    06.07 Graveliners/Pre-placed crypts.....          23          54          29
                                               ---------   ---------  ----------
    06.91   Total burial program............         142         200         180
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................      34,685      38,918      41,236
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,083         296
    22.00 New budget authority (gross)......      33,898      38,622      41,236
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      34,981      38,918      41,236
    23.95 Total new obligations.............     -34,685     -38,918     -41,236
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         296
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................      33,898      38,172      40,888
    60.00   Appropriaton COLA...............                                 348
    62.00   Transferred from other accounts.                     450
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      33,898      38,622      41,236
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          87          92       3,161
    73.10 Total new obligations.............      34,685      38,918      41,236
    73.20 Total outlays (gross).............     -34,680     -35,849     -41,046
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          92       3,161       3,351
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      33,512      35,452      37,586
    86.98 Outlays from mandatory balances...       1,168         397       3,460
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      34,680      35,849      41,046
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      33,898      38,622      41,236
    90.00 Outlays...........................      34,680      35,849      41,046
    ---------------------------------------------------------------------------

                                    WORKLOAD

                                         2006 actual  2007 est.   2008 est.
    Compensation:
      Rating-Related Actions......        720,988        720,000         720,000
      Non Rating Actions..........        233,954        232,993         232,993

    Pension:
      Rating-Related Actions......         85,394         80,000          80,000
      Non Rating Actions..........        308,925        321,299         321,299

        This appropriation provides for the payment of compensation,
    pension, and burial benefits to veterans and survivors.

        Compensation is paid to veterans for disabilities incurred in or
    aggravated during active military service. Dependency and Indemnity
    Compensation is paid to survivors of servicepersons or veterans whose
    death occurred while on active duty or as a result of service-connected
    disabilities. Compensation and vocational rehabilitation is provided to
    the children of Vietnam veterans who were born with certain birth
    defects. The Secretary may pay a clothing allowance to each veteran who
    uses a prescribed medication for a service-connected skin condition or
    wears a prosthetic or orthopedic appliance (including a wheelchair)
    which, in the judgment of the Secretary, tends to damage or tear the
    clothing of such veteran.

        Miscellaneous benefits provided for are:
            (a) payments for claims made pursuant to the provision of the
        World War Adjusted Compensation Act of 1924, as amended;
            (b) a special allowance (38 U.S.C. 1312) to dependents of
        certain veterans who died after December 31, 1956, but who were not
        fully and currently insured under the Social Security Act; and
            (c) payments authorized by the Equal Access to Justice Act.

        The appropriation also provides for a pilot program authorizing VA
    to contract out medical examinations to determine service-connected
    disabilities of veterans who are potential applicants of compensation
    benefits and a program to allow VA to perform income matches for certain
    compensation recipients.

        In accordance with Public Law 97-377, the Reinstated Entitlement
    Program for Survivors (REPS) program restores social security benefits
    to certain surviving spouses or children of veterans who died of
    service-connected causes.

        Legislation is proposed to provide a cost-of-living adjustment
    comparable to the annual social security increase to recipients of
    disability compensation, dependency and indemnity compensation, and
    clothing allowances. The increase, effective with payments made on
    January 1, 2008, is expected to be 1.4 percent.

    [[Page 898]]

                AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS

                                         2006 actual  2007 est.   2008 est.
    Veterans:
      Cases.......................      2,683,380      2,782,296       2,879,329
      Average payment per case,
        per year..................         $9,864        $10,915         $11,258
                                        ------------------------------------
          Total obligations (in
            millions).............        $26,470        $30,368         $32,416
                                        ====================================
    Survivors:
      Cases.......................        329,710        334,432         340,702
      Average payment per case,
        per year..................        $13,234        $13,476         $13,695
                                        ------------------------------------
          Total obligations (in
            millions).............         $4,363         $4,507          $4,666
                                        ====================================
    Chapter 18:
      Children....................          1,192          1,203           1,207
      Average payment per case,
        per year..................        $15,136        $15,638         $15,857
                                        ------------------------------------
          Total obligations (in
            millions).............            $18            $18             $19
                                        ====================================
    Clothing allowance:
      Number of veterans..........         84,990         88,123          91,196
      Average payment per case,
        per year..................           $640           $661            $671
                                        ------------------------------------
          Total obligations (in
            millions).............            $54            $58             $61
                                        ====================================
    Other compensation caseload:
      Special allowance dependents             75             75              75
      Equal Access to Justice
        payments..................          1,079            803             803
                                        ====================================
    REPS:
      Cases.......................            186            149             120
      Average benefit.............        $22,425        $27,501         $29,947
                                        ------------------------------------
          Obligations (in
            millions).............             $4             $4              $4
                                        ====================================

        Pension benefits may be paid to veterans or their survivors. A
    veteran's entitlement is based on active duty service of a specific
    length (normally 90 days or more) during a designated war period,
    disabilities considered permanent and total, and countable income below
    established levels. There is no disability requirement for survivor
    cases or veterans age 65 or older. Income support is provided at
    established benefit levels.

        An automatic annual cost-of-living increase comparable to the annual
    social security increase is provided for those pensioners in the
    improved program and to parents receiving dependency and indemnity
    compensation. The increase, effective with payments made on January 1,
    2008, is expected to be 1.4 percent.

                  AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

                                         2006 actual  2007 est.   2008 est.
    Veterans:
      Cases.......................        332,034        326,154         320,378
      Average payment per case,
        per year..................         $8,274         $8,629          $8,999
                                        ------------------------------------
          Total obligations (in
            millions).............         $2,747         $2,814          $2,883
                                        ====================================
    Survivors:
      Cases.......................        203,346        197,670         192,656
      Average payment per case,
        per year..................         $3,825         $4,205          $4,619
                                        ------------------------------------
          Total obligations (in
            millions).............           $778           $831            $890
                                        ====================================

        Burial benefits provides for: (a) the payment of an allowance of
    $300 (plus transportation charges where death occurs under VA care) to
    reimburse, in part, the burial and funeral expense of an eligible
    deceased veteran; (b) the payment of $300 for a plot allowance where an
    eligible veteran is not buried in a national cemetery or other cemetery
    under the jurisdiction of the United States; (c) the payment of a burial
    allowance up to $2,000 when a veteran dies as a result of service-
    connected disability; (d) furnishing a flag to drape the casket of each
    deceased veteran entitled thereto; (e) furnishing a headstone or marker
    for the grave of a veteran and, in certain cases, eligible dependents;
    and (f) authority to provide outer burial receptacles in the National
    Cemetery Administration.

                            NUMBER OF BURIAL BENEFITS

                                         2006 actual  2007 est.   2008 est.
    Burial allowance..............         62,474         87,050          89,214
    Burial plot...................         50,330         69,870          71,608
    Service-connected deaths......         13,020         14,591          15,288
    Burial flags..................        486,117        518,213         515,579
    Headstones and markers........        335,172        354,973         353,169
    Graveliners...................         46,779         60,862          62,543
    Preplaced crypts..............         17,824         99,600          35,100

                              Readjustment Benefits

         For the payment of readjustment and rehabilitation benefits to or
    on behalf of veterans as authorized by law (38 U.S.C. chapters 21, 30,
    31, 34, 35, 36, 39, 51, 53, 55, and 61), $3,300,289,000, to remain
    available until expended: Provided, That expenses for rehabilitation
    program services and assistance which the Secretary is authorized to
    provide under section 3104(a) of title 38, United States Code, other
    than under subsection (a)(1), (2), (5), and (11) of that section, shall
    be charged to this account.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Sons and daughters................         361         394         419
    01.02 Spouses...........................          52          56          60
                                               ---------   ---------  ----------
    01.91   Total education and training....         413         450         479
    02.01 Vocational rehabilitation training         340         377         410
    02.02 Subsistence allowance.............         226         241         253
    02.03 Automobiles and adaptive equipment          51          52          53
    02.04 Housing Grants....................          26          27          27
                                               ---------   ---------  ----------
    02.91   Total special assistance to
              disabled veterans.............         643         697         743
    03.01 Work study........................          20          21          22
    03.02 Payments to States................          18          19          13
    03.03 All-volunteer assistance: Basic
            benefits and all other..........       1,833       2,104       2,014
    03.04 Tuition Assistance................          20          20          21
    03.05 Licensing and Certification.......           1           1           2
    03.06 Reporting fees....................           5           4           4
    03.09 Reimbursement to GOE..............           2           7           2
                                               ---------   ---------  ----------
    03.91   Total All-volunteer assistance
              and other.....................       1,899       2,176       2,078
                                               ---------   ---------  ----------
    03.93   Total Readjustment Benefits
              Direct Program................       2,955       3,323       3,300
    09.01 Veterans' and Servicepersons basic
            benefits........................           3           3           3
    09.02 Veterans' and Servicepersons
            supplementary benefits..........         100          93          90
    09.03 Chapter 1606 Reservists benefits..          87         154         180
    09.04 Chapter 1606 Reservists
            supplementary benefits..........          35          63          73
    09.05 Chapter 1607 Reservists benefits..         153         197         179
    09.06 National Call to Service..........                       1           1
                                               ---------   ---------  ----------
    09.09   Total Reimbursable education
              program.......................         378         511         526
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,333       3,834       3,826
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         157         511
    22.00 New budget authority (gross)......       3,687       3,323       3,826
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,844       3,834       3,826
    23.95 Total new obligations.............      -3,333      -3,834      -3,826
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         511
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       3,309       3,262       3,300
    61.00   Transferred to other accounts...                    -450
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       3,309       2,812       3,300
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         378         511         526
                                               ---------   ---------  ----------

    [[Page 899]]

    70.00   Total new budget authority
              (gross).......................       3,687       3,323       3,826
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          37          43          88
    73.10 Total new obligations.............       3,333       3,834       3,826
    73.20 Total outlays (gross).............      -3,327      -3,789      -3,814
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          43          88         100
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       3,133       3,235       3,726
    86.98 Outlays from mandatory balances...         194         554          88
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,327       3,789       3,814
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -378        -511        -526
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,309       2,812       3,300
    90.00 Outlays...........................       2,949       3,278       3,288
    ---------------------------------------------------------------------------

                                    WORKLOAD

                                         2006 actual  2007 est.   2008 est.
    Evaluation and planning.......         63,799         65,553          67,191
    Rehabilitation services.......         63,539         65,286          66,918
    Employment services status....         18,559         19,069          19,545
    Vocational/educational
    counseling....................         15,918         16,355          16,763

                                    WORKLOAD

                                         2006 actual  2007 est.   2008 est.
    Original claims...............        231,104        212,349         217,445
    Adjustments/supplemental
    claims........................      1,134,822      1,186,525       1,215,001

        This appropriation finances educational assistance allowances for
    certain service persons, veterans and for eligible dependents of those
    veterans: (a) who died from service-connected causes or have a total and
    permanent rated service-connected disability; and (b) servicepersons who
    were captured or missing in action. In addition, certain disabled
    veterans are provided with vocational rehabilitation, specially adapted
    housing grants, and automobile grants with the associated approval
    adaptive equipment. Voluntary contributions by eligible servicepersons
    and matching contributions provided by the Department of Defense are
    included in the Post-Vietnam Era Veterans Education Account.

        All Volunteer Force Educational Assistance (Montgomery GI Bill).--
    Public Law 98-525, enacted October 19, 1984, established two new
    educational programs: an assistance program for veterans who enter
    active duty during the period beginning July 1, 1985; and an assistance
    program for certain members of the Selected Reserve. Public Law 108-375
    established a program to provide educational assistance to members of
    the reserve components called or ordered to active service in response
    to a war or national emergency declared by the President or the
    Congress, in recognition of the sacrifices that those members make in
    answering the call to duty. The Readjustment Benefit appropriation pays
    the basic benefit allowance for veterans, except for certain Post-
    Vietnam Era Veterans Education participants who transferred to the
    Montgomery GI Bill program. Supplementary educational assistance, Post-
    Vietnam Era Veterans Education converters, reservists, and the National
    Call to Service Program are financed by payments from the Department of
    Defense.

        The following table shows a caseload and cost comparison for these
    beneficiaries under existing legislation.

                         CASELOAD AND AVERAGE COST DATA

                                         2006 actual  2007 est.   2008 est.
    Veterans/Servicemembers:
      Number of trainees..........        331,557        340,813         340,912
      Average cost per trainee....         $5,842         $6,386          $6,096
                                        ------------------------------------
          Total cost (in millions)         $1,937         $2,177          $2,078
                                        ====================================
    Reservists (1606):
      Number of trainees..........         66,579        113,932         130,913
      Average cost per trainee....         $1,801         $1,885          $1,928
                                        ------------------------------------
          Total cost (in millions)           $121           $217            $254
                                        ====================================
    Reservists (1607):
      Number of trainees..........         23,751         52,024          45,794
      Average cost per trainee....         $6,457         $3,794          $3,904
                                        ------------------------------------
          Total cost (in millions)           $153           $197            $179
                                        ====================================

        Dependents' Education and Training.--This program provides benefits
    to children and spouses of veterans who died of a service-connected
    disability or whose service-connected disability is rated permanent and
    total. In addition, dependents of servicepersons missing in action or
    interned by a hostile foreign government for more than 90 days are also
    eligible. The following table provides a comparison of trainees and
    costs for the Dependents Educational Assistance program.

                           NUMBER OF TRAINEES AND COST

                                         2006 actual  2007 est.   2008 est.
    Sons and daughters:
      Number of trainees..........         64,517         67,620          70,227
      Average cost per trainee (in
        dollars)..................         $5,601         $5,826          $5,960
                                        ------------------------------------
          Total cost (in millions)           $361           $394            $419
                                        ====================================
    Spouses and widow(ers):
      Number of trainees..........         11,017         11,513          11,947
      Average cost per trainee (in
        dollars)..................         $4,699         $4,890          $5,005
                                        ------------------------------------
          Total cost (in millions)            $52            $56             $60
                                        ====================================

        Special Assistance to Disabled Veterans.--Service-disabled veterans
    requiring vocational rehabilitation receive assistance to cover the
    costs of subsistence, tuition, books, supplies, and equipment. In
    addition to monetary benefits, individuals may also receive
    rehabilitation evaluation, planning, and delivery services designed to
    move the veteran into a suitable job.

        Automobile Grants and Adaptive Equipment.--Certain disabled veterans
    are provided with automobile grants with the associated approved
    adaptive equipment. An allowance, up to a maximum of $11,000, is
    provided to certain service-disabled veterans and servicepersons toward
    the purchase price of an automobile. Adaptive equipment and the
    maintenance and replacement of such equipment is also provided.

        Specially Adapted Housing Grants.--Specially adapted housing grants,
    up to a maximum of $50,000, are provided to certain severely disabled
    veterans. Veterans who suffer service-connected blindness or who have
    lost the use of both upper extremities can receive up to $10,000.

        Tuition Assistance.--Public Law 106-398, enacted October 30, 2000,
    allows the military services to pay up to 100 percent of tuition and
    expenses charged by a school for service members. If a service
    department pays less than 100 percent, a service member eligible for the
    Montgomery GI Bill--Active-duty (MGIB) can elect to receive MGIB
    benefits for all or a portion of the remaining expenses. Public Law 108-
    454 established a program that provides availability of education
    benefits for payment for national admissions exams and national exams
    for credit at institutions of higher education.

        Licensing and Certification Test Payments.--Under Public Law 106-
    419, veterans and other eligible persons may receive up to $2,000 to pay
    fees required for civilian occupational licensing and certification
    examinations needed to enter, maintain, or advance in employment in a
    vocation or profession--effective March 1, 2001.

        National Call to Service.--The 2003 National Defense Authorization
    Act directs the Department of Defense to offer an active duty enlistment
    option of 15 months plus training time to facilitate interest in
    National Service. Program par

    [[Page 900]]

    ticipants will be given the opportunity to select one of the following
    incentives: a $5,000 enlistment bonus, repayment of student loans up to
    $18,000, or one of two education allowances.

                         CASELOAD AND AVERAGE COST DATA

                                         2006 actual  2007 est.   2008 est.
    Special assistance to disabled
        veterans:
      Rehabilitation Evaluation
        Planning and Service cases         22,180         22,790          23,360
      Number of participants......         67,611         69,406          71,141
      Average cost................         $8,377         $8,913          $9,319
                                        ------------------------------------
          Total cost (in millions)           $566           $619            $663
                                        ====================================
    Automobiles or other conveyances:
      Number of conveyances.......          1,317          1,317           1,317
      Average benefit.............        $10,817        $10,817         $10,817
                                        ------------------------------------
          Obligations (in
            millions).............            $14            $14             $14
                                        ====================================
    Adaptive equipment (including
        maintenance, repair, and
        installation for automobiles):
      Number of items.............          7,508          7,508           7,508
      Average benefit.............         $4,860         $5,011          $5,166
                                        ------------------------------------
          Obligations (in
            millions).............            $36            $38             $39
                                        ====================================
    Housing grants:
      Number of housing grants....            593            620             620
      Average cost per grant......        $43,474        $42,774         $42,774
                                        ------------------------------------
          Total cost (in millions)            $26            $27             $27
                                        ====================================
    Tuition Assistance:
      Number of trainees..........         22,362         22,362          22,362
      Average cost per trainee....           $881           $917            $938
                                        ------------------------------------
          Total cost (in millions)            $20            $20             $21
                                        ====================================
    Education Benefits for Payment for
        National Admissions Exams:
      Number of tests.............             89            445             445
          Total cost (in millions)             $0             $0              $0
                                        ====================================
    Licensing and Certification:
      Number of payments..........          3,820          3,820           3,820
      Average cost per trainee....           $370           $385            $394
                                        ------------------------------------
          Total cost (in millions)             $1             $1              $2
    National Call to Service:
      Number of trainees..........              0            200             200
                                        ------------------------------------
          Total cost (in millions)             $0             $1              $1
                                        ====================================

        Work-Study.--Certain veterans, reservists, and dependents pursuing a
    program of rehabilitation, education or training, who are enrolled as a
    full-time student, can work up to 250 hours per semester, receiving the
    Federal ($5.15 on September 1, 1997) or state minimum wage rate,
    whichever is higher.

                                         2006 actual  2007 est.   2008 est.
      Number of contracts.........         15,732         16,236          16,756
                                        ------------------------------------
          Total cost (in millions)            $21            $23             $24
                                        ====================================

        Payments to States.--State approving agencies are reimbursed for the
    costs of inspecting, approving, and supervising programs of education
    and training offered by educational institutions and training
    establishments in which veterans, dependents, and reservists are
    enrolled or are about to enter.

        Reporting Fees.--Reporting fees are paid to education and training
    institutions to help defray the costs of certifying education enrollment
    for veterans enrolled in training during a calendar year.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0137-0-1-702      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       2,955       3,323       3,300
    99.0    Reimbursable obligations:
              reimbursable obligations......         378         511         526
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,333       3,834       3,826
    ---------------------------------------------------------------------------

                        Veterans Insurance and Indemnities

         For military and naval insurance, national service life insurance,
    servicemen's indemnities, service-disabled veterans insurance, and
    veterans mortgage life insurance as authorized by title 38, United
    States Code, chapters 19 and 21, $41,250,000, to remain available until
    expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0120-0-1-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Payment to NSLI...................           1           1           1
    00.10 VMLI death claims.................          10          10          10
    00.12 Payment to service-disabled
            veterans insurance..............          37          42          32
                                               ---------   ---------  ----------
    01.00   Total direct expenses...........          48          53          43
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          48          53          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......          48          52          43
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          49          53          43
    23.95 Total new obligations.............         -48         -53         -43
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          46          50          41
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          48          52          43
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   1
    73.10 Total new obligations.............          48          53          43
    73.20 Total outlays (gross).............         -48         -52         -43
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          48          52          43
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: VMLI premiums...........          -2          -2          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          46          50          41
    90.00 Outlays...........................          46          50          41
    ---------------------------------------------------------------------------

                                    WORKLOAD

                                         2006 actual  2007 est.   2008 est.
    Policy service actions........        768,000        717,986         667,547
    Collections...................      1,781,551      1,665,500       1,548,200
    Disability claims.............         25,828         25,537          25,527
    Insurance awards..............        502,019        497,880         484,096

        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        The Insurance business line administers six life insurance programs,
    including two trust funds, two public enterprise

    [[Page 901]]

    funds, a trust revolving fund, and Veteran's Mortgage Life Insurance
    (VMLI), and supervises two additional programs for the benefit of
    servicepersons, veterans, and their beneficiaries through contracts with
    a commercial company. All programs are operated on a commercial basis,
    to the extent possible, consistent with all applicable statutes. The
    Insurance appropriation is the funding mechanism for the following
    administration of the Government life insurance activities: U.S.
    Government Life Insurance Fund (USGLI); National Service Life Insurance
    (NSLI); Service-Disabled Veterans Insurance Fund (S-DVI); and Veterans
    Mortgage Life Insurance (VMLI).

        Military and naval insurance.--Payments are made to the USGLI fund
    for certain World War I veterans for extra hazards of military service
    and for claims on war risk insurance issued to servicemen and veterans
    of World War I.

        National service life insurance (NSLI).--Payments are made to the
    NSLI fund for certain World War II veterans for: (a) the extra hazards
    of service; (b) gratuitous insurance granted to certain persons unable
    to apply for national service life insurance; and (c) death claims on
    policies under the waiver of a premium while the insured was on active
    duty.

        Payment to service-disabled veterans insurance fund (S-DVI).--
    Payments are made to the S-DVI fund to supplement the premiums and other
    receipts of the fund in amounts necessary to pay claims on insurance
    policies issued to veterans with service-connected disabilities.

        Veterans mortgage life insurance (VMLI).--Payments are made to
    mortgage holders under this program, which provides mortgage protection
    life insurance to veterans who have received a grant for specially
    adapted housing due to severe disabilities. The general decline in the
    number of policies and the amount of insurance in force is expected to
    continue in 2008 as indicated in the following table.

                         POLICIES AND INSURANCE IN FORCE

                                         2006 actual  2007 est.   2008 est.
    VMLI policies:
      Number of policies..........          2,438          2,370           2,310
      Amount of insurance (dollars
        in millions)..............           $166           $165            $165

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0120-0-1-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    42.0  Direct obligations: Insurance
            claims and indemnities..........          46          51          41
    99.0    Reimbursable obligations:
              reimbursable obligations......           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          48          53          43
    ---------------------------------------------------------------------------

                     Service-Disabled Veterans Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Capital investment................          13          14          14
    09.02 Death Claims......................          61          70          75
    09.03 All Other.........................           7           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          81          91          96
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11          16          17
    22.00 New budget authority (gross)......          86          92          84
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          97         108         101
    23.95 Total new obligations.............         -81         -91         -96
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          16          17           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          86          92          84
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          11          10
    73.10 Total new obligations.............          81          91          96
    73.20 Total outlays (gross).............         -80         -92         -96
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          11          10          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          79          91          84
    86.98 Outlays from mandatory balances...           1           1          12
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          80          92          96
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Insurance
                account.....................         -37         -42         -32
    88.40     Interest on loans.............          -3          -3          -3
    88.40     Insurance premiums earned.....         -34         -35         -37
    88.40     Repayments of loans...........         -12         -12         -12
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -86         -92         -84
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -6                      12
    ---------------------------------------------------------------------------

        This fund finances the payment of claims on nonparticipating life
    insurance policies issued and currently is open for new issues to
    veterans having service-connected disabilities. The program provides
    insurance coverage for service-disabled veterans at standard rates.

        Operating costs.--
            Death claims.--Represents payments to designated beneficiaries.
            All other.--Represents payments to policyholders who surrender
        their policies for their cash value and hold endowment policies
        which have matured.

        Capital investment.--A policyholder may borrow up to 94 percent of
    the value of his policy.

        The trend in the number and amount of policies in force is indicated
    in the following table.

                         POLICIES AND INSURANCE IN FORCE

                                         2006 actual  2007 est.   2008 est.
    Number of policies............        181,093        186,380         190,230
    Insurance in force (dollars in
    millions).....................         $1,802         $1,864          $1,911

        Financing.--Operations are financed from premiums and other
    receipts. Additional funds are received by transfer from the veterans'
    insurance and indemnities appropriation, instead of direct
    appropriations to this fund.

        Operating results and financial condition.--Since premium and other
    receipts are insufficient to cover operations, the fund continues to
    project liabilities in excess of assets. The deficit is expected to
    reach an estimated $700 million by September 30, 2008.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4012-0-3-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
    33.0  Investments and loans.............          13          14          14
    42.0  Insurance claims and indemnities..          68          77          82
                                               ---------   ---------  ----------
    99.0    Reimbursable obligations........          81          91          96
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          81          91          96
    ---------------------------------------------------------------------------

    [[Page 902]]

                         Veterans Reopened Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Death claims......................          36          41          40
    09.02 Dividends.........................          12          10           8
    09.03 All other.........................           7           7           6
    09.04 Capital investment: policy loans..           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          58          61          57
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         371         351         326
    22.00 New budget authority (gross)......          38          36          32
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         409         387         358
    23.95 Total new obligations.............         -58         -61         -57
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         351         326         301
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          38          36          32
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          52          51          50
    73.10 Total new obligations.............          58          61          57
    73.20 Total outlays (gross).............         -59         -62         -59
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          51          50          48
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          38          36          32
    86.98 Outlays from mandatory balances...          21          26          27
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          59          62          59
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities         -26         -24         -21
    88.40     Interest on loans.............          -1          -1          -1
    88.40     Insurance premiums earned.....          -7          -7          -6
    88.40     Repayments of loans...........          -4          -4          -4
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -38         -36         -32
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          21          26          27
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         422         402         375
    92.02 Total investments, end of year:
            Federal securities: Par value...         402         375         348
    ---------------------------------------------------------------------------

        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund pays claims and administrative costs on participating life
    insurance policies issued during the period May 1, 1965, through May 2,
    1966, under three life insurance programs: (1) service-disabled standard
    insurance; (2) service-disabled rated insurance; and (3) nonservice
    disabled insur- ance availing disabled World War II and Korean conflict
    veterans an opportunity to acquire life insurance coverage who were no
    longer eligible for other Government insurance.

        Budget program.--
            Death claims.--Represents payments to designated beneficiaries.
            Dividends.--Policyholders participate in the distribution of
        annual dividends.
            All other.--This represents resources for the administrative
        costs of processing claims and maintaining the accounts, and to
        those policyholders who: (a) surrender their policies for cash
        value; (b) hold endowment policies which have matured; and (c) have
        purchased total disability income coverage and subsequently become
        disabled.
            Policy loans made.--A policyholder may borrow up to 94 percent
        of the cash value of his policy at an interest rate adjusted to
        reflect private sector borrowing costs.
            The following table reflects the decrease in the number of
        policies and the amount of insurance in force:

                         POLICIES AND INSURANCE IN FORCE

                                         2006 actual  2007 est.   2008 est.
      Number of policies..........         48,206         43,360          38,660
      Insurance in force (dollars
        in millions)..............           $453           $415            $376

        Financing.--Operations are financed from premiums collected from
    policyholders and interest on investments. Excess earnings of the fund
    are now distributed to the policyholders in the form of an annual
    dividend.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4010-0-3-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
    33.0  Investments and loans.............           3           3           3
    42.0  Insurance claims and indemnities..          40          45          44
    43.0  Interest and dividends............          15          13          10
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          58          61          57
    ---------------------------------------------------------------------------

                    Servicemembers' Group Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4009-0-3-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Premium payments..................         819         862         860
    09.02 Payments to carrier...............         608         623
    09.03 Payment to GOE....................           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,429       1,487         862
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,429       1,487         862
    23.95 Total new obligations.............      -1,429      -1,487        -862
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       1,429       1,487         862
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............       1,429       1,487         862
    73.20 Total outlays (gross).............      -1,429      -1,487        -862
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,429       1,487         862
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources:
              Withholdings from serviceman's
              pay...........................      -1,429      -1,487        -862
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.03 Total investments, start of year:
            non-Federal securities: Market
            value...........................         203
    ---------------------------------------------------------------------------

        This fund finances the payment of group life insurance premiums to
    private insurance companies under the Servicemembers' Group Life
    Insurance Act of 1965, as amended.

        This includes premiums for the new Traumatic Servicemembers' Group
    Life Insurance (TSGLI) that became

    [[Page 903]]

    effective December 1, 2005. TSGLI provides for payment between $25,000
    and $100,000 (depending on the type of injury) to any member of the
    uniformed services covered by SGLI who sustains a traumatic injury that
    results in certain serious losses.

                             Housing Program Account

         For the cost of direct and guaranteed loans, such sums as may be
    necessary to carry out the program, as authorized by subchapters I
    through III of chapter 37 of title 38, United States Code: Provided,
    That such costs, including the cost of modifying such loans, shall be as
    defined in section 502 of the Congressional Budget Act of 1974: Provided
    further, That during fiscal year 2008, within the resources available,
    not to exceed $500,000 in gross obligations for direct loans are
    authorized for specially adapted housing loans.
         In addition, for administrative expenses to carry out the direct
    and guaranteed loan programs, $154,562,000.

       Guaranteed Transitional Housing Loans for Homeless Veterans Program
                                     Account

         For the administrative expenses to carry out the guaranteed
    transitional housing loan program authorized by subchapter VI of chapter
    20 of title 38, United States Code, not to exceed $750,000 of the
    amounts appropriated by this Act for ``General operating expenses'' and
    ``Medical administration'' may be expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............           7          22          17
    00.02 Transitional housing guaranteed
            loan subsidy....................                                   8
    00.05 Upward reestimate of direct loan
            subsidy.........................          36           4
    00.06 Interest on reestimate direct loan
            subsidy.........................           3
    00.07 Upward reestimate of loan
            guarantee subsidy...............                      30
    00.08 Interest on reestimate of loan
            guarantee subsidy...............                       7
    00.09 Administrative expenses...........         151         153         155
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         197         216         180
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          43          45          46
    22.00 New budget authority (gross)......         201         217         172
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         244         262         218
    23.95 Total new obligations.............        -197        -216        -180
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          45          46          38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         154         153         155
          Mandatory:

    60.00   Appropriation...................          47          64          17
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         201         217         172
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           4           3
    73.10 Total new obligations.............         197         216         180
    73.20 Total outlays (gross).............        -198        -217        -174
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           3           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         152         153         155
    86.97 Outlays from new mandatory
            authority.......................          46          64          17
    86.98 Outlays from mandatory balances...                                   2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         198         217         174
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         201         217         172
    90.00 Outlays...........................         198         217         174
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Acquired Direct Loans.............          87         210         197
    115003Transitional Housing Direct Loan..                                  12
    115004Vendee Direct Loans...............          76         125         330
                                               ---------   ---------  ----------
    115999Total direct loan levels..........         163         335         539
        Direct loan subsidy (in percent):
    132001Acquired Direct Loans.............        9.18       10.43        8.84
    132003Transitional Housing Direct Loan..        0.00        0.00       72.10
    132004Vendee Direct Loans...............       -5.64       -3.46       -1.59
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        2.27        5.25        3.86
        Direct loan subsidy budget authority:
    133001Acquired Direct Loans.............           7          22          17
    133003Transitional Housing Direct Loan..                                   8
    133004Vendee Direct Loans...............          -4          -4          -5
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....           3          18          20
        Direct loan subsidy outlays:
    134001Acquired Direct Loans.............           7          22          17
    134003Transitional Housing Direct Loan..           2           2           2
    134004Vendee Direct Loans...............          -4          -4          -5
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............           5          20          14
        Direct loan upward reestimates:
    135001Acquired Direct Loans.............          39           4
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................          39           4
        Direct loan downward reestimates:
    137001Acquired Direct Loans.............        -113        -102
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................        -113        -102
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Vetrans Housing Benefit Program...      23,500      28,260      29,104
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......      23,500      28,260      29,104
        Guaranteed loan subsidy (in percent):
    232001Vetrans Housing Benefit Program...       -0.32       -0.36       -0.37
    232002Guaranteed Loan Sale Securities...        4.12        0.00        0.00
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....       -0.32       -0.36       -0.37
        Guaranteed loan subsidy budget authority:
    233001Vetrans Housing Benefit Program...         -73        -102        -108
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....         -73        -102        -108
        Guaranteed loan subsidy outlays:
    234001Vetrans Housing Benefit Program...         -73        -102        -108
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............         -73        -102        -108
        Guaranteed loan upward reestimates:
    235001Vetrans Housing Benefit Program...                      28
    235002Guaranteed Loan Sale Securities...           1           9
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................           1          37
        Guaranteed loan downward reestimates:
    237001Vetrans Housing Benefit Program...      -1,108        -764
    237002Guaranteed Loan Sale Securities...         -68         -94
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................      -1,176        -858
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         151         153         155
    3590  Outlays from new authority........         151         153         155
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for these programs, the subsidy costs associated with the
    direct loans obligated and loan guarantees committed in 1992 and beyond,
    (including modifications of direct loans or loan guarantees that
    resulted from obligations or commitments in any year), as well as for
    the administrative expenses of these programs. The subsidy amounts are
    estimated on a net present value basis.

        Veterans housing benefit program fund program account.--The Federal
    guaranty for this program protects lenders against the following types
    of losses: (a) for loans of $45,000 or less, 50 percent of the loan is
    guaranteed; (b) for loans greater than $45,000, but not more than
    $56,250, $22,500;

    [[Page 904]]

    (c) for loans more than $56,250, but less than $144,000, the lesser of
    $36,000 or 40 percent of the loan; or (d) for loans in excess of
    $144,000 the guarantee will be the lesser of: 25 percent of the Freddie
    Mac conforming loan limit for a single family residence, as adjusted for
    the year involved; or 25 percent of the loan; or the veteran's available
    entitlement.

        Guaranteed transitional housing loans for homeless veterans program
    account.--Public Law 105-368, the ``Veterans Benefits Improvement Act of
    1998,'' established a pilot project designed to expand the supply of
    transitional housing for homeless veterans and to guarantee up to 15
    investment loans with a maximum aggregate value of $100 million. The
    project must enforce sobriety standards and provide a wide range of
    supportive services such as counseling for substance abuse and job
    readiness skills. Residents will be required to pay a reasonable fee.

        This appropriation provides for the corporate leadership and
    operational support to VA's housing business line.

        The Housing program facilitates the extension of private capital, on
    more liberal terms than generally available to nonveterans, to: assist
    veterans and servicepersons in obtaining housing credit; and assist
    veterans in retaining their homes during periods of temporary economic
    difficulty through intensive supplemental mortgage loan servicing.

                                    WORKLOAD

                                 [In thousands]

                                         2006 actual  2007 est.   2008 est.
      Construction and valuation..            186            232             230
      Loan processing.............            363            453             455
      Loan service and claims.....            324            340             380

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1119-0-1-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................         151         153         155
    41.0  Grants, subsidies, and
            contributions...................          47          64          17
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         198         217         172
    ---------------------------------------------------------------------------

                      Housing Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................         163         335         527
    00.02 Interest on Treasury borrowing....          98         124         148
    00.03 Property sales expense............           3           4           4
    00.04 Property management/other expense.           6           7           7
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         270         470         686
    08.01 Payment of negative subsidy to
            receipt account.................           4           3           5
    08.02 Payment of downward reestimate to
            receipt account.................         113          80
    08.04 Payment of excess interest earned
            to receipt account..............                      22
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         117         105           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         387         575         691
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,274          44
    22.00 New financing authority (gross)...        -843         531         691
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         431         575         691
    23.95 Total new obligations.............        -387        -575        -691
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          44
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         484         348         514
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         373         183         221
    69.47     Portion applied to repay debt.      -1,700                     -44
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      -1,327         183         177
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................        -843         531         691
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          69          95          95
    73.10 Total new obligations.............         387         575         691
    73.20 Total financing disbursements
            (gross).........................        -361        -575        -691
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          95          95          95
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         361         575         691
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources:Payments from
                program account.............         -46         -25         -17
    88.00     Reimbursements from DLFA......          -2          -1         -10
    88.25     Interest on uninvested funds..         -52
    88.40     Repayments of principal.......        -189         -57         -62
    88.40     Interest received on loans....         -51         -65         -86
    88.40     Fees..........................          -2          -2          -6
    88.40     Cash sale of properties.......         -30         -33         -40
    88.40     Other.........................          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -373        -183        -221
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............      -1,216         348         470
    90.00 Financing disbursements...........         -12         392         470
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4127-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         163         335         527
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         163         335         527
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         934         863       1,139
    1231  Disbursements: Direct loan
            disbursements...................         163         335         527
          Repayments:

    1251    Repayments and prepayments......        -189         -57         -62
    1253    Proceeds from loan asset sales
              to the public with recourse...
          Write-offs for default:

    1263    Direct loans....................         -30          -2          -2
    1264    Other adjustments, Data
              Reconciliation................         -15
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         863       1,139       1,602
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 36-4127-0-
    3-704

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    1,344

    139

            Investments in US securities:
    1106

    Receivables, net

    39

    4

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    934

    864

    [[Page 905]]

    1402

    Interest receivable

    22

    16

    1405

    Other

    1

    112

    1499

    Net present value of assets related to direct loans

    957

    992

    1999

    Total assets

    2,340

    1,135

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    2,157

    941

    2105

    Other

    183

    194

    2999

    Total liabilities

    2,340

    1,135

    4999

    Negative subsidy BA total [36-1119]

    2,340

    1,135

    -----------------------------------------------------------------------------------------------

                    Housing Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Acquisition of homes..............         620       1,698       1,578
    00.03 Losses on defaulted loans.........         174         475         442
    00.04 Reimburse DLFA for loan sales.....                      17          17
    00.05 Payment to trustee reserve........          14          20          15
    00.07 Loan Sale Closing Costs...........          27
    00.09 Property sales expense............          53         125         116
    00.10 Property management expense.......          43         109         101
    00.11 Property improvement expense......          31          50          46
    00.12 Loans acquired....................         111         207         194
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       1,073       2,701       2,509
    08.01 Payment of negative subsidy to
            receipt account.................          73         102         108
    08.02 Payment of downward reestimate
            receipt account.................       1,176         555
    08.04 Payment of excess interest earned
            to receipt account..............                     303
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............       1,249         960         108
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,322       3,661       2,617
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       4,426       3,515       2,429
    22.00 New financing authority (gross)...       1,411       2,575       2,611
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,837       6,090       5,040
    23.95 Total new obligations.............      -2,322      -3,661      -2,617
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       3,515       2,429       2,423
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                     102         108
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,387       2,473       2,503
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          25
    69.47     Portion applied to repay debt.          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       1,411       2,473       2,503
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,411       2,575       2,611
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          12          33          53
    73.10 Total new obligations.............       2,322       3,661       2,617
    73.20 Total financing disbursements
            (gross).........................      -2,276      -3,641      -2,632
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -25
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          33          53          38
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       2,276       3,641       2,632
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.          -1         -38
    88.00     Recoveries from DLFA..........        -131        -326        -520
    88.25     Interest on uninvested funds..        -203        -167        -139
    88.40     Funding fees..................        -438        -479        -485
    88.40     Cash sale of properties.......        -585      -1,443      -1,342
    88.40     Refunds from Trust............         -27         -20         -17
    88.40     Redemption of properties and
                other.......................          -2
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,387      -2,473      -2,503
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -25
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          -1         102         108
    90.00 Financing disbursements...........         890       1,168         129
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4129-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................      23,500      28,260      29,104
    2132  Guaranteed loan commitments for
            loan asset sales with recourse..
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      23,500      28,260      29,104
    2199  Guaranteed amount of guaranteed
            loan commitments................       6,486       7,800       8,033
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     195,107     198,146     217,311
    2231  Disbursements of new guaranteed
            loans...........................      23,500      28,260      29,104
    2232  Guarantees of loans sold to the
            public with recourse............
    2251  Repayments and prepayments........     -25,255      -3,369      -3,875
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....      -1,402      -3,821      -3,550
    2262    Terminations for default that
              result in acquisition of
              property......................        -620      -1,698      -1,578
    2263    Terminations for default that
              result in claim payments......        -111        -207        -194
    2264    Other adjustments, net..........       6,927
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     198,146     217,311     237,218
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      58,410      71,569      77,232
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2331    Disbursements for guaranteed
              loan claims...................         188         495         457
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond, including
    modifications of guaranteed loans that resulted from commitments in any
    year, and from the guarantee of loans sold through the securitization
    programs. The amounts in this account are a means of financing and are
    not included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 36-4129-0-
    3-704

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    4,403

    3,524

            Investments in US securities:
    1106

    Receivables, net

    64

    126

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Accounts Receivable from Foreclosed Property

    3

    2

    1504

    Accounts receivable from foreclosed property

    553

    579

    1505

    Other Assets

    35

    23

    1599

    Net present value of assets related to defaulted guaranteed loans

    591

    604

    1999

    Total assets

    5,058

    4,254

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    3

    2

    2105

    Other liabilities

    1,577

    858

          Non-Federal liabilities:

    2201

    Accounts payable

    13

    8

    [[Page 906]]

    2204

    Non-federal liabilities for loan guarantees

    3,465

    3,386

    2999

    Total liabilities

    5,058

    4,254

    4999

    Negative subsidy BA total [36-1119]

    5,058

    4,254

    -----------------------------------------------------------------------------------------------

                           Housing Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Acquisition of homes..............           7           6           4
    00.04 Acquisition of defaulted
            guaranteed loans................           6           4           3
    00.05 Repurchase of loans sold..........                       1           2
                                               ---------   ---------  ----------
    00.91   Total capital investments.......          13          11           9
                                               ---------   ---------  ----------
    01.00   Total capital investments.......          13          11           9
    01.02 Property management expense.......           3           3           2
    01.03 Sales expense.....................           1           1           1
    01.04 Claims Processed and Repaid
            Default Claims..................          -8          -7          -7
    01.05 Other operating expenses..........           2           2           2
                                               ---------   ---------  ----------
    01.91   Total operating expenses........          -2          -1          -2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................          11          10           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          32          22
    22.00 New budget authority (gross)......          33          10           7
    22.40 Capital transfer to general fund..         -32         -22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          33          10           7
    23.95 Total new obligations.............         -11         -10          -7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          82          69          58
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
    69.27     Capital transfer to general
                fund........................         -50         -59         -51
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          33          10           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2
    73.10 Total new obligations.............          11          10           7
    73.20 Total outlays (gross).............         -10         -12          -7
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           9          10           7
    86.98 Outlays from mandatory balances...           1           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10          12           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                direct loan financing
                account.....................         -51         -46         -41
    88.40     Loan and other repayments.....         -14         -10          -6
    88.40     Sale of homes, cash...........         -16         -13         -10
    88.40     Interest on loans.............          -1          -1          -1
    88.40     Other revenues................
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -82         -70         -58
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -50         -60         -51
    90.00 Outlays...........................         -72         -58         -51
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.03 Total investments, start of year:
            non-Federal securities: Market
            value...........................                     138         138
    92.04 Total investments, end of year:
            non-Federal securities: Market
            value...........................         138         138         138
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          75          45          35
    1232  Disbursements: Purchase of loans
            assets from the public..........           1
    1251  Repayments: Repayments and
            prepayments.....................         -14          -9          -6
          Write-offs for default:

    1263    Direct loans....................          -1          -1          -1
    1264    Other adjustments, net..........         -16
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          45          35          28
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4025-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      10,992      12,919      10,177
    2251  Repayments and prepayments........      -1,112      -2,676      -1,875
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -6          -5          -5
    2262    Terminations for default that
              result in acquisition of
              property......................         -68         -61         -55
    2264    Other adjustments, net..........       3,113
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      12,919      10,177       8,242
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       5,828       4,591       3,719
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2331    Disbursements for guaranteed
              loan claims...................           8           7           5
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records all cash flows to and from the Government resulting from direct
    loans obligated and loan guarantees committed prior to 1992. All new
    activity in this program in 1992 and beyond is recorded in the
    corresponding program and financing accounts.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 36-4025-0-
    3-704

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    33

    23

            Investments in US securities:
    1106

    Receivables, net

    6

    6

    1201

    Non-Federal assets: Investments in non-Federal securities, net

    178

    137

    1601

    Direct loans, gross

    74

    45

    1602

    Interest receivable

    1

    5

    1604

    Direct loans and interest receivable, net

    75

    50

    1605

    Accounts receivable

    1

    1606

    Other

    27

    1699

    Value of assets related to direct loans

    75

    78

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -287

    1705

    Accounts receivable from foreclosed property

    287

    1706

    Foreclosed property

    17

    1799

    Value of assets related to loan guarantees

    17

    1999

    Total assets

    309

    244

        LIABILITIES:
    2103

    Federal liabilities: Debt

    302

    237

    [[Page 907]]

    2207

    Non-Federal liabilities: Other

    7

    7

    2999

    Total liabilities

    309

    244

    4999

    Total liabilities and net position

    309

    244

    -----------------------------------------------------------------------------------------------

               Native American Veteran Housing Loan Program Account

         For administrative expenses to carry out the direct loan program
    authorized by subchapter V of chapter 37 of title 38, United States
    Code, $628,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1120-0-1-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.05 Upward reestimate and interest
            onreestimate for direct loan
            subsidy.........................                       3
    00.09 Administrative expenses...........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           1           4           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           2           2
    22.00 New budget authority (gross)......           1           4           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           6           3
    23.95 Total new obligations.............          -1          -4          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           1           1           1
          Mandatory:

    60.00   Appropriation...................                       3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           1           4           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............           1           4           1
    73.20 Total outlays (gross).............          -1          -4          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.97 Outlays from new mandatory
            authority.......................                       3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           4           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1           4           1
    90.00 Outlays...........................           1           4           1
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-1120-0-1-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115002Native American Direct Loans......           4           4           4
                                               ---------   ---------  ----------
    115999Total direct loan levels..........           4           4           4
        Direct loan subsidy (in percent):
    132002Native American Direct Loans......      -13.79      -13.46      -14.48
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....      -13.79      -13.46      -14.48
        Direct loan subsidy budget authority:
    133002Native American Direct Loans......          -1          -1          -1
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....          -1          -1          -1
        Direct loan subsidy outlays:
    134002Native American Direct Loans......                      -1          -1
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............                      -1          -1
        Direct loan upward reestimates:
    135002Native American Direct Loans......                       3
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................                       3
        Direct loan downward reestimates:
    137002Native American Direct Loans......          -3          -1
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................          -3          -1
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1           1
    3590  Outlays from new authority........           1           1           1
    ---------------------------------------------------------------------------

        Native American veterans housing loan program account.--The Native
    American Veterans Housing Loan program provides direct loans to veterans
    living on trust lands under 38 U.S.C. chapter 37, section 3761. These
    loans are available to purchase, construct or improve homes to be
    occupied as the veteran's residence. This program began as a pilot in
    1993 and was made permanent on June 15, 2006 through Public Law 109-233.

                  Native American Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4130-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................           4           4           4
    00.02 Interest on Treasury borrowing....           3           2           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................           7           6           6
    08.01 Negative Subsidies Obligated......                       1           1
    08.02 Payment of downward reestimate to
            receipt account.................           3           1
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           3           2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10           8           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New financing authority (gross)...          38           8           7
    22.60 Portion applied to repay debt.....         -29
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          10           8           7
    23.95 Total new obligations.............         -10          -8          -7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          33           5           5
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).           5           6           3
    69.47     Portion applied to repay debt.                      -3          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           5           3           2
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          38           8           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           1
    73.10 Total new obligations.............          10           8           7
    73.20 Total financing disbursements
            (gross).........................         -11          -9          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          11           9           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -3
    88.25     Interest on uninvested funds..          -2
    88.40     Non-federal sources--
                Repayments and prepayments
                of principal................          -2          -1          -1
    88.40     Non-Federal sources--Interest
                received on loans...........          -1          -2          -2
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................          -5          -6          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          33           2           4

    [[Page 908]]

    90.00 Financing disbursements...........           6           3           4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4130-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          30          30
    1121  Limitation available from carry-
            forward.........................
    1131  Direct loan obligations exempt
            from limitation.................                                   4
    1142  Unobligated direct loan limitation
            (-).............................         -26         -26
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           4           4           4
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          27          30          33
    1231  Disbursements: Direct loan
            disbursements...................           5           4           4
    1251  Repayments: Repayments and
            prepayments.....................          -2          -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          30          33          36
    ---------------------------------------------------------------------------

        The account preceding this section contains information on the
    Native American Veterans Housing Loan program, and the account following
    this section contains information on the Guaranteed Transitional Housing
    Loans for Homeless Veterans program. The Transitional Housing loans are
    100% guaranteed and use the Federal Financing Bank (FFB) as the lending
    institution. For budget purposes, all FFB loans shall be treated as
    direct loans.

        As required by the Federal Credit Reform Act of 1990, these non-
    budgetary accounts record all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in the accounts are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 36-4130-0-
    3-704

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    2

    1

            Investments in US securities:
    1106

    Receivables, net

    3

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    27

    30

    1499

    Net present value of assets related to direct loans

    27

    30

    1901

    Other Federal assets: Other assets

    3

    4

    1999

    Total assets

    32

    38

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable (Liabilities)

    -3

    2103

    Federal liabilities debt

    32

    36

    2105

    Other liabilities

    3

    2

    2999

    Total liabilities

    32

    38

    4999

    Negative subsidy BA total [36-1120]

    32

    38

    -----------------------------------------------------------------------------------------------

                Transitional Housing Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4258-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Guaranteed (Direct) Loans.........                                  12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           5           5
    22.00 New financing authority (gross)...                                  21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           5          26
    23.95 Total new obligations.............                                 -12
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           5          14
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                                  12
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).           2           2           3
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -2          -2           6
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                                   9
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                                  21
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  12
    73.20 Total financing disbursements
            (gross).........................          -2          -2          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2           2          -6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                   3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................           2           2           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -2          -2
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           2           2          -6
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                  13
    90.00 Financing disbursements...........           2                       1
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4258-0-3-704      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1121  Limitation available from carry-
            forward.........................          95          95          95
    1143  Unobligated limitation carried
            forward (P.L. xx) (-)...........         -95         -95         -83
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                                  12
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                       2           4
    1231  Disbursements: Direct loan
            disbursements...................           2           2           3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           2           4           7
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 36-4258-0-
    3-704

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets: Investments in US
              securities:

    1106

    Receivables, net

    5

    1206

    Non-Federal assets: Receivables, net

    2

    1999

    Total assets

    7

        LIABILITIES:
    2103

    Federal liabilities: Debt

    2

    2207

    Non-Federal liabilities: Loan guarantee

    5

    2999

    Total liabilities

    7

    4999

    Negative subsidy BA total [36-1119]

    7

    -----------------------------------------------------------------------------------------------

    [[Page 909]]

             Vocational Rehabilitation Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4112-0-3-702      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................           3           3           3
    00.02 Interest on Treasury borrowing....
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............           3           3           3
    08.01 Negative subsidies obligated......
    08.02 Downward Reestimate to Receipt
            Acct............................           1
    08.04 Downward Interest Reestimate to
            Receipt Acct....................
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           4           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New financing authority (gross)...           3           3           3
    22.60 Portion applied to repay debt.....
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           3           3
    23.95 Total new obligations.............          -4          -3          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow (indefinite)           3           3           3
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).           3           3           3
    69.47     Portion applied to repay debt.          -3          -3          -3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           3           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           4           3           3
    73.20 Total financing disbursements
            (gross).........................          -4          -3          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................           4           3           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from Program Account,
                Upward Reestimate...........                      -1
    88.40     Repayments and prepayments of
                principal...................          -3          -3          -3
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................          -3          -4          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      -1
    90.00 Financing disbursements...........                      -1
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4112-0-3-702      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........           3           3           3
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           3           3           3
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           1           1
    1231  Disbursements: Direct loan
            disbursements...................           3           3           3
    1251  Repayments: Repayments and
            prepayments.....................          -3          -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1           1           1
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 36-4112-0-
    3-702

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets: Investments in US
              securities:

    1107

    Other (Assets)

    1

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    1

    1499

    Net present value of assets related to direct loans

    1

    1999

    Total assets

    2

        LIABILITIES:
    2103

    Federal liabilities: Debt

    2

    2999

    Total liabilities

    2

    4999

    Total direct loan levels [36-0151]

    2

    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                   Post-Vietnam Era Veterans Education Account

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............           1           1           1
                                               ---------   ---------  ----------
    01.99 Balance, start of year............           1           1           1
        Receipts:
    02.00 Contributions, Post-Vietnam era
            veterans education account......                                   1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           1           1           2
        Appropriations:
    05.00 Post-Vietnam era veterans
            education account...............                                  -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           1           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Payment to post-Vietnam era
            trainees........................           1           1           1
    00.03 Participant disenrollments........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           2           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          71          69          67
    22.00 New budget authority (gross)......                                   1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          71          69          68
    23.95 Total new obligations.............          -2          -2          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          69          67          66
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......                                   1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............           2           2           2
    73.20 Total outlays (gross).............          -2          -2          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                   1
    86.98 Outlays from mandatory balances...           2           2           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           2           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                   1
    90.00 Outlays...........................           2           2           2
    ---------------------------------------------------------------------------

        This account consists of voluntary contributions by eligible
    servicepersons and matching contributions provided by the Department of
    Defense. The fund provides educational assist

    [[Page 910]]

    ance payments to participants who entered the service after December 31,
    1976, and are pursuing training under chapter 32, title 38, U.S.C.
    Section 901 is a non-contributory program with educational assistance
    provided by the Department of Defense. Public Law 99-576, enacted
    October 28, 1986, closed the program permanently for new enrollments
    effective March 31, 1987. Public Law 106-419, enacted November 1, 2000,
    provides qualified participants in this program another opportunity
    (through October 31, 2001) to convert to the All-Volunteer Force
    Educational Assistance program (Montgomery GI Bill). The estimated
    activity in the fund follows:

        CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES

                            [In millions of dollars]

                                         2006 actual  2007 est.   2008 est.
    Total budget authority........             $0             $0              $1
      Servicepersons contributions             $0             $0              $0
      Transferred from Department
        of Defense (bonus)........             $0             $0              $0
      Transferred from Department
        of Defense (matching).....             $0             $0              $0
      Transferred from Department
        of Defense (section 901)..             $0             $0              $0
    Total participants (end of
    year).........................        195,862        194,918         194,196
    Total contributors (end of
    year).........................             72            156             128
    Average contribution per
    contributor (actual dollars)..         $4,625         $2,632          $2,632
    Number of disenrollments......            816            500             300
    Total refunds.................             $1             $1              $0
    Total trainees................            627            600             550
    Total trainee cost............             $1             $1              $1
    Average cost per trainee
    (actual dollars)..............         $1,552         $1,618          $1,728
    Section 901 trainees..........             39             31              31

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8133-0-7-702      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    41.0  Grants, subsidies, and
            contributions...................           1           1           1
    44.0  Refunds...........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           2           2           2
    ---------------------------------------------------------------------------

                       National Service Life Insurance Fund

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............       9,134       8,735       8,285
                                               ---------   ---------  ----------
    01.99 Balance, start of year............       9,134       8,735       8,285
        Receipts:
    02.00 NSLI fund, Interest...............         632         587         552
    02.01 NSLI fund, Payments from general
            and special funds...............           1           1           1
    02.20 NSLI fund, Premium and other
            receipts........................         154         141         128
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         787         729         681
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       9,921       9,464       8,966
        Appropriations:
    05.00 National service life insurance
            fund............................        -788        -729        -681
    05.01 National service life insurance
            fund............................        -398        -450        -497
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -1,186      -1,179      -1,178
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............       8,735       8,285       7,788
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Death claims......................         664         673         680
    00.02 Disability claims.................           9           8           7
    00.03 Matured endowments................          11          12          15
    00.04 Cash surrenders...................          32          30          29
    00.05 Dividends.........................         240         214         196
    00.06 Interest paid on dividend credits
            and deposits....................          55          50          49
    00.07 Payment to Insurance account......          22          25          24
                                               ---------   ---------  ----------
    00.91   Total operating expenses........       1,033       1,012       1,000
    02.01 Capital investment: Policy loans..          62          61          59
                                               ---------   ---------  ----------
    02.93   Total direct obligations........       1,095       1,073       1,059
    09.01 Death claims......................         246         256         254
    09.02 Disability Claims.................           3           3           3
    09.03 Matured Endowments................           4           4           6
    09.04 Cash Surrenders...................          12          11          11
    09.05 Dividends.........................          89          81          73
    09.06 Interest paid on dividend credits
            and deposits....................          20          19          18
    09.07 Payment to Insurance account......           8           9           9
                                               ---------   ---------  ----------
    09.09   Reimbursable program............         382         383         374
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,477       1,456       1,433
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,478       1,456       1,432
    23.95 Total new obligations.............      -1,477      -1,456      -1,433
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         788         729         681
    60.28   Appropriation (previously
              unavailable)..................         398         450         497
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       1,186       1,179       1,178
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         292         277         254
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,478       1,456       1,432
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,472       1,457       1,430
    73.10 Total new obligations.............       1,477       1,456       1,433
    73.20 Total outlays (gross).............      -1,492      -1,483      -1,465
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,457       1,430       1,398
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,080       1,006         935
    86.98 Outlays from mandatory balances...         412         477         530
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,492       1,483       1,465
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1
    88.40     Repayments of loans...........         -94         -88         -83
    88.40     Optional settlements..........          -1          -1          -1
    88.40     Net income offsets adjustments        -196        -188        -170
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -292        -277        -254
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,186       1,179       1,178
    90.00 Outlays...........................       1,200       1,206       1,211
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      10,597      10,189       9,711
    92.02 Total investments, end of year:
            Federal securities: Par value...      10,189       9,711       9,180
    ---------------------------------------------------------------------------

        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund was established in 1940. It is for the World War II
    servicemen's and veterans' insurance program. Over 22 million policies
    were issued under this program. Activity of the fund reflects a
    declining claim workload. The trend in the number and amount of policies
    in force is shown as follows:

                         POLICIES AND INSURANCE IN FORCE

                                         2006 actual  2007 est.   2008 est.
    Number of policies............      1,106,597      1,010,380         915,630
    Insurance in force (dollars in
    millions).....................        $12,360        $11,443         $10,553

        This fund is operated on a commercial basis to the extent possible.
    The income of the fund is derived from premium receipts, interest on
    investments, and payments which are

    [[Page 911]]

    made to the fund from the Veterans insurance and indemnities
    appropriation.

        Assets of the fund, which are largely invested in special interest-
    bearing Treasury securities and in policy loans, are expected to
    decrease from $10,306 million as of September 30, 2007 to $9,732 million
    as of September 30, 2008. The actuarial estimate of policy obligations
    as of September 30, 2008, totals $9,484 million, leaving a balance of
    $248 million for contingency reserves.

        The status of the fund, excluding noncash transactions, is as
    follows:

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Balance, start of year............      10,606      10,193       9,716
                                               ---------   ---------  ----------
    0199    Total balance, start of year....      10,606      10,193       9,716
        Cash income during the year:
          Current law:

            Receipts:
    1200      NSLI fund, Interest...........         632         587         552
    1201      NSLI fund, Payments from
                general and special funds...           1           1           1
            Offsetting receipts
                (proprietary):
    1220      NSLI fund, Premium and other
                receipts....................         154         141         128
            Offsetting collections:
    1280      National service life
                insurance fund..............           1           1           1
    1281      National service life
                insurance fund..............         196         188         170
    1282      National service life
                insurance fund..............          94          88          83
    1283      National service life
                insurance fund..............           1
    1299    Income under present law........       1,079       1,006         935
                                               ---------   ---------  ----------
    3299    Total cash income...............       1,079       1,006         935
        Cash outgo during year:
          Current law:

    4500    National service life insurance
              fund..........................      -1,492      -1,483      -1,465
    4599    Outgo under current law (-).....      -1,492      -1,483      -1,465
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............      -1,492      -1,483      -1,465
        Unexpended balance, end of year:
    8700  Uninvested balance (net), end of
            year............................           4           5           6
    8701  Invested balance, end of year.....      10,189       9,711       9,180
                                               ---------   ---------  ----------
    8799    Total balance, end of year......      10,193       9,716       9,186
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8132-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    33.0    Investments and loans...........          62          61          59
    42.0    Insurance claims and indemnities         716         723         731
    43.0    Interest and dividends..........         317         289         269
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,095       1,073       1,059
    99.0  Reimbursable obligations..........         382         383         374
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,477       1,456       1,433
    ---------------------------------------------------------------------------

                   United States Government Life Insurance Fund

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............          29          25          21
                                               ---------   ---------  ----------
    01.99 Balance, start of year............          29          25          21
        Receipts:
    02.00 Interest and profits on
            investments in public debt
            securities, USGLI...............           3           2           2
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          32          27          23
        Appropriations:
    05.00 United States Government life
            insurance fund..................          -3          -2          -2
    05.01 United States Government life
            insurance fund..................          -4          -4          -4
                                               ---------   ---------  ----------
    05.99   Total appropriations............          -7          -6          -6
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          25          21          17
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Death claims......................           4           4           4
    00.06 Interest paid on dividend credits
            and deposits....................           1           1           1
    00.07 Other Costs.......................           1           1           1
    09.02 Dividends.........................           1           1           1
                                               ---------   ---------  ----------
    09.09   Reimbursable program............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           7           7           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           7           6           6
    23.95 Total new obligations.............          -7          -7          -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           3           2           2
    60.28   Appropriation (previously
              unavailable)..................           4           4           4
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................           7           6           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15          14          13
    73.10 Total new obligations.............           7           7           7
    73.20 Total outlays (gross).............          -8          -8          -8
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          14          13          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           3           2           2
    86.98 Outlays from mandatory balances...           5           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           8           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           7           6           6
    90.00 Outlays...........................           8           8           8
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          45          39          34
    92.02 Total investments, end of year:
            Federal securities: Par value...          39          34          29
    ---------------------------------------------------------------------------

        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund was established in 1919 to receive premiums and pay claims
    on insurance issued under the provisions of the War Risk Insurance Act.
    The general decline in the activity of the fund is indicated in the
    following table:

                         POLICIES AND INSURANCE IN FORCE

                                         2006 actual  2007 est.   2008 est.
    Number of policies............          7,841          6,660           5,560
    Insurance in force (dollars in
    millions).....................            $24            $20             $16

        The fund is operated on a commercial basis to the extent possible.
    The income of the fund is derived from interest on investments and
    payments from the Veterans insurance and indemnities appropriation.
    Effective January 1, 1983, premiums were discontinued because reserves
    held in the fund were adequate to meet future liabilities of the
    program.

        Assets of the fund, which are largely invested in interest-bearing
    securities and policy loans, are estimated to decrease from $35 million
    as of September 30, 2007, to $30 million as of September 30, 2008, as an
    increasing number of policies mature through death or disability. The
    actuarial evaluation of policy obligations as of September 30, 2008,
    totals $29 million, leaving a balance of $1 million for contingency
    reserves.

        The status of the fund, excluding noncash transactions, is as
    follows:

    [[Page 912]]

                      Status of Funds (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Unexpended balance, start of year:
    0100  Balance, start of year............          44          39          33
                                               ---------   ---------  ----------
    0199    Total balance, start of year....          44          39          33
        Cash income during the year:
          Current law:

            Receipts:
    1200      Interest and profits on
                investments in public debt
                securities, USGLI...........           3           2           2
    1299    Income under present law........           3           2           2
                                               ---------   ---------  ----------
    3299    Total cash income...............           3           2           2
        Cash outgo during year:
          Current law:

    4500    United States Government life
              insurance fund................          -8          -8          -8
    4599    Outgo under current law (-).....          -8          -8          -8
                                               ---------   ---------  ----------
    6599    Total cash outgo (-)............          -8          -8          -8
        Unexpended balance, end of year:
    8700  Uninvested balance (net), end of
            year............................                      -1          -2
    8701  Invested balance, end of year.....          39          34          29
                                               ---------   ---------  ----------
    8799    Total balance, end of year......          39          33          27
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8150-0-7-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    42.0    Insurance claims and indemnities           4           4           4
    43.0    Interest and dividends..........           2           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............           6           6           6
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           7           7           7
    ---------------------------------------------------------------------------

                       Veterans Special Life Insurance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Death claims......................          71          82          88
    09.02 Cash surrenders...................           4           4           4
    09.03 Dividends.........................          79          79          72
    09.04 All other.........................          30          32          34
    09.05 Payments to Insurance account.....           6           6           7
    09.06 Capital investment................          15          15          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         205         218         220
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,577       1,590       1,583
    22.00 New budget authority (gross)......         218         211         205
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,795       1,801       1,788
    23.95 Total new obligations.............        -205        -218        -220
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,590       1,583       1,568
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         218         211         205
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         352         371         390
    73.10 Total new obligations.............         205         218         220
    73.20 Total outlays (gross).............        -186        -199        -203
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         371         390         407
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         186         199         203
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities        -138        -134        -130
    88.40     Interest on loans.............          -5          -5          -5
    88.40     Insurance premiums earned.....         -59         -57         -55
    88.40     Repayments of loans...........         -16         -15         -15
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -218        -211        -205
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -32         -12          -2
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       1,928       1,960       1,972
    92.02 Total investments, end of year:
            Federal securities: Par value...       1,960       1,972       1,955
    ---------------------------------------------------------------------------

        Note.--The Department of Veterans Affairs insurance policy loans are
    not an extension of Federal credit. Credit schedules previously shown
    for this account have been discontinued.

        This fund finances the payment of claims on life insurance policies
    issued before January 3, 1957, to veterans who served in the Armed
    Forces subsequent to April 1, 1951. No new policies can be issued.
    Policyholders may elect to purchase total disability income coverage
    with the payment of additional premiums.

        Budget program.--
            Death claims.--Represents payments to designated beneficiaries.
            Cash surrenders.--A policyholder may terminate his or her
        insurance by cashing in the policy for its cash value.
            Dividends.--Policyholders participate in the distribution of
        annual dividends.
            All other.--Classified in this category are payments to
        policyholders who: (a) hold endowment policies which have matured;
        (b) have purchased total disability income coverage and subsequently
        become disabled; and (c) are paid interest on dividend credits and
        deposits.
            The following table reflects the decrease in the number of
        policies and the amounts of insurance in force:

                         POLICIES AND INSURANCE IN FORCE

                                         2006 actual  2007 est.   2008 est.
    Number of policies............        199,262        191,250         182,800
    Insurance in force (dollars in
    millions).....................         $2,453         $2,406          $2,350

        Financing.--Payments from this fund are financed primarily from
    premium receipts and interest on investments.

        Operating results and financial condition.--Lower than expected
    death rates on insurance written against this fund has kept death claim
    payments well below the amount of premium and interest receipts, thereby
    producing an annual increase in the total revenue of the fund. Excess
    earnings of the fund are now distributed to the policyholders in the
    form of an annual dividend.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-8455-0-8-701      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
    33.0  Investments and loans.............          15          15          15
    42.0  Insurance claims and indemnities..          86          99         107
    43.0  Interest and dividends............         104         104          98
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         205         218         220
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

                                  Federal Funds

                           Construction, Major Projects

         For constructing, altering, extending and improving any of the
    facilities including parking projects under the jurisdiction or for the

    [[Page 913]]

    use of the Department of Veterans Affairs, or for any of the purposes
    set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109,
    8110, and 8122 of title 38, United States Code, including planning,
    architectural and engineering services, construction management
    services, maintenance or guarantee period services costs associated with
    equipment guarantees provided under the project, services of claims
    analysts, offsite utility and storm drainage system construction costs,
    and site acquisition, where the estimated cost of a project is more than
    the amount set forth in section 8104(a)(3)(A) of title 38, United States
    Code, or where funds for a project were made available in a previous
    major project appropriation, $727,400,000, to remain available until
    expended, of which $2,000,000 shall be to make reimbursements as
    provided in section 13 of the Contract Disputes Act of 1978 (41 U.S.C.
    612) for claims paid for contract disputes: Provided, That except for
    advance planning activities, including needs assessments which may or
    may not lead to capital investments, and other capital asset management
    related activities, such as portfolio development and management
    activities, and investment strategy studies funded through the advance
    planning fund and the planning and design activities funded through the
    design fund and CARES funds, including needs assessments which may or
    may not lead to capital investments, none of the funds appropriated
    under this heading shall be used for any project which has not been
    reviewed by the Congress in the budgetary process: Provided further,
    That funds provided in this appropriation for fiscal year 2008, for each
    approved project (except those for CARES activities referenced above)
    shall be obligated: (1) by the awarding of a construction documents
    contract by September 30, 2008; and (2) by the awarding of a
    construction contract by September 30, 2009: Provided further, That the
    Secretary of Veterans Affairs shall promptly report in writing to the
    Committees on Appropriations of both Houses of Congress any approved
    major construction project in which obligations are not incurred within
    the time limitations established above.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Medical Programs..................         333         578       1,327
    00.02 National Cemeteries...............          54         149         167
    00.05 Staff Offices.....................           4           6          29
    09.01 Reimbursable program..............          29
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         420         733       1,523
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         996       2,166       1,717
    22.00 New budget authority (gross)......       1,590         284         728
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,586       2,450       2,445
    23.95 Total new obligations.............        -420        -733      -1,523
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       2,166       1,717         922
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         607         284         728
    40.30   Appropriations adjusted pursuant
              to PL109-148;234..............         954
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,561         284         728
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          29
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,590         284         728
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         478         660         790
    73.10 Total new obligations.............         420         733       1,523
    73.20 Total outlays (gross).............        -238        -603        -741
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         660         790       1,572
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          29           2           5
    86.93 Outlays from discretionary
            balances........................         209         601         736
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         238         603         741
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -6
    88.40     Non-Federal sources...........         -23
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,561         284         728
    90.00 Outlays...........................         209         603         741
    ---------------------------------------------------------------------------

        Major
            The ``Construction, major projects'' appropriations, fund
        construction projects costing more than $10 million, and support new
        cemeteries in the vicinity of Bakersfield, CA; Birmingham, AL;
        Columbia/Greenville, SC; Jacksonville, FL; Philadelphia, PA;
        Sarasota County, FL; and Southeastern, PA; cemetery expansion in
        Fort Sam Houston, TX; fund facility improvements, realignments, and
        support seismic corrections as related to CARES in Pittsburgh, PA;
        Denver, CO; Orlando, FL; Las Vegas, NV; Lee County, FL; Syracuse,
        NY.
            Additional funds are provided to abate asbestos and other
        hazardous materials from Department-owned buildings, reimburse the
        Judgment Fund, improve facility security at Department-owned
        buildings, Base Realignment and Closure (BRAC) activities, and
        support advance planning and design activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0110-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    25.2    Other services..................           4           5           6
    26.0    Supplies and materials..........           1           2           3
    31.0    Equipment.......................           1           2           3
    32.0    Land and structures.............         385         724       1,511
                                               ---------   ---------  ----------
    99.0      Direct obligations............         391         733       1,523
    99.0  Reimbursable obligations..........          29
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         420         733       1,523
    ---------------------------------------------------------------------------

                           Construction, Minor Projects

         For constructing, altering, extending, and improving any of the
    facilities including parking projects under the jurisdiction or for the
    use of the Department of Veterans Affairs, including planning and
    assessments of needs which may lead to capital investments,
    architectural and engineering services, maintenance or guarantee period
    services costs associated with equipment guarantees provided under the
    project, services of claims analysts, offsite utility and storm drainage
    system construction costs, and site acquisition, or for any of the
    purposes set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108,
    8109, 8110, 8122, and 8162 of title 38, United States Code, where the
    estimated cost of a project is equal to or less than the amount set
    forth in section 8104(a)(3)(A) of title 38, United States Code,
    $233,396,000, to remain available until expended, along with unobligated
    balances of previous ``Construction, minor projects'' appropriations
    which are hereby made available for any project where the estimated cost
    is equal to or less than the amount set forth in such section, for: (1)
    repairs to any of the nonmedical facilities under the jurisdiction or
    for the use of the Department which are necessary because of loss or
    damage caused by any natural disaster or catastrophe; and (2) temporary
    measures necessary to prevent or to minimize further loss by such
    causes.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:

    [[Page 914]]

    00.01 Medical Programs..................         142         145         180
    00.02 National Cemeteries...............          27          31          24
    00.03 Regional Offices..................          13          10          13
    00.04 Staff Offices.....................           6           9          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         188         195         233
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          62         107          80
    22.00 New budget authority (gross)......         233         168         233
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         295         275         313
    23.95 Total new obligations.............        -188        -195        -233
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         107          80          80
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         201         168         233
    42.00   Transferred from other accounts.          32
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         233         168         233
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         403         332         306
    73.10 Total new obligations.............         188         195         233
    73.20 Total outlays (gross).............        -259        -221        -198
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         332         306         341
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          27          30          42
    86.93 Outlays from discretionary
            balances........................         232         191         156
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         259         221         198
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         233         168         233
    90.00 Outlays...........................         259         221         198
    ---------------------------------------------------------------------------

        Minor
            The ``Construction minor projects'' appropriation, which funds
        construction projects costing less than $10 million with a minor
        improvement component costing $500,000 or more is used to improve
        the infrastructure of medical facilities and other Department owned
        facilities to reduce the risk to patient life and safety, correct
        code deficiencies, improve national cemeteries and regional and
        staff offices.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................          29          28          27
    26.0  Supplies and materials............           2           3           3
    31.0  Equipment.........................           1           1           1
    32.0  Land and structures...............         156         163         202
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         188         195         233
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0111-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          19          19          19
    ---------------------------------------------------------------------------

            Grants for Construction of State Extended Care Facilities

         For grants to assist States to acquire or construct State nursing
    home and domiciliary facilities and to remodel, modify or alter existing
    hospital, nursing home and domiciliary facilities in State homes, for
    furnishing care to veterans as authorized by sections 8131-8137 of title
    38, United States Code, $85,000,000, to remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0181-0-1-703      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program activity...........          88          84          85
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          88          84          85
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3                       1
    22.00 New budget authority (gross)......          85          85          85
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          88          85          86
    23.95 Total new obligations.............         -88         -84         -85
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                       1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          85          85          85
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         287         253         245
    73.10 Total new obligations.............          88          84          85
    73.20 Total outlays (gross).............        -122         -92         -86
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         253         245         244
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       2           2
    86.93 Outlays from discretionary
            balances........................         122          90          84
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         122          92          86
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          85          85          85
    90.00 Outlays...........................         122          92          86
    ---------------------------------------------------------------------------

               Grants for Construction of State Veterans Cemeteries

         For grants to aid States in establishing, expanding, or improving
    State veterans cemeteries as authorized by section 2408 of title 38,
    United States Code, $32,000,000, to remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0183-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program activity...........          18          32          32
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          18          32          32
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      14
    22.00 New budget authority (gross)......          32          18          32
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          32          32          32
    23.95 Total new obligations.............         -18         -32         -32
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          32          18          32
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          46          27          44
    73.10 Total new obligations.............          18          32          32
    73.20 Total outlays (gross).............         -37         -15         -20
                                               ---------   ---------  ----------

    [[Page 915]]

    74.40   Obligated balance, end of year..          27          44          56
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      10          17
    86.93 Outlays from discretionary
            balances........................          37           5           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          37          15          20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          32          18          32
    90.00 Outlays...........................          37          15          20
    ---------------------------------------------------------------------------

                           General Operating Expenses

        For necessary operating expenses of the Department of Veterans
    Affairs, not otherwise provided for, including administrative expenses
    in support of Department-wide capital planning, management and policy
    activities, uniforms or allowances therefor; not to exceed $25,000 for
    official reception and representation expenses; hire of passenger motor
    vehicles; and reimbursement of the General Services Administration for
    security guard services, and the Department of Defense for the cost of
    overseas employee mail, $1,471,837,000: Provided, That expenses for
    services and assistance authorized under paragraphs (1), (2), (5), and
    (11) of section 3104(a) of title 38, United States Code, that the
    Secretary of Veterans Affairs determines are necessary to enable
    entitled veterans: (1) to the maximum extent feasible, to become
    employable and to obtain and maintain suitable employment; or (2) to
    achieve maximum independence in daily living, shall be charged to this
    account: Provided further, That the Veterans Benefits Administration
    shall be funded at not less than $1,198,294,000: Provided further, That
    of the funds made available under this heading, not to exceed
    $75,000,000 shall be available for obligation until September 30, 2009:
    Provided further, That from the funds made available under this heading,
    the Veterans Benefits Administration may purchase up to two passenger
    motor vehicles for use in operations of that Administration in Manila,
    Philippines.

                 Vocational Rehabilitation Loans Program Account

                          (including transfer of funds)

        For the cost of direct loans, $71,000, as authorized by chapter 31
    of title 38, United States Code: Provided, That such costs, including
    the cost of modifying such loans, shall be as defined in section 502 of
    the Congressional Budget Act of 1974: Provided further, That funds made
    available under this heading are available to subsidize gross
    obligations for the principal amount of direct loans not to exceed
    $3,287,000.
        In addition, for administrative expenses necessary to carry out the
    direct loan program, $311,000, which may be transferred to and merged
    with the appropriation for ``General operating expenses''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Compensation and pensions.........         887         919         941
    00.02 Education.........................          82          90          93
    00.03 Vocational rehabilitation and
            counseling......................         127         149         159
    00.04 Insurance.........................           4           4           5
    00.06 General administration............         301         335         274
                                               ---------   ---------  ----------
    01.00   Direct Program by Activities--
              Subtotal (running)............       1,401       1,497       1,472
    09.01 Compensation and pensions.........          94         103         102
    09.02 Education.........................           1           2           3
    09.04 Insurance.........................          35          40          36
    09.05 Housing...........................         129         127         118
    09.06 General administration............          62          62          64
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......         321         334         323
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,722       1,831       1,795
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          86          59
    22.00 New budget authority (gross)......       1,697       1,772       1,795
    22.30 Expired unobligated balance
            transfer to unexpired account...           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,792       1,831       1,795
    23.95 Total new obligations.............      -1,722      -1,831      -1,795
    23.98 Unobligated balance expiring or
            withdrawn.......................         -11
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          59
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,411       1,439       1,472
    40.30   Appropriations adjusted pursuant
              to PL 109-148 (Hurricane
              Supplemental).................          25
    41.00   Transferred to other accounts...         -63          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,373       1,438       1,472
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         321         334         323
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           3
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         324         334         323
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,697       1,772       1,795
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         432         270         365
    73.10 Total new obligations.............       1,722       1,831       1,795
    73.20 Total outlays (gross).............      -1,866      -1,736      -1,793
    73.40 Adjustments in expired accounts
            (net)...........................         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         270         365         367
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,500       1,490       1,507
    86.93 Outlays from discretionary
            balances........................         366         246         286
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,866       1,736       1,793
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -321        -334        -323
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,373       1,438       1,472
    90.00 Outlays...........................       1,545       1,402       1,470
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Vocational Rehabilitation.........           3           3           3
                                               ---------   ---------  ----------
    115999Total direct loan levels..........           3           3           3
        Direct loan subsidy (in percent):
    132001Vocational Rehabilitation.........        1.59        2.00        2.16
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        1.59        2.00        2.16
        Direct loan downward reestimates:
    137001Vocational Rehabilitation.........          -1
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................          -1
    ---------------------------------------------------------------------------

        Note.--The total cost of administering veterans insurance programs
    is funded through direct appropriations to this account and through
    reimbursements from the insurance trust fund.

        This appropriation provides for the Department's top management
    direction and administrative support, including fiscal, personnel, and
    legal services.

        General Administration.--Includes departmental executive direction,
    departmental support offices, the General Counsel, and the Board of
    Veterans' Appeals.

    [[Page 916]]

                      General Operating Expenses--Continued

        Funding for non-personal services Information Technology is included
    in VA's central IT fund beginning in FY2006.

        The Pershing Hall Revolving Fund was created to operate and manage
    Pershing Hall, an asset of the United States, located in Paris, France.
    All operating expenses for Pershing Hall are borne by the revolving fund
    and all receipts generated by the operation of Pershing Hall are
    deposited in the revolving fund.

        Note.--Reflects FTE treated as reimbursements in all years and the
    effects of Credit Reform, per P.L. 101-508.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         792         803         813
    11.5      Other personnel compensation..          36          40          41
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         828         843         854
    12.1    Civilian personnel benefits.....         222         225         226
    21.0    Travel and transportation of
              persons.......................          15          17          17
    22.0    Transportation of things........           5           6           6
    23.1    Rent............................         109         115         117
    23.3    Communications, utilities, and
              miscellaneous charges.........          22          25          26
    24.0    Printing and reproduction.......           4           5           6
    25.2    Other services..................         172         234         193
    26.0    Supplies and materials..........          11          12          12
    31.0    Equipment.......................          13          15          15
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,401       1,497       1,472
    99.0  Reimbursable obligations..........         321         334         323
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,722       1,831       1,795
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0151-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................      13,288      13,623      13,432
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................       2,111       2,070       1,900
    ---------------------------------------------------------------------------

                           Office of Inspector General

         For necessary expenses of the Office of Inspector General in
    carrying out the provisions of the Inspector General Act of 1978,
    $72,599,000, of which $3,630,000 shall remain available until September
    30, 2009.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Direct program....................          72          69          73
                                               ---------   ---------  ----------
    01.92   Total direct program............          72          69          73
    09.01 Reimbursable program..............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          75          72          76
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3
    22.00 New budget authority (gross)......          72          72          76
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          75          72          76
    23.95 Total new obligations.............         -75         -72         -76
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          70          69          73
    41.00   Transferred to other accounts...          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          69          69          73
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           3           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          72          72          76
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          15          17
    73.10 Total new obligations.............          75          72          76
    73.20 Total outlays (gross).............         -76         -70         -74
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          15          17          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          63          60          64
    86.93 Outlays from discretionary
            balances........................          13          10          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          76          70          74
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -3          -3          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          69          69          73
    90.00 Outlays...........................          73          67          71
    ---------------------------------------------------------------------------

        This appropriation provides Department-wide audit, investigation,
    and health care inspection and support functions to identify and report
    weaknesses and deficiencies in VA programs and operations that create
    conditions for existing or potential instances of criminal activity,
    fraud, waste, and mismanagement. The audit function plans and conducts
    internal programmatic audits of all facets of VA operations. The
    investigative function conducts criminal and administrative
    investigations of improper and illegal activities involving VA programs,
    personnel, beneficiaries, and other third parties. The health care
    inspection function performs legislatively mandated medical care quality
    assurance reviews and oversight.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          41          44          40
    11.5      Other personnel compensation..           4                       4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          45          44          44
    12.1    Civilian personnel benefits.....          12          13          13
    21.0    Employee Travel.................           4           3           4
    23.1    Rental payments to GSA..........           3           4           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           4           3           7
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          72          69          73
    99.0  Reimbursable obligations..........           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          75          72          76
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0170-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         455         458         445
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          25          25          25
    ---------------------------------------------------------------------------

                          Information Technology Systems

         For necessary expenses for information technology systems and
    telecommunications support, including developmental information systems
    and operational information systems; including pay and associated cost
    for operations and maintenance associated staff; for the capital asset
    acquisition of information technology systems, including

    [[Page 917]]

    management and related contractual costs of said acquisitions, including
    contractual costs associated with operations authorized by chapter 3109
    of title 5, United States Code, $1,859,217,000, to remain available
    until September 30, 2009: Provided, That none of these funds may be
    obligated until the Department of Veterans Affairs submits to the
    Committees on Appropriations of both Houses of Congress a plan for
    expenditure that: (1) meets the capital planning and investment control
    review requirements established by the Office of Management and Budget;
    (2) complies with the Department of Veterans Affairs enterprise
    architecture; (3) conforms with an established enterprise life cycle
    methodology; and (4) complies with the acquisition rules, requirements,
    guidelines, and systems acquisition management practices of the Federal
    Government: Provided further, That within 60 days of enactment of this
    Act, the Secretary of Veterans Affairs shall submit to the Committees on
    Appropriations of both Houses of Congress a reprogramming base letter
    which provides, by project, the costs included in this appropriation.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0167-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Veterans Health Administration....         781         440         463
    00.02 Veterans Benefits Administration..          68          48          66
    00.03 National Cemetery Administration..           5           1           1
    00.04 General administration and other..         237         728       1,329
                                               ---------   ---------  ----------
    01.00   Direct Program by Activities--
              Subtotal......................       1,091       1,217       1,859
    09.01 Credit administration.............          19          22          32
    09.02 Insurance administration..........           3           4           6
    09.03 Education administration..........           1           5
    09.04 Veterans Health Administration....           2           3           4
    09.05 General administration and other..           4           4           9
                                               ---------   ---------  ----------
    09.09   Reimbursable program--Subtotal..          29          38          51
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,120       1,255       1,910
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                     140
    22.00 New budget authority (gross)......       1,260       1,115       1,910
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,260       1,255       1,910
    23.95 Total new obligations.............      -1,120      -1,255      -1,910
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         140
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,213       1,077       1,859
    42.00   Transferred from other accounts.          18
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,231       1,077       1,859
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          29          38          51
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,260       1,115       1,910
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                     469         609
    73.10 Total new obligations.............       1,120       1,255       1,910
    73.20 Total outlays (gross).............        -651      -1,115      -1,743
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         469         609         776
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         651         685       1,304
    86.93 Outlays from discretionary
            balances........................                     430         439
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         651       1,115       1,743
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -29         -38         -51
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,231       1,077       1,859
    90.00 Outlays...........................         622       1,077       1,692
    ---------------------------------------------------------------------------

         This account was established by Congress in 2005 under P.L. 109-114
    in order to support the Department's reorganization and centralization
    of information technology activities. For FY 2008, this account includes
    the operations and maintenance personnel and related support required to
    execute the majority of information technology projects, especially
    those associated with the provision of veterans' health care and the
    processing of veterans' benefits.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0167-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                                 502
    21.0    Travel and transportation of
              persons.......................                                  12
    23.2    Rental payments to others.......          20          22          23
    23.3    Communications, utilities, and
              miscellaneous charges.........         145         160         166
    25.2    Other services..................         385         430         520
    25.3    Other purchases of goods and
              services from Government
              accounts......................         182         210         253
    26.0    Supplies and materials..........          11          12          25
    31.0    Equipment.......................         339         373         348
    32.0    Land and structures.............           9          10          10
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,091       1,217       1,859
    99.0  Reimbursable obligations..........          29          38          51
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,120       1,255       1,910
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0167-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................                               5,391
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................                                 138
    ---------------------------------------------------------------------------

                        National Cemetery Administration

        For necessary expenses of the National Cemetery Administration for
    operations and maintenance, not otherwise provided for, including
    uniforms or allowances therefor; cemeterial expenses as authorized by
    law; purchase of one passenger motor vehicle for use in cemeterial
    operations; and hire of passenger motor vehicles, $166,809,000, of which
    not to exceed $8,340,000 shall be available until September 30, 2009.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    02.01 Administrative expenses...........         151         159         167
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         151         159         167
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           3
    22.00 New budget authority (gross)......         151         156         167
    22.30 Expired unobligated balance
            transfer to unexpired account...           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         155         159         167
    23.95 Total new obligations.............        -151        -159        -167
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         157         156         167
    41.00   Transferred to other accounts...          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         150         156         167

    [[Page 918]]

    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         151         156         167
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          29          28          35
    73.10 Total new obligations.............         151         159         167
    73.20 Total outlays (gross).............        -150        -152        -161
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          28          35          41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         127         126         134
    86.93 Outlays from discretionary
            balances........................          23          26          27
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         150         152         161
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         150         156         167
    90.00 Outlays...........................         149         152         161
    ---------------------------------------------------------------------------

        The mission of the National Cemetery Administration is to honor
    veterans with final resting places in national shrines and with lasting
    tributes that commemorate their service to our Nation. The National
    Cemetery Administration's vision is to serve all veterans and their
    families with the utmost dignity, respect, and compassion. Every
    national cemetery will be a place that inspires visitors to understand
    and appreciate the service and sacrifice of our Nation's veterans. There
    are four related programs managed by the National Cemetery
    Administration including: (1) burying eligible veterans and their family
    members in national cemeteries and maintaining the graves and their
    environs as national shrines; (2) administering grants to States in
    establishing, expanding, or improving State veteran cemeteries; (3)
    providing headstones and markers for the graves of eligible veterans in
    national, State, and private cemeteries; and (4) providing presidential
    memorial certificates to family and friends of deceased veterans,
    recognizing the veterans' contribution and service to the Nation.

        The National Cemetery Administration also reflects budget
    information for the National Cemetery Gift Fund and the National
    Cemetery Administration Facilities Operation Fund. Through the Gift
    Fund, the Secretary is authorized to accept gifts and bequests which are
    made for the purpose of beautifying national cemeteries or are
    determined to be beneficial to such cemeteries, or are made for the
    purpose of the operation, maintenance, or improvement of the National
    Memorial Cemetery of Arizona. Through the Facilities Operation Fund, the
    Secretary is authorized to lease any undeveloped land and unused or
    underutilized buildings of the National Cemetery Administration, or
    parts or parcels thereof, for a term not to exceed 10 years. Proceeds
    from such leases are deposited in the Facilities Operation Fund, and are
    available to cover costs incurred by the National Cemetery
    Administration in the operation and maintenance of property of the
    Administration.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          74          77          78
    11.3      Other than full-time permanent           2           2           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          76          79          81
    12.1    Civilian personnel benefits.....          23          26          27
    21.0    Travel and transportation of
              persons.......................           2           2           3
    22.0    Transportation of things........           1           1           1
    23.1    Rent............................           2           1           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           4           4           4
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          29          33          34
    26.0    Supplies and materials..........           7           7           8
    31.0    Equipment.......................           5           5           6
                                               ---------   ---------  ----------
    99.0      Direct obligations............         150         159         167
    99.0  Reimbursable obligations..........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         151         159         167
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-0129-0-1-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       1,527       1,573       1,582
    ---------------------------------------------------------------------------

                                   Supply Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Reimbursable program-COGS-
            Merchandizing...................       1,880       2,588       2,692
    09.02 Reimbursable program-Other-
            Operations......................          83          91          91
    09.03 Reimbursable program-COGS-Printing
            and Publications................          15          12          15
    09.04 Reimbursable program-Other........                       1           1
    09.05 Reimbursable program-Equipment-
            Procurement Services and
            Distribution....................                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,978       2,693       2,800
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         658       1,392       1,392
    22.00 New budget authority (gross)......       2,712       2,693       2,800
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,370       4,085       4,192
    23.95 Total new obligations.............      -1,978      -2,693      -2,800
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,392       1,392       1,392
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,586       2,693       2,800
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........       1,126
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       2,712       2,693       2,800
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -95      -1,090      -1,090
    73.10 Total new obligations.............       1,978       2,693       2,800
    73.20 Total outlays (gross).............      -1,847      -2,693      -2,800
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................      -1,126
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..      -1,090      -1,090      -1,090
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,847       2,693       2,800
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............      -1,432      -2,693      -2,800
    88.40     Non-Federal sources...........        -154
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,586      -2,693      -2,800
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................      -1,126
    ----------------------------------------------------------------------------

    [[Page 919]]

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         261
    ---------------------------------------------------------------------------

        Under the provisions of 38 U.S.C. 8121, the Supply Fund is
    responsible for the operation and maintenance of a supply system for VA.
    The Supply Fund is an intragovernmental revolving fund without fiscal
    year limitations.

        Budget program.--The fund provides financial support for: (1) a
    National Acquisition Center or central contracting office; (2) the
    maintenance of field station inventories; (3) a service and distribution
    center; (4) a service and reclamation program; (5) a national
    prosthetics distribution center; and (6) an asset management service.

        Costs for the administration of supply activities at VA field
    stations are not financed by the Supply Fund. These costs are charged
    directly to applicable appropriations accounts.

        Financing.--Costs of supplies, equipment, and services acquired
    through the Supply Fund and Supply Fund operating costs are recovered
    through reimbursements from the VA appropriations and other Government
    agencies receiving goods and services. For 2008, Supply Fund sales are
    estimated to reach $1.4 billion.

        Operating results.--The Fund operated at a profit of $25 million in
    2006. The new total of retained earnings is $118 million. Operating
    expense as related to sales was 5 percent.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          32          37          38
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          33          38          39
    12.1  Civilian personnel benefits.......           8           7           8
    21.0  Travel and transportation of
            persons.........................           4           6           7
    22.0  Transportation of things..........           5          10          10
    23.1  Rental payments to GSA............           3           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           2           2
    24.0  Printing and reproduction.........          15           9          10
    25.1  Advisory and assistance services..         300       1,421       1,477
    26.0  Supplies and materials............       1,136         744         773
    31.0  Equipment.........................         473         454         472
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,978       2,693       2,800
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-4537-0-4-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         433         480         480
    ---------------------------------------------------------------------------

                                  Franchise Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Reimbursable program..............         291         271
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         291         271
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          89         150         200
    22.00 New budget authority (gross)......         352         321
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         441         471         200
    23.95 Total new obligations.............        -291        -271
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         150         200         200
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         311         321
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          41
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         352         321
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          22          -2          -2
    73.10 Total new obligations.............         291         271
    73.20 Total outlays (gross).............        -274        -271
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -41
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -2          -2          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         274         321
    86.98 Outlays from mandatory balances...                     -50
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         274         271
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -311        -321
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -41
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -37         -50
    ---------------------------------------------------------------------------

        VA Franchise Fund has permanent authority under P.L. 104-204, as
    amended by P.L. 109-114. Established in 1997, administrative services
    included in the Franchise Fund are financed on a fee-for-service basis.
    VA Enterprise Centers are the lines of business within the VA Franchise
    Fund and are expected to have net billings of about $298 million and
    employ 709 in 2008.

        The Franchise Fund concept is intended to increase competition for
    government administrative services resulting in lower costs and higher
    quality.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................          45          49
    12.1  Civilian personnel benefits.......          11          12
    21.0  Travel and transportation of
            persons.........................           1           2
    23.1  Rental payments to GSA............           5           5
    23.3  Communications, utilities, and
            miscellaneous charges...........          29          27
    24.0  Printing and reproduction.........           3           4
    25.2  Other services....................         178         166
    26.0  Supplies and materials............           2           2
    31.0  Equipment.........................          17           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         291         271
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 36-4539-0-4-705      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         670         744
    ---------------------------------------------------------------------------

                         GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      36-143500  General fund proprietary
        interest receipts, not otherwise
        classified..........................           2           2           2
      36-246800  Pharmaceutical copayments,
        increase from PL 7/8................                                 311
      36-247300  Contributions from military
        personnel, Veteran's Educational
        Assistance Act of 1984..............         187         198         198

    [[Page 920]]

      36-247600  Enrollment fee for PL 7/8..
      36-247700  Eliminate third party
        offset..............................                                  44
      36-273330  Housing downward
        reestimates.........................       1,292         961
      36-275510  Housing negative subsidies.          77         106         113
      36-322000  All other general fund
        proprietary receipts including
        budget clearing accounts............          40          16          16
    General Fund Offsetting receipts from
     the public.............................       1,598       1,283         684
    ----------------------------------------------------------------------------

    Intragovernmental payments:.............
      36-388500  All other general fund
        proprietary receipts including
        budget clearing accounts............           6           6           6
                                               ---------   ---------  ----------
    General Fund Intragovernmental payments.           6           6           6
    ---------------------------------------------------------------------------

                            ADMINISTRATIVE PROVISIONS

                          (including transfer of funds)

        Sec. 201.  Any appropriation for fiscal year 2008 for ``Compensation
    and pensions'', ``Readjustment benefits'', and ``Veterans insurance and
    indemnities'' may be transferred as necessary to any other of the
    mentioned appropriations: Provided, That before a transfer may take
    place, the Secretary of Veterans Affairs shall submit notice thereof to
    the Committees on Appropriations of both Houses of Congress and a period
    of 30 days has elapsed.
        Sec. 202.  Appropriations available in this title for salaries and
    expenses shall be available for services authorized by section 3109 of
    title 5, United States Code, hire of passenger motor vehicles; lease of
    a facility or land or both; and uniforms or allowances therefore, as
    authorized by sections 5901-5902 of title 5, United States Code.
        Sec. 203. No appropriations in this title shall be available for
    hospitalization or examination of any persons (except beneficiaries
    entitled under the laws bestowing such benefits to veterans, and persons
    receiving such treatment under sections 7901-7904 of title 5, United
    States Code or the Robert T. Stafford Disaster Relief and Emergency
    Assistance Act (42 U.S.C. 5121 et seq.)), unless reimbursement of cost
    is made to the ``Medical services'' account at such rates as may be
    fixed by the Secretary of Veterans Affairs.
        Sec. 204. Appropriations available in this title for ``Compensation
    and pensions'', ``Readjustment benefits'', and ``Veterans insurance and
    indemnities'' shall be available for payment of prior year accrued
    obligations required to be recorded by law against the corresponding
    prior year accounts within the last quarter of fiscal year 2007.
        Sec. 205. Appropriations available in this title shall be available
    to pay prior year obligations of corresponding prior year appropriations
    accounts resulting from sections 3328(a), 3334, and 3712(a) of title 31,
    United States Code, except that if such obligations are from trust fund
    accounts they shall be payable from ``Compensation and pensions''.
        Sec. 206.  Notwithstanding any other provision of law, during fiscal
    year 2008, the Secretary of Veterans Affairs shall, from the National
    Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' Special Life
    Insurance Fund (38 U.S.C. 1923), and the United States Government Life
    Insurance Fund (38 U.S.C. 1955), reimburse the ``General operating
    expenses'' account for the cost of administration of the insurance
    programs financed through those accounts: Provided, That reimbursement
    shall be made only from the surplus earnings accumulated in an insurance
    program in fiscal year 2008 that are available for dividends in that
    program after claims have been paid and actuarially determined reserves
    have been set aside: Provided further, That if the cost of
    administration of an insurance program exceeds the amount of surplus
    earnings accumulated in that program, reimbursement shall be made only
    to the extent of such surplus earnings: Provided further, That the
    Secretary shall determine the cost of administration for fiscal year
    2008 which is properly allocable to the provision of each insurance
    program and to the provision of any total disability income insurance
    included in such insurance program.
        Sec. 207.  Amounts deducted from enhanced-use lease proceeds to
    reimburse an account for expenses incurred by that account during a
    prior fiscal year for providing enhanced-use lease services, may be
    obligated during the fiscal year in which the proceeds are received.
        Sec. 208.  Funds available in this title or funds for salaries and
    other administrative expenses shall also be available to reimburse the
    Office of Resolution Management and the Office of Employment
    Discrimination Complaint Adjudication for all services provided at rates
    which will recover actual costs but not exceed $32,067,000 for the
    Office of Resolution Management and $3,148,000 for the Office of
    Employment and Discrimination Complaint Adjudication: Provided, That
    payments may be made in advance for services to be furnished based on
    estimated costs: Provided further, That amounts received shall be
    credited to ``General operating expenses'' for use by the office that
    provided the service.
        Sec. 209.  No funds of the Department of Veterans Affairs shall be
    available for hospital care, nursing home care, or medical services
    provided to any person under chapter 17 of title 38, United States Code,
    for a non-service-connected disability described in section 1729(a)(2)
    of such title, unless that person has disclosed to the Secretary of
    Veterans Affairs, in such form as the Secretary may require, current,
    accurate third-party reimbursement information for purposes of section
    1729 of such title: Provided, That the Secretary may recover, in the
    same manner as any other debt due the United States, the reasonable
    charges for such care or services from any person who does not make such
    disclosure as required: Provided further, That any amounts so recovered
    for care or services provided in a prior fiscal year may be obligated by
    the Secretary during the fiscal year in which amounts are received.
        Sec. 210.  Notwithstanding any other provision of law, at the
    discretion of the Secretary of Veterans Affairs, proceeds or revenues
    derived from enhanced-use leasing activities (including disposal) may be
    deposited into the ``Construction, major projects'' and ``Construction,
    minor projects'' accounts and be used for construction (including site
    acquisition and disposition), alterations and improvements of any
    medical facility under the jurisdiction or for the use of the Department
    of Veterans Affairs. Such sums as realized are in addition to the amount
    provided for in ``Construction, major projects'' and ``Construction,
    minor projects''.
        Sec. 211.  Amounts made available under ``Medical services'' are
    available--
            (1) for furnishing recreational facilities, supplies, and
        equipment; and
            (2) for funeral expenses, burial expenses, and other expenses
        incidental to funerals and burials for beneficiaries receiving care
        in the Department.

                          (including transfer of funds)

        Sec. 212.  Such sums as may be deposited to the Medical Care
    Collections Fund pursuant to section 1729A of title 38, United States
    Code, may be transferred to ``Medical services'', to remain available
    until expended for the purposes of this account.

                          (including transfer of funds)

        Sec. 213.  Amounts made available for fiscal year 2008 under the
    ``Medical services'', ``Medical administration'', and ``Medical
    facilities'' accounts may be transferred among the accounts to the
    extent necessary to implement the restructuring of the Veterans Health
    Administration accounts: Provided, That before a transfer may take
    place, the Secretary of Veterans Affairs shall submit notice thereof to
    the Committees on Appropriations of both Houses of Congress.
        Sec. 214.  Notwithstanding any other provision of law, the Secretary
    of Veterans Affairs shall allow veterans eligible under existing
    Department of Veterans Affairs medical care requirements and who reside
    in Alaska to obtain medical care services from medical facilities
    supported by the Indian Health Service or tribal organizations. The
    Secretary shall: (1) limit the application of this provision to rural
    Alaskan veterans in areas where an existing Department of Veterans
    Affairs facility or Veterans Affairs-contracted service is unavailable;
    (2) require participating veterans and facilities to comply with all
    appropriate rules and regulations, as established by the Secretary; (3)
    require this provision to be consistent with Capital Asset Realignment
    for Enhanced Services activities; and (4) result in no additional cost
    to the Department of Veterans Affairs or the Indian Health Service.

                          (including transfer of funds)

        Sec. 215.  Such sums as may be deposited to the Department of
    Veterans Affairs Capital Asset Fund pursuant to section 8118 of title
    38, United States Code, may be transferred to the ``Construction, major
    projects'' and ``Construction, minor projects'' accounts, to remain
    available until expended for the purposes of these accounts.

                          (including transfer of funds)

        Sec. 216.  Amounts made available for the ``Information technology
    systems'' account may be reprogrammed between projects: Provided,

    [[Page 921]]

    That no project may be increased or decreased by more than $5,000,000 of
    cost prior to submitting notice thereof to the Committees on
    Appropriations of both Houses of Congress and a period of 30 days has
    elapsed.
        Sec. 217.  Amounts made available under the ``Medical
    administration'', ``Medical services'', ``Medical facilities'',
    ``General operating expenses'', ``National Cemetery Administration'',
    and ``Office of Inspector General'' accounts for fiscal year 2008, in
    this Act or any other Act, may be transferred to or from the
    ``Information technology systems'' account: Provided, That before a
    transfer may take place, the Secretary of Veterans Affairs shall submit
    notice thereof to the Committees on Appropriations of both Houses of
    Congress and a period of 30 days has elapsed.
        Sec. 218.  Any balances in prior year accounts established for the
    payment of benefits under the Reinstated Entitlement Program for
    Survivors shall be transferred to and merged with amounts available
    under the ``Compensation and pensions'' account, and receipts that would
    otherwise be credited to the accounts established for the payment of
    benefits under the Reinstated Entitlement Program for Survivors program
    shall be credited to amounts available under the ``Compensation and
    pensions'' account.

                          TITLE IV--GENERAL PROVISIONS

        Sec. 401.  No part of any appropriation contained in this Act shall
    remain available for obligation beyond the current fiscal year unless
    expressly so provided herein.
        Sec. 402.  Such sums as may be necessary for fiscal year 2008 pay
    raises for programs funded by this Act shall be absorbed within the
    levels appropriated in this Act.
        Sec. 403.  No part of any funds appropriated in this Act shall be
    used by an agency of the executive branch, other than for normal and
    recognized executive-legislative relationships, for publicity or
    propaganda purposes, and for the preparation, distribution or use of any
    kit, pamphlet, booklet, publication, radio, television or film
    presentation designed to support or defeat legislation pending before
    Congress, except in presentation to Congress itself.
        Sec. 404.  All departments and agencies funded under this Act are
    encouraged, within the limits of the existing statutory authorities and
    funding, to expand their use of ``E-Commerce'' technologies and
    procedures in the conduct of their business practices and public service
    activities.
        Sec. 405.  Unless stated otherwise, all reports and notifications
    required by this Act shall be submitted to the Subcommittee on Military
    Quality of Life and Veterans Affairs, and Related Agencies of the
    Committee on Appropriations of the House of Representatives and the
    Subcommittee on Military Construction and Veterans Affairs, and Related
    Agencies of the Committee on Appropriations of the Senate.