[House Report 104-869]
[From the U.S. Government Publishing Office]
Union Calendar No. 472
104th Congress, 2d Session - - - - - - - - House Report 104-869
ACTIVITIES REPORT OF THE COMMITTEE ON VETERANS' AFFAIRS
HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTH CONGRESS
__________
first session
Convened January 4, 1995
Adjourned January 3, 1996
second session
Convened January 3, 1996
Adjourned January 3, 1997
December 18, 1996--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
COMMITTEE ON VETERANS' AFFAIRS
BOB STUMP, Arizona, Chairman
G.V. (SONNY) MONTGOMERY, Mississippi CHRISTOPHER H. SMITH, New Jersey
LANE EVANS, Illinois MICHAEL BILIRAKIS, Florida
JOSEPH P. KENNEDY II, Massachusetts FLOYD SPENCE, South Carolina
CHET EDWARDS, Texas TIM HUTCHINSON, Arkansas
MAXINE WATERS, California 1 TERRY EVERETT, Alabama
BOB CLEMENT, Tennessee STEVE BUYER, Indiana
BOB FILNER, California JACK QUINN, New York
FRANK TEJEDA, Texas SPENCER BACHUS, Alabama
LUIS V. GUTIERREZ, Illinois CLIFF STEARNS, Florida
SCOTTY BAESLER, Kentucky BOB NEY, Ohio
SANFORD BISHOP, Georgia JON FOX, Pennsylvania
JAMES E. CLYBURN, South Carolina MIKE FLANAGAN, Illinois
CORRINE BROWN, Florida BOB BARR, Georgia
MIKE DOYLE, Pennsylvania JERRY WELLER, Illinois
FRANK MASCARA, Pennsylvania J.D. HAYWORTH, Arizona
COLLIN C. PETERSON, Minnesota 2 WES COOLEY, Oregon
DAN SCHAEFER, Colorado
Carl D. Commenator, Chief Counsel
and Staff Director
__________
SUBCOMMITTEE ON HOSPITALS AND HEALTH CARE
TIM HUTCHINSON, Arkansas, Chairman
CHET EDWARDS, Texas BOB STUMP, Arizona
JOSEPH P. KENNEDY II, Massachusetts CHRISTOPHER H. SMITH, New Jersey
BOB CLEMENT, Tennessee MICHAEL BILIRAKIS, Florida
FRANK TEJEDA, Texas FLOYD SPENCE, South Carolina
LUIS V. GUTIERREZ, Illinois JACK QUINN, New York
SCOTTY BAESLER, Kentucky SPENCER BACHUS, Alabama
SANFORD BISHOP, Georgia CLIFF STEARNS, Florida
CORRINE BROWN, Florida BOB NEY, Ohio
MIKE DOYLE, Pennsylvania JON FOX, Pennsylvania
MIKE FLANAGAN, Illinois
__________
SUBCOMMITTEE ON COMPENSATION, PENSION, INSURANCE AND MEMORIAL AFFAIRS
TERRY EVERETT, Alabama, Chairman
LANE EVANS, Illinois JERRY WELLER, Illinois
G.V. (SONNY) MONTGOMERY, Mississippi J.D. HAYWORTH, Arizona
JOSEPH P. KENNEDY II, Massachusetts BOB BARR, Georgia
BOB CLEMENT, Tennessee BOB NEY, Ohio
SUBCOMMITTEE ON EDUCATION, TRAINING, EMPLOYMENT AND HOUSING
STEVE BUYER, Indiana, Chairman
BOB FILNER, California BOB BARR, Georgia
MAXINE WATERS, California 1 WES COOLEY, Oregon
JAMES E. CLYBURN, South Carolina TIM HUTCHINSON, Arkansas
FRANK MASCARA, Pennsylvania DAN SCHAEFER, Colorado
COLLIN C. PETERSON, Minnesota 2
__________
1 April 1, 1996--Rep. Maxine Waters resigned from the Committee.
2 September 17, 1996--Rep. Collin C. Peterson was appointed to the
Committee.
Committee Staff
Carl D. Commenator, Chief Counsel
& Staff Director
Kingston E. Smith, General Counsel
& Deputy Staff Director
Patrick E. Ryan, Democratic Chief
Counsel & Staff Director
Michael F. Brinck, Subcommittee
Staff Director
Jill T. Cochran, Democratic
Professional Staff Member
Daniel C. Devine, Professional
Staff Member
Sally A. Elliott, Staff Assistant
Loretta I. Fertal, Democratic
Professional Staff Member
Allison Clarke, Staff Assistant
Ira B. Greenspan, Staff Assistant
Joel P. Hinzman, Director of
Information Services
Ralph J. Ibson, Democratic
Professional Staff Member
Richard A. Jones, Professional
Staff Member
D. Mark Katz, Communications
Director
Elizabeth A. Kilker, Democratic
Professional Staff Member
Mary S. McDermott, Financial
Assistant
Paige E. McManus, Professional
Staff Member
Jeanne M. McNally, Legislative
Coordinator
Thomas A. O'Donnell, Democratic
Professional Staff Member
Sloan W. Rappoport, Assistant
General Counsel
John P. Roerty, Professional Staff
Member
Deborah A. Smith, Democratic
Professional Staff Member
Jeremiah B. Tan, Printing Clerk
Patricia Lee Tippett, Staff
Assistant
JoAnn K. Webb, Subcommittee Staff
Director
Angela E. West, Democratic
Professional Staff Member
Arthur K. Wu, Professional Staff
Member
LETTER OF SUBMITTAL
----------
House of Representatives,
Committee on Veterans' Affairs,
Washington, DC, December 18, 1996
Hon. Robin H. Carle,
Clerk, House of Representatives,
Washington, D.C.
Dear Ms. Carle:
In accordance with Clause 1(d) of Rule XI of the Rules of
the House of Representatives, I submit herewith the report of
the Committee on Veterans' Affairs setting forth its activities
in reviewing and studying the application, administration, and
execution of those laws, the subject matter of which is within
the jurisdiction of our committee.
Bob Stump,
Chairman
FOREWORD
----------
The 104th Congress achieved historic veterans' health care
eligibility reform and significant improvements in veterans'
benefits. The House of Representatives passed 14 bills reported
by the Committee on Veterans' Affairs, and the Committee and
its subcommittees held 24 oversight hearings. The Congress
passed legislation to create six public laws solely related to
veterans. Three of the public laws came from omnibus bills
combining many provisions of House-passed bills.
Legislative proposals enacted into law during the 104th
Congress include:
Reforming eligibility for veterans' health
care provided by the Department of Veterans Affairs
(VA).
Directing VA to establish and manage health
care programs to promote the cost-effective delivery of
health services to eligible veterans.
Requiring VA to develop five-year strategic
health care plans to guide system operations as well as
construction prioritization.
Authorizing 18 major medical construction
projects totaling $358.15 million.
Extending VA's authority to provide priority
health care to veterans exposed to ionizing radiation,
herbicide-exposed veterans, and Persian Gulf veterans.
Lifting restrictions on title 38 employees
to work in their professional capacity in outside
employment while employed full-time by VA.
Providing full cost-of-living adjustments
for 1996 and 1997 for service-connected disabled
veterans and survivors of certain veterans.
Extending the date of the Vietnam era to
February 28, 1961, and extending eligibility for
certain health benefits to those serving on or after
January 9, 1962.
Allowing conversion of Veterans Group Life
Insurance policies to commercial policies at any time.
Requiring VA to pay a veteran's surviving
spouse an entire month's compensation or pension
payment for the month in which a veteran dies.
Increasing the period for which accrued
benefits are payable for veterans' survivors from one
year to two years.
Making permanent a pilot program authorizing
VA education benefits for participation in alternative
teacher certification programs.
Authorizing transfer of active-duty VEAP
participants to the Montgomery GI Bill.
Authorizing those active-duty members of the
Army and Air Force National Guard who enlisted between
June 30, 1985, and November 29, 1989, to participate in
the Montgomery GI Bill.
Improving administrative functions within
the VA education service, the National Cemetery System,
the VA life insurance program, and the Veterans
Benefits Administration.
Establishing a commission to evaluate the
programs of the Federal Government that assist members
of the Armed Forces and veterans in readjusting to
civilian life.
Re-establishing the requirement that a
veteran's employment handicap must be a result of a
service-connected disability in order to receive VA
vocational rehabilitation benefits.
Federal expenditures for veterans in fiscal year 1996
amounted to $36.9 billion, and in fiscal year 1997 will amount
to approximately $39.8 billion. This funding provides health
care services to eligible veterans through a Department of
Veterans Affairs (VA) system of 173 hospitals, 398 outpatient
clinics, 132 nursing home care units and 39 domiciliaries, and
through private providers under contract arrangements. This
funding also provides compensation, pension, insurance,
memorial affairs, education, training, employment and housing
programs for veterans. As a result, the United States continues
to have the most generous and comprehensive veterans' benefits
of any nation in the world.
I especially thank the Honorable G.V. (Sonny) Montgomery,
the Ranking Minority Member and former chairman of our
Committee, for his lifetime of work on behalf of veterans. He
retires at the end of this Congress. My good friend is widely
known as ``Mr. Veteran'' because of his prominence in veterans'
affairs. The education program named for him, the Montgomery GI
Bill, is probably his greatest and best known legislative
achievement. This program is of immense benefit to veterans and
to America. No member is more respected and popular among his
colleagues than Mr. Montgomery. As chairman of the Committee
for fourteen years, he became the paradigm for its bipartisan
tradition, and as ranking minority member he continued it. It
has been an honor and a pleasure to have served in the House
with the distinguished gentleman from Mississippi.
I also greatly appreciate the diligence of the subcommittee
chairmen and ranking minority members in holding the many
hearings and markups so necessary to the accomplishment of the
Committee's oversight and legislative agendas for veterans.
They are: the Honorable Tim Hutchinson, Chairman of the
Subcommittee on Hospitals and Health Care, and the Honorable
Chet Edwards, the Subcommittee's Ranking Minority Member; the
Honorable Terry Everett, Chairman of the Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs, and the
Honorable Lane Evans, the Subcommittee's Ranking Minority
Member; the Honorable Steve Buyer, Chairman of the Subcommittee
on Education, Training, Employment and Housing, and the
Honorable Bob Filner, the Subcommittee's Ranking Minority
Member.
The House and Senate Veterans' Affairs Committees have
continued their cooperative relationship during the 104th
Congress, keeping the needs of our nation's veterans in the
forefront. What differences have arisen were resolved through a
constructive process of compromise which I believe resulted in
the most beneficial legislation possible for veterans. I
particularly acknowledge the leadership of the Honorable Alan
Simpson of Wyoming, Chairman of the Senate Committee, who is
also retiring at the end of this Congress. His insightful
analysis of the issues and his keen wit will be greatly missed.
Additionally, I express my appreciation to the Honorable John
D. Rockefeller of West Virginia, the Ranking Minority Member of
the Senate Committee, for his hard work on our veterans'
legislation and I look forward to a continuation of our efforts
on behalf of veterans.
For those members of this Committee who, in addition to the
Honorable G.V. (Sonny) Montgomery, will be leaving their
assignments here at the end of this Congress, I commend their
faithful and dedicated service to veterans. They are: the
Honorable Tim Hutchinson, the Honorable Chet Edwards, the
Honorable Robert W. Ney, the Honorable Jon D. Fox, the
Honorable Michael Flanagan, the Honorable Jerry Weller, the
Honorable J.D. Hayworth, and the Honorable Wes Cooley.
Finally, I thank the staff of the Committee on Veterans'
Affairs for their constancy and attention to the daily tasks of
committee business. Together with our Committee members and our
Senate colleagues, their work on our legislative and oversight
agendas was invaluable to the Committee's success in reaching
its objectives for veterans.
Bob Stump,
Chairman
C O N T E N T S
__________
Page
Jurisdiction of the House Committee on Veterans' Affairs......... 1
Activities under jurisdiction of the committee as administered
by:
The Department of Veterans Affairs........................... 2
Medical care........................................... 2
Medical research....................................... 3
Compensation and pension............................... 4
Insurance.............................................. 4
National cemeteries.................................... 4
Education.............................................. 5
Home loan assistance................................... 5
Employees.............................................. 5
History of the Department of Veterans Affairs.......... 6
The Department of Labor...................................... 7
The American Battle Monuments Commission..................... 9
Messages from the President and other Executive Branch
communications................................................. 10
Summary of action by the Committee on Veterans' Affairs.......... 18
Hearings and Executive Sessions.................................. 19
Legislation enacted into law:
Public Law 104-57............................................ 23
Public Law 104-110........................................... 24
Public Law 104-262........................................... 26
Public Law 104-263........................................... 30
Public Law 104-275........................................... 31
Public Law 104-202........................................... 34
Activities of the subcommittees:
Subcommittee on Hospitals and Health Care.................... 35
Subcommittee on Compensation, Pension, Insurance and Memorial
Affairs.................................................... 41
Subcommittee on Education, Training, Employment and Housing.. 48
Budget activities................................................ 58
Committee web site............................................... 59
Oversight Plan for the 104th Congress............................ 61
Subcommittee on Hospitals and Health Care.................... 61
Subcommittee on Compensation, Pension, Insurance and Memorial
Affairs.................................................... 64
Subcommittee on Education, Training, Employment and Housing.. 65
Report on the budget for fiscal year 1996........................ 67
Report on the budget for fiscal year 1997........................ 99
Statistical data--war veterans and dependents.................... 113
Union Calendar No. 472
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-869
_______________________________________________________________________
ACTIVITIES OF THE COMMITTEE ON VETERANS' AFFAIRS FOR THE 104TH CONGRESS
_______
December 18, 1996--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Stump, from the Committee on Veterans' Affairs, pursuant to Clause
1(d) of Rule XI, submitted the following
R E P O R T
Jurisdiction
Rule X of the Rules of the House of Representatives
establishes the standing committees of the House and their
jurisdiction. Under that rule, all bills, resolutions, and
other matters relating to the subjects within the jurisdiction
of any standing committee shall be referred to such committee.
Clause 1(r) of Rule X establishes the jurisdiction of the
Committee on Veterans' Affairs as follows:
(1) Veterans' measures generally.
(2) Cemeteries of the United States in which veterans
of any war or conflict are or may be buried, whether in
the United States or abroad, except cemeteries
administered by the Secretary of the Interior.
(3) Compensation, vocational rehabilitation, and
education of veterans.
(4) Life insurance issued by the government on
account of service in the armed forces.
(5) Pensions of all the wars of the United States,
general and special.
(6) Readjustment of servicemen to civil life.
(7) Soldiers' and sailors' civil relief.
(8) Veterans' hospitals, medical care, and treatment
of veterans.
This committee was established January 2, 1947, as a part
of the Legislative Reorganization Act of 1946 (60 Stat. 812),
and was vested with jurisdiction formerly exercised by the
Committee on World War Veterans' Legislation, Invalid Pensions,
and Pensions. Jurisdiction over veterans' cemeteries
administered by the Department of Defense was transferred from
the Committee on Interior and Insular Affairs on October 20,
1967, by H. Res. 241, 90th Congress.
DEPARTMENT OF VETERANS AFFAIRS
The U.S. Department of Veterans Affairs was established
March 15, 1989, with Cabinet rank, succeeding the Veterans
Administration (VA), and assumed responsibility for providing
federal benefits to veterans and their dependents. Headed by
the Secretary of Veterans Affairs, VA is the second largest of
the 14 cabinet departments and operates nationwide programs of
health care, assistance services and national cemeteries.
The present veteran population is estimated at 26 million,
as of September 30, 1996. Nearly 80 of every 100 living
veterans served during defined periods of armed hostilities.
Altogether, more than one-fourth of the nation's population--
approximately 70 million persons who are veterans, dependents
and survivors of deceased veterans--are potentially eligible
for VA benefits and services.
Medical Care
The largest and most visible component of the Department of
Veterans Affairs is its health care system. The system has
grown from 54 hospitals in 1930, when the Veterans
Administration was formed, to 173 today. VA operates at least
one medical center in each of the 48 contiguous states, Puerto
Rico, and the District of Columbia, however, a concerted effort
has been made to move away from the ``bricks and mortar''
approach to health care. Accordingly, only one new VA
hospital--at Palm Beach, Florida--has been constructed in the
recent past.
In 1996, with 45,804 medical center beds, VA treated
834,511 patients in VA hospitals, 35,929 in nursing home care
units, and 19,229 in domiciliary facilities. VA's outpatient
clinics register approximately 28.4 million visits each year.
An estimated three million individual veterans receive care
annually.
VA currently is affiliated with 105 medical schools, 85
dental schools and 1,196 other schools across the nation. More
than one-half of all practicing physicians in the United States
had part of their professional education in the VA health care
system. Each year, approximately 110,000 health professionals
receive training in VA medical centers.
Since 1979, VA has operated Vietnam Veteran Outreach
Centers (Vet Centers), which provide readjustment counseling
services to Vietnam-era veterans. With the advent of the
Persian Gulf War, eligibility for Vet Center counseling was
expanded to include those veterans as well as veterans who
served during other periods of armed hostilities following the
Vietnam era--Lebanon, Grenada and Panama. Additionally, Public
Law 104-262 expands eligibility for Vet Center counseling to
combat veterans of conflicts prior to the Vietnam era. However,
Public Law 104-262 also places a deadline on non-theater
Vietnam-era veterans to seek VA readjustment counseling by
January 1, 2000.
Currently, there are 206 Vet Centers nationwide.
Approximately 8 million veterans have visited Vet Centers since
the program began. Counseling is provided for a variety of
reasons, including employment problems, marital difficulties,
and post-traumatic stress disorder (PTSD). VA also conducts a
variety of special programs to assist homeless veterans. Both
alcohol and drug abuse rehabilitation and PTSD programs were
expanded in recent years.
In addition to outreach programs for homeless veterans, VA
utilizes the contributions of time and energy of volunteers
from all walks of life. More than 95,000 volunteers through
VA's Voluntary Service donate more than 13 million hours of
service each year to bring companionship and additional care to
hospitalized veterans.
Medical Research
While providing high quality health care to the nation's
veterans, VA also conducts an array of research activities
concentrating on some of the most difficult research challenges
facing medical science today. VA is a world leader in such
areas as aging, women veterans' health issues, AIDS, post-
traumatic stress disorder (PTSD) and other mental health
issues. VA research has improved medical care not only for the
veteran population but also for the entire population.
VA researchers played key roles in improving artificial
limbs and eradicating tuberculosis, and in developing the
cardiac pacemaker, the CT scan, and magnetic source imaging,
which permits safe removal of brain tumors. The first kidney
transplant in the United States was performed at a VA medical
facility, and the first successful drug treatments for high
blood pressure and schizophrenia were pioneered by VA
researchers. The ``Seattle Foot'' was created by VA to give
amputees the push-off needed to run and jump, as well as walk.
VA contributions to medical knowledge have won VA scientists
many prestigious awards, including the Nobel prize.
Recent advances by VA researchers showed that prostate
cancer can now be treated with laser surgery, which is faster,
less painful and more cost-efficient. In treating high blood
pressure, doctors are now able to choose the most beneficial
treatments based on patient characteristics such as age and
race. VA researchers also showed that low doses of the drug
warfarin reduce the risk of stroke by 79 percent in patients
who suffer from an irregular heartbeat, with minimal risk of
side effects. A new diagnostic tool for Alzheimer's disease can
predict dementia outcomes during a six to eight year period
with an accuracy rate of from 80 to 90 percent. Through
``compassionate use'' drug trials, veterans with AIDS have
access to investigational drugs before they are available to
the public for clinical use.
Early research by VA with animals gives hope that spinal
cord regeneration may be possible after paralysis. Rheumatoid
arthritis, an autoimmune disease, can be genetically cured in
mice; this is the first step toward a treatment in humans. VA
researchers also found the substance responsible for the
breakdown of bones in osteoporosis. In cancer research, VA
researchers are developing new ``suicide genes'' that would
seek out cancerous cells and identify them so that drugs would
affect cancer cells but not healthy ones.
Research topics identified as the result of the Vietnam
experience such as PTSD and the health effects of Agent Orange
exposure are continuing, with new topics relating to the
Persian Gulf War. VA researchers are now examining the early
effects of war trauma, including the aspect of gender
differences. VA is involved in a number of Persian Gulf War-
related research projects and recently established three
environmental hazards research centers, with an initial focus
on the possible health effects of environmental exposures of
Persian Gulf veterans.
Compensation and Pension
More than 2.6 million veterans receive disability
compensation or pension payments from VA. Some 680,585 widows,
children and parents of deceased veterans are being paid
survivor compensation or death pension benefits. VA disability
and death compensation and pension payments were more than $18
billion for fiscal year 1996.
Insurance
VA operates one of the largest life insurance programs in
the world and the fourth largest in the United States. VA
administers seven life insurance programs under which 2.7
million policies with a value of $24.7 billion remained in
force at the end of fiscal year 1996. In addition, VA
supervises the Servicemembers' Group Life Insurance and
Veterans' Group Life Insurance programs, which provide some
$540 billion in insurance coverage to approximately 3 million
veterans and members of the uniformed services. The 1996 GI
life insurance dividend will return almost $912 million to more
than 2.2 million policyholders.
National Cemeteries
Since 1973, when VA assumed responsibility for the National
Cemetery System, 12 new national cemeteries have been
established. Today the system is composed of 114 cemeteries in
38 states and Puerto Rico. Of these, 56 have unassigned grave
sites for complete interments (those which include a casket).
VA is continuing to actively pursue the development of new
cemeteries in those metropolitan areas which are presently not
served by a national cemetery. The most recent construction of
these new cemeteries is the San Joaquin Valley National
Cemetery in northern California. It serves the greater San
Francisco Bay area and opened in 1992. Since then, VA has
acquired a site in the Seattle/Tacoma, Washington area and
construction of that national cemetery is well underway. In
addition, acreage has been acquired by VA for the establishment
of national cemeteries at the following locations: a Saratoga
site near Albany, New York; a Joliet site near Chicago,
Illinois; a Medina site near Cleveland, Ohio; and a Mountain
Creek site intended to serve the Dallas/Ft. Worth, Texas area.
Since July 30, 1973, when VA assumed management of the
cemetery system from the Department of the Army, total acreage
in the system increased from 4,139 to the present 13,118.5
acres (although this does not include the acreage in 34
soldiers' lots, monument sites and confederate cemeteries
administered by NCS). Interments are expected to increase from
71,786 in fiscal year 1996 to more than 106,300 in 2008.
In fiscal year 1996, VA provided nearly 319,758 headstones
or markers to mark the graves of veterans buried in private,
state veterans, and national cemeteries.
Education
Since 1944, when the first GI Bill became law, more than 20
million beneficiaries have participated in GI Bill education
and training programs. This includes 7.8 million World War II
veterans, 2.4 million Korean War veterans, and 8.2 million post
Korean and Vietnam era veterans and active duty service
personnel.
Proportionally, Vietnam era veterans were the greatest
participants in GI Bill training. Approximately 76 percent of
those eligible took training, compared with 50.5 percent for
World War II veterans and 43.4 percent for Korean era veterans.
The All-Volunteer Force Educational Assistance Program
provides benefits for veterans, service personnel and members
of the Selected Reserve who train under the Montgomery GI Bill.
In 1995, 274,606 veterans, 17,352 service personnel and 97,246
reservists received these benefits. In 1996, 271,592 veterans,
15,159 service personnel and 83,639 reservists were projected
to receive training. In 1997, projected trainees are expected
to number 304,901 veterans, 13,228 service personnel, and
81,714 reservists. Since the inception of the Orphan's
Educational Assistance Act of 1956, VA has assisted in the
education of nearly 575,000 eligible dependents of veterans
whose deaths or permanent and total disabilities were service-
connected. Since the enactment of the Servicemen's Readjustment
Act of 1944, the cost of educational benefits has totaled
nearly $73 billion.
Home Loan Assistance
VA's 52 year old loan guarantee program has benefited more
than 15 million veterans and their dependents. From 1944, when
this program was established as part of the original GI Bill,
through September 1996, VA home loan guarantees totaled more
than $534 billion. In fiscal year 1996, VA guaranteed 320,767
loans valued at $32.6 billion and assisted 449 disabled
veterans with grants totaling $15.2 million for specially
adapted housing.
Department of Veterans Affairs Employees
As of September 30, 1996, VA personnel consisted of 221,868
employees. Among all the departments and agencies of the
federal government, only the Department of Defense has a larger
work force. Of the total number of VA employees, 199,050 work
in the Veterans Health Administration, 12,603 are employed in
the Veterans Benefits Administration, 1,287 are within the
National Cemetery System, and 3,065 work in the Veterans
Canteen Service. The remainder, 5,863 employees, are in various
staff offices.
Women account for 54.5 percent of VA employees and the
Department is a leader in hiring veterans. Approximately 49
percent of all male employees are veterans and as of September
30, 1996, VA employed 7,041 women veterans. Of those employees
who are veterans, 70.1 percent of the men and 48.5 percent of
the women served during the Vietnam era. Of VA's total
workforce, 5.8 percent are disabled veterans.
History of the Department of Veterans Affairs (VA)
1930--The Veterans Administration was created by Executive
Order 5398, signed by President Herbert Hoover on July
21, 1930. At the time, there were 54 hospitals, 4.7
million living veterans, and 31,600 VA employees.
1933--The Board of Veterans' Appeals was established.
1944--On June 22, President Roosevelt Franklin Roosevelt signed
the ``Servicemen's Readjustment Act of 1944'' (Public
Law 346, passed unanimously by the 78th Congress).
1946--The Department of Medicine & Surgery was established,
succeeded in 1989 by the Veterans Health Services and
Research Administration, renamed the Veterans Health
Administration in 1991.
1953--The Department of Veterans Benefits was established,
succeeded in 1989 by the Veterans Benefits
Administration.
1973--The National Cemetery System (except for Arlington
National Cemetery) was transferred by the Army to VA.
1988--Legislation to elevate VA to Cabinet status was signed by
President Ronald Reagan.
1989--On March 15, VA became the 14th Department in the
President's Cabinet.
Secretaries of the Department of Veterans Affairs
Jesse Brown 1993--Present
Edward J. Derwinski 1989-1992
Administrators of the Veterans Administration
Thomas K. Turnage 1986-1989
Harry N. Walters 1982-1986
Robert P. Nimmo 1981-1982
Max Cleland 1977-1981
Richard L. Roudebush 1974-1977
Donald E. Johnson 1969-1974
William J. Driver 1965-1969
John S. Gleason 1961-1964
Sumner G. Whittier 1957-1961
Harvey V. Higley 1953-1957
Carl N. Gray 1948-1953
Omar N. Bradley 1945-1947
Frank T. Hines 1930-1945
DEPARTMENT OF LABOR
Veterans' Employment and Training Service
The Department of Labor (DOL) engages in a variety of
activities to assist veterans obtain a job or the training and
other employment development services they need to become
employable. In accordance with Chapter 41 of title 38, United
States Code, the highest priority is given to disabled veterans
and veterans of the Vietnam era.
The Assistant Secretary for Veterans' Employment and
Training (ASVET) is the principal advisor to the Secretary of
Labor regarding DOL policies and programs to meet the
employment and training needs of veterans, to protect the
reemployment rights of protected individuals in the uniformed
services, and to facilitate the transition of military
servicemembers to the civilian work force. The Office of the
ASVET, through the Veterans' Employment and Training Service
(VETS), administers grants to States and local government
entities primarily to support veterans' employment specialist
staffing, provides reemployment rights complaint investigation
and mediation services, formulates and implements inter-agency
agreements to ensure the seamless provision of services to
veterans, provides technical assistance and training to
veterans services providers' staff, monitors the performance of
state job service agencies for veterans, conducts pilot
projects to develop and test new approaches to serving
veterans, and conducts pilot projects for veterans' hiring by
public and private sector employers.
The field staff of the VETS is stationed in a nationwide
network of regional, state and area offices. There is at least
one VETS representative in every state and DOL Regional Office
(Boston, New York, Philadelphia, Atlanta, Chicago, Dallas,
Kansas City, Denver, San Francisco and Seattle). Other than the
regional office staff, most VETS staff are located in state job
service agency offices.
The major activities and programs for veterans, Reservists,
National Guard members, and transitioners conducted by the
Office of the ASVET are:
Job Service and One Stop Service Centers. The state job
service agencies are funded primarily by DOL grants. Each must
give priority to veterans for job counseling, job development,
job referral, and other employment services they offer to the
public. Nearly all job service offices have at least one
specially trained state employee known as the Local Veterans'
Employment Representative (LVER), funded by a VETS grant. LVERs
work directly with veterans, assist local office management in
maintaining veterans' priority, act as case manager for
veterans in need of intensive service, and network with other
service providers.
Disabled Veterans Outreach Program. DVOP staff also are
state employees funded by a VETS grant and are located in most
Job Service offices. About one in four are stationed at
locations where disabled and other disadvantaged veterans in
need of intensive job placement assistance have better access,
e.g., at Departments of Veterans Affairs offices, Job Training
Partnership Act program centers, One Stop Service Centers and
military base transition centers. The specially trained DVOP
staff provides intensive job development, vocational guidance,
outreach, community networking and post-placement follow-up
services to veterans with serious barriers to employment to
help them become employed.
Transition Assistance Program. TAP is a joint effort by the
Departments of Labor, Defense and Veterans Affairs to
facilitate the transition of separating military personnel into
the civilian work force. At approximately 200 military bases
nationwide, DOL-funded staff (either LVERs, DVOPS, VETS or
contractor staff) deliver three-day workshops to personnel up
to 180 days prior to separation. Workshop participants receive
labor market information and are taught job search skills.
Unemployment Compensation for Ex-servicemembers.
Unemployment compensation is available to certain veterans
immediately following separation from active duty while they
are looking for work. Federally funded, this program is
administered by the State Employment Security Agencies'
unemployment insurance divisions. Such offices are usually co-
located with the State Job Service offices or One Stop Service
Centers. Veterans filing for or collecting unemployment
compensation are generally referred to the Local Veterans'
Employment Representative for help in obtaining employment.
Veterans Affirmative Action. Chapter 42 of title 38 of the
United States Code prohibits employers who are federal
contractors from discriminating against qualified disabled or
Vietnam era veterans in hiring or promotional actions, and
requires them to list virtually all of their job openings with
the Job Service agency for priority referral of target-group
veterans. Employers may list directly with the local office, or
electronically with ``America's Job Bank,'' DOL's nationwide
labor exchange operated in cooperation with the States. Subject
employers must submit an annual report to the VETS that
enumerates their hiring record relative to this statute. Also,
federal agencies must include in their affirmative action plans
specific provisions for disabled veterans, and must submit an
annual report to the Office of Personnel Management.
Training Programs. As authorized by title IV of the Job
Training Partnership Act (JTPA), VETS awards grants to State
and local government entities and non-profit organizations
specifically for training leading to job placement of disabled,
Vietnam era and recently separated veterans. The majority of
these grants are awarded through a competitive process to the
applicants whose project proposals best meet the special
emphasis and performance goal criteria set forth by the ASVET,
and are renewed for a second year if the performance goals are
met in the first year. Also, VETS staff at the local level
promotes inclusion of goals for veterans in training programs
funded by other DOL sources, for example, the JTPA grants
administered by the Employment and Training Administration.
Reemployment Rights. The Uniformed Services Employment and
Reemployment Rights Act (USERRA) of 1994 amended chapter 43 of
title 38 of the United States Code. Among other improvements,
it expanded the purview of DOL to include federal employers.
Under USERRA, most recently separated veterans, Reservists, and
National Guard members upon completion of active duty are
entitled to reinstatement to their pre-service employment, with
all attendant rights and benefits, as if they had never left to
perform the active duty. Also, the statute prohibits
discrimination against Reservists and National Guard members by
employers. The VETS staff is responsible for investigating
complaints, mediating settlements, referring cases that cannot
be settled to the Department of Justice for litigation, and
providing information and technical assistance to employers to
prevent inadvertent violations of the statute.
Veterans' Preference and Federal Contractor Non-Compliance
Complaints. VETS is responsible under the provisions of chapter
41 of title 38 of the United States Code for monitoring federal
agencies' implementation of veterans' preference requirements
applicable to hiring, and to report to the Office of Personnel
Management (OPM) for remedial action any evidence of non-
compliance. Under the inter-agency agreement with OPM, upon
receipt of a complaint, VETS staff completes a fact-finding
process, attempts to resolve the complaint, and reports the
matter to OPM for remedial action if not settled. Similarly,
VETS staff follow up on complaints from veterans alleging non-
compliance by federal contractors, and try to settle the
complaints through fact-finding and mediation. If not settled,
the complaint goes to the DOL's Office of Federal Contract
Compliance Program (OFCCP) for enforcement of the statute.
National Veterans' Training Institute. Through a
competitively awarded contract with the University of Colorado
at Denver, VETS administers a training institute for service
provider staff. The multi-course curriculum is continually
refined so that staff such as DVOPS and LVERs may acquire the
basic and advanced knowledge and skills needed to effectively
serve their customers. Courses are delivered in both
residential and distance learning modes.
AMERICAN BATTLE MONUMENTS COMMISSION
The American Battle Monuments Commission (ABMC), created by
an Act of Congress in 1923 (36 U.S.C. 121-138B), is a federal
agency responsible for the construction and permanent
maintenance of military cemeteries and memorials on foreign
soil, as well as certain memorials in the United States. Its
principal functions are to commemorate, through the erection
and maintenance of suitable memorial shrines, the sacrifices
and achievements of American armed forces where they served
since April 6, 1917; to design, construct, operate, and
maintain permanent American military burial grounds and
memorials in foreign countries; to control the design and
construction on foreign soil of U.S. military monuments and
markers by other U.S. citizens and organizations, both public
and private; and to encourage U.S. governmental agencies and
private individuals and organizations to maintain adequately
the monuments and markers erected by them on foreign soils.
When directed by Congress, the Commission develops and erects
national military monuments in the United States, such as the
Korean War Veterans Memorial and the World War II Memorial.
In the performance of these functions, ABMC administers,
operates and maintains 24 permanent American military cemetery
memorials and 53 monuments, memorials, markers and separate
chapels in fourteen foreign countries, the Commonwealth of the
Northern Mariana Islands, Gibraltar, and four memorials in the
United States.
Interred in the cemeteries are 124,912 U.S. war dead--750
from the Mexican War, 30,921 from World War I, and 93,241 from
World War II. Additionally, 6,573 American veterans and others
are interred in the Mexico City and Corozal cemeteries. The
Mexico City cemetery and those of the World Wars are closed to
future burials except for the remains of U.S. war dead yet to
be found in the battle areas of World Wars I and II. In
addition to burials at the cemeteries and tablets of the
missing at the cemeteries overseas, three memorials on U.S.
soil commemorate those who were missing in action, lost or
buried at sea during the World Wars, the Korean Conflict and
the Vietnam era. Those 94,100 war dead are listed individually
on the Tablets of the Missing.
In addition to its other activities, the ABMC provides
information and assistance, on request, to relatives and
friends of the war dead interred or commemorated at its
facilities.
MESSAGES FROM THE PRESIDENT AND EXECUTIVE COMMUNICATIONS
A letter from the Secretary, Department of Labor,
transmitting a report on the labor market situation for certain
disabled veterans and Vietnam Theater veterans, pursuant to 38
U.S.C. 2010A.
A letter from the Secretary of Veterans Affairs,
transmitting a report on the Montgomery GI Bill, pursuant to 38
U.S.C. 3036.
A letter from the Secretaries of Defense and Veterans
Affairs, transmitting a report on the implementation of the
health resources sharing portion of the ``Department of
Veterans Affairs and Department of Defense Health Resources
Sharing and Emergency Operations Act'' for Fiscal Year 1994,
pursuant to 38 U.S.C. 8111(f).
A letter from the Secretary of Veterans Affairs,
transmitting a report on contract care and services, furnished
to eligible veterans, pursuant to Public Law 100-322, sec.
112(a).
A letter from the Secretary, Department of Veterans
Affairs, transmitting the 1994 Annual Report, pursuant to 38
U.S.C. 214, 221(c), 664.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to increase, effective as of December 1,
1995, the rates of disability compensation for veterans with
service-connected disabilities and the rates of dependency and
indemnity compensation for survivors of such veterans, and for
other purposes.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to provide for cost-savings in the housing
loan program for veterans, to limit cost-of-living increases
for Montgomery GI Bill benefits, and for other purposes.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, and other statutes, to extend VA's
authority to operate various programs, collect copayments
associated with provision of medical benefits, and obtain
reimbursement from insurance companies for care furnished.
A letter from the Secretary of Labor, transmitting the
annual report on employment and training programs for veterans
during program year 1992 (July 1, 1992 through June 30, 1993)
and fiscal year 1993 (October 1, 1992 through September 30,
1993), pursuant to 38 U.S.C. 2009(b).
A letter from the Secretary of Veterans Affairs,
transmitting a report covering the disposition of cases granted
relief from administrative error, overpayment and forfeiture by
the Administrator in 1994, pursuant to 38 U.S.C. 210(c)(3)(B).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to clarify the eligibility of certain
minors for burial in national cemeteries.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to restrict payment of a clothing allowance
to incarcerated veterans and to create a presumption of
permanent and total disability for pension purposes for certain
veterans who are patients in a nursing home.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to change the name of Servicemen's Group
Life Insurance program to Servicemembers' Group Life Insurance,
to merge the Retired Reservists' Servicemembers' Group Life
Insurance program into the Veterans' Group Life Insurance
program, to extend Veterans' Group Life Insurance coverage to
members of the Ready Reserve of a uniformed service who retire
with less than 20 years of service, to permit an insured to
convert a Veterans' Group Life Insurance policy to an
individual policy of life insurance with a commercial insurance
company at any time, and to permit an insured to convert a
Servicemember's Group Life Insurance policy.
A letter from the General Counsel, Department of Defense,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to authorize the termination of
Servicemen's Group Life Insurance when premiums are not paid.
A letter from the Chief Judge, United States Court of
Veterans Appeals, transmitting the annual estimate of the
expenditures and appropriations necessary for the maintenance
and operation of the Court of Veterans Appeals Retirement Fund,
pursuant to 31 U.S.C. 9503(a)(1)(B).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to permit the
Secretary of Veterans Affairs to reorganize the Veterans Health
Administration notwithstanding the notice and wait requirements
of section 510 of title 38, United States Code, and to amend
title 38, United States Code, to facilitate the reorganization
of the headquarters of the Veterans Health Administration.
A letter from the Secretary of Labor, transmitting the
Department's report entitled, ``Transition Assistance Program:
Phase III Impact Analysis'', pursuant to Public Law 101-237,
Section 408(d) (103 Stat. 2084).
A letter from the Director, Office of Personnel Management,
transmitting the 1993 and 1994 combined annual report on
Veteran's Employment in the Federal Government, pursuant to 38
U.S.C. 4214(e)(1).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation entitled the
``Department of Veterans Affairs Improvement and Reinvention
Act of 1995''.
A letter from the Secretary, Department of Veterans
Affairs, transmitting a draft of proposed legislation to amend
title 38, sections 810(2) and 810(h)(3)(B), U.S.C.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to modify disbursement agreement authority
to include residents and interns serving in any Department
facility providing hospital care or medical services.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to revise the procedures for providing
claimants and their representatives with copies of Board of
Veterans' Appeals decisions and to protect the right of
claimants to appoint veterans service organizations as their
representatives in claims before the Department of Veterans
Affairs.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to expand the authority of the Secretary of
Veterans Affairs to suspend a special pay agreement for
physicians and dentists who enter residency training programs.
A letter from THE NATIONAL ADJUTANT, THE DISABLED AMERICAN
VETERANS, transmitting the report of the proceedings of the
organization's 74th National Convention, including their annual
audit report of receipts and expenditures as of December 31,
1994, pursuant to 36 U.S.C. 90i and 44 U.S.C. 1332.
A letter from THE DIRECTOR, NATIONAL LEGISLATIVE
COMMISSION, THE AMERICAN LEGION, transmitting the proceedings
of the 77th National Convention of the American Legion, held in
Indianapolis, Indiana, September 4, 5, and 6, 1995, as well as
a report on the Organization's activities for the year
preceding the Convention, pursuant to 36 U.S.C. 49.
A letter from the Secretaries of Veterans Affairs and
Defense, transmitting a report on the implementation of the
health resources sharing portion of the ``Department of
Veterans Affairs and Department of Defense Health Resources
Sharing and Emergency Operations Act'' for Fiscal Year 1995,
pursuant to 38 U.S.C. 8111(f).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to exempt full-time registered nurses,
physician assistants, and expanded-function dental auxiliaries
from restrictions on remunerated outside professional
activities.
A letter from the Secretary of Health and Human Services,
transmitting the Department's report on Medicaid Drug Rebate
Program Best Price Changes and Rebates Claimed for 4th quarter
calendar year 1992 through 2nd quarter calendar year 1994,
pursuant to Public Law 102-585, Section 602(b)(2) (106 Stat.
4970).
A letter from the Secretary of Veterans Affairs,
transmitting a report covering the disposition of cases granted
relief from administrative error, overpayment and forfeiture by
the Administrator in 1995, pursuant to 38 U.S.C. 503.
A letter from the Secretary of Veterans Affairs
transmitting the Department's report on the evaluation of
health status of spouses and children of Persian Gulf War
veterans, pursuant to 38 U.S.C. 1117nt.
A letter from the Secretary of Veterans Affairs,
transmitting the Department's sixth report describing the
administration of the Montgomery GI Bill--Active Duty
educational assistance program, pursuant to 38 U.S.C. 3036.
A letter from the Director, Office of Management and
Budget, transmitting a draft of proposed legislation entitled
the ``Work First and Personal Responsibility Act of 1996''.
A letter from the Secretary of Veterans Affairs,
transmitting the Fiscal Year 1995 Annual Report of the
Secretary of Veterans Affairs, pursuant to 38 U.S.C. 529.
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--VA Acquisition Regulations: Loan
Guaranty and Vocational Rehabilitation and Counseling Programs
(RIN: 2900-AG65) Received May 3, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule --Delegation of Authority to Order
Advertising for Use in Recruitment (RIN: 2900-AH74) Received
May 3, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Servicemen's and Veterans' Group Life
Insurance (RIN: 2900-AH50) Received May 3, 1996, pursuant to 5
U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Schedule for Rating Disabilities;
Fibromyalgia (RIN: 2900-AH05) Received May 6, 1996, pursuant to
5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Appeals Regulations; Rules of
Practice: Single Member and Panel Decisions; Reconsiderations;
Order of Consideration (RIN: 2900 AH16) Received May 6, 1996,
pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Removal of references to ``vicious
habits'' (RIN: 2900-AH87) Received May 6, 1996, pursuant to 5
U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--VA Acquisition Regulations:
Miscellaneous Amendments (RIN: 2900-AI02) Received May 7, 1996,
pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Adjudication Regulations:
Miscellaneous (RIN: 2900-AH83) Received May 8, 1996, pursuant
to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Medical; Nonsubstantive Miscellaneous
Changes (RIN: 2900-AH95) Received May 9, 1996, pursuant to 5
U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Medical; VA Health Professional
Scholarship Program, Correction (RIN: 2900-AH99) Received May
9, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Veterans Education: Increase in Rates
Payable Under the Montgomery GI Bill--Active Duty, 1995-96
(RIN: 2900-AH79) Received May 14, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Compensation for Disability Resulting
from Hospitalization, Treatment, Examination, or Vocational
Rehabilitation (RIN: 2900-AH44) Received May 22, 1996, pursuant
to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Schedule for Rating Disabilities;
Endocrine System Disabilities (RIN: 2900-AH41) Received May 22,
1996, pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Veterans and Dependents Education:
Miscellaneous (RIN: 2900-AH60) Received May 22, 1996, pursuant
to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--National Cemeteries (RIN: 2900-AI06)
Received May 29, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Delegations of Authority; Tort Claims
and Debt Collection (RIN: 2900-AI13) Received May 30, 1996,
pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Gender Policy for VA Publications and
Other Communications (RIN: 2900-AI09) Received May 30, 1996,
pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Loan Guaranty: Miscellaneous (RIN:
2900-AI01) Received May 31, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Rules of Practice: Elimination of
unnecessary provisions relating to representation, witnesses,
and access to Board records (RIN: 2900-AI15) Received June 5,
1996, pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Veterans Mortgage Life Insurance (RIN:
2900-AH54) Received June 5, 1996 pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Soldiers' and Sailors' Civil Relief
(RIN: 2900-AH53) Received June 5, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--United States Government Life
Insurance (RIN: 2900-AH52) Received June 5, 1996, pursuant to 5
U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Post-Vietnam Era Veterans' Educational
Assistance: Miscellaneous (RIN: 2900-AH64) Received June 7,
1996 Pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Autopsies (RIN: 2900-AI07) Received
June 10, 1996 pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Investigation Regulations (RIN: 2900-
AI25) Received June 11, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Information Law; Miscellaneous (RIN:
2900-AI23) Received June 11, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Educational Assistance Programs and
Service Members Occupational Conversion and Training Act
Program (RIN: 2900-AH31) Received June 11, 1996, pursuant to 5
U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Inventions by Employees of the
Department of Veterans Affairs (38 CFR Part1) (RIN: 2900-AI03)
Received June 13, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Veterans Education: Course Measurement
for Graduate Courses (RIN: 2900-AH39) Received June 11, 1996,
pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--National Service Life Insurance (RIN:
2900-AH55) Received June 24, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to ensure that
appropriated funds are not used for operation of golf courses
on real property controlled by the Department of Veterans
Affairs.
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to redesignate the
title of the National Cemetery System and the position of the
Director of the National Cemetery System.
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Re-establishing Rulemaking Procedures
(RIN: 2900-AI32) Received June 28, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Part-Time Career Employment Program
(RIN: 2900-AH75) Received July 25, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to amend title 38,
United States Code, to provide benefits for certain children of
Vietnam veterans who are born with spina bifida.
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Schedule for Rating Disabilities;
Infectious Diseases, Immune Disorders and Nutritional
Deficiencies (Systemic Conditions) (RIN: 2900-AE95) Received
July 30, 1996, pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Appeals Regulations, Rules of
Practice: Hearings before the Board of Veterans' Appeals at
Department of Veterans Affairs Field Facilities (RIN: 2900-
AI11) Received August 21, 1996, pursuant to 5 U.S.C.
801(a)(1)(A).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation to require the
Secretary of Veterans Affairs and the Secretary of Health and
Human Services to carry out a model project to provide the
Department of Veterans Affairs with Medicare reimbursement for
Medicare health care services provided to certain Medicare-
eligible veterans.
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Schedule for Rating Disabilities;
Respiratory System (RIN: 2900-AE94) Received September 3, 1996,
pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Secretary of Veterans Affairs,
transmitting a draft of proposed legislation entitled,
``Department of Veterans Affairs Employment Reduction
Assistance Act of 1996''.
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule--Schedule for Rating Disabilities;
Mental Disorders (RIN: 2900-AF01) Received October 3, 1996,
pursuant to 5 U.S.C. 801(a)(1)(A).
A letter from the Director, Office of Regulations
Management, Department of Veterans Affairs, transmitting the
Department's final rule-- VA Acquisition Regulation: Service
Contracting(RIN: 2900-AG67) Received October 2, 1996, pursuant
to 5 U.S.C. 801(a)(1)(A).
A Communication from the President of the United States,
transmitting the Administration's 1996 National Drug Control
Strategy, pursuant to 21 U.S.C. 1504.
SUMMARY OF VETERANS' AFFAIRS COMMITTEE ACTION
BILLS AND RESOLUTIONS REFERRED AND HEARINGS / EXECUTIVE SESSIONS CONDUCTED
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Congress
-------------------------------------------------------------------------------------------------------------------------------------------------------
86th 87th 88th 89th 90th 91st 92d 93d 94th 95th 96th 97th 98th 99th 100th 101st 102d 103d 104th
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Bills and resolutions referred.......... 628 592 508 791 685 740 693 839 719 709 339 273 229 198 147 194 215 174 128
Hearing sessions........................ 55 45 50 71 46 43 37 44 58 72 84 89 71 76 44 72 67 71 39
Meetings and mark-up sessions........... 21 15 21 32 13 27 21 16 30 26 19 18 16 20 16 26 20 23 19
Bills reported.......................... 42 52 41 47 \8\ 19 34 26 \9\ 14 23 32 11 16 15 17 14 33 21 25 15
Bills in House.......................... 2 \1\ 8 \5\ 5 \6\ 4 4 1 4 1 ...... 1 1 1 3 3 1 4 3 11 ......
Pending in Senate committees............ 6 \2\ 13 7 \7\ 12 3 9 7 2 \10\ 9 17 3 6 6 8 9 23 7 11 10
Bills on Senate Calendar or in Senate... 1 \3\ 2 ...... 1 ...... ...... ...... ...... ...... 1 1 1 ...... 1 3 1 3 3 ......
Recommitted............................. ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ......
Bills vetoed............................ ...... ...... ...... ...... ...... ...... 2 1 ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ......
Bills passed over veto.................. ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ......
Laws enacted............................ 33 \4\ 32 29 30 15 24 15 15 15 13 6 8 8 6 4 8 24 15 6
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Including 4 bills enacted as amendment in other legislation; 1 left in House when similar Senate bill returned to Senate; and 1 similar to another bill enacted (Public Law 87-645).
\2\ Includes 2 bills enacted as amendments to other bills.
\3\ Includes 1 bill enacted as amendment to another bill.
\4\ Some laws include the substance of more than 1 bill reported separately. 39 separately reported bills were enacted, 7 as amendments to other legislation.
\5\ Provisions of 3 of these bills were passed by the House as separate bills, and the provisions of 1 bill were included as an amendment to another bill which became public law.
\6\ \7\ One bill in a Senate committee had purpose accomplished administratively; 5 other were enacted as sections of another bill; and portions of 1 bill left in the House were enacted as
part of another bill.
\8\ Includes S.J. Res. 197 making technical correction to law, which was brought to House floor for immediate consideration and passage by unanimous consent.
\9\ The difference in number of bills reported (14) and laws enacted (15) is due to the fact that S. 3705 did not go to the House Committee. However, the subject matter was included in H.R.
12628.
\10\ Includes H.R. 9576 subject matter of which was contained in S. 969, passed in lieu.
HEARINGS AND EXECUTIVE SESSIONS
(All hearings and executive sessions of the Committee are
held in the Committee hearing room, 334 Cannon House Office
Building, unless otherwise designated.)
Jan. 11, 1995. OPEN. 10:00 a.m. Full Committee. Meeting.
Organizational.
Feb. 9, 1995. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative
agenda of the Paralyzed Veterans of America; Jewish War
Veterans; The Retired Officers Association; Association of the
U.S. Army; and Non Commissioned Officers Association.
Feb. 14, 1995. OPEN. 9:00 a.m. Full Committee. Meeting.
Oversight Plan.
Feb. 24, 1995. OPEN. 9:00 a.m. Full Committee. Hearing. FY
96 Department of Veterans Affairs budget. (Serial No. 104-1).
Mar. 1, 1995. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative
agenda of the Disabled American Veterans.
Mar. 7, 1995. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative
agenda of the Veterans of Foreign Wars.
Mar. 9, 1995. OPEN. 9:00 a.m. Subcommittee on Hospitals and
Health Care. Hearing. Progress of Research on Undiagnosed
Illnesses of Persian Gulf War Veterans. (Serial No. 104-2).
Mar. 16, 1995. OPEN. 9:30 a.m. Full Committee. Meeting.
Reviewing the President's Budget.
Mar. 30, 1995. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Room 345 Cannon HOB. The 1995 legislative
agenda of the Veterans of World War I; Blinded Veterans
Association; American Ex-Prisoners of War; AMVETS; Vietnam
Veterans of America; and the Military Order of the Purple
Heart.
Apr. 6, 1995. OPEN. 9:00 a.m. Subcommittee on Hospitals and
Health Care. Hearing. Veterans Health Administration
Reorganization. (Serial No. 104-3).
May 3, 1995. OPEN. 9:00 a.m. Subcommittee on Education,
Training, Employment and Housing. Hearing. Room 340 Cannon HOB.
Veterans Vocational Rehabilitation and Counseling Service
(VR&C) and the Veterans Employment and Training Services
(VETS). (Serial No. 104-4).
May 11, 1995. OPEN. 9:30 a.m. Subcommittee on Hospitals and
Health Care. Markup. H.R. 1384, 1536, and 1565.
May 12, 1995. OPEN. 9:30 a.m. Subcommittee on Compensation,
Pension, Insurance and Memorial Affairs. Hearing. Veterans
Benefits Administration's processing of compensation claims,
with an emphasis on Persian Gulf War claims; oversight of P.L.
103-446, Veterans' Benefits Improvements Act of 1994. (Serial
No. 104-5).
June 15, 1995. OPEN. 9:30 a.m. Full Committee. Markup. H.R.
1384, 1536, and 1565.
June 22, 1995. OPEN. 9:00 a.m. Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Hearing.
Veterans Benefits Administration's Computer Modernization.
(Serial No. 104-6)
June 29, 1995. OPEN. 9:30 a.m. Subcommittee on Education,
Training, Employment and Housing. Hearing. Veterans Employment
and Training Service (VETS) reorganization; implementation of
the Uniformed Services Employment and Reemployment Act (USERRA)
and One-Stop Employment Centers. (Serial No. 104-7)
July 19, 1995. OPEN. 10:00 a.m. Full Committee. Hearing.
Eligibility Reform Initiatives. (Serial No. 104-8)
Aug. 2, 1995. OPEN. 9:00 a.m. Subcommittee on Education,
Training, Employment and Housing. Hearing. H.R. 1941 (USSERA),
draft bill on Housing Loan Programs and Veterans Small
Business, and a discussion draft on LVER/DVOP issues. (Serial
No. 104-9)
Sep. 7, 1995. OPEN. 9:00 a.m. Subcommittee on Education,
Training, Employment and Housing. Markup. Draft bill including
provisions of USERRA (Uniformed Services Employment and
Reemployment Rights Act), VA Home Loan programs and the
Department of Labor's VETS program.
Sep. 7, 1995. OPEN. 10:30 a.m. Subcommittee on Hospitals
and Health Care. Markup. H.R. 2219.
Sep. 19, 1995. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. The 1995 legislative agenda of The American
Legion.
Sep. 20, 1995. OPEN. 10:00 a.m. Full Committee. Markup.
H.R. 2289 and H.R. 2353.
Sep. 27, 1995. OPEN. 9:30 a.m. Subcommittee on Hospitals
and Health Care. Hearing. Department of Veterans Affairs
Medical Center, Brooklyn. (Serial No. 104-10)
Sep. 28, 1995. OPEN. 9:30 a.m. Full Committee. Markup.
Budget Reconciliation instructions; H.R. 2394.
Oct. 12, 1995. OPEN. 10:00 a.m. Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Hearing.
H.R. 109, H.R. 368, H.R. 1482, H.R. 1483, H.R. 1609, H.R. 1809,
H.R. 2155, H.R. 2156, and H.R. 2157. (Serial No. 104-11)
Oct. 18, 1995. OPEN. 9:30 a.m. Subcommittee on Hospitals
and Health Care. Hearing. VA/DOD Sharing. (Serial No. 104-12)
Oct. 25, 1995. OPEN. 9:30 a.m. Subcommittee on Hospital and
Health Care. Hearing. Issues relating to the Harry S. Truman
Veterans Affairs Medical Center in Columbia, Missouri. (Serial
No. 104-13)
Dec. 21, 1995. OPEN. 10:00 a.m. Full Committee. Markup.
H.R. 2814.
Feb. 28, 1996. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Joint Hearing. Room 345 Cannon HOB. The
1996 legislative agenda of the Disabled American Veterans.
Mar. 5, 1996. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Joint Hearing. Room 345 Cannon HOB. The
1996 legislative agenda of the Veterans of Foreign Wars.
Mar. 7, 1996. OPEN. 9:00 a.m. Subcommittee on Education,
Training, Employment and Housing. Hearing. Montgomery GI Bill.
(Serial No. 104-14)
Mar. 14, 1996. OPEN. 3:00 p.m. Full Committee. Meeting. To
approve Committee's views and estimates for the FY 1997 budget
for submission to the Budget Committee.
Mar. 14, 1996. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Room 345 Cannon HOB. The 1996 legislative
agenda of the Paralyzed Veterans of America; Jewish War
Veterans; The Retired Officers Association; Association of the
U.S. Army; Non Commissioned Officers Association; and Blinded
Veterans Association.
Mar. 21, 1996. OPEN. 11:30 a.m. Subcommittee on Hospitals
and Health Care. Hearing. Department of Veterans Affairs
Medical Care Budget and Construction Priorities for FY 1997.
(Serial No. 104-15)
Mar. 27, 1996. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. Joint Hearing. Room 345 Cannon HOB. The
1996 legislative agenda of the Veterans of World War I; AMVETS;
American Ex-Prisoners of War; Vietnam Veterans of America; and
Military Order of the Purple Heart.
Mar. 29, 1996. OPEN. 10:00 a.m. Full Committee. Hearing. FY
1997 Budget for the Department of Veterans Affairs. (Serial No.
104-16)
Apr. 16, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals
and Health Care. Hearing. Results of the recent Study by the
Institute of Medicine on Health Effects in Children of
Individuals exposed to Agent Orange in Vietnam. (Serial No.
104-17)
Apr. 17, 1996. OPEN. 9:30 a.m. Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Markup.
H.R. 2843, H.R. 2850, H.R. 3248 and H.R. 1483.
Apr. 18, 1996. OPEN. 9:00 a.m. Subcommittee on Education,
Training, Employment and Housing. Hearing. H.R. 2851, H.R.
2868, H.R. 3036, Homeless Veterans Reintegration Project; and
Transition Assistance Program (TAP). (Serial No. 104-18)
Apr. 22, 1996. OPEN. 9:00 a.m. VFW Hall, LaSalle, Illinois.
Hearing. Subcommittee on Hospitals and Health Care. Outpatient
Services in LaSalle County, Illinois. (Serial No. 104-19)
Apr. 24, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals
and Health Care. Hearing. Effectiveness of Community Care
Clinics. (Serial No. 104-20)
Apr. 30, 1996. OPEN. 9:30 a.m. Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Hearing.
Access to Treatment and Compensation for Veterans exposed to
Ionizing Radiation. (Serial No. 104-21)
May 8, 1996. OPEN. 10:00 a.m. Subcommittee on Education,
Training, Employment and Housing and Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Joint
Hearing. Davenport v. Brown court decision; Veterans' Cost-of-
Living Adjustments (COLAs); and the U.S. Court of Veterans
Appeals Pro Bono Program. (Serial No. 104-22)
May 8, 1996. OPEN. 1:30 p.m. Subcommittee on Hospitals and
Health Care. Markup. H.R. 3118 and H.R. 3376.
May 8, 1996. OPEN. 2:00 p.m. Full Committee. Markup. H.R.
1483, H.R. 3118, H.R. 3373 and H.R. 3376.
May 22, 1996. OPEN. 10:30 a.m. Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Markup.
H.R. 2513, H.R. 3458, H.R. 3493 and H.R. 3495.
May 30, 1996. OPEN. 9:30 a.m. Subcommittee on Education,
Training, Employment and Housing. Markup. H.R. 2851, H.R. 3459.
May 30, 1996. OPEN. 10:00 a.m. Subcommittee on Education,
Training, Employment and Housing. Hearing. Uniformed Services
Employment and Reemployment Rights Act; Veterans' Preference;
and the VA Education Services Draft Discussion Bill. (Serial
No. 104-23)
June 11, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals
and Health Care. Hearing. VA Pharmacy Program with Emphasis on
Over-the-Counter (OTC) Drugs, Medical Supplies and Dietary
Supplements. (Serial No. 104-24)
June 12, 1996. OPEN. 10:00 a.m. Subcommittee on Education,
Training, Employment and Housing and Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Joint
Hearing. Customer Service Standards at the Department of
Veterans Affairs and the Veterans' Employment and Training
Service. (Serial No. 104-25)
June 18, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals
and Health Care. Markup. H.R. 3643.
June 19, 1996. OPEN. 10:00 a.m. Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs. Hearing.
Department of Veterans Affairs Computer Modernization Effort as
it relates to an overall Strategic Plan within the Department.
(Serial No. 104-26)
June 20, 1996. OPEN. 9:30 a.m. Full Committee. Markup. H.R.
3458, H.R. 3643, amended, H.R. 3673, H.R. 3674.
June 26, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals
and Health Care. Hearing. Future of the Veterans Health
Administration. (Serial No. 104-27)
June 27, 1996. OPEN. 10:00 a.m. Subcommittee on Hospitals
and Health Care. Hearing. Future of the Veterans Health
Administration. (Serial No. 104-27)
July 31, 1996. OPEN. 10:00 a.m. Subcommittee on Education,
Training, Employment and Housing, Veterans' Affairs Committee
and Subcommittee on Government Programs, Small Business
Committee. Joint Hearing. Room 2359 Rayburn HOB. Veterans'
Small Business Issues.
Sep. 17, 1996. OPEN. 9:30 a.m. House and Senate Veterans
Affairs Committees. The annual legislative presentation of The
American Legion.
Sep. 18, 1996. OPEN. 9:00 a.m. Full Committee. Markup. H.R.
4068.
LEGISLATION ENACTED INTO LAW
VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 1995
Public Law 104-57
(H.R. 2394, AS AMENDED)
Title: To increase, effective December 1, 1995, the rates
of compensation for veterans with service-connected
disabilities and the rates of dependency and indemnity
compensation for the survivors of certain disabled veterans.
Summary: H.R. 2394 would:
1. LIncrease, effective December 1, 1995, the rates of
compensation for veterans with service-connected disabilities
and the rates of dependency and indemnity compensation for the
survivors of certain disabled veterans. The rate of increase
would follow Social Security Administration figures.
2. LRound down to the next lower dollar amount all
compensation and DIC benefits, when the amount is not a whole
dollar amount.
Effective date: December 1, 1995
Cost: The Congressional Budget Office estimates the savings
of H.R. 2394 to be $15 million in fiscal year 1996, $19 million
in fiscal year 1997 and $20 million in fiscal year 1998.
Legislative history: CONGRESSIONAL RECORD (1995)
Sep. 28, 1995: H.R. 2394 ordered reported by Committee on
Veterans' Affairs.
Oct. 6, 1995: H.R. 2394 reported by Committee on Veterans'
Affairs. H. Rept. 104-273.
Oct. 10, 1995: Passed the House under suspension by voice
vote.
Oct. 11, 1995: Referred to Senate Committee on Veterans'
Affairs.
Nov. 9, 1995: Passed the Senate with an amendment in the
nature of a substitute.
Nov. 10, 1995: House agreed to Senate amendment.
Nov. 22, 1995: Signed by the President.
------
TO EXTEND THE AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS TO CARRY
OUT CERTAIN PROGRAMS AND ACTIVITIES, TO REQUIRE CERTAIN REPORTS FROM
THE SECRETARY OF VETERANS AFFAIRS, AND FOR OTHER PURPOSES
Public Law 104-110
(H.R. 2353, AS AMENDED)
Title: An Act to amend title 38, United States Code, to
extend the authority of the Secretary of Veterans Affairs to
carry out certain programs and activities, to require certain
reports from the Secretary of Veterans Affairs, and for other
purposes.
Summary: H.R. 2353, as amended, would:
Title I--Extensions of Authority
1. LAuthorize VA to provide health care until December 31,
1996, on a priority basis for certain veterans exposed to toxic
substances; and those with service in the Persian Gulf;
2. LProvide contract authority for alcohol and drug abuse
care until December 31, 1997;
3. LAuthorize the non-institutional Nursing Home Care
Alternatives Program until December 31, 1997;
4. LPermanently authorize negotiated interest rates
between veterans and lenders on home loans;
5. LPermanently authorize energy efficient mortgages
covering the costs of energy-efficiency improvements to a
veteran's home or a dwelling owned by a veteran;
6. LAuthorize enhanced loan asset sales until December 31,
1996, to improve the secondary market value of VA-backed
mortgages, eliminate the need for future VA servicing, and
convert long-term receivables into cash assets;
7. LPermanently authorize lenders of automatically
guaranteed loans to directly review appraisal reports and
determine the value of property bought with a VA-guaranteed
loan;
8. LAuthorize housing assistance for homeless veterans
with a program in which VA-owned properties are made available
to homeless veterans and their families by allowing agreements
between the Secretary and community based organizations or
states through December 31, 1997;
9. LPermit VAMC directors to use nurse anesthetist
contract agency data to adjust to locality-based nurse pay
rates where a VA locality survey provides insufficient data,
until January 1, 1998;
10. LAuthorize the Health Scholarships Program until
December 31, 1997;
11. LAuthorize the Enhanced-Use Leases of Real Property
Program until December 31, 1997;
12. LAuthorize the Community-Based Residential Care for
Homeless Chronically Mentally Ill-Veterans Program until
December 31, 1997;
13. LAuthorize the Demonstration Program of Compensated
Work Therapy and Therapeutic Transitional Housing until
December 31, 1997;
14. LAuthorize the Homeless Veterans Pilot Program until
September 30, 1997; and
15. LAuthorize $10 million for the ``Homeless Veterans'
Reintegration Program (HVRP)'' for fiscal year 1996.
Title II--Other Provisions
1. LRequire the Secretary of Veterans Affairs to submit
reports to Congress on the following:
a) Lthe above-named VA housing programs every 2
years, instead of annually;
b) Lthe advantages and disadvantages of consolidating
into one program the Alcohol and Drug Abuse Program,
the Community-Based Residential Care for Homeless
Chronically Mentally Ill-Veterans Program, and the
Demonstration Program of Compensated Work Therapy and
Therapeutic Transitional Housing;
c) Lthe efficacy of the Health Professional
Scholarship Program with respect to recruitment and
retention of health care personnel for the VA, along
with a cost comparison of the program and alternative
methods; and
d) Lthe operation of the Enhanced-Use Leases program.
2. LAuthorize the VA to enter into a 35-year contract for
utilities at the Audie L. Murphy Memorial Hospital in San
Antonio, Texas.
Effective date: Date of Enactment
Cost: The Congressional Budget Office estimates H.R. 2353,
as amended, would affect direct spending or receipts and thus
would have pay-as-you-go savings of $4.0 million in fiscal year
1996 and $1.0 million in fiscal year 1997. In addition, CBO
estimates the bill would have discretionary program costs of
$146.6 million in authorization levels and $118.0 million in
outlays for fiscal year 1996, $101.2 million in authorization
levels and $115.0 million in outlays for fiscal year 1997,
$18.6 million in authorization levels and $33.4 million in
outlays for fiscal year 1998. CBO estimates zero dollars in
authorizations and outlays for fiscal years 1999 and 2000. H.R.
2353, as amended, would not affect the budgets of state or
local governments.
Legislative history: CONGRESSIONAL RECORD (1995-1996)
Sep. 20, 1995: H.R. 2353 ordered reported, as amended, by
Committee on Veterans' Affairs.
Oct. 12, 1995: H.R. 2353 reported by Committee on Veterans'
Affairs. H.Rept. 104-275.
Oct. 17, 1995: Passed the House amended under suspension by
vote of 403-0.
Oct. 18, 1995: Referred to Senate Committee on Veterans'
Affairs.
Jan. 5, 1996: Passed the Senate with amendment in the
nature of a substitute (S.991).
Jan. 25, 1996: Passed the House with amendments to the
Senate amendments by unanimous consent (consists of portions of
H.R. 1536, H.R. 1565, H.R. 2219, H.R. 2289 and H.R. 2353 as
originally passed by the House).
Jan. 30, 1996: Senate concurred in the amendments of the
House to the amendments of the Senate to H.R. 2353.
Feb. 13, 1996: Signed by the President.
------
THE VETERANS' HEALTH CARE ELIGIBILITY REFORM ACT OF 1996
Public Law 104-262
(H.R. 3118, AS AMENDED)
Title: An Act to amend title 38, United States Code, to
reform eligibility for health care provided by the Department
of Veterans Affairs, and for other purposes.
Summary: H.R. 3118, as amended, would:
Title I--Eligibility Reform
1. LWithin appropriations, direct the VA to provide all
needed hospital and medical care services and establish and
manage health care programs to promote the cost-effective
delivery of health services to veterans with compensable
service-connected disabilities, former prisoners of war,
veterans exposed to toxic substances and environmental hazards,
veterans meeting the ``means test'' as provided under existing
law, and veterans of World War I.
2. LRequire the VA to manage the provision of health care
services through an annual patient enrollment system that is
reflective of the priority system, which provides the highest
priority for enrollment to those with service-connected
conditions and also requires that effective October 1, 1998,
veterans enroll in a VA-managed care plan to receive health
care services. Veterans in need of care for a service-connected
condition or 50 percent or more service-connected disabled are
exempt from the enrollment requirement.
3. LRevise and extend special health care eligibility for
veterans exposed to ionizing radiation indefinitely; for
herbicide exposed veterans through December 31, 2002; and for
Persian Gulf veterans through December 31, 1998.
4. LEliminate restrictions on VA providing prosthetics, but
require VA to establish guidelines for providing hearing aids
and eyeglasses.
5. LDirect the VA to maintain its capacity for specialized
rehabilitative and treatment programs (such as SCI care) at the
current level and within distinct programs and facilities
dedicated to the specialized needs of those veterans.
6. LRequire VA to consult with the Advisory Committee on
Prosthetics and Special Disabilities Programs and the Committee
on Care of Severely Chronically Mentally Ill Veterans in the
assessment of these activities.
7. LRequire the VA to report to the House and Senate
Veterans' Affairs Committees by April 1 of the years 1997,
1998, and 1999 on VA's compliance with the specialized services
provisions of the bill.
8. LLimit any excess costs associated with the eligibility
reform provisions of this bill by establishing an authorization
for appropriations for VA medical care capped at the following
amounts: $17.25 billion for FY 1997 and $17.9 billion for FY
1998.
9. LRequire that no later than March 1, 1998, the VA report
to the House and Senate Veterans' Affairs Committees on the
impact of the implementation of eligibility reform.
Title II--Construction Authorization
1. LAuthorize the following major projects for a total
amount of $358.15 million:
a) LAmbulatory care addition, Tripler Army Hospital,
Honolulu, HI, $43 million;
b) Ambulatory care addition, Brockton, MA, $13.5
million;
c) Ambulatory care addition, Shreveport, LA, $25
million;
d) Ambulatory care addition, Lyons, NJ, $21.1
million;
e) Ambulatory care addition, Tomah, WI, $12.7
million;
f) Ambulatory care addition, Asheville, NC, $26.3
million;
g) Ambulatory care addition, Temple, TX, $9.8
million;
h) Ambulatory care addition, Tucson, AZ, $35.5
million;
i) LAmbulatory care addition, Leavenworth, KS, $27.75
million;
j) Environmental improvements, Lebanon, PA, $9.5
million;
k) Environmental improvements, Marion, IL, $11.5
million;
l) Environmental improvements, Omaha, NE, $7.7
million;
m) LEnvironmental improvements, Pittsburgh, PA, $17.4
million;
n) Environmental improvements, Waco, TX, $26 million;
o) Environmental improvements, Marion, IN, $17.3
million;
p) LEnvironmental improvements, Perry Point, MD,
$15.1 million;
q) LEnvironmental enhancement, Salisbury, NC, $18.2
million; and
r) LSeismic corrections, Palo Alto, CA, $20.8 million
2. LAuthorize the following major medical facility leases
for a total of $12.236 million:
a) Allentown, PA, $2.159 million;
b. Beaumont, TX, $1.94 million;
c. Boston, MA, $2.358 million;
d. Cleveland, OH, $1.3 million;
e. San Antonio, TX, $2.256 million; and
f. Toledo, OH, $2.223 million.
3. LRequire the VA to develop a five-year strategic plan
for its health care system which specifically addresses the
integration of planning efforts at the grassroots level,
coordinated within the prescribed geographic network and then
formulated into a national plan.
4. LRequire the VA to submit to Congress an annual report
on the top 20 major medical construction projects of the
Department.
5. LExpand the required documentation and justification of
each major project and major facility lease proposed in the
President's budget.
6. LRedefine a major medical construction project as
costing at least $4 million and repeal, effective FY 1998, a
provision of law exempting certain previously funded
construction projects from the law's authorization requirement.
7. LProvide that amounts in excess of $500,000 may not be
obligated from the VA's Advance Planning Fund until VA reports
such proposed obligation to the House and Senate Veterans'
Affairs Committees.
Title III--Health Care Administration
Subtitle A--Health Care Sharing and Administration
1. LBroaden and expand VA's ability to share health care
resources while ensuring that services to veterans are not
adversely affected.
2. LMake permanent VA's ability to enter into sharing
agreements with the Department of Defense under provisions of
DOD's CHAMPUS program.
3. LExempt those personnel involved in providing care under
this provision and other sharing authorities from personnel
ceilings.
4. LReduce the effective date for the implementation of an
administrative reorganization from 90 to 45 days during which
Congress has been in continuous session.
5. LRequire the VA to report annually to Congress on those
activities which it proposes to study for possible contracting
out and those which have been contracted out.
Subtitle B--Care of Women Veterans
1. LStipulate that mammography standards for the VA be as
stringent as those prescribed in current law for other health
care providers, both public and private.
2. LRequire the VA to conduct annual surveys through 1999
of all VAMCs to identify women veterans' patient privacy
deficiencies.
Subtitle C--Readjustment Counseling and Mental Health Care
1. LSet a deadline of January 1, 2000, for non-theater
Vietnam-era veterans to seek readjustment counseling with the
VA.
2. LExpand eligibility for Vet Center counseling services
for combat veterans of conflicts prior to the Vietnam era.
3. LRequire the VA to submit to Congress a report on the
feasibility and desirability of collocating Vet Centers with
other VA health care facilities.
4. LEstablish an 18-member Advisory Committee on the
Readjustment of Veterans.
5. LAuthorize appropriations for the establishment of up to
five centers of excellence in mental health research,
education, and clinical care activities (MIRECCs).
6. LAuthorize appropriations for MIRECCs of $3.125 million
for FY 1998 and $6.25 million for FY 1999-2001.
7. LRequire the VA to establish a Committee on the Care of
Severely Chronically Mentally Ill Veterans.
Subtitle D--Other Provisions
1. LRequire the VA to conduct an in-house research and
evaluation study on the most effective way of providing hospice
care to veterans.
2. LAuthorize the VA to make per diem payments to state
veterans' homes in conjunction with adult day care provided at
such homes and authorize construction grants for such purposes.
3. LRenew the VA's authority to establish additional
research corporations through the year 2000.
4. LRequire that the Office of the Under Secretary be
staffed to include designated clinicians to provide expertise
and direct policy guidance on VA's specialized service programs
and that the latter be responsible for management of the
readjustment counseling program.
5. LAuthorize the VA to make disbursement agreements for
residents who train at outpatient clinics, nursing homes or
other VA medical facilities.
6. LSuspend special pay agreements for VA physicians and
dentists who enter residency training programs.
7. LLift current law restrictions on title 38 health care
professionals working in their professional capacity in outside
employment while employed full-time by the VA.
8. LAuthorize the VA to modify conditions under which land
previously transferred to Milwaukee County, Wisconsin for civic
and recreational purposes may be re-transferred.
9. LAuthorize the VA to modify conditions under which land
previously transferred to the City of Cheyenne for park and
recreational use may be re-transferred. The re-transfer would
permit the First Cheyenne Federal Credit Union to construct a
building that would benefit VA employees and beneficiaries.
10. LRename the VA medical center in Johnson City,
Tennessee the ``James H. Quillen Department of Veterans Affairs
Medical Center.''
11. LRequire the VA to report to Congress on the health
care needs of east Florida veterans before it may obligate
funds to convert the former Orlando Naval Training Center
Hospital to a nursing home care unit.
12. LExtend to December 31, 1998 VA's authority to offer
diagnostic exams to Persian Gulf War spouses and children.
Effective date: Date of enactment, except the following
sections in Title III: sections 301 through 305, relating to
VA/DOD sharing, shall take effect October 1, 1996; section 350
shall take effect at noon on January 3, 1997; and section 352,
regarding the evaluation of the health status of spouses and
children of Persian Gulf veterans, shall take effect October 1,
1996.
Cost: The Congressional Budget Office estimates H.R. 3118,
as amended, does not affect direct spending and thus would not
be subject to pay-as-you-go procedures under the Balanced
Budget and Emergency Deficit Control Act of 1985. As regards
discretionary authorization levels, which are subject to the
annual appropriations process, the bill caps authorization
levels for eligibility reform provisions at $17.25 billion for
fiscal year 1997 and $17.9 billion for fiscal year 1998. In
addition, the bill authorizes, subject to appropriations,
$358.15 million for major construction projects for fiscal
years 1997 and 1998. The bill authorizes $12.236 million for
major medical facility leases without fiscal year limitation.
No significant costs result from the exemption of certain full-
time health care professionals of the Department of Veterans
Affairs from restrictions on remunerated outside activities,
the extension of authority to provide priority treatment to
Persian Gulf veterans and those exposed to Agent Orange, or
other provisions of the bill. H.R. 3118, as amended, would not
affect the budgets of state, local, or tribal governments and
contains no intergovernmental or private-sector mandates.
Legislative history: CONGRESSIONAL RECORD (1996)
May 8, 1996: H.R. 3118 ordered reported by Committee on
Veterans' Affairs.
July 18, 1996: H.R. 3118 reported by Committee on Veterans'
Affairs. H.Rept. 104-690.
July 30, 1996: Passed the House amended under suspension by
vote of 416-0.
July 31, 1996: Referred to Senate Committee on Veterans'
Affairs.
Sept. 28, 1996: Passed the Senate amended by unanimous
consent (consists of provisions from H.R. 1384, H.R. 3376, H.R.
3643 and S. 1359).
Sept. 28, 1996: House agreed to Senate amendments by
unanimous consent.
Oct. 9, 1996: Signed by the President.
------
VETERANS' COMPENSATION COST-OF-LIVING ADJUSTMENT ACT OF 1996
Public Law 104-263
(H.R. 3458, AS AMENDED)
Title: An Act to increase, effective as of December 1,
1996, the rates of compensation for veterans with service-
connected disabilities and the rates of dependency and
indemnity compensation for the survivors of certain disabled
veterans.
Mr. EVERETT (for himself, Mr. STUMP, Mr. MONTGOMERY and Mr.
EVANS) introduced H.R. 3458 on May 15, 1996; which was referred
to the Committee on Veterans' Affairs.
ADDITIONAL COSPONSORS: Mr. WELLER, Mr. DEAL of Georgia, Mr.
EDWARDS, Mr. WATTS of Oklahoma, Mr. TEJEDA, Mr. SMITH of New
Jersey, Mr. BILIRAKIS, Mr. CLEMENT, Mr. FOX, Mr. MASCARA, Mr.
FLANAGAN, Mr. STEARNS, and Mr. HUTCHINSON.
Summary: H.R. 3458, as amended, would:
Increase, effective December 1, 1996, the rates of
compensation for veterans with service-connected disabilities,
the rates of dependency and indemnity compensation for the
survivors of certain disabled veterans, and other related
benefits. The rate of increase would follow Social Security
Administration figures.
Effective date: December 1, 1996
Cost: The table below summarizes the bill's pay-as-you-go
impact as estimated by the Congressional Budget Office:
PAY-AS-YOU-GO CONSIDERATIONS
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1997 1998
----------------------------------------------------------------------------------------------------------------
Change in Outlays..................................... 0 0
Change in Receipts.................................... Not Applicable
The bill would increase the rates of disability
compensation for veterans and dependency and indemnity
compensation for survivors of veterans by a cost-of-living
allowance (COLA). Because the COLA is assumed in the budget
resolution baseline, as specified by section 257 of the
Balanced Budget and Emergency Deficit Control Act of 1985, this
bill would have no cost relative to that baseline.
Legislative history: CONGRESSIONAL RECORD (1996)
June 20, 1996: H.R. 3458 ordered reported by Committee on
Veterans' Affairs.
June 27, 1996: H.R. 3458 reported by Committee on Veterans'
Affairs. H. Rept. 104-647.
July 16, 1996: Passed the House under suspension by voice
vote.
July 17, 1996: Referred to Senate Committee on Veterans'
Affairs.
Sept. 26, 1996: Passed the Senate amended with language of
S. 1791 by unanimous consent.
Sept. 28, 1996: House agreed to Senate amendments by
unanimous consent.
Oct. 9, 1996: Signed by the President.
------
THE VETERANS' BENEFITS IMPROVEMENTS ACT OF 1996
Public Law 104-275
(S. 1711)
Title: An Act to amend title 38, United States Code, to
improve the benefits programs administered by the Secretary of
Veterans Affairs, to provide for a study of the Federal
programs for veterans, and for other purposes.
Summary: S. 1711 would:
Title I
1. LRe-establish the requirement that a veteran's
employment handicap must be as a result of a service-connected
disability in order to receive VA vocational rehabilitation
benefits.
2. LMake permanent a pilot program authorizing VA education
benefits for participation in alternative teacher certification
programs.
3. LRemove the requirement that a degree-granting
institution of higher learning be in operation for two years to
qualify for attendance under the GI Bill.
4. LEliminate the requirement that a veteran participate in
a resident course in order to qualify for benefits for courses
taken over open circuit TV.
5. LRaise the benefit reimbursement rate for cooperative
courses taken under the GI Bill from 80 percent to 100 percent
of the benefit rate.
6. LAuthorize transfer of active-duty VEAP participants to
the Montgomery GI Bill.
7. LAuthorize those active-duty members of the Army and Air
Force National Guard who enlisted between June 30, 1985 and
November 29, 1989, to participate in the Montgomery GI Bill.
Title II
1. LExtend for one year, the VA's enhanced authority to
sell Real Estate Mortgage Investment Conduits on the secondary
mortgage market.
2. LAuthorize VA to refinance direct loans made under the
Native American Housing Loan pilot program.
3. LClarify VA's authority to provide burial for dependents
of veterans up to the age of 23 if enrolled in school full
time.
4. LAuthorize VA to reimburse state veterans homes for
transportation and up to $300 in expenses incurred in providing
burial for veterans who die while being cared for in a state
home.
5. LAuthorize VA to partially reimburse families for outer
burial receptacles used in lieu of VA-provided grave liners.
Title III
1. LRequire Regional Administrators of the Veterans
Employment and Training Service appointed after enactment to be
veterans.
2. LAuthorize state-based Veterans Employment and Training
Service clerical support staff to be assigned broadened
professional duties.
3. LAuthorize a pilot program to evaluate the
responsibilities of Local Veterans Employment Representatives
under diverse employment service operations including ``one-
stop shop'' delivery sites.
4. LMake technical amendments to the Uniformed Services
Employment and Reemployment Rights Act (USERRA) of 1994 to
clarify the rights and responsibilities of veterans and their
employers.
Title IV
1. LMerge the Retired Reserve Servicemembers' Group Life
Insurance and Veterans' Group Life Insurance (VGLI) programs
and extend VGLI to members of the Ready Reserve.
2. LAllow conversion of Veterans' Group Life Insurance
policies to commercial policies at any time.
3. LProvide information regarding coverage under
Servicemember's Group Life Insurance.
4. LRename the Servicemen's Group Life Insurance the
Servicemember's Group Life Insurance.
Title V
1. LClarify the responsibilities of the VA's Centers for
Women and Minority Veterans.
2. LLimit the clothing allowance for veterans incarcerated
for over 60 days if they receive clothing at no cost from the
penal institution.
3. LExtend the final reporting date of the Veterans Claims
Adjudication Commission to December 31, 1996 and provides an
additional $150,000 in funding.
4. LAuthorize the Veterans Benefits Administration to
conduct a pilot program using contract physicians to perform
disability examinations.
5. LExtend the date of the Vietnam Era to February 28,
1961, and extend eligibility for certain health benefits to
those serving on or after January 9, 1962.
6. LRequire VA to pay a veteran's surviving spouse an
entire month's compensation or pension payment for the month in
which a veteran dies.
7. LIncrease the period for which accrued benefits are
payable from one year to two years.
8. LRevise the rules regarding the appointment of
veterans' claims representatives to presume appointment of the
entire organization in pursuit of a veteran's claim.
9. LRevise rules regarding the delivery of decisions by
the Board of Veterans Appeals to revise the requirement to use
the U.S. Postal Service.
10. Prohibit, until January 1, 1998, the expenditure of
appropriated funds to move the Education Service functions or
personnel from Washington, DC including the Service Director
and the Directors immediate staff.
Title VI
1. LExtend the authority of the Veterans Employment and
Training Service to conduct the Homeless Veterans Reintegration
Project through fiscal year 1998 and authorizing up to $10
million per year.
2. LAuthorize the American Battle Monuments Commission to
accept and expend private funds to maintain overseas war
memorials for which they have accepted responsibility. It would
also requires ABMC to have an acceptable set of financial
controls in place before expending such funds.
Title VII
Establish a commission to review the effectiveness of
programs to assist servicemembers transitioning to civilian
life and other veterans programs.
Effective date: Date of enactment, except: Title III, the
technical amendments relating to USERRA, shall take effect
retroactively as of October 13, 1994; section 505, the
expansion of the period of Vietnam era for certain veterans
shall take effect January 1, 1997; and section 506, payment of
benefit to surviving spouse for month in which veteran dies,
shall take effect December 31, 1996.
Cost: The table below summarizes the bill's pay-as-you-go
impact as estimated by the Congressional Budget Office:
DIRECT SPENDING IN THE CONFERENCE AGREEMENT ON S. 1711, THE VETERANS' BENEFITS IMPROVEMENTS ACT OF 1996
[Outlays by fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
Section Description of Provisions 1997 1998
----------------------------------------------------------------------------------------------------------------
101 Vocational rehabilitation benefits............... -20 -39
506 Compensation benefit for surviving spouse........ 13 19
504 Use of contract physicians for disability 7 9
examinations.
106 Enrollment of VEAP participants in Montgomery Gl 5 2
Bill.
107 Eligibility of certain reserve personnel for -4 4
Montgomery GI Bill.
507 Accrued benefits................................. 3 3
201 Extension of authority to sell certain loans..... -4 -1
102 Alternative teacher certification programs....... 1 1
502 Limitation on clothing allowance for incarcerated -1 -1
veterans.
103,104,105 Education benefits............................... * *
211, 212, 213 Burial benefits.................................. * *
Title IV Veterans' insurance programs..................... 0 0
505 Expand Vietnam era............................... * *
503 Veterans' Claims Adjudication Commission......... * 0
508 Representation before Board of Veterans Appeals.. 0 0
509 Provision of copies of Board of Veterans Appeals 0 0
decisions.
602 Repair and maintenance of war memorials.......... * *
----------------------------------------------------------------------
Total.................................... 0 -3
----------------------------------------------------------------------------------------------------------------
* Less than $500,000.
Legislative history: CONGRESSIONAL RECORD (1995-1996)
Sept. 28, 1996: Passed the Senate under unanimous consent
(consists of provisions from S. 281, S. 749, S. 994, S. 995, S.
996, S. 1342, S. 1751, H.R. 2289, H.R. 3373, H.R. 3673 and H.R.
3674.)
Sept. 28, 1996: Passed the House under unanimous consent by
voice vote.
Oct. 9, 1996: Signed by the President.
------
TO RENAME THE VA MEDICAL CENTER IN JACKSON, MISSISSIPPI, AS THE ``G.V.
(SONNY) MONTGOMERY DEPARTMENT OF VETERANS AFFAIRS MEDICAL CENTER''
PUBLIC LAW 104-202
(S. 1669)
Title: An Act to name the Department of Veterans Affairs
medical center in Jackson, Mississippi, as the ``G.V. (Sonny)
Montgomery Department of Veterans Affairs Medical Center''.
Summary: Public Law 104-202 will:
1. LChange the name of the Department of Veterans Affairs
Medical Center in Jackson, Mississippi, to the ``G.V. (Sonny)
Montgomery Department of Veterans Affairs Medical Center''.
2. LRequire that any reference to this medical center in
any law, regulation, map, document, record, or other paper of
the United States be considered to be a reference to the G.V.
(Sonny) Montgomery Department of Veterans Affairs Medical
Center.
Effective date: January 3, 1997 at Noon
Cost: The Congressional Budget Office advises that S. 1669
would not affect direct spending or receipts.
Legislative history: CONGRESSIONAL RECORD (1996)
June 4, 1996: H.R. 3376, containing similar provision,
passed the House amended under suspension by voice vote.
Sept. 10, 1996: S. 1669 passed the Senate by unanimous
consent.
Sept. 11, 1996: S. 1669 passed the House by unanimous
consent.
Sept. 24, 1996: S. 1669 signed by the President.
ACTIVITIES OF THE SUBCOMMITTEES
Subcommittee on Hospitals and Health Care
The Subcommittee on Hospitals and Health Care has
legislative and oversight jurisdiction over the Department of
Veterans Affairs' health care programs and the Veterans Health
Administration's 173 hospitals, 398 outpatient clinics, and
other health facilities such as nursing homes and
domiciliaries. The subcommittee also conducts oversight of the
VA medical care budget and initiates legislation to authorize
VA's major medical construction projects.
LEGISLATIVE ACTIVITIES
First Session
On May 11, 1995, the subcommittee held a markup on three
bills, H.R. 1384, H.R. 1536, and H.R. 1565. These measures were
reported by the subcommittee by unanimous voice vote.
H.R. 1384 proposed to exempt registered professional
nurses, physician assistants and expanded-duty dental
auxiliaries from the title 38 limitation restricting full-time
VA health professionals from remunerated outside professional
activities involving provision of patient care. H.R. 1384 would
have left in effect the limitation on other VA health
professions, however, that measure was eventually included in
H.R. 3118, as amended, the Veterans' Health Care Eligibility
Reform Act of 1996, Public Law 104-262, and eliminated the
``moonlighting'' restriction altogether. (See summary of Public
Law 104-262, p. 26.)
H.R. 1536 proposed to extend until December 31, 1997, the
authority of the VA Secretary to permit VA Medical Center
directors to use nurse anesthetist contract agency compensation
data to adjust locality-based nurse pay rates where a VA
locality survey provides insufficient data. Similar language
was included in H.R. 2353, as amended, (House Report 104-275)
which became Public Law 104-110. (See summary of Public Law
104-110, p. 24.)
In the face of the expiration of special authorities for VA
to provide care to veterans who may have been exposed to Agent
Orange or ionizing radiation, H.R. 1565 called for VA to
provide priority health care for: (1) herbicide-exposed
veterans for those diseases for which the National Academy of
Sciences in its reviews of scientific literature found either
(a) sufficient evidence of an association with herbicide
exposure, (b) limited/suggestive evidence of association with
herbicide exposure, or (c) inadequate/insufficient evidence to
determine whether an association exists with herbicide
exposure; (2) radiation-exposed veterans suffering from certain
cancers; and (3) other veterans exposed to those substances who
had been treated for other health problems in the past.
The full Committee unanimously ordered H.R. 1565, as
amended, (House Report 104-158) reported by a vote of 29-0 on
June 15, 1995. H.R. 1565, as amended, was passed by the House
on June 27, 1995. (Provisions of Public Law 104-110 extended
then-existing law authorizing care for herbicide and radiation-
exposed veterans until December 31, 1996.)
On September 7, 1995, the subcommittee reported H.R. 2291,
an omnibus bill to extend expiring health care authorities, by
unanimous voice vote. Among its provisions, the bill proposed
extension of VA's contract authority for alcohol and drug abuse
care, the non-institutional Nursing Home Care Alternatives
Program, the Health Scholarships Program, Enhanced-Use Leasing,
Community-Based Residential Care for Homeless Chronically
Mentally Ill Veterans, and the Demonstration Program of
Compensated Work Therapy and Therapeutic Transitional Housing.
In addition, the bill proposed to extend VA's authority to
provide care to veterans of Persian Gulf War service until
December 31, 1998.
Provisions of H.R. 2219, modified in some instances as to
duration of the program extension, were incorporated into H.R.
2353, as amended, an omnibus program extension bill. The full
Committee ordered H.R. 2353, as amended, (House Report 104-275)
reported by unanimous voice vote on September 20, 1995, and the
House passed the bill by a vote of 403-0 on October 17, 1995.
(See summary of Public Law 104-110, p. 24.)
On September 28, 1995, the full Committee voted 29-0 to
include in its budget reconciliation recommendations for the
fiscal year 1996 budget draft legislation derived in part from
H.R. 1385, which proposed amendments to reform provisions of
law governing VA health care eligibility. The Committee then
voted to approve its recommendations on reconciliation by a
vote of 21-8. These eligibility reform provisions were
incorporated into the House-passed reconciliation bill, H.R.
2491 (House Report 104-350.)
Second Session
A similar measure providing for VA health care eligibility
reform, protection of special disability programs and expanded
authority to share health care resources, was reintroduced as
H.R. 3118. -On May 8, 1996, the subcommittee by unanimous voice
vote approved H.R. 3118 and H.R. 3376 (House Report 104-574), a
major medical construction authorization bill for fiscal year
1997. The full Committee met the same day and ordered these
bills reported to the House, along with legislation reported by
other subcommittees. On July 30, 1996, the House passed H.R.
3118 by a vote of 416-0.
The subcommittee met on June 18, 1996, to consider H.R.
3643, legislation to extend VA's authority to provide priority
health care to veterans exposed to Agent Orange and ionizing
radiation, as well as to Persian Gulf veterans who suffer from
undiagnosed illnesses related to their service. H.R. 3643 was
reported by unanimous voice vote, and the full Committee
ordered it reported by unanimous voice vote on June 20, 1996
(House Report 104-360), along with several bills from other
subcommittees.
Many of the provisions included in these bills, along with
other initiatives, were included in a compromise version of
H.R. 3118, which passed the Senate by unanimous consent on
September 28, 1996. The same day, the House agreed to this
amended version, also by unanimous consent. On October 9, 1996,
the President signed H.R. 3118 into law as Public Law 104-262.
(See summary of Public Law 104-262, p. 26.)
OVERSIGHT HEARINGS
First Session
On March 9, 1995, the subcommittee heard testimony on the
progress of research on undiagnosed illnesses of Persian Gulf
War veterans from officials at the Department of Veterans
Affairs, the Department of Defense, the Centers for Disease
Control, the Institute of Medicine and The American Legion.
Subsequent to this hearing, Chairman Hutchinson introduced
H.R. 2353, which, among other things, called for the Department
of Veterans Affairs to provide health care until December 31,
1996, on a priority basis for veterans who served in the
Persian Gulf. H.R. 2353, as amended, became law on February 13,
1996. Later legislation, included as part of the Veterans'
Health Care Eligibility Reform Act of 1996, authorized a
further extension of that authority to December 31, 1998. This
bill was signed into law on October 9, 1996.
The Committee continues to be concerned about these
undiagnosed illnesses and VA's role in ensuring appropriate
care for veterans. It recommends that further oversight take
place during the 105th Congress. (See Oversight Plan, page 62,
paragraph 8.)
The subcommittee, on April 6, 1995, held a hearing to
examine the ramifications of the Veterans Health
Administration's reorganization plan. The proposed
reorganization called for the creation of 21 Veterans
Integrated Service Networks (VISNs) in an attempt to bring
decision-making on VA health care to a more local level. Those
testifying at the hearing included officials from the
Department of Veterans Affairs, a private health care provider,
various VA employee organizations, and Veterans Service
Organizations.
Witnesses generally expressed support for the
reorganization plan as an effective way for VA to deal with
health care's changing methods. Based on that hearing, the
Committee did not interpose objections to the plan. Because of
concerns articulated at this hearing, the Committee included in
its eligibility reform legislation a provision to protect
``special disability'' programs which it deemed vulnerable
under the reorganization plan. A part of the Veterans' Health
Care Eligibility Reform Act of 1996 decreased the number of
days Congress must be in continuous session in order for such a
reorganization to go into effect. The Committee recommends that
oversight regarding changes in the VA health care system
stemming from the reorganization be undertaken in the 105th
Congress. (See Oversight Plan, page 62, paragraph 2.)
On June 5, 1995, Subcommittee Chairman Hutchinson asked the
General Accounting Office to review the Department's Third
Party Recovery Program. Questions exist about VA's
effectiveness in recovering from insurers costs of providing
nonservice-connected care. On April 1, 1996, the General
Accounting Office briefed subcommittee staff on this issue.
Further study of this issue by GAO is ongoing and oversight
into the 105th Congress is merited.
On July 19, 1996, the full Veterans' Affairs Committee held
a hearing which focused on the patchwork of laws governing
eligibility for VA health care and the barriers those laws
create for veterans seeking access to needed care, particularly
outpatient care. A multitude of witnesses, including officials
from the Department of Veterans Affairs, the General Accounting
Office, the Association of American Medical Colleges, the
Nurses Organization of VA, and various veterans service
organizations, testified to the need for eligibility reform.
This hearing helped pave the way for passage and enactment
of an eligibility reform bill, H.R. 3118. This legislation,
which was formulated on a bipartisan basis with the full
support of most veterans service organizations and VA,
significantly changes the way VA provides health care to
eligible veterans.
As ultimately enacted, this legislation calls for VA to
provide, within appropriations, all needed hospital and medical
care services, and to establish and manage health care programs
to promote the cost-effective delivery of health services for
veterans who enroll for VA care. Those with highest enrollment
priorities are veterans with compensable service-connected
disabilities, former prisoners of war, veterans exposed to
toxic substances and environmental hazards, veterans meeting
the ``means test'' as provided under existing law, and veterans
of World War I. In order to address concerns raised by the
Congressional Budget Office, the law caps authorization levels
for eligibility reform provisions at $17.25 billion for fiscal
year 1997 and $17.9 billion for fiscal year 1998. The Committee
intends to monitor implementation of this important law. (See
Oversight Plan, page 63, paragraphs 9, 10, 15 and 16.)
On September 27, 1995, the subcommittee heard testimony
relating specifically to drug arrests at the Brooklyn VA
Medical Center, but also relating to the issue of drug use at
VA facilities in general. On September 13, 1995, 12 VA
employees and a VA police sergeant were arrested for the
selling of illegal drugs, loan-sharking and bribery at the
medical facility. John Baffa, Deputy Assistant Secretary for
Security and Law Enforcement at the Department of Veterans
Affairs, testified about the Department's procedures in
handling such incidences. Also testifying at the hearing were
James Farsetta, Director of the Brooklyn VAMC and VA Inspector
General Stephen Trodden. The Committee believes further
oversight on drug-related activities should continue, but the
Brooklyn situation has been rectified for the time being. The
battle to solve the problems at Brooklyn highlighted the
effective partnering of VA, VHA and Inspector General elements.
The subcommittee held an oversight hearing on October 18,
1995, to examine the extent to which VA and DOD health care
facilities were effectively sharing health care resources.
Statutory provisions enacted in Public Law 97-174 authorized
VA/DOD sharing. They were intended to maximize utilization of
Federal health care resources between the two departments. The
subcommittee heard firsthand testimony from VA medical center
directors, who commented on the effectiveness of the program
and what it means to their facilities. Also, officials from
GAO, VA and DOD and members of veterans service organizations
testified. Several unresolved issues reflecting continued
impediments to full sharing warrant further oversight in the
105th Congress. (See Oversight Plan, page 62, paragraph 3.)
The subcommittee found that there remained further
opportunities for VA to provide services under the DOD's
TRICARE program, but that the law was due to expire. In order
to enable VA to continue and expand such sharing, the
subcommittee advanced legislation to lift the ``sunset''
provision of the law. That language was included in the
Veterans' Health Care Eligibility Reform Act of 1996, signed
into law on October 9, 1996.
On October 25, 1995, the subcommittee held a hearing on
issues relating to the unexplained rise in the death rate of
veterans on a ward at the Harry S. Truman VA Medical Center in
Columbia, Missouri, and VA's subsequent handling of findings
regarding those deaths.
Since the time of the deaths in 1992, Dr. Gordon
Christensen, a member of the medical center's staff, has been
investigating these deaths. Internal and external statistical
studies indicated a high probability that the deaths were not
merely coincidental, although to this date, no one has been
charged with any crime. The hospital director was slow to
respond to allegations of foul play and, according to Dr.
Christensen, participated in a cover-up by ordering him to not
disseminate his findings. VA defended itself by noting that the
director has retired, two Inspector General audits were
conducted, and steps have been taken since this incident to
shore up the hospital's internal review mechanisms.
In 1996, the subcommittee turned its attention to the FBI's
handling of the case. Earlier this year, a contract for a
medical examiner to perform specialized pathological tests on
some of the deceased veterans was awarded by the FBI. These
tests have not yet been completed. The Committee recommends
that oversight continue on this matter.
Second Session
On March 21, 1996, the subcommittee held a hearing on VA's
medical care budget for fiscal year 1997 and its construction
priorities. VA Under Secretary for Health Dr. Kenneth Kizer
testified in favor of the Administration's budget request. Dr.
Kizer noted that the increase in the medical care budget
requested by the Administration should be taken into context by
comparing it to the budget increases in the other federal
health care programs, such as Medicare and Medicaid. He also
addressed questions regarding VA's major construction request
and its proposal to build two additional hospitals, one in
Brevard, Florida, and the other in Travis, California.
Submission of the Administration's major construction
budget for fiscal year 1997 solidified concerns regarding VA
construction planning. Public Law 104-262 requires VA to
develop a strategic planning process and provide an annual
report thereon to Congress, as well as additional provisions to
improve its planning, reporting and construction prioritization
efforts. The Committee believes that ongoing oversight on the
construction prioritization process is warranted and should
continue into the 105th Congress and beyond. (See Oversight
Plan, page 61, paragraph 1, and summary of Public Law 104-262,
page 26.)
The subcommittee heard testimony on April 16, 1996,
regarding the Institute of Medicine's recent findings on Agent
Orange and its effects on veterans. Dr. David Tollerud,
Chairman of the IOM's Committee to Review the Health Effects of
Agent Orange on Vietnam Veterans and their Families, and Dr.
Andrew Olshan, a member of that committee, testified that
recent findings suggest that two diseases, peripheral
neuropathy and spina bifida, show a limited or suggestive link
with herbicide or dioxin exposure. They stressed, however, that
these findings were preliminary and further tests should be
conducted.
Public Law 104-262 includes a provision which incorporates
the findings of the Institute of Medicine in determining the
diseases which VA may treat in providing care to herbicide-
exposed veterans. (See summary of Public Law 104-262, page 26.)
The subcommittee conducted a field hearing in LaSalle,
Illinois, on April 22, 1996, to examine outpatient services for
veterans living in and around the LaSalle County, Illinois,
area. Witnesses testified to the lack of services available to
veterans in the area and the distance necessary to be traveled
in order to receive VA care. According to some who testified,
the fee basis program was not adequate to meet the veterans'
needs. Also, local hospitals were willing to work with VA to
provide services, but VA witnesses testified that VA lacked
authority to enter into the kind of arrangements proposed.
Public Law 104-262 addressed a key issue raised at this
hearing in expanding VA's ability to share health care
resources with outside entities. The Committee recommends that
further oversight take place not only on the implementation of
Public Law 104-262, but also on access to care of veterans who
do not live close to VA medical facilities. (See Oversight
Plan, pages 62-63, paragraphs 2, 9, 13 and 16.)
On April 24, 1996, the subcommittee held an oversight
hearing to explore the effectiveness of community care clinics.
In response to a request made by the subcommittee to examine VA
efforts to create new points of access to care, David Baine of
GAO testified that VA is doing a commendable job in
establishing community care clinics for the convenience of
veterans across the country. However, he testified that GAO
encountered several instances where VA ignored the letter of
the law on eligibility in providing health care to these
veterans.
VA Under Secretary for Health Kenneth Kizer stressed VA's
commitment to providing veterans with accessible health care,
and stated that the development of ``access points'' will
continue. The Committee believes that it is necessary to
continue providing convenient health care to eligible veterans,
regardless of their residence, and recommends continued work
with VA in this regard. The Committee also believes that
oversight on the location and number of these access points
should continue into and beyond the 105th Congress. (See
Oversight Plan, pages 62-63, paragraphs 2 and 9.)
VA's pharmacy program was the subject of a subcommittee
oversight hearing on June 11, 1996. Testifying for GAO, David
Baine described how a number of VA medical facilities prescribe
over-the-counter drugs for veterans, a practice which costs VA
more than $150 million per year. VA, represented by VA Pharmacy
Service Director John Ogden, countered that it is taking
responsible steps to ensure that the system is not being abused
but that eligible veterans receive appropriate pharmaceutical
care. He testified that VA is moving toward a national
formulary system that will result in a more uniform method of
providing over-the-counter pharmaceuticals.
The Committee believes that further consideration should be
given to the development of the proposed national formulary
system. (See Oversight Plan, page 63, paragraph 12.)
The final subcommittee oversight hearing took place on June
26 and 27, 1996, and dealt with the future of the Veterans
Health Administration. A broad array of health care officials,
including representatives from VA, DOD, GAO, and various other
organizations, testified on the future of veterans' health care
as the population ages and diminishes, but while aging
veterans' health care needs increase.
Most witnesses testified that VA's shift to ambulatory care
is a significant step in the right direction. The high cost of
inpatient care has precipitated a marked change in the way most
health care entities operate. VA's shift, while late, is much
needed.
Not all ideas were universally applauded. Some witnesses
advocated a system, similar to the Base Realignment Commission
process, which could result in the closure of VA hospitals.
Others called for privatization of the VA health care system
and institution of a system of vouchers.
VHA's success in providing high quality health care to
veterans as the Nation approaches the 21st Century is of great
importance to the Committee, and continuing oversight of its
ability to provide for veterans' health care needs is vital.
Subcommittee on Compensation, Pension, Insurance and Memorial Affairs
The Subcommittee on Compensation, Pension, Insurance, and
Memorial Affairs has jurisdiction over veterans' matters
affecting the service-connected disability and death
compensation programs, the nonservice-connected disability and
death pension programs, various life insurance programs
administered or supervised by the Department of Veterans
Affairs, the National Cemetery System, burial benefits, and
overseas cemeteries under the jurisdiction of the American
Battle Monuments Commission.
LEGISLATIVE ACTIVITIES
First Session
On September 28, 1995, the full Committee marked up a
subcommittee bill, H.R. 2394, the Veterans' Compensation Cost-
of-Living Adjustment Act of 1995. H.R. 2394 proposed to provide
for a cost-of-living adjustment for 1996, effective December 1,
1995, to the rates of disability compensation and dependency
and indemnity compensation for the survivors of certain
disabled veterans. H.R. 2394 was ordered reported by the
Committee by unanimous voice vote. (See House Report 104-273.)
On November 10, 1995, the House agreed to a Senate amendment on
the COLA bill by unanimous consent, and H.R. 2394 was signed
into law as Public Law 104-57 on November 22, 1995. (See
summary of Public Law 104-57, page 23.)
On October 12, 1995, the subcommittee held a legislative
hearing to receive testimony on nine bills: H.R. 109, a bill to
provide for pro rata payments of deceased veterans' final
monthly compensation awards; H.R. 368, a bill to add
bronchiolo-alveolar carcinoma to the list for which
presumptions of service-connection are applicable with respect
to radiation exposure; H.R. 1482, a bill to provide for
improvements in services concerning veterans' benefits; H.R.
1483, a bill to provide the Board of Veterans' Appeals the
authority to reverse or revise a decision based on clear and
unmistakable error; H.R. 1609, a bill to provide for the
transfer of information between the Social Security
Administration and the Department of Veterans Affairs when the
Commissioner determines that a veteran is eligible for
supplemental security income; H.R. 1809, a bill to provide the
American Battle Monuments Commission authority to assume
responsibility for overseas war memorials and accept private
funds for maintenance; H.R. 2155, a bill to provide reforms for
certain veteran's programs; H.R. 2156, a bill to provide for
termination of Servicemen's Group Life Insurance when premiums
are not paid within 60 days of the date on which such
remittance is due; and H.R. 2157, a bill to provide
improvements to veterans' insurance programs.
Two members of Congress testified on behalf of their
respective bills, Honorable Chris Smith (R-NJ), in support of
H.R. 368 and Honorable Mike Bilirakis (R-FL), in support of
H.R. 109. There was minimal opposition from the veterans
service organization representatives who testified on the nine
bills before the subcommittee. Lt. General Samuel Ebbesen,
Deputy Assistant Secretary of Defense, testified in support of
H.R. 2156 and H.R. 2157. The Chairman of the Board of Veterans'
Appeals, Honorable Charles Cragin, expressed strong opposition
to H.R. 1483.
Second Session
On April 17, 1996, the subcommittee marked up several
bills, each previously considered in the subcommittee
legislative hearing on October 12, 1995. The bills before the
subcommittee were H.R. 2843, the Veterans' Insurance Reform Act
of 1996; H.R. 2850, a bill clarifying the eligibility of
certain minors for burial in national cemeteries; H.R. 1483, to
allow revision of veterans benefits decisions based on clear
and unmistakable error; and H.R. 3248, the Veterans' Programs
Amendments of 1996. H.R. 2843 is a compilation of provisions
previously included in H.R. 2156 and H.R. 2157. H.R. 3248
included provisions from H.R. 109, H.R. 368, H.R. 1482, H.R.
1809, and H.R. 2155. The four bills were reported to the full
committee. Prior to being marked up by full committee, several
of the bills were combined. H.R. 2843, H.R. 2850 and H.R. 3036
(Education, Training, Employment and Housing Subcommittee
legislation) were consolidated and introduced on May 1, 1996,
and became H.R. 3373. The full committee considered H.R. 3373
(House Report 104-572) and H.R. 1483 (House Report 104-571) on
May 8, 1996, and reported favorably thereon to the House. The
House passed both bills by voice vote on May 21, 1996. Several
provisions of H.R. 3373 were contained in Public Law 104-275
(see summary of Public Law 104-275, page 31).
On May 22, 1996, the subcommittee marked up four bills:
H.R. 2513, to expand eligibility for burial benefits to include
certain veterans who die in State nursing homes; H.R. 3458, to
provide for a cost-of-living adjustment (COLA), effective
December 1, 1996, to the rates of compensation for veterans
with service-connected disabilities and the rates of dependency
and indemnity compensation for the survivors of certain
disabled veterans; H.R. 3493, to authorize financial assistance
by grant or contract to legal assistance entities for
representing financially needy veterans in connection with
proceedings before the United States Court of Veterans Appeals;
and H.R. 3495, to extend the time for the submission of the
final report from the Veterans' Claims Adjudication Commission
and to provide for an additional $150,000 to complete their
activities.
H.R. 3458, the COLA bill for 1997, was reported
unanimously. H.R. 3493, reintroduced with identical language on
May 22, 1996, as H.R. 3506, but with additional sponsors, was
also reported to the full Committee.
H.R. 2513 and H.R. 3495 were both reported by unanimous
voice vote to the full Committee. On June 19, 1996, H.R. 2513
and H.R. 3506 were combined with H.R. 3673. The full committee
considered H.R. 3458 (House Report 104-647) and H.R. 3673
(House Report 104-649) on June 20, 1996 and reported favorably
thereon to the House. The House passed both bills by voice vote
on May 21, 1996. The COLA bill, H.R. 3458, was signed into law
as Public Law 104-263. H.R. 2513 was contained in Public Law
104-275 (see summary of Public Law 104-275, page 31).
OVERSIGHT HEARINGS
First Session
On May 12, 1995, the subcommittee held an oversight hearing
on the Veterans Benefits Administration's processing of
veterans' compensation claims with an emphasis on Persian Gulf
War claims. The subcommittee also focused on the challenges VA
is facing in processing veterans' claims and the efforts made
to find remedies to the current backlog at VA. The subcommittee
also received testimony on the effect of Public Law 103-446,
the Veterans' Benefits Improvements Act of 1994. In addition to
representatives of the Department of Veterans Affairs,
including five VA Regional Office Directors, testimony was
heard from representatives of the major veterans service
organizations. During the hearing, each of the veterans service
organizations' representatives agreed that VA had made little
improvement in the delivery and processing of benefits for
Persian Gulf veterans. The VA witness, Mr. R. John Vogel, Under
Secretary for Benefits, testified to seeing significant
improvements in timeliness and workload, and attributed both to
the combined effect of many VBA management and technological
initiatives. Each witness testified that it was too early to
thoroughly evaluate the effects of Public Law 103-446. The
Committee continues to be concerned about the problems
encountered by Persian Gulf War veterans. In light of recent
disclosures by the Department of Defense about possible
exposure of Persian Gulf veterans to chemical weapons and the
continuing controversies surrounding the use of anti-nerve
agent drugs, the Committee recommends further review of these
issues. (See Oversight Plan, page 64, paragraphs 1 and 2.)
On June 22, 1995, the subcommittee conducted a hearing on
the Veterans Benefits Administration's computer modernization
program, focusing on VA's Information Resources Management
structure and its performance objectives. Witnesses included
representatives from the General Accounting Office (GAO) and
the Department of Veterans Affairs. Mr. Frank Reilly, Director
of Information Management and Technology at GAO, testified that
there is support for VBA's computer modernization goals, but
raised serious questions about VBA's approach to modernization
and implementation. He further testified that VBA is
implementing modernization along with many other initiatives
without an overall implementation strategy or an adequate
approach to evaluate key initiatives. According to GAO, other
agencies agreed that VA's life-cycle modernization costs were
indeterminate and that performance measures were lacking. Mr.
Raymond Avent, the VA witness, testified that with outside
help, VBA was assessing changes necessary to improve their
modernization plans. VBA acknowledged that their original plans
for modernization had not fully anticipated the degree and rate
of the required changes. (See Oversight Plan, page 64,
paragraph 3.)
Second Session
On April 30, 1996, the subcommittee held an oversight
hearing on veterans exposed to ionizing radiation. Witnesses
included representatives from several atomic veterans
organizations: National Association of Atomic Veterans,
National Association of Radiation Survivors, and Alliance for
Atomic Veterans. Mr. R. John Vogel of VA and Ms. Joan Ma Pierre
of the Defense Nuclear Agency were the government
representatives. Dr. Ruth Faden, chairwoman of the President's
Advisory Committee on Human Radiation Experiments, testified on
the Advisory Committee's recommendations. The Advisory
Committee published its final report in October 1995, and has
since disbanded. (See Oversight Plan, page 65, paragraph 7.)
The subcommittee has requested briefings on the findings
from studies of Operation Crossroads and Operation Hardtack.
These studies were done by the Institute of Medicine and VA
respectively.
The Committee recommends further oversight on Agent Orange
and Ionizing Radiation.
On June 19, 1996, the subcommittee conducted its second
oversight hearing on VA computer modernization efforts. The
focus of the hearing was a review of VA's progress in computer
modernization as a part of the overall strategic plans. Mr. R.
John Vogel, Under Secretary for Benefits, Veterans Benefits
Administration, testified for VA, and Mr. Gene Dodaro,
Assistant Comptroller General, Accounting and Management
Division, represented the General Accounting Office. Ms. Rhoda
Davis, a member of the Veterans' Claims Adjudication
Commission, submitted for the record her views on VA's progress
in computer modernization and its relationship to overall
strategic management.
Mr. Dodaro testified on the many fundamental management and
technical problems that have prevented VA from realizing the
benefits expected from substantial investments in information
technology. GAO also presented its views on what VBA needs to
do to increase the likelihood of success. GAO stressed the
importance of VA immediately addressing the year-2000 issue for
its computers and how a lack of planning will affect claims
benefits processing.
Mr. Vogel provided an update on VBA's strategic planning
progress, which included information technology and business
planning activities. While acknowledging several problems, Mr.
Vogel outlined the areas in which he believed the Department
had made real progress since the June 22, 1995, subcommittee
hearing.
Staff members also held regular briefing sessions with VBA
computer modernization personnel and GAO, with special emphasis
on the costs and benefits of modernization efforts. Staff
members made site visits to Hines Data Center in Chicago, the
Austin Automation Center in Texas, the Regional Office in St.
Louis, MO, and the St. Petersburg, FL Regional Office to
observe automation initiatives. (See Oversight Plan, page 64,
paragraph 3.)
The Committee remains concerned about the management of
VBA's computer modernization and strongly recommends continuing
oversight of these activities.
ADDITIONAL OVERSIGHT ACTIVITIES
First Session
On October 2, 1995, Chairman Bob Stump and Ranking Member
G.V. (Sonny) Montgomery, along with Senate Veterans Affairs
Committee Chairman Alan Simpson and Ranking Member John
Rockefeller, transmitted a letter to VA Secretary Jesse Brown
regarding VA's report on the feasibility of reorganization and
consolidation of adjudication divisions in VBA regional
offices. The joint letter stated that the report, made pursuant
to section 304 of Public Law 103-446, did not fulfill the law's
requirements. The joint letter informed the Department that its
report, submitted on July 11, 1995, did not answer the three
central questions Congress intended: (1) Could VBA consolidate
adjudication divisions in a manner that would improve
efficiency? (2) How many adjudication divisions would there be?
and (3) What would be the overall impact of consolidation on
VBA operations?
The Committee requested a revised report from VA no later
than November 1, 1995, that addressed the issues. Subsequently,
through a series of briefings and reports, VA met the mandates
of section 304 of Public Law 103-446. VBA provided a
restructuring plan that addressed functional consolidation of
some regional offices. The plan included a reduction in
adjudication divisions at several regional offices and
quantified personnel and fiscal savings. The Committee
recommends no further oversight on this specific issue but
recommends continued monitoring of VBA's business process
reengineering.
On October 12, 1995, the subcommittee began an examination
of the merits of H.R. 1483, a bill to allow revision of
veterans benefits decisions based on grounds of clear and
unmistakable error (CUE). An appeal based on CUE alleges an
error in VA's claim decision that is so obvious and compelling
that a reversal of a decision is warranted. Chairman Terry
Everett transmitted a letter to Mr. R. John Vogel, Under
Secretary for Benefits, Veterans Benefits Administration, which
requested statistics on the number of CUE cases that had been
appealed to the Board of Veterans' Appeals and the Court of
Veterans Appeals. Mr. Vogel responded in writing that the
Veterans Benefits Administration did not keep the statistical
information requested, but in letters, briefings, and hearings,
VA opposed the legislation on the grounds that it would create
an unnecessary burden on the claims process and add to the
backlog of pending claims. (See Oversight Plan, page 64,
paragraph 4.)
While claims production at the Board of Veterans Appeals
has increased, a significant backlog continues to exist. The
Committee recommends continuing oversight in this area.
On October 30, 1995, the subcommittee transmitted a letter
to VA Secretary Jesse Brown which requested a 20-year life
cycle cost study from the National Cemetery System (NCS) to
measure the effectiveness of VA's national cemetery
construction plans. The subcommittee desired a comparison study
detailing the costs of planning, constructing, and operating a
cemetery providing full casket burials versus one providing
interment of cremated remains only in columbaria. On February
13, 1996, in response to the subcommittee, NCS provided a study
which concluded that the total base construction costs for the
columbaria would be higher than the full casket cemetery, but
the total life cycle cost of the full casket cemetery would be
$6.7 million more than the columbaria cemetery. Throughout the
104th Congress, the NCS staff has met with the subcommittee
staff and submitted briefing papers on a number of issues,
including budget matters, present and future site construction
projects, expansion efforts, headstone and grave marker costs,
and the State Cemetery Grant program. (See Oversight Plan, page
65, paragraph 8.)
The Committee remains concerned about the future viability
of the National Cemetery System and recommends continued
oversight regarding NCS's strategic planning.
Second Session
In March 1996, the Committee received the report of the
National Academy of Sciences regarding the effects of exposure
to Agent Orange and other herbicides. The report found that
there was ``limited and suggestive evidence'' of an association
between the occurrence of spina bifida and Vietnam veterans'
exposure to Agent Orange. (See Oversight Plan, page 65,
paragraph 7.)
On March 21, 1996, the subcommittee requested by letter
VA's position on awarding service-connected disability for
smoking related diseases, including any proposed regulations.
The Department responded by forwarding a copy of a January
1993, VA General Counsel opinion holding that direct service-
connection of disability or death may be established if the
evidence establishes that injury or disease resulted from
tobacco use in the line of duty. The Department also related
that they were developing regulations addressing service-
connection for disability caused by smoking during service, but
that the regulations were under review by the agency and not
final. The Committee recommends continuing oversight on this
issue. (See Oversight Plan, page 64, paragraph 2.)
On March 21, 1996, the subcommittee transmitted a letter to
VA which requested a review of the adjudication process for
Post Traumatic Stress Disorder claims, including statistical
data on the number of claims filed in 1995 and the approval
rate for such claims. VA provided the subcommittee with a
multi-page fact sheet addressing the inquiry and enclosed
training directives sent to the regional offices by the
Compensation and Pension Service. (See Oversight Plan, page 64,
paragraph 5.) The Committee recommends continued oversight of
this issue as part of its oversight of the overall claims
process.
On April 3, 1996, the subcommittee transmitted a letter to
VA Secretary Brown which requested comments on the
restructuring plans for the Veterans Benefits Administration,
and on the manner in which provisions outlined in section 510
of title 38 of the United States Code applied to those plans.
The Department responded with an assurance that it would fully
comply with the requirements of 38 U.S.C. 510 and that it would
keep the oversight committees fully informed of restructuring
plans. Throughout the 104th Congress, VA briefed the
subcommittee staff on VBA's reorganization. The Committee
recommends continued oversight on this matter.
On April 16, 1996, the subcommittee transmitted a letter to
VA which requested data on the claims adjudication process for
veterans who suffered cold weather injuries in the line of duty
and the directives conveyed to regional offices regarding the
adjudication of those claims. VA responded with a Clinical
Programs Information Letter outlining the residual disabilities
that could result from cold weather injuries, along with
training letters from the Compensation and Pension Service to
the adjudication divisions which addressed the evidence
necessary to establish service-connection for such
disabilities.
The Committee remains concerned about several issues
involving claims processing such as the inconsistency of
adjudication, continued delays in processing time, and the
restructuring of the Regional Office system, and recommends
additional oversight in these areas.
On October 1, 1996, the subcommittee requested from the
Congressional Research Service (CRS) an analysis of the VA
pension program as compared to other needs-based programs. CRS
responded with a report, Cash and Noncash Benefits for Persons
with Limited Income: Eligibility Rules, Recipient and
Expenditure Data, FYs 1992-1994, which consisted of a catalog
of 81 need-based programs providing the funding formula,
eligibility requirements, and benefit levels for each program.
(See Oversight Plan, page 65, paragraph 10.) Based on the
report findings, the Committee recommends continued routine
oversight on this matter.
Subcommittee on Education, Training, Employment, and Housing
The Subcommittee on Education, Training, Employment, and
Housing is responsible for the following programs: the
Montgomery GI Bill; veterans training and rehabilitation; the
Post-Vietnam era Veterans' Educational Assistance; the Vietnam
era GI Bill; and survivors and dependents educational
assistance. Veterans housing and small business matters come
under the purview of the subcommittee as well as job
counseling, training, and placement services for veterans;
employment and training of disabled, Vietnam-era and post-
Vietnam era veterans; and Veterans Reemployment Rights. The
subcommittee also has oversight responsibilities for programs
such as veterans' preference which affect veterans, but are
under the legislative jurisdiction of another committee.
LEGISLATIVE ACTIVITIES
First Session
On August 2, 1995, the subcommittee held a legislative
hearing on draft legislation on technical changes to the
Uniformed Services Employment and Reemployment Rights Act
(USERRA), extension of VA housing programs, Department of
Labor's Veterans' Employment and Training Service (VETS)
program and the transfer of the Office of Veterans Affairs
(OVA) at the Small Business Administration (SBA) to the
Department of Veterans Affairs.
The subcommittee considered H.R. 1941, introduced by Mr.
Montgomery, which contained several technical amendments to
strengthen and clarify USERRA. USERRA was designed to protect a
veteran's ability to return to the workforce following active
duty service, while at the same time not overburdening
employers. Development of amendments to strengthen this
important protection of veterans employment rights was a result
of legislative work with VETS.
The major veterans service organizations, The American
Legion, Veterans of Foreign Wars, AMVETS, Disabled American
Veterans, and the Association For Service Disabled Veterans
testified on the bill. The Mortgage Bankers Association of
America also testified and discussed the housing provisions.
The administration was represented by Mr. R. John Vogel, Under
Secretary for Veterans Benefits, accompanied by Mr. Keith
Pedigo and Mr. Scott Denniston; Ms. Patricia R. Forbes, Acting
Associate Deputy Administrator for Economic Development, Small
Business Administration, accompanied by Mr. Leon Bechet (OVA);
and Mr. Preston Taylor, Assistant Secretary of Labor, Veterans
Employment and Training.
The subcommittee also received testimony on various
discussion drafts developed by the Chairman. The drafts
contained provisions designed to streamline VETS operations,
and was strongly supported by VETS and the major veterans
service organizations.
The subcommittee considered a discussion draft of a bill to
extend VA housing programs due to sunset at the end of the
calendar year. The draft bill was strongly supported by all
witnesses.
The proposal to merge the Office of Veterans Affairs at the
SBA with the Office of Small and Disadvantaged Business
Utilization at VA sought to establish efficient management of
assistance for veteran-owned operations seeking to do business
with the federal government. Among the major veterans
organizations, only the Veterans of Foreign Wars opposed such a
transfer of responsibilities.
On September 7, 1995, the subcommittee held a markup on a
comprehensive discussion draft bill to amend title 38 of United
States Code with clarifying and technical amendments regarding
the Uniformed Services Employment and Reemployment Rights Act
of 1994, by further defining the responsibilities of members of
the uniformed services as well as those of their employers. The
draft also contained provisions streamlining VETS, as well as
extending several VA home loan programs, and reauthorizing the
Homeless Veterans Reintegration Projects (HVRP) for three
additional years. The discussion draft under consideration was
a compilation of the various discussion drafts reviewed by the
subcommittee during the August 2, 1995, hearing.
Following the markup, on September 8, 1995, the
Subcommittee Chairman introduced H.R. 2289, ``Veterans Housing,
Employment Programs, and Employment Rights Benefits Act of
1995'' to amend title 38 of United States Code, to extend
permanently certain housing programs, to improve the veterans
employment and training system, and to make technical
amendments to further clarify the employment and reemployment
rights and responsibilities of members of the uniformed
services.
The full Committee met on September 20, 1995, and ordered
H.R. 2289 reported favorably to the House by unanimous voice
vote. (See House Report 104-397.) Several of the Title I VA
Home Loan provisions were incorporated into Public Law 104-110.
(See summary of Public Law 104-110, page 24.)
Second Session
On April 18, 1996, the subcommittee held a hearing to
review legislation affecting veterans education services,
including H.R. 2851, H.R. 2868 and H.R. 3036.
Mr. Don Sweeney, legislative director, National Association
of State Approving Agencies, testified on H.R. 2851, which
would change VA's two-year rule regarding extensions and branch
campuses of learning institutions. The state approving agencies
are VA's state partners in the administration of veterans
programs.
Dr. Stephen Lemons, Deputy Under Secretary of Veterans
Benefits Administration, accompanied by Ms. Celia Dollarhide,
Director, VA Education Service, testified in support of H.R
2851. However, Dr. Lemons strongly opposed H.R. 3036, which
would require the management, policy and other functions
associated with VA educational programs to remain in the
Washington, DC area.
Congressman Tejeda discussed the value of the alternative
teacher certification program which his bill, H.R. 2868, would
make permanent. The program aims to help veterans receive
teaching certification with Montgomery GI Bill benefits.
On May 30, 1996, the subcommittee held a markup on H.R.
2851 and H.R. 3459. The subcommittee introduced an amendment in
the nature of a substitute to H.R. 2851, to modify the GI
Bill's ``two-year rule'' restricting veterans' access to
institutions of higher learning. The subcommittee also
considered H.R. 3459, which proposed to extend VA's authority
for the enhanced loan asset sale to guarantee the real estate
mortgage investment conduits (REMICs) that are used to market
vendee loans on the secondary market. This authorization would
guarantee timely payments of principal and interest on the
certificates issued by the REMICs for an additional year, thus
lowering the interest rate paid by VA. Both measures passed by
voice vote and were incorporated into H.R. 3673, which was
ordered reported by the Committee on June 27, 1996. (See House
Report 104-649.) Both measures were incorporated into S.1711,
which on October 9, 1996, became Public Law 104-275 (See
summary of Public Law 104-275, page 31.)
JOINT LEGISLATIVE HEARINGS
On May 8, 1996, the Subcommittee on Education, Training,
Employment and Housing, along with the Subcommittee on
Compensation, Pension, Insurance and Memorial Affairs,
conducted a joint legislative hearing to consider several
proposals which would affect veterans benefits. Witnesses
included Dr. Stephen Lemons, Deputy Under Secretary for
Benefits at the Veterans Benefits Administration;
representatives of the Disabled American Veterans, Paralyzed
Veterans of America, Veterans of Foreign Wars, the American
Legion, and Gold Star Wives; Chief Judge Frank Nebeker of the
Court of Veterans Appeals and David Isbell, Esq., Advisory
Committee Chairman of the Veterans Consortium Pro Bono Program.
The first proposal, under the jurisdiction of the
Education, Training, Employment and Housing Subcommittee, was a
draft bill to repeal the effects of Davenport v. Brown, 7 Vet.
App. 476 (1995). The proposal would require a veteran's
service-connected disability to be responsible for an
employment handicap in order to qualify for VA vocational
rehabilitation benefits. VA and several major veterans
organizations supported the bill, while Paralyzed Veterans of
America supports the Court's original Davenport decision.
The second proposal was a draft cost-of-living adjustment
bill to provide an increase in the rates of compensation and
Dependency and Indemnity Compensation equal to the percentage
given to Social Security recipients. This proposal was widely
supported.
Finally, the subcommittees received testimony on a draft
bill to ensure the continuation of the veterans Pro Bono
Program at the Court of Veterans Appeals. VA did not object to
the bill, and the veterans service organizations supported the
proposal. The Court of Veterans Appeals opposed the bill as
drafted, but offered changes. The Veterans Consortium offered
minor changes but supported the proposal.
OVERSIGHT HEARINGS
First Session
On May 3, 1995, the subcommittee held an oversight hearing
on the cooperation between VA's Vocational Rehabilitation and
Counseling Service (VR&C) and DOL's Veterans Employment and
Training Service (VETS). The Vocational Rehabilitation program,
contained in chapter 31, title 38, United States Code, provides
rehabilitation training to disabled veterans to enable them to
obtain and maintain suitable employment and live independently.
In addition, VR&C provides educational and vocational
counseling to active duty servicemembers who are within six
months of separation, veterans who have been out of service not
more than 12 months, and individuals who are participating in
various VA administered programs. VR&C staff also play an
important role in the Transition Assistance Program and
Disabled Transition Assistance Program.
The Assistant Secretary of Labor for Veterans Employment
and Training (ASVET) is responsible for Veterans Training &
Employment under chapter 41, title 38, United States Code.
Local Veterans Employment Representatives (LVERs) and Disabled
Veteran Outreach Program Specialists (DVOPS) are federally-
funded state veteran employment specialists and the primary
contacts providing direct services to assist veterans seeking
employment. Members and witnesses discussed the DVOPS' role in
assisting the graduates of VA's VR&C programs and examined the
effectiveness of the cooperation between VA and VETS.
Witnesses represented The Disabled American Veterans;
Paralyzed Veterans of America; Vietnam Veterans of America; and
The American Legion. Mr. R. John Vogel, Under Secretary for
Benefits, Department of Veterans Affairs, accompanied by Mr.
Raymond Avent, VA Deputy Under Secretary for Benefits; Mr.
Larry Woodard, Director, VR&C Services, accompanied by Ms.
Sharon Bunger, VR&C Contract Counselor, Rehabilitative Service
& Vocational Placement, Inc., Richmond, VA., testified for VA.
The Department of Labor was represented by the Honorable
Preston Taylor, Assistant Secretary of Labor, Veterans
Employment and Training, accompanied by Mr. Allan Perkins,
Disabled Veterans Outreach Program Specialist, Houston, TX, and
Mr. Tom Pifer, Disabled Veterans Outreach Program Specialist,
St. Petersburg, FL.
Witnesses from the veterans service organizations testified
to serious shortcomings in the cooperation between VA and VETS.
The Subcommittee Chairman noted that it may be appropriate to
move VETS to VA to ensure aggressive program management. VA and
VETS witnesses opposed such a move while some of the VSO
witnesses voiced support for the idea. As a result of the
hearing, Mr. Vogel and Mr. Taylor signed an August 1, 1995,
Memorandum of Understanding outlining levels of cooperation to
improve the services to disabled veterans. The Committee
remains concerned about the Vocational Rehabilitation and
Counseling Service and recommends continued examination of the
service. (See Oversight Plan, page 65, paragraph 1.)
On June 29, 1995, the subcommittee held an oversight
hearing to review the reorganization of the Veterans'
Employment and Training Service, as well as the implementation
of the Uniformed Services Employment and Reemployment Rights
Act (USERRA). The subcommittee also discussed the benefits of
the ``one-stop shop'' employment office concept.
The subcommittee was interested in how VETS expanded their
reinvention efforts to assure compliance as directed by the
National Performance Review and the executive memorandum dated
September 11, 1993, regarding the streamlining of the federal
bureaucracy. Along with the concerns for streamlining were the
adjustments necessary for VETS to assume its role in the ``one-
stop shop'' employment environment which seeks to consolidate a
wide range of benefits and services at one location.
Witnesses represented the Disabled American Veterans,
Paralyzed Veterans of America, Vietnam Veterans of America, The
American Legion, AMVETS, Veterans of Foreign Wars, Enlisted
Association of the National Guard, and Mr. Wayne Spruell,
Acting Deputy Assistant Secretary of Defense for Reserve
Affairs, Manpower and Personnel. Also appearing were the
Honorable Preston Taylor, Assistant Secretary of Labor,
Veterans Employment and Training, accompanied by Mr. Jeffrey
Crandall, Director of Field Operations, VETS; and Mr. Richard
Larson, Director for Planning, Policy and Quality, VETS.
Witnesses noted the necessity for downsizing while maintaining
core services and continuing oversight of the VETS program.
USERRA enforcement should remain a prime concern during the
105th Congress, and the Committee recommends additional
oversight on this issue. (See Oversight Plan, page 65,
paragraph 2.)
Second Session
On May 30, 1996, the subcommittee held an oversight hearing
on Veterans' Preference, Reduction-in-Force, and the Uniformed
Services Employment and Reemployment Rights Act (USERRA).
Congressman John Mica, Chairman of the Civil Service
Subcommittee, Government Reform and Oversight Committee,
appeared before the panel to discuss his bill, H.R. 3586, The
Veterans Employment Opportunities Act of 1996.
Mr. Jonathan R. Siegel, Associate Professor of Law, The
George Washington University Law School, testified on the
impact of the Supreme Court decision in Seminole Tribe of
Florida v. Florida, No. 94-12 (U.S. Mar. 27, 1996), which held
that the Commerce Clause of the United States Constitution does
not empower Congress to abrogate a state's Eleventh Amendment
immunity by enacting statutes providing for private rights of
action against states in federal court. Professor Siegel
testified that this decision may create potential problems for
USERRA enforcement.
Representatives of veterans service organizations
testified, including witnesses from the Veterans Economic
Action Coalition, The American Legion, the Disabled American
Veterans, and the Vietnam Veterans of America.
The Honorable Preston Taylor, Assistant Secretary of Labor,
Veterans Employment and Training, testified on USERRA
provisions and the applicability of USERRA to Reserve Component
personnel employed outside the United States. Assistant
Secretary Taylor also testified on the impact of the Seminole
decision. Assistant Secretary Taylor discussed the Atlanta
regional lead center's (RLC) role in USERRA issues to research
and provide technical assistance to field offices and provide
information to the national office in the development of
policy.
The Honorable James B. King, Director, Office of Personnel
Management, testified on veterans employment in the federal
government. Ms. Celia Dollarhide; Director of VA Education
Services, addressed H.R. 2851, the proposed changes to VA's
``two-year rule.''
Concerns remain about employment of veterans and the
Committee recommends a thorough review of the VETS-100 form for
federal contractors. (See Oversight Plan, pages 65-66,
paragraph 3.)
On March 7, 1996, the subcommittee held an oversight
hearing to review the Montgomery GI Bill and entertain
suggestions on how to increase the buying power of veterans
education benefits. The subcommittee noted that veterans
education benefits serve two purposes: first, to increase a
veteran's earning power through higher education and training
following service; and second, to provide a recruiting
incentive.
Witnesses included U.S. Army Lt. Gen. Samuel E. Ebbesen,
Deputy Assistant Secretary of Defense for Military Personnel
Policy; Honorable Al Bemis, Deputy Assistant Secretary for
Manpower and Personnel, Office of Reserve Affairs; Mr. Charles
Turpin, U.S. Marine Corps Reserve, Prince George's Community
College (Chapter 1606 user); Lt. Col. Thomas Adams, American
University (Active Duty); Ms. Kelly Mayo (University of
Maryland student with an initial claim concern); Mr. Jim Abell
(University of Maryland continuing education student); Mrs.
Noelle Atwell, Veteran Student Services, University of
Maryland; the Honorable Ray Avent Deputy Under Secretary of
Veterans Benefits Administration, accompanied by Ms. Celia
Dollarhide, Director, VA Education Service.
Witnesses testified that the benefit has failed to keep
pace with the rapidly escalating cost of tuition, which is
currently rising at twice the rate of overall inflation. As a
result, the decline in purchasing power of the Montgomery GI
Bill may no longer serve the needs of the veteran as a
readjustment tool, and will ultimately fail to attract a
sufficiently high quality pool of applicants for the military.
DOD witnesses stated the current benefit level met the
services' requirements as a recruiting tool.
VA was questioned on their policy changes to facilitate
education administration, and the difficulties they faced in
the Regional Processing Offices tasked to handle veterans
education claims. VA witnesses noted initiatives to consolidate
and automate benefits processing would greatly improve
performance in the near future. The subcommittee recommends
continuing review of the progress made by the Education Service
to improve their delivery of service. (See Oversight Plan, page
66, paragraph 4.)
On April 18, 1996, the subcommittee held an oversight
hearing to review the Transitional Assistance Program (TAP),
the Homeless Veterans Reintegration Project (HVRP), and
legislation affecting veterans education services.
Section 502 of Public Law 101-510 requires the Secretary of
Labor, in conjunction with the Secretaries of Veterans Affairs
and Defense, to provide a program of transition assistance,
including counseling, job search training and information,
placement assistance and other information and services to
military personnel and their spouses who are within 180 days of
separation from active duty.
The Honorable Carolyn Becraft, Deputy Assistant Secretary
of Defense, Personnel Support, Families and Education; and the
Honorable Preston Taylor, Assistant Secretary of Labor for
Veterans Employment and Training, testified that TAP is a
success. Both noted that transition assistance is intended to
be a permanent program to assist departing military personnel.
Testimony was received from representatives of The American
Legion, the Disabled American Veterans, the Vietnam Veterans of
America, the Paralyzed Veterans of America, and the Veterans of
Foreign Wars. The veterans organizations voiced strong support
for the program and noted their participation as a transition
source. The Committee recommends an aggressive review of TAP.
(See Oversight Plan, page 66, paragraph 5.)
Joint Oversight Hearings
On June 12, 1996, the Subcommittee on Compensation,
Pension, Insurance and Memorial Affairs, along with the
Subcommittee on Education, Training, Employment and Housing,
held a joint oversight hearing on customer service standards at
the Department of Veterans Affairs and the Veterans' Employment
and Training Service. The subcommittees' focus was on customer
expectations with actual service delivered, and the
organizational measures being undertaken to improve the overall
quality of service delivery.
The subcommittees received testimony from the Vietnam
Veterans of America, and the Disabled American Veterans. Mr.
Robert Gardner, Chief Financial Officer for the Department of
Veterans Affairs, and the Honorable Preston Taylor, Assistant
Secretary for Veterans' Employment and Training also testified.
The subcommittees expressed concern regarding strategic
planning and customer service for both the larger agencies
(Veterans Employment and Training Services) and the smaller
agencies.
The veterans service organizations were concerned about
timeliness of claims and the effects of staff reductions on the
claims process. The veteran service organizations supported a
strategic planning process to lead to a more comprehensive,
multi-year business plan. VA responded that they were working
on their initial Business Plan, which will serve as the
Secretary's fiscal year 1998 budget request.
VETS testified that veterans are the customer and are the
primary consideration. Much of the testimony was drawn from
their April 1995 Customer Service Survey, which reflected some
satisfaction with the customer service performance of the
agency.
The Committee remains very concerned about the
effectiveness of VA's vocational rehabilitation program and its
interaction with VETS and recommends additional oversight in
this area. (See Oversight Plan, page 66, paragraph 6.)
On July 31, 1996, the Subcommittee on Education, Training,
Employment and Housing of the Committee on Veterans' Affairs
held a joint oversight hearing with the Subcommittee on
Government Programs of the Committee on Small Business and
reviewed veterans small business programs. Testimony was
received on various issues pertaining to veterans small
business problems such as a definition of current small
business rules and how they affect veterans, a review of past
programs impact on veterans small business, and a review of the
veracity of small business data.
Witnesses represented the Veteran's Small Business
Association, the Concerned Veterans, The American Legion, the
Association for Service Disabled Veterans, and the William
Joiner Center at the University of Massachusetts. Staff Sgt.
Michael Hladky, U.S. Army, testified on his own behalf, and the
Administration was represented by Mr. Leon Bechet, Deputy
Administrator for Veterans Affairs. The Committee recommends
continued oversight in this area. (See Oversight Plan, page 66,
paragraph 8.)
Additional Oversight Activities
First Session
On April 7, 1995, the subcommittee requested a General
Accounting Office (GAO) study of the Department of Labor's two
veterans' employment programs, the Local Veterans Employment
Representatives (LVERs) and the Disabled Veterans Outreach
Program Specialists (DVOPS). Very little was known about the
performance of these state-administered veterans employment
programs or how they integrated with other veterans' employment
programs administered by VA. GAO delayed the study until 1996
due to its pending workload. The study is currently underway.
(See Oversight Plan, page 65, paragraph 1.)
On April 19, 1995, the subcommittee requested a GAO
evaluation of the costs associated with moving the Department
of Labor's Veterans Employment and Training Service to an
equivalent position under the auspices of the Secretary of
Veterans Affairs. GAO responded on April 28, 1996, that the
request had been forwarded to their Health, Education, and
Human Services Division. The study is currently underway. (See
Oversight Plan, page 65, paragraph 2.)
On June 20, 1995, the Committee transmitted a letter to GAO
and requested an evaluation of the Office of Personnel
Management's policies and performance relating to veterans'
preference hiring practices authorities. GAO replied on July 5,
1995, that the request was forwarded to the General Government
Division. Subsequently, a February 1, 1996, GAO report found
that veterans represented a generally increasing share of the
new hires made by OPM in recent years. The Committee recommends
further oversight on this issue. (See Oversight Plan, pages 65-
66, paragraph 3.)
On July 12, 1995, the subcommittee transmitted a letter to
the Honorable Deborah R. Lee, Assistant Secretary of Defense,
and requested the Administration's views on DOD's requirements
for advance notification of pending military duty contained in
the Uniformed Services Employment and Reemployment Rights Act
(USERRA). In an August 24, 1995, letter, DOD stated that DOD
and DOL were coordinating specific instructions on USERRA
implementation. The Committee recommends that this issue
continue to be reviewed. (See Oversight Plan, page 65,
paragraph 2.)
Second Session
On January 23, 1996, the subcommittee transmitted a letter
to VA and requested a review of an allegation concerning VA
Home Loan origination improprieties made against the Mortgage
Investors Corporation. As a result, VA issued regulations to
prohibit lendees from charging more than 2 points on VA-backed
refinanced loans.
On January 25, 1996, the subcommittee transmitted a letter
to VA and requested data on its vocational rehabilitation
program, including information on cost data, employment history
of graduating students and history within the vocational
rehabilitation system. A March 20, 1996, VA letter indicated
that much of the data requested is no longer available or would
be very costly to obtain. VA offered an alternative of a random
sampling from graduates of the program during the last three
years. The Committee recommends further review of the VA
vocational rehabilitation program. (See Oversight Plan, page
65, paragraph 1.)
On January 29, 1996, the subcommittee transmitted a letter
to DOL's VETS and requested comments from the Administration
regarding implementation of veterans priority of services in
the developing One-Stop Employment Centers. Additional comments
regarding priority of service under the 1990 Memorandum of
Understanding (MOU) with the Office of Personnel and Management
(OPM) were also requested. DOL responded on February 15, 1996,
outlining how DOL had provided clear guidance and direction to
State Employment Security Agencies and the VETS staff on their
responsibilities in implementing the MOU with OPM. The
Committee recommends further oversight on this issue. (See
Oversight Plan, page 65, paragraph 2.)
On April 29, 1996, the subcommittee transmitted a letter to
Assistant Secretary of Labor Taylor and requested additional
information from VETS regarding funding for the Homeless
Veterans Reintegration Projects (HVRP), and the agency's use of
Job Training Partnership Act (JTPA) money to fund HVRP. The
agency responded on July 2, 1996, with a list of HVRP projects
funded by JTPA IV-C funds. Four of 26 applicants were funded at
a total of $445,950. The Committee recommends continuing
oversight on the issue because insufficient federal funding
goes to homeless veterans programs.
On May 21, 1996, the subcommittee transmitted a letter to
the Secretary of Labor and requested the Administration's views
on maintaining veterans priority of service in the evolving
workforce development plans outlined in H.R. 1617. In response,
a July 15, 1996, DOL letter stated that the VETS and the
Employment and Training Administration are working with the
States to develop complimentary means to ensure that veterans'
needs are met in the present and future labor market. The
Committee recommends continued oversight as the employment
system is restructured. (See Oversight Plan, page 65, paragraph
2.)
On May 21, 1996, the Committee transmitted a letter to the
Secretary of the Army and requested information regarding
civilian personnel issues as they related to the U.S. Army
Audit Agency's ``Restructuring 98'' program. Chairman Stump
expressed concern regarding how veterans' preference issues
would be implemented during any reduction in force action. The
agency responded on July 19, 1996, outlining their policy. (See
Oversight Plan, pages 65-66, paragraph 3.)
On June 4, 1996, the subcommittee transmitted a letter to
the Veterans Employment and Training Service and questioned the
length of time to reach a resolution in the USERRA cases
involving Ms. Karin Leperi at the Department of Agriculture and
Mr. Hal Glassman at the Department of Labor. The Department
responded on June 17, 1996, and met with the subcommittee in an
executive session to discuss the two cases. The Committee
recommends continuing oversight on USERRA case processing.
On July 16, 1996, the subcommittee transmitted a letter to
VA and requested the Administration's views on Ford Consumer
Finance Co., a national mortgage lender that had recently
agreed to settle a class action lawsuit involving alleged
improper practices. The subcommittee was concerned that
veterans may have been affected by improper practices. VA
responded on August 6, 1996, that Ford Consumer Finance Company
is not a participating VA lender. The Committee therefore
recommends no further oversight.
On August 13, 1996, Subcommittee Chairman Buyer transmitted
copies of statements made by a former Bureau of Prisons
employee, Mr. Joseph Monsivias, to VETS. The statements alleged
that his former employer violated the Uniformed Services
Employment and Reemployment Rights Act. VETS was requested to
submit their findings and future plans on the case. The Agency
responded on September 26, 1996, that the case was in the
process of being referred to the Office of Special Counsel. The
Committee recommends continued oversight.
On September 3, 1996, a GAO report, VA Continues to Place
Few Disabled Veterans in Jobs, found significant shortcomings
in VA's implementation of the vocational rehabilitation
program. The Committee recommends further oversight on this
issue. (See Oversight Plan, page 65, paragraph 1.)
On October 2, 1996, Chairman Stump transmitted a letter to
the Secretary of Veterans Affairs regarding the Department's
compliance with P.L. 103-446 and the proportional distribution
of McKinney Act funds for homeless veteran service providers,
and asked for an accounting of the Department's actions. The
Committee recommends continued oversight.
On October 21, 1996, the subcommittee transmitted a letter
to DOL and requested further views from the Administration on
plans regarding uses of technology for the VETS employment
system. This request was a follow-up to a hearing held on May
3, 1995, during which the Secretary noted that such a plan
would be forthcoming. The Subcommittee Chairman also requested
views from the Secretary on the current status of the VETS-100
form, and the approach VETS would be taking to ensure
compliance with employment requirements outlined in chapter
4212, title 38 of United States Code. The Committee recommends
further action on the VETS-100 form. (See Oversight Plan, page
65, paragraph 1.)
On October 21, 1996, a joint letter from Chairman Stump and
Ranking Member Montgomery to the Secretary of Defense requested
the Secretary's timeline for implementing education program
changes resulting from the passage of Public Law 104-275. The
law allows certain active duty members currently participating
in Chapter 32 VEAP educational program to enroll into the
Montgomery GI Bill. The law also authorizes certain active duty
members of the Army and Air National Guard to participate in
the Montgomery GI Bill. The Committee recommends continuing
oversight of all education benefits. (See Oversight Plan, page
66, paragraph 4.)
Budget Activities
First Session
On February 24, 1995, the Full Committee met and Secretary
of Veterans Affairs Jesse Brown presented the Administration's
fiscal year 1996 budget request for the Department of Veterans
Affairs. The Administration's budget proposal of $39.5 billion
was an increase of $1.3 billion over fiscal year 1995. The
request contained $16.96 billion for medical care, an increase
of $747 million over fiscal year 1995, and $17.6 billion for
the compensation and pension account. The proposal also
contained an increase for research funding from $252 million in
fiscal year 1995 to $257 million in fiscal year 1996. The
Administration's request included an increase in funding for
major construction from $354 million in fiscal year 1995 to
$514 million and an increase in funding for minor construction
from $76 million in fiscal year 1995 to $229 million.
On March 20, 1995, the Veterans' Affairs Committee
recommended to the Budget Committee the addition of $105.1
million in discretionary funds to the amounts proposed by the
Administration. This amount included an additional $57.5
million for veterans' medical care and $25 million to improve
claims processing and counseling for veterans seeking benefits.
This amount also included $2.6 million for the National
Cemetery System, $5 million for disabled veterans' vocational
rehabilitation and an additional $23.1 million for the
Department of Labor's discretionary funding for the Veterans'
Employment and Training Service.
(See the Committee's Report to the Committee on the Budget
on the Budget Proposed for Fiscal Year 1996, p. 67.)
Also, on September 28, 1995, the Full Committee voted 21 to
8 to send its recommendations for federal deficit reduction to
the Committee on the Budget. The recommendations included
extensions of current laws, a modest increase in the
prescription drug copayment schedule, a revision of liability
under Gardner v. Derwinski, 115 S. Ct. 552 (1994), resulting
from VA medical treatment, and other deficit reduction
measures. The Committee approved as part of the recommendations
a veterans' health care eligibility reform initiative which was
similar to the eligibility reform later accomplished in the
Veterans' Health Care Eligibility Reform Act of 1996. The
recommendations would have resulted in savings of $6.4 billion
over a seven year period and were incorporated into H.R. 2491,
the Seven-Year Balanced Budget Reconciliation Act of 1995. (See
House Report 104-280.) The President on December 6, 1995,
vetoed the final version of H.R. 2491, the Balanced Budget Act
of 1995. (See House Report 104-350.)
Second Session
On March 18, 1996, pursuant to the House requirement that
all Committees submit their budget recommendations by March 18,
1996, the Veterans' Affairs Committee recommended to the Budget
Committee a $39.889 billion budget for the Department. This
amount included $17.069 billion for medical care, an increase
of $505 million over the fiscal year 1996 conference level, and
$57 million over the Administration's request. It also included
$18.845 billion for the compensation and pension account, an
increase of $514 million over the fiscal year 1996 conference
level, and $354 million over the Administration's request. For
fiscal year 1997, the Committee recommended a $10 million
increase in funding from $257 million to $267 million for VA's
research budget. The Committee also recommended increases in
VA's major and minor construction budgets to $315 million and
$200 million, respectively.
(See the Committee's Report to the Committee on the Budget
on the Budget Proposed for Fiscal Year 1997, p. 99.)
On March 29, 1996, the Full Committee met and Secretary
Jesse Brown presented the Administration's fiscal year 1997
budget request for the Department of Veterans Affairs, which
had been submitted on March 18, 1996. The Administration's
budget proposal of $39.3 billion was an increase of $1 billion
over fiscal year 1996. The request contained $17 billion for
medical care, an increase of $448 million over the fiscal year
1996 conference level, and $18.5 billion for the compensation
and pension account. The proposal also contained a request for
research of $257 million, the same level as fiscal year 1996.
The Administration's request included $250 million for major
construction and $190 million for minor construction.
COMMITTEE WEB SITE
The Committee's web site (http://www.house.gov/va/) became
active on June 1, 1996. Since its launch, it has been accessed
over 4,000 times. The site contains 93 documents. The
categories of documents are: legislative summaries, committee
reports, hearing transcripts, press releases, committee rules,
membership lists, hearing schedules, legislative calendar, and
background on the Committee's jurisdiction. Included in the
membership list are links to individual Committee members' home
pages. The jurisdiction page is supplemented by links to other
committees with jurisdiction over issues of interest to
veterans.
The primary focus of the site is on services for veterans.
Consequently, the site contains links to veterans service
organization web sites, including The American Legion, Vietnam
Veterans of America, Disabled American Veterans, Fleet Reserve
Association, Jewish War Veterans, and the Veterans of Foreign
Wars. This is supplemented by a listing of government services
available to veterans over the World Wide Web, such as services
from the Department of Veterans Affairs, including access to
The Federal Benefits for Veterans' and Dependents manual, and
the Veterans' Employment and Training Service of the Department
of Labor. The site also contains search mechanisms for finding
all current legislation pertaining to veterans. Finally, links
are provided to Thomas (legislative information on the
Internet), and the Senate Committee on Veterans' Affairs.
OVERSIGHT PLAN OF THE COMMITTEE ON VETERANS' AFFAIRS FOR THE 104TH
CONGRESS
In accordance with clause 2(d) of Rule X of the House of
Representatives, the Committee on Veterans' Affairs has adopted
by resolution of February 14, 1995, its oversight plan for the
104th Congress.
This oversight plan is directed at those matters which are
most in need of oversight within the next two years. The
committee is cognizant of the requirement that it conduct
oversight on all significant laws, programs, or agencies within
its jurisdictions at least every ten years. To ensure
coordination and cooperation with other committees having
jurisdiction over the same or related laws, the committee will
conduct member and staff meetings as necessary with the
Committee on National Security, the Committee on Economic and
Educational Opportunities, and the Committee on Government
Reform and Oversight. Additionally, the committee will explore
with these committees possibilities for conducting joint
hearings.
The committee expects to conduct oversight through a
variety of sources. They will include existing and requested
reports, studies, estimates, investigations and audits by the
Congressional Research Service, the Congressional Budget
Office, the Office of Technology Assessment, the General
Accounting Office, and the Offices of the Inspectors General of
the Departments of Veterans Affairs and Labor. Additional
sources of information will be veterans service organizations,
military associations, other interest groups and private
citizens. A series of joint hearings is scheduled with the
Senate Committee on Veterans' Affairs at which veterans service
organizations and military associations will present to the
committees their national resolutions and agendas for veterans.
Avenues of oversight will be committee and subcommittee
hearings; field and site visits by members and staff; and
meetings and correspondence with interested parties. While this
oversight plan sets forth the areas in which the committee
expects to conduct oversight, additional matters may be
incorporated into the committee's plan as the need arises.
Subcommittee on Hospitals and Health Care
1. Major Construction Prioritization and Methodology. Over
the years it has been difficult to gain an understanding of the
construction methodology for prioritization of major
construction projects. The oversight hearing would be used as a
vehicle for developing legislation that would require the
Department of Veterans Affairs (VA) to document the specific
factors used in the determination of project rankings and
provide a more comprehensive report to Congress on all major
construction projects. Summer 1995.
2. Management and Reorganization of Veterans Health
Administration (VHA). Currently VHA is divided into four
regions. The Under Secretary for Health has proposed a
decentralized management structure of from 22 to 28 networks.
The subcommittee will review the organizational design and
reporting mechanisms of the proposed reorganization. To be
included in this review will be an analysis of the potential
effects of FTEE cuts on streamlining VHA, operating efficiency
and patient care. Spring 1995.
3. Enhanced Sharing between the Departments of Defense
(DOD) and Veterans Affairs. Although the VA and DOD have worked
closely in some areas, conversations with individuals
representing both the active military and military associations
indicate that there are many areas in which closer cooperation
could result in cost efficiencies and enhanced delivery of
service to both groups. Areas for consideration include the VA
pharmacy programs and the potential inclusion of CHAMPUS-
eligible and retirees as part of the eligible dispensing pool,
as well as expansion of the Asheville Program to areas
scheduled for base closures. Summer 1995.
4. State Health Reform Impacts. Although health care reform
remains an issue within Congress, state health care reform
appears to have slowed in recent months. The subcommittee will
examine real and potential impacts of state reform efforts on
the VA health care system. Spring 1995.
5. VHA Research Corporations. Under legislation passed five
years ago, VA was to establish mechanisms to facilitate the
operation of these corporations under tight fiscal and
administrative controls. However, management problems have
surfaced in the operation of these entities. Atlanta and,
recently, Syracuse are examples of problems. A report to be
released by the VA on the Syracuse Research Corporation
outlines several problematic issues. Summer 1995.
6. Management Information Systems. The VA has developed a
number of information systems to aid in decision-making. The
subcommittee will explore the status of various systems such as
the Decision Support System and other VA information systems to
assess the VA's direction, potential costs, and long-term goals
for the development and integration of these systems with other
potential users, both internal and external to the VA. Winter
1995.
7. VA Procurement System. The VA operates a multi-billion
dollar procurement system that contracts for every item that is
used within the system. Attempts have been made to modernize
the VA's procurement practices and allow it to operate with
efficiencies found in the private sector. The subcommittee will
examine VA practices and the proposed reorganization of
acquisition and facilities. Spring 1996.
8. Gulf War Syndrome (Possible Joint Hearing). The
Committee will review the progress of VA research efforts on
this controversial and complex issue. Because of related
jurisdictions, it is anticipated that a joint hearing with the
Subcommittee on Compensation, Pension, Insurance and Memorial
Affairs will be scheduled. Spring 1995, Spring 1996.
9. Contracting and Niche Marketing. Although the VA can
contract for specialized medical resources under legislation
that encourages sharing with other health care providers, this
legislation is restrictive and does not permit the VA to enter
into large volume contracts with health care groups. The
subcommittee will examine the limitations of this legislation
in light of major changes in the delivery of health services
and the VA's ability to better utilize the services it
provides. Fall 1995.
10. The VA's Role in Long-term Care. The long-term care
budget is a growing portion of the VA's medical care budget.
The subcommittee will explore the VA's role and responsibility
to provide long-term care services to veterans. It will also
review community alternatives for the provision of less costly
venues of care. Summer 1996.
11. Surgical Service Utilization. The VA Inspector General
has identified utilization and cost problems at certain medical
centers. The subcommittee will investigate this issue and those
related to delivery of surgical services in a rapidly changing
market place. Currently 60 percent of all non-VA surgical
procedures are performed in the outpatient setting. The VA, on
the other hand, performs most of its surgical procedures in the
inpatient setting. Winter 1995.
12. Drug Management Issues. Drug management practices have
been the subject of recent VA Inspector General and General
Accounting Office (GAO) reviews. The subcommittee will explore
the Consolidated Pharmacy Program and the possibility of
increased sharing with DOD. It will also include inventory
controls as part of its review. Summer 1996.
13. Fee Basis for Service-Connected Veterans. Some veterans
indicate dissatisfaction with the VHA's operation of the
program. The subcommittee will review the management and fee
structure of the program. Spring 1996.
14. Prosthetics Management and Pricing. The VA is a leader
in the supply and development of prosthetics. A recent decision
to adopt Department of Health and Human Services pricing
policies will add to the cost of VA prosthetics. The
subcommittee will review the new policies and the cost
implications for the VA. Winter 1995.
15. Clinical Guidelines and Measurements of Quality Care.
The development and use of clinical guidelines have gained
acceptance in private sector medicine. The subcommittee will
explore the use of guidelines and their applicability to the
VA's patient base. The subcommittee will also review the VA's
progress in the area of developing measurements of quality
care. Fall 1995.
16. Ambulatory Care Programming. Trends in medical care
show rapid transformation of private sector health care into
managed care with an emphasis upon delivery of services in the
ambulatory care setting. The subcommittee will review the VA's
resource allocation process as a potential barrier to change.
It will also examine policies that negatively impact the VA's
progress in this area. Fall 1995.
17. VA Programs for Homeless Veterans. Veterans continue to
comprise a high percentage of the homeless population. The VA
now operates several programs for homeless veterans and
recently completed a summit on the issue. The subcommittee will
review the effectiveness of VA programs for homeless veterans
and their interfaces with other public and private/not-for-
profit programs for the homeless. Fall 1995.
Subcommittee on Compensation, Pension, Insurance and Memorial Affairs
1. Compensation and Treatment of Persian Gulf War Veterans.
VA continues to study the possible effects of service in
Southwest Asia on the health of veterans. VA will begin paying
compensation and is providing treatment for undiagnosed
illnesses associated with that service. The hearings will track
the VA's progress in determining causality and implementing
Title I of Public Law 103-446. Spring 1995, Spring 1996.
2. Claims Processing in Veterans Benefits Administration
(VBA) Regional Offices. VBA is still experiencing significant
delay in processing veterans claims for benefits at the
Regional Office level. Hearings will explore VBA attempts to
improve processing, including "best practices" being used in
several regional offices as well as central office
dissemination of these practices. Summer 1995, Spring 1996.
3. VBA Computer Modernization. VBA is modernizing its
benefits processing computer system. Questions have been raised
concerning the use of technology to assist in reducing the
claims backlog as well as the lack of progress in establishing
a master veteran record accessible throughout VA. The
subcommittee will hold a series of hearings which will review
VBA's three-phase project and progress in developing a master
veterans record. Summer 1995, Winter 1995, Spring 1996.
4. Claims Processing at the Board of Veterans Appeals (BVA)
and Court of Veterans Appeals (COVA). BVA has a large case
backlog and the decisions of COVA have significant
administrative and judicial impact on the operation of the
entire claims processing system. The subcommittee will review
BVA and COVA procedures and organization to address the
backlog. Fall 1995, Summer 1996.
5. Adjudication of Post Traumatic Stress Disorder (PTSD)
Claims. A statistical analysis indicates there is wide
variation among VBA Regional Offices in adjudicating PTSD
claims. VBA has responded by offering additional training to
its specialists. The subcommittee will review what changes have
resulted from this approach. Summer 1995.
6. Implementation of Brown v. Gardner, 115 S. Ct. 552
(1994). A recent U.S. Supreme Court decision regarding VA
patients who incur additional disabilities while under VA
hospital care has created significant fiscal and administrative
demands upon VA. The subcommittee will review implementation of
the decision. Summer 1995.
7. Agent Orange/Ionizing Radiation. There continues to be
controversy surrounding access to treatment and compensation
for veterans exposed to these environmental hazards. The
subcommittee will review VA efforts to determine the effects of
exposure. Winter 1995.
8. National Cemetery System (NCS) Operations. NCS faces an
escalating workload on a flat-line budget. The subcommittee
will explore the system's capacity to absorb future increases
in workload and options for ensuring that veterans have the
opportunity to use their burial benefits. Summer 1996.
9. VA Insurance Programs. VA operates several life and
mortgage insurance programs for veterans. Many veterans rely
upon these programs for their entire insurance needs. The
subcommittee will review the solvency and operations of the
programs. Summer 1996.
10. VA Pension Programs. The subcommittee will explore the
adequacy of pension benefits and how they relate to other
disability benefits. Winter 1996.
11. VA and Veterans Employment and Training Service (VETS)
Customer Service Standards. Both VA and VETS have developed
customer service standards. It is anticipated that the
subcommittee will review the effectiveness of those standards
jointly with the Subcommittee on Education, Training,
Employment and Housing. Summer 1996.
Subcommittee on Education, Training, Employment and Housing
1. Adequacy of VA's Vocational Rehabilitation and
Counseling Program; Coordination between the Veterans
Vocational Rehabilitation and Counseling Service (VRCS) and the
Veterans Employment and Training Service (VETS). VRCS and VETS
are charged with assisting veterans and disabled veterans in
finding employment. Coordination between the two agencies is
important. The subcommittee will review VRCS and VETS efforts
as well as the adequacy of the basic vocational rehabilitation
and counseling program. Spring 1995.
2. VETS Reorganization; Implementation of the Uniformed
Services Employment and Reemployment Act (USERRA); and One Stop
Employment Centers. VETS is reorganizing under the National
Performance Review. The subcommittee will review VETS
operations, its implementation of USERRA, and its functional
roles in the Department of Labor's One Stop Centers to ensure
continued priority of services to veterans. Spring 1995, Spring
1996.
3. Federal Employment of Veterans; Federal Contractor
Employment of Veterans and its Enforcement by the Office of
Federal Contract Compliance (OFCCP). Compliance with veterans'
preference in Federal hiring has been questioned by veterans
service organizations. The subcommittee will perform a
comprehensive review of Federal hiring of veterans at all
levels and functions of the executive, judicial and legislative
branches. OFCCP is charged with enforcement of veterans hiring
rules for certain Federal contractors. The subcommittee will
review OFCCP enforcement activities. Summer 1995, Summer 1996.
4. Adequacy of the Montgomery GI Bill (MGIB). Education
costs continue to escalate. The subcommittee will review the
operation of the MGIB and possible improvements, including a
review of the functions of state approving agencies. Summer
1995.
5. Transition Assistance Programs/Disabled Transition
Assistance Program (TAP/DTAP) Operations. Continuing military
downsizing and a tight job market create a need for quality
transition services for those leaving the military. The
subcommittee will review TAP/DTAP programs for the various
military services. TAP/DTAP are programs operated jointly by
VA, DOL and DOD. Fall 1995, Summer 1996.
6. Service Member's Occupational Conversion and Training
Act (SMOCTA). SMOCTA is a joint program using DOD funds and
administered by DOL and VA to assist in retraining veterans
whose military occupations have no civilian equivalent. The
program provides employer incentives to train and retain these
veterans in long-term jobs. The subcommittee will review the
program's performance. Winter 1996.
7. VA and VETS Customer Service Standards (Possible Joint
Hearing). Both VA and VETS have developed customer service
standards. It is anticipated that the subcommittee will review
the effectiveness of those standards jointly with the
Subcommittee on Compensation, Pension, Insurance and Memorial
Affairs. Summer 1996.
8. Small Business Administration (SBA) Programs for
Veterans. SBA is required to sponsor programs to assist
veterans in starting up small businesses. The subcommittee will
explore the agency's performance concerning veterans programs.
Winter 1996.
REPORT TO THE COMMITTEE ON THE BUDGET FROM THE COMMITTEE ON VETERANS'
AFFAIRS ON THE BUDGET PROPOSED FOR FISCAL YEAR 1996, SUBMITTED ON MARCH
20, 1995
Summary of President's Budget Proposal
The President's Budget for fiscal year 1996 requests $39.5
billion in budget authority and $37.9 billion in outlays for
the Department of Veterans Affairs.
The requested appropriation for medical care is $16.96
billion, $747 million higher than the 1995 level.
Average employment for the Department is projected to meet
the requirements of the Veterans' Benefits Improvements Act of
1994 (P.L. 103-446), which specifies that the number of full-
time equivalent positions may not be less than 224,377, unless
required by reduction in funds or required by a new law.
The Veterans Health Administration would receive an overall
increase of 255 FTEE. Employees paid under the medical care
account are projected to increase by 267 FTEE from the 1995
level. Personnel under the Medical and Prosthetic Research
account are projected to remain at the same level as fiscal
year 1995. And, Medical Administration and Miscellaneous
Operating Expenses staff would be reduced by 12 FTEE.
The Veterans Benefits Administration, which processes
benefit claims and assists veterans in obtaining benefits,
would lose 188 FTEE, while the Central Office administrative
staff would be cut by 19 FTEE.
The National Cemetery System would remain at the fiscal
year 1995 FTEE level of 1,340.
The funds requested for Major Construction for VA health
care facilities rise dramatically from an appropriated level of
$354 million in fiscal year 1995 to $514 million. The Minor
Construction account also would increase by $76 million to $229
million.
The Administration requests the authorizing committees to
approve a fiscal year 1996 cost-of-living adjustment for
compensation recipients of 3.1 percent.
In addition, the proposal requests legislation to extend a
number of expiring provisions contained in the Omnibus
Reconciliation Act of 1993. These items include extension of
monthly pension limitation for certain recipients of Medicaid-
covered nursing homes; extension of VA authority to verify
income data with IRS and SSA information; extension of Home
Loan Guaranty fees; extension of authority to recover costs
from health insurers for treatment of non-service-connected
disabilities; and extension of co-payments and per diems for
medical care. The Administration is also proposing a round down
of compensation COLAs and reduction by one-half of the COLA for
old-law DIC recipients and provision of only a 50 percent COLA
for GI Bill benefits.
The budget proposal also requests new legislation to repeal
restrictions on collection of loan guaranty debts and require a
two percent fee and a ten percent down payment on manufactured
home loans.
The proposed legislative changes would reduce outlays by
approximately $3.1 billion over five years.
SUMMARY OF RECOMMENDED CHANGES IN THE PRESIDENT'S FY 96 BUDGET
------------------------------------------------------------------------
Department of Veterans Affairs $ (mil) FTEE
------------------------------------------------------------------------
Medical Care
toward the restoration of ``current
services''.............................. 50 250
expansion of PTSD, mental health,
homeless programs....................... 5 25
state nursing home per diem rates........ 2.5
--------------------------
Subtotal for Medical Care.............. 57.7 275
Research
toward the restoration of ``current
services'' level........................ 5
in support of health services research
practice parameters..................... 1
--------------------------
Subtotal for Research.................. 6
General Operating Expenses
Compensation, Pension and Education
Services
toward the restoration of ``current
services'' in the benefits delivery
system.................................. 18 220
disability rating automation in lieu
additional FTEE......................... 2
Veterans Services
to improve outreach and contact programs
through equipment modernization at up to
15 Regional Offices..................... 5
Vocational Rehabilitation
to address increased workload, decrease
waiting times, and improve management
systems................................. 5 100
--------------------------
Subtotal for General Operating Expenses 30 320
National Cemetery System
to keep pace with workload increases,
maintenance and repair projects......... 1 25
supplies and materials................... 0.6
equipment backlog/replacement............ 1
--------------------------
Subtotal for National Cemetery System.. 2.6 25
Major Construction
state nursing home priority 1 grants..... 9
--------------------------
Subtotal for Major Construction........ 9
VA Legislative Proposals
Compensation (OBRA extension)
restore DIC COLA and eliminate round down
of COLA................................. 29.5
Montgomery GI Bill (OBRA extension)
restore COLA............................. 12.6
--------------------------
Subtotal............................... 42.1
--------------------------
Total for Department of Veterans Affairs..... 147.2 620
==========================
------------------------------------------------------------------------
------------------------------------------------------------------------
Department of Labor $ (mil) FTEE
------------------------------------------------------------------------
Disabled Veterans Outreach Program
specialists (DVOP)
to maintain DVOPs at congressionally-
mandated levels......................... 14.5 294
Local Veterans' Employment Representatives
(LVER)
to maintain LVERs at congressionally-
mandated staffing levels................ 8.6 159
--------------------------
Total for Department of Labor................ 23.1 453
==========================
------------------------------------------------------------------------
Background and Committee Recommendations
VETERANS HEALTH ADMINISTRATION
The fiscal year 1996 budget request for medical care, while
attempting to address a strategic redirection of the veterans'
health care system, provides a minimal level of support with
which to accomplish this necessary and worthwhile goal. The
Department will face increasing challenges from the growing
cohort of rapidly aging veterans and it will also face pressure
to adjust services and resource levels within a high quality,
cost-effective budgetary framework.
The Committee is disappointed that the budget request did
not include a legislative initiative for veterans' medical care
delivery reform. The Committee's principal legislative
objective for this session will be to remove the statutory bias
toward inpatient care.
The submission of the fiscal year 1996 budget request finds
the VA health care system at a point of transition. VA health
care facilities are reducing the number of operating beds and
expanding beneficiaries' access to ambulatory care. This
transformation, although applauded by the Committee, is slow in
comparison to non-VA and other private sector entities. The
fiscal year 1996 budget request generally supports and fosters
a continuation of reforms underway in the VA, while recognizing
that change must be constructive and not disruptive to the
veteran patients and the staff who must function in this
changing environment.
The budget request recognizes that the VA must expand
outpatient care delivery, although its fiscal investment in
that process is relatively modest. Significantly, it allocates
some $43 million in minor construction funding for outpatient
improvements and provides for an additional 1,500 personnel
slots and $108 million targeted to expand the number of unique
patients the VA projects to treat in fiscal year 1996,
particularly through provision of primary care services. At the
same time, the VA is shifting patients from acute inpatient
care to ambulatory care. Additionally, it is attempting to
streamline the management of its operations, which are
projected to reduce staffing of some 3,400 positions and an
associated $335 million.
The following sections detail the Committee's specific
recommendations for the proposed medical care budget for fiscal
year 1996.
Toward the restoration of ``current services''
The proposed budget of $16.961 billion for medical care
represents an increase of $747 million over fiscal year 1995.
In the process of negotiating with the Office of Management and
Budget a budget figure targeted at maintaining the level of
service delivery from the prior fiscal year, the VA was
directed to identify $335 million and 3,429 FTEE in savings.
Those items identified in the budget submission as sources of
``savings'' can best be described as speculative. Savings can
only be realized if certain consolidations, integrations, and
realignments are accomplished rapidly without adding additional
personnel expenses. It is important to address retraining and
buyout costs, and increased contracting costs. It is also
important to avoid constraining workload by establishing
barriers or discouragements to care.
It should be noted that site visits to and conversations
with senior management officials at facilities targeted for
consolidations found management to be generally supportive of
the necessary changes. However, for consolidations to realize
long-term, sustainable dividends, the savings they generate
must be invested. Investments in high priority program
initiatives such as DOD sharing and increases in community
access clinics can assure that VA care is delivered at the
lowest cost and highest efficiency possible. ``Savings'' should
not be allowed to evaporate as a result of offsetting budget
reductions. Such actions serve to penalize those who are
efficient and negatively affect employee morale.
The so-called ``management improvement'' savings are
dependent upon reducing management layers at some VA
facilities. Although the VA is to be commended in its efforts
to eliminate bureaucratic levels and streamline non-clinical
functions, there are costs associated with such an
organizational transformation. Even if one assumes that the
consolidations proceed without protracted delays, it is
unrealistic to expect that organizational challenges such as
service integrations and reductions of management layers can be
achieved without costs to veteran patients and those whose
positions will be eliminated or consolidated. Accordingly, the
Committee recommends the restoration of $50 million and 250
FTEE to ensure management redirections do not come at the
expense of veterans.
Expansion of PTSD, Mental Health, and Related Homeless Programs
Adequate funding for mental health programs as one of VA's
specialized programs is necessary. Over 33 percent of all VA
inpatients at any given time are service-connected for
psychiatric problems and 71 percent of veterans who are
currently 100 percent disabled have diagnoses of schizophrenia
and manic depressive disorders.
Significant numbers of veterans turn to the VA for help
with Post Traumatic Stress Disorder (PTSD), severe psychoses,
substance abuse and homelessness. This patient population
represents over 40 percent of the VA's acute care workload.
Care for these conditions requires a coordinated and integrated
response of various professional disciplines to effect a
satisfactory result. The Robert Wood Johnson Foundation, a non-
profit organization which funds medical research, has stated
that while services exist to care for the general chronically
mentally ill population, these services are often fragmented or
unavailable. It is only through a systems approach that
combines housing and case management that the future of these
individuals can be significantly improved.
An array of specialized VA programs address the unique
characteristics of these patients. Because these specialized
services offer access to treatment that is often unavailable in
the private sector, issues such as PTSD, homelessness, and
substance abuse can be addressed within the context of a
veteran's military experience. Because these programs often
serve veterans who have little or no access to mental health
care outside the VA system, it is important to ensure the
integrity of these programs for veterans whose treatment
options are severely limited.
The VA budget requests $77.5 million for homeless care
programs, $1.5 million above last year's budget. The total
funding request, however, remains about 7 percent of the
President's fiscal year 1996 proposal of $1.2 billion to create
a single Homeless Assistance Fund program at the Department of
Housing and Urban Development (HUD). The new grant program
would consolidate the Stewart B. McKinney Homeless Assistance
Act programs at HUD into a single fund for grants to states,
local governments, nonprofit organizations, and Indian tribes.
Providing the VA with so small a percentage of overall funding
to assist homeless veterans is difficult to reconcile with the
fact that veterans account for nearly one-third of the adult
homeless population.
Increasingly, these veterans, for whom the VA is a safety
net, are at risk of homelessness or are homeless. Tuberculosis,
HIV infection, pulmonary disease, hypertension, alcohol and
drug abuse, and serious mental illness affect those who are
homeless at a much higher rate than the general population. VA
programs targeted at the homeless are critically important
avenues to reach the multi-faceted problems afflicting this
troubled population.
The Committee recognizes the impact and the importance of
these specialized program areas and recommends an increase of
$5 million and an additional 25 FTEE to support necessary
program initiatives. The Committee also encourages other
committees of Congress with jurisdiction over Federal agencies
with homeless assistance programs to remain cognizant of and
act accordingly on the ``Sense of the Congress'' resolution
contained in The Benefits Improvements Act of 1994, P.L. 103-
446, to ensure that these related homeless assistance programs
make appropriate referral to homeless veterans to VA facilities
for health care, counseling, and related assistance.
State Nursing Home Per Diem Rates
Studies conducted by state agencies and the VA have shown
that state nursing homes are extremely cost-effective; the
fixed per diem cost to VA for state nursing home care is $35,
compared to $215 for VA nursing home care. Given VA's
commitment to expanding its average daily census of nursing
home patients, state homes provide an attractive, cost-
effective way to achieve this goal. The benefits realized by
placing veterans in less expensive state homes gives support to
VA investment in this program. It also offers certain veterans
the opportunity to obtain care in a facility that may be nearer
to their homes and families. The Committee recommends an
additional $2.5 million in support of this program.
Medical Research
Toward the Restoration of ``Current Services'' Level--
Severe budget pressures on overall VA health care have taken
their toll on the VA research budget. Deteriorating research
budgets have shaken the research community's confidence in the
VA as a stable resource that combines clinical practice and
high-quality investigation.
Research is a major component of the VA health care system.
Opportunities to conduct research with direct clinical
application in the VA attract hundreds of the Nation's most
qualified physicians to the system each year. Successful VA
research grant applicants must commit themselves to serving
five-eighths to full-time in VA medical facilities, with a
research focus that will directly benefit veteran patients.
With the recent Administration re-direction of research dollars
to high priority Persian Gulf research programs, VA's research
program will shrink by some 60 projects in fiscal year 1996.
For this reason, the Committee recommends an additional $5
million to allow the program to remain at or near a current
services level.
In Support of Health Services Research Practice
Parameters--The VA research program supports three distinct
areas: medical research, rehabilitation research and
development, and health services research. Of these three,
health services research is the smallest. In order to identify
the myriad of services necessary to provide quality care in
specialty areas, the Committee strongly encourages the Veterans
Health Administration to examine the body of work published by
recognized medical professional groups in the field of practice
parameters. The Committee believes that the use of practice
parameters for specialized services could improve the quality
of care, encourage conformity in the definition of specialized
services, and assure the appropriate utilization of services.
The Committee recommends an additional $1 million for
contractual services from the Agency for Health Care Policy and
Research to develop practice parameters for care of patients
with specialized medical problems.
Medical Construction
The Major Construction Program--In carrying out its multi-
faceted mission, the VA health care system provides care and
treatment through a web of facilities ranging from small
community clinics to complex institutions designed to serve
veterans' specialized health care needs. Much of that
infrastructure consists of older facilities, many of which fail
to meet current expectations of patient privacy, comfort, and
efficient medical practice.
Modest VA construction budgets have for years reflected a
competition among the system's diverse needs for construction
dollars--modernization of aging facilities, expansion of unmet
needs for ambulatory care and nursing home care, and new and
replacement facilities. Available budget dollars have not kept
pace with the system's construction needs.
Given the breadth and extent of those needs and the funding
level available, no single VA construction budget is likely to
succeed in meeting all or even most observers' views regarding
what should constitute the Administration's fiscal plan for
achieving the system's ``highest construction priorities.''
VA's proposed fiscal year 1996 major construction budget can
certainly be seen, however, as an attempt to advance those
needs. It takes important steps toward improving the conditions
under which care is provided at a number of VA's older
facilities which have gone without major construction funding.
It provides modest funding in support of ambulatory care, an
area which won substantial funding support in fiscal year 1995.
While this Committee hopes to continue to foster expansion
of ambulatory care construction, it does not quarrel with
deferring further expansion of that construction priority for
one year in light of the decision to proceed with unique
projects in Florida and Northern California included in the
Committee's construction authorization legislation last
session. In concurring with the need for those projects--unique
in many respects--this Committee does not intend to signal
encouragement for future new or replacement hospitals in other
parts of the country.
State Nursing Home ``Priority 1'' Grants--The state home
program greatly enhances VA's extended care workload capacity.
Under this appropriation, grants are awarded to help states
acquire or construct state domiciliary and nursing homes for
veterans. It also provides grants to assist in expanding,
remodeling or altering existing facilities, including state
home hospital facilities.
The Grants to State Extended Care Facilities are beneficial
not only to the VA, but also to the states. States benefit by
receiving federal money to add nursing home capacity for state
residents who have dual eligibility for VA and state programs
such as Medicaid. Under these grants, states are responsible
for at least 35 percent of nursing home construction costs. The
VA also pays a portion of the per diem costs. States can be
reimbursed through the veteran's Social Security income, which
provides an extra revenue source to help cover state costs of
veteran nursing home care.
Each year the VA receives many more applications for state
nursing home construction grants than it is able to fund. The
Independent Budget has strongly recommended substantial
increases to this appropriation because of its cost-
effectiveness and ability to increase overall nursing home
placements for the VA.
In support of this worthwhile program, the Committee
recommends an additional $9 million to provide funding for all
current applicants able to qualify as ``priority 1'' grants.
VETERANS BENEFITS ADMINISTRATION
Entitlement Programs
Compensation and Dependency and Indemnity Compensation
The Administration requests appropriation of $14.6 billion
to fund payments of service-connected disability compensation,
clothing allowances, and dependency and indemnity compensation
(DIC) during fiscal year 1996.
The only legislative proposal to enhance compensation
benefits for veterans or their survivors is a proposed cost-of-
living adjustment (COLA) which the Administration projects
would be 3.1 percent, at a cost of $340 million in 1996. The
COLA would be effective on December 1, 1995.
Pension
The budget requests appropriation of $3.05 billion to fund
payments of non-service-connected disability pension to needy
wartime veterans during fiscal year 1996. The budget request
includes $84.1 million in fiscal year 1996 for a 3.1 percent
COLA in the indexed non-service-connected pension program,
based on the anticipated change in the Consumer Price Index.
GENERAL OPERATING EXPENSES
Compensation, Pension and Education Services
The Administration's fiscal year 1996 budget calls for
staffing of FTEE in the Compensation, Pension and Education
Services, at a 1996 level of 4,558 FTEE, unchanged from 1995.
The ability of the VA to provide timely and quality
benefits delivery is heavily dependent on a combination of
proper staffing levels, full funding for computer modernization
initiatives, training and retention incentives, and inter-
departmental cooperation between the various VA agencies and
military service departments. The Departments of the Army and
Navy for example, have now agreed to directly transfer
veterans' service medical records immediately upon discharge
from active duty. It should be noted that, in the past,
expectations of the impact of modernization, in terms of
improvements in efficiency, have been overstated. Resulting
productivity cuts in FTEE and funding levels were imposed with
no review of impact on performance. As a result, the necessary
levels of fully trained personnel have not been properly
maintained. In fact, over the past decade the number of trained
personnel in the adjudication division has declined by
approximately 40 percent.
During fiscal year 1994, an average level of 4,558 FTEE
adjudicated approximately 3.4 million claims. During the same
year, 3.29 million claims were received in addition to a
pending workload of 538,000 claims. At the beginning of fiscal
year 1995, approximately 470,000 claims were pending at the VA.
The VA projects that the backlog of claims will decrease during
fiscal year 1996 to 390,000. A major portion of the backlog
reduction was accomplished through overtime amounting to over
$7 million. The Committee appreciates the overtime spent to
reduce the excessive backlog but notes its high cost. While the
Committee supports the VA management's actions in this regard,
it expects future improvements in the claims backlog to be
accomplished through improvements in automation, basic business
practices and regulatory reform.
Over the years, inadequate staffing levels and questionable
mangement practices have played a major role in the decline of
both the quality and timeliness of claims processing. In fiscal
year 1994, the average elapsed time between receipt and
completion of an original compensation claim was 170 days, in
comparison to the VA's goal of 106 days. In each other type of
claim, timeliness has improved, but reductions in FTEE levels
could adversely affect what progress has occurred to date.
At the end of fiscal year 1994, the payment error rate was
2.5 percent. Service errors have remained consistently high. At
the end of fiscal year 1994, this error rate was 3.0 percent.
Notification accuracy reports show a 5.5 percent error rate.
These error rates will likely continue in fiscal years 1995 and
1996.
At a time when the VA's ability to provide timely and high
quality services is crucial, a reduction in FTEE for this
activity is not acceptable. In order to provide sufficient
resources for the VA to maintain current levels of performance,
the Committee recommends an additional 220 FTEE above the
Administration's request. The cost associated with this
recommendation is $18 million. The Committee also recommends an
additional $2 million for a pilot program to demonstrate a
fully automated disability rating and adjudication system,
using artificial intelligence and expert systems.
Support Services
The Administration's fiscal year 1996 budget reduces
Support Services by 159 FTEE. There are three operating
activities within Support Services--administrative, finance,
and personnel. The Administrative activity provides traditional
administrative support to all VBA programs. Of the 188 VBA FTEE
the Administration proposes to cut, this activity would lose
159 FTEE. Administrative support of the benefit programs is an
integral part of the overall mission of providing compensation,
pension, and education benefits to veterans. In view of the
current state of the Compensation, Pension and Education
Services, this proposed reduction is disappointing.
Vocational Rehabilitation and Counseling Program
Established in Chapter 31 of United States Code, Title 38,
the Vocational Rehabilitation and Counseling Program (VR&C)
provides rehabilitation and counseling services for eligible
veterans, servicemembers, and their dependents. VR&C's primary
mission is to provide all services and assistance necessary to
enable service-connected disabled veterans to achieve maximum
independence in daily living and, to the maximum extent
feasible, become employable and obtain and maintain suitable
employment. Additionally, VR&C is authorized to provide
educational and vocational counseling services to eligible
active duty members, veterans, and dependents.
VR&C continues to experience an increase in applications
for Chapter 31 benefits and educational/vocational counseling.
This increase is due, at least in part, to the reduction in
size of the Armed Forces and transition programs designed to
fully inform separating servicemembers about VA benefits. Under
the Transition Assistance Program/Disabled Transition
Assistance Program (TAP/DTAP), counseling and other services
are provided by the Departments of Veterans Affairs, Labor, and
Defense to assist separating servicemembers in their transition
from military service to civilian life. VR&C anticipates that
Chapter 31 trainees will increase to 48,500, a one percent gain
over the fiscal year 1995 level of 48,000. Requests for
educational/vocational counseling are expected to increase to
23,000 in fiscal year 1996, a two percent increase over the
1995 level.
Service-disabled veterans participating in programs of
vocational rehabilitation proceed through a series of steps, or
statuses, as they advance through the rehabilitation process.
Three of these steps provide indicators of service delivery
timeliness by VR&C staff.
Step one, ``Applicant Status'', refers to the average
number of days from the date of receipt of the veteran's
application to the veteran's first appointment with the VR&C
counselor. VR&C's goal is to meet with the veteran no later
than 30 days after receipt of application. Currently, the
average time spent in ``applicant status'' in fiscal year 1996
is estimated to be 70 days. Although this is an unacceptable
waiting period, it is nonetheless a reduction of eight days
from fiscal year 1995.
Step two, ``Evaluation and Planning Status'', refers to the
time during which the veteran participates in a series of
interviews and tests designed to identify individual strengths
and weakness. The veteran then selects a viable vocational goal
and with the VA's assistance, outlines specific services
required to achieve rehabilitation. VR&C's goal for completion
of the assessment activity is 30 days. The VA projects that in
fiscal year 1996, the evaluation status will last 90 days, two
days longer than in fiscal year 1995. Thus, a service-connected
disabled veteran who desires to participate under Chapter 31
will actually begin that program no sooner than five months
after applying for the benefit.
Step 3, ``Employment'', refers to the stage when a veteran
completes the program, which may include training, and is
determined to be ``job ready''. To ensure stability in
employment, the veteran must be able to successfully maintain
this status for a minimum of 60 days after becoming employed.
VR&C's goal is to place the veteran in employment and progress
through the employment maintenance period in a range of 90 to
120 days. However, the VA estimates that the average time spent
in employment status in fiscal year 1996 will be 196 days.
Although this is a disappointing level of timeliness, it is a
reduction of 22 days from fiscal year 1995.
Despite increased VR&C staffing levels last fiscal year,
the number of staff still cannot accommodate the workload.
Accordingly, VR&C has found it necessary to exercise its
authority to use contract counselors. For instance, the
``Pending Counseling Psychologist (CP) Workload'' category is
defined as the number of months necessary to complete all
pending counseling cases. The VR&C goal is four months. For
both fiscal year 1995 and fiscal year 1996, the VA projects the
pending CP workload to be eight months. Vocational
Rehabilitation Specialists (VRS), who work closely with each
veteran throughout the rehabilitation period, are projected to
have an average caseload of 256 in both fiscal year 1995 and
1996. A VRS caseload of 125 is considered optimal and would
enable VRS staff to provide the best possible services to
disabled veterans training under Chapter 31.
Targets established for workloads and timeliness standards
clearly cannot be achieved with current staffing levels, and
the unacceptable quality of service will likely deteriorate
further until FTEE levels are increased. The following table
illustrates staffing, workload, and timeliness trends in VR&C:
----------------------------------------------------------------------------------------------------------------
1996 (est.)
1992 1993 1994 1995 Goal
----------------------------------------------------------------------------------------------------------------
FTEE Field Staff............................... 693 697 679 674 674
Veterans in CH. 31 Programs.................... 36,548 40,701 44,215 48,000 48,500
Avg. Days Applicant Status..................... 74 71 78 78 70 30
Avg. Days Evaluation Status.................... 74 80 87 88 90
Avg. Days Employment Status.................... 243 243 218 218 196 90-120
Avg. Months Pending Counseling Workload........ 7 8 8 8 8
Avg. VRS Caseload.............................. 229 229 242 256 256 125
----------------------------------------------------------------------------------------------------------------
Vocational rehabilitation is cost effective. Fiscal year
1994 data shows that the 4,978 veterans who achieved
rehabilitation had a 415 percent increase in earned income, in
comparison to earnings prior to entering rehabilitation. This
results in significant tax revenues and decreased dependence on
public assistance.
VR&C's only purpose is to serve disabled service-connected
veterans. The Committee cannot understand why the VA does not
accord this program the priority and the resources it clearly
deserves. The Committee rejects the Administrations proposed
reduction of FTEE in fiscal year 1996 from 700 to 699. Instead,
to improve the timeliness of service for disabled veterans in
vocational rehabilitation programs, the Committee recommends an
additional $5 million to fund 100 additional FTEE for a total
of 800 FTEE.
Veterans Services
The President's recommended funding level for the Veterans
Service Program reduces the fiscal year 1995 level of 1996 FTEE
by 2 positions.
Veterans Services (VS) operates through the VA's 58
regional offices, 15 veterans assistance offices, 172 medical
centers, 29 outpatient clinics, and 41 outstations. Veterans,
their dependents, and survivors may visit, write, or call toll-
free for information, advice, and assistance regarding the
availability of benefits under laws administered by the VA and
other agencies. Additionally, VS staff provide outreach to
potential beneficiaries and conduct estate administration
activities and field examinations for beneficiaries whose
benefits are paid to fiduciaries.
In fiscal year 1994, VS had 11.4 million public assistance
contacts, 9.1 million of which were telephone interviews.
Additionally, VS staff conducted over 79,000 field
examinations, 27,653 fiduciary account audits, and 2,772 school
compliance surveys. Fiscal year 1995 estimates predict 10.9
million public assistance contacts while fiscal year 1996
estimates project public assistance contacts numbering 10.9
million. It should be noted that past budget estimates have
often been lower than subsequent actual numbers. Accordingly,
the Committee concluded that initial workload estimates are
driven by available FTEE rather than by objective expectations
of contacts.
The telephone service program is the primary method for
public access to information. Telephone interviews provide the
largest volume of contact and the lowest cost per contact. 800-
service lines permit callers outside the local dialing area to
access benefit information and assistance for the cost of a
local call. To provide a uniform level of service and equal
public access to information nationwide, an acceptable grade of
service (not more than 10 percent blockage) and an acceptable
quality level for timeliness (not to exceed 10 percent
abandonment) were established by the VA.
Traffic studies data in 1993 for 800-service lines, which
is available for 57 stations served by the 800 toll-free
network and 27 stations served by local telephone companies,
shows, however, that VS staff are unable to meet the VA's grade
and quality service goals. The average blocked call rate was an
astounding 62 percent. The VA expects the blocked call rate to
reach 70 percent in 1996. These studies clearly demonstrate
that, because of inadequate telephone service resulting from
insufficient equipment and staff, significant numbers of
veterans seeking information and assistance are not receiving
the service to which they are entitled.
Frequently, a telephone call is the veteran's only contact
with the VA and is the basis for the veteran's judgment about
the quality of VA services. The blocked call rate is in
conflict with the VA's announced customer service standards.
The Committee finds this situation disturbing and expects the
VA to take whatever administrative steps are necessary to
reduce the blocked call rate to an acceptable level.
The downsizing of the Armed Forces continues to generate
increased requests for information and assistance.
Additionally, issues which receive wide press coverage, such as
reports of radiation testing during the 1940s, '50s, and '60s
and concerns regarding possible illnesses related to service in
the Persian Gulf, result in significantly increased telephone
inquiries. In spite of this, recent statistics show a decline
in the number of telephone interviews conducted. Fiscal year
1994 statistics show that 9.1 million phone interviews were
conducted. Fiscal year 1995 and 1996 estimates project that 8.7
million telephone interviews will be conducted. These
reductions in contact demonstrate that without adequate
staffing and equipment, the VS cannot meet customer service
goals.
It is important to point out that VS staff are also an
integral part of the Transition Assistance Program (TAP) and
the Army Career Awareness Program (ACAP). These programs are
designed to provide transition assistance to military personnel
separating from the Armed Forces. In 1994, over 307,411
servicemembers participated in more than 7,415 group briefings
conducted by VS staff at military installations. In addition,
more than 115,000 personal interviews were conducted with
servicemembers nearing separation. If adequate funding is not
provided to continue TAP, reduced staffing for other VS
programs will result in order to operate the high priority
military outreach services programs.
The VA is legislatively required to provide outreach
services. Because Veterans Services (VS) is the primary agent
for outreach, adequate staffing and funding is essential. The
implementation of the Administration's recommended reduction in
FTEE would result in an increase in the current high level of
unmet needs and demand for basic assistance in obtaining
benefits. Accordingly, the Committee recommends an additional
$5 million to improve the telephone system.
The Committee notes that the President's budget comments on
the effect of removing the field examiners' exemption from
overtime pay requirements of the Fair Labor Standards Act.
Because of this exemption, budget documents state that less VA-
to-veteran outreach will be possible due to the inability to
work with outreach clients after normal working hours. The
Committee believes that the VA should consider whether
administrative adjustments are possible to overcome this
problem.
Loan Guaranty Program
The VA expects the number of home loan guarantees to
decrease slightly during fiscal year 1995. This follows a 57
percent increase in program activity in fiscal year 1994 and a
44 percent increase in fiscal year 1993. The increased activity
during those years reflected lower mortgage interest rates, the
extension of VA home loan eligibility to Selected Component
Reservists, and renewed borrower interest in refinancing
existing loans. However, VA statistics for the first quarter of
fiscal year 1995, indicate a modest trend toward decreasing
activity. During this quarter, the VA guaranteed 83,000 loans.
For fiscal year 1994, 602,244 loans were guaranteed and for
fiscal year 1993, 383,303 loans were guaranteed. This
anticipated decline in activity is largely attributable to an
expected downturn in refinancing activity in fiscal years 1995
and 1996. Fiscal year 1996 workload estimates do, however,
indicate an increase in construction and valuation activity and
loan processing. Defaults, foreclosures, and related property
management activity are projected to decrease.
Although an increase from the fiscal year 1994 FTEE level
of 2,004 to a fiscal year 1995 level of 2,042 had been
projected, the VA's revised estimate shows an FTEE level of
1,938 in fiscal year 1995. This is a reduction of 66 FTEE from
the fiscal year 1994 level and a reduction of 107 FTEE from the
original fiscal year 1995 estimated level. The President's
budget request for fiscal year 1996 includes a recommendation
to further reduce Loan Guaranty staffing by 3 FTEE to 1,935.
Although statistics demonstrate that quality and timeliness of
the delivery of veterans' housing benefits have been good to
excellent, the VA must carefully monitor the effect of any
additional personnel cuts to ensure that the high quality of
service delivery is not compromised.
The Committee strongly believes the VA has an obligation to
assist veteran homeowners avoid foreclosure whenever possible
and retain the benefits of home ownership. VA Regional Office
staff located throughout the country have several loan
servicing options available to assist veteran borrowers,
including the ability to intervene with the lender on behalf of
the veteran to work out a realistic repayment plan to reinstate
the loan. Timely and intensive outreach and loan servicing can
be an effective way to assist loan guaranty program
participants to avoid foreclosure. In addition to assisting
veteran borrowers avoid foreclosure, savings totalling more
than $200 million have been realized over the last three years
from loan servicing efforts.
Currently, each loan service representative is responsible
for an average of 19 successful interventions, 6.1 refunded
loans and 7.7 pre-foreclosure sales each year. This saves the
Government approximately $304,000 per loan service
representative. The loss of any staff costs the Government
millions of dollars in additional claim payments and will
likely result in more property acquisitions.
The VA has achieved a dramatic reduction in its inventory
of properties held for six months or more from 10,472 in 1987
to 3,635 in 1994. The VA has also achieved a decrease in the
average time a property is held from 6.9 months in 1987 to 5.7
months in 1993. This has reduced the average loss per property,
the difference between the acquisition cost and resale price,
from $4,635 in 1987 to a gain of $1,892 in fiscal year 1994.
The VA's property management section has been highly successful
in reducing both inventory and the average time properties are
held pending resale, while increasing the amount of capital
investment recovered through resales. The combination of
staffing reductions with increased property acquisitions could
reverse these favorable trends. Therefore, the Committee
supports the Administration's request.
Insurance Programs
Veterans insurance programs provided $25.8 billion in
coverage to 2.5 million veterans in 1994. Of the VA
administered insurance programs, Serviceman's Group Life
Insurance (SGLI), Veterans' Group Life Insurance (VGLI),
Service-Disabled Veterans Insurance (SDVI) and Veterans
Mortgage Life Insurance (VMLI) remain open to new issues. SGLI
and VGLI alone account for 3.2 million policies valued at $481
million. The VA's insurance programs remain among its most
trouble-free. The Committee concurs with the administration
request of 435 FTEE and $1.358 million in budget and
reimbursement authority for 1996.
Board of Veterans' Appeals
The Administration budget requests an average level of 477
FTEE and $33,065,000 in support of the operation of the Board
of Veterans' Appeals (BVA). This reflects an increase of 28
FTEE and $4,096,000 for fiscal year 1996. The increase is due
to a number of initiatives, both managerial and legislative,
which have been developed in the past year to help address the
Board's growing appeals backlog and deteriorating timeliness.
Managerial measures included the implementation of new
performance measurement standards for all BVA counsel,
limitations on production of certified evidence lists, revised
BVA decision formats, revised case docketing procedures,
institution of a temporary hearing moratorium, and continued
enhancement of automation.
Legislative initiatives have included enactment of P.L.
103-271 to provide for single Board member decision-making, and
P.L. 103-446 to restore equity between salaries of Board
members and Social Security administrative law judges. P.L.
103-446 also provided for the establishment of performance
standards for Board members and gave the Board authority to
pre-screen appeals so that deficiencies in case records can be
rectified earlier in the appellate process. These public laws
have provided a new statutory framework for Board operations.
During fiscal year 1995, the Board expects to implement an
organizational realignment on the basis of this new framework
that should produce further productivity improvements.
During the first half of fiscal year 1994, 55 percent of
all appeals to the BVA were being remanded to the regional
offices for readjudication. At the end of fiscal year 1994, the
remand rate was 48.3 percent. In fiscal year 1994, the BVA
reversed 17.5 percent of the cases it received.
During fiscal year 1995 an average employment level of 449
FTEE is expected to support the Board's operations. During
fiscal year 1994, this level was 442. During fiscal year 1994,
the BVA received 35,465 appeals, in addition to 33,728 appeals
which were pending at the beginning of the fiscal year. In
fiscal year 1994, 22,045 appeals were decided by the BVA (down
from 26,400 in fiscal year 1993), resulting in 47,148 pending
appeals at the beginning of fiscal year 1995.
In recent years, the average BVA response time for issuing
appellate decisions has increased dramatically. In fiscal year
1992, the average BVA response time was 240 days; in fiscal
year 1993, it was 466 days; and at the end of fiscal year 1994,
it was 781 days. The Board projects that by the end of fiscal
year 1995, the response time will decrease to 745 days, and by
the end of fiscal year 1996, that level is estimated at 642
days. Further projections include 28,000 appellate decisions in
fiscal year 1995. In fiscal year 1996, the BVA anticipates an
appellate decision production increase to 33,600 with an
improvement in BVA response time of more than 100 days.
BVA decision production for the first four months of fiscal
year 1995 improved by over 100 percent in comparison to the
same period one year earlier as a combined result of the
managerial and legislative initiatives described above. Despite
this improvement, BVA's backlog of appeals continues to grow
and projected waiting times for decisions on appeals are still
too long. The Committee will carefully monitor whether
additional resources are required before the VA's appellate
timeliness problems can be solved. The Committee concurs in the
Administration's budget request for the Board.
U.S. Court of Veterans Appeals
The U.S. Court of Veterans Appeals budget for fiscal year
1996 requests $9,142,000 for Court personnel and operational
requirements, and $678,000 for its Pro Bono Representation
Program. This request includes funding for 82 FTEEs, which
represents a reduction of one (1) FTEE from the fiscal year
1995 authorized level. The Court has reduced staffing by
approximately 6 percent since fiscal year 1993, when it had 87
FTEE.
The Veterans' Judicial Review Act, P. L. No. 100-687,
(1988), established the U.S. Court of Veterans Appeals as an
executive branch court. The Court is empowered to review
decisions of the Board of Veterans' Appeals and may affirm,
vacate, reverse or remand such decisions as appropriate. The
Court has the authority to decide all relevant questions of
law, to interpret constitutional, statutory, and regulatory
provisions, and to determine the meaning or applicability of
the terms of an action by the Secretary of Veterans Affairs.
The Court also has the authority to compel actions of the
Secretary that are found to have been unlawfully withheld or
unreasonably delayed.
Appeals to the Court come from the pool of cases in which
the BVA has denied some or all of the benefits sought by the
claimants. That appellant pool has decreased in size since
fiscal year 1990 because the BVA has issued fewer decisions in
recent years. The number of decisions has steadily declined
from 46,556 decisions in fiscal year 1990 to 22,045 in fiscal
year 1994. Furthermore, for the fiscal years 1992, 1993, and
1994, nearly half of the BVA's cases have been remanded to
regional offices for additional work before they are decided.
The substantial changes in the BVA's adjudication process
and its realignment also affect the Court's caseload. The Court
cites P.L. No. 103-271 (1994), which permits single-member
decisions on appeals to the BVA and the BVA Chairman's
estimation of at least a 10 percent increase in productivity,
as measures which are likely to increase its caseload.
Consequently, the Court maintains that it is unable to
accurately predict the fiscal year 1996 caseload or other
statistical data. In fiscal year 1994, the Court decided 1,264
cases and reduced its pending caseload from 1,286 at the end of
1993 to 1,152 at the end of 1994. The Court contends that the
complexity of its caseload and case-related procedural work has
more impact on the Court's staffing needs than the size of the
caseload. Moreover, the Court projects an increase in caseload
as the result of recent developments such as the U.S. Supreme
Court decision in Brown v. Gardner, 115 S. Ct. 552 (1994), and
new authority for compensation of Persian Gulf War veterans.
The Court also noted in its budget request that the Legal
Services Corporation (LSC) has included in its budget request
the amount of $339,000 for the Pro Bono Representation Program.
If LSC's request is approved, the Committee would support the
split funding for the Program.
Finally, the Committee is concerned that while the number
of appeals filed with the Court has decreased slightly from
1,265 in fiscal year 1993 to 1,131 in fiscal year 1994, the Pro
Bono Representation Program's case screening cost per veteran
has increased by 74 percent from $605.74 per case in fiscal
year 1993 to $1056 per case in fiscal year 1994. The Committee
plans to carefully monitor the Court's workload and the cost
effectiveness of the Pro Bono Representation Program's
screening process. The Committee supports the Court's budget
request.
National Cemetery System
A total of 147 cemeterial installations located in 39
States, the District of Columbia and Puerto Rico, currently
comprise the National Cemetery System (NCS). Since the system's
establishment within the VA in 1973, approximately 1,086,000
decedents have been interred in national cemeteries and
approximately 5.9 million headstones and markers have been
furnished.
In fiscal year 1995, the VA expects to inter the remains of
70,319 veterans, active duty servicemembers and dependents in
national cemeteries. In fiscal year 1996, the VA estimates
72,224 interments. The VA expects to process 346,000
gravemarker applications in fiscal year 1995 and 340,000
applications are projected for fiscal year 1996.
Operating Account
Requested funding for fiscal year 1996 is $75.4 million
with an estimated 1,340 FTEE available to operate the National
Cemetery System. According to Independent Budget
projections, to keep pace with workload increases, maintenance
and repair projects, uncontrollable miscellaneous expenses, and
inflation in fiscal year 1996, a budget baseline of $82 million
and 1,370 FTEE would be necessary.
The VA estimates that staffing shortages of over 244 wage
grade FTEE and 41 general schedule FTEE exist in fiscal year
1996 based on VA-approved methodologies. With this staffing
shortage, priority is given to timely burial. Enhancements of
cemetery appearance, such as filling in graves after rains,
raising and re-aligning headstones, mowing and trimming,
painting and upkeep of equipment become second in priority. In
addition, funding for maintenance and repair of the National
Cemetery System's approximately 400 buildings and 100 miles of
roads to maintain the infrastructure of the national cemetery
system remains a critical issue.
With available funding in fiscal year 1996, the backlog for
essential operating equipment will increase to $7.7 million.
The NCS equipment inventory totals more than 8,000 pieces of
equipment with an estimated value of $23 million. Through an
extensive maintenance program, this equipment's longevity has
been extended an average of 5 years beyond its scheduled
replacement date. However, in many instances, it is no longer
economical to maintain the equipment. The Committee supports
the Administration's request but recommends the addition of $1
million for equipment replacement, and $600,000 for additional
supplies and materials.
Construction
The VA's construction needs for new and existing cemeteries
are addressed through the Major and Minor Construction
appropriations. NCS has focused construction planning on 1)
providing new cemeteries in areas of the country with the
greatest veteran population unserved; 2) extending the life of
existing cemeteries through grave site development; and 3)
repairing and maintaining the infrastructure of the system. The
Major Construction budget for fiscal year 1995 was $5.6 million
to expand the existing Florida National Cemetery. No new
cemetery construction is proposed in fiscal year 1996.
In a 1987 Report to Congress and again in 1994, the VA
identified the need to open 10 new cemetery sites. One of these
ten sites, San Joaquin Valley National Cemetery, opened in June
1992, while a second, located in Seattle, Washington, was
funded in the fiscal year 1995 budget. To date, four of the
remaining eight cemetery sites are further along than the
others. Dallas received design funds in fiscal year 1995 and
property has been purchased for the Albany site. Chicago and
Cleveland still require both design and construction funds, if
progress is to continue.
Minor Construction projects are those costing less than $3
million. This permits each VA organizational element to
prioritize and determine how best to spend these limited
resources. For the next five years, NCS has identified $90
million in minor construction projects system-wide, although
NCS has budgeted only $9.5 million for these projects in fiscal
year 1996.
NCS' minor construction program is an on-going, recurring
effort to maintain national cemeteries at a level befitting
their stature as national shrines. A more consistent level of
minor construction funding approaching $20 million, would
prevent further reallocations of limited minor construction
funds within the VA and permit NCS to meet its minor
construction project needs.
Nationally, the number of interments will continue to
increase to another annual record of 72,224 per year in fiscal
year 1996, a 55 percent increase over the fiscal year 1984
level. Similarly, the number of grave sites maintained is
estimated to reach 2,147,588 by fiscal year 1996, a 35 percent
increase over the fiscal year 1984 level. During this same
period, wage grade FTEE will have increased by 3 percent.
Because the increase in workload is unmatched by FTEE
increases, NCS is continuing to lose ground with its increased
workload.
Failure to fund NCS at a reasonable level will only
exacerbate future staffing deficiencies and cause additional
delays in equipment backlogs at a time when the number of
interments in the National Cemetery System are projected to
drastically increase due to an aging veteran population.
Therefore, the Committee recommends an additional $1 million to
fund 25 additional FTEE, or a similar amount in additional
contracting authority.
State Veterans' Cemetery Grant Program
The State Veterans' Cemetery Grant Program makes grants
available to assist the states to establish, expand, or improve
state-owned veterans' cemeteries. The State Cemetery Grant
Program is funded at $1 million for fiscal year 1996. Since its
establishment in 1980, a total of $40.331 million has been
obligated through fiscal year 1994. More than 74 grants have
been awarded to 18 states and Guam. The Committee supports the
President's request.
Department of Labor
VETERANS' EMPLOYMENT AND TRAINING SERVICE
Congress has determined that our nation has a
responsibility to meet the employment and training needs of
veterans. In order to meet those needs, the Secretary of Labor
is required to effectively and vigorously implement policies
and programs which increase opportunities for veterans to
obtain employment, job training, counseling, and job placement
services. Such implementation is accomplished through the
Assistant Secretary of Labor for Veterans' Employment and
Training (ASVET). The ASVET is the principal advisor to the
Secretary of Labor with respect to the formulation and
implementation of all departmental policies and procedures
which affect veterans.
DISABLED VETERANS' OUTREACH PROGRAM
The Disabled Veterans' Outreach Program (DVOP) was
established by Congress to provide intensive employment and
training services to service-connected disabled veterans and
other veterans in need of job search and placement assistance.
DVOPs serve as workshop facilitators for the Transition
Assistance Program (TAP), a 3-day program that provides
transition counseling, job-search training and information,
placement assistance, and other information and services to
servicemembers who are within 180 days of separation from
active duty. DVOPs develop job and job-training opportunities
for veterans through contacts with employers. And, further,
DVOPs provide assistance to community-based organizations and
grantees who provide services to veterans under other federal
and federally-funded employment and training programs, such as
JTPA and the Stewart McKinney Act program for homeless
veterans.
Under Section 4103A, Title 38, United States Code, the
Secretary of Labor is clearly required to annually make
available for use in each State sufficient funds to support the
appointment of one DVOP specialist for each of the 6,900
veterans residing in the State who are either veterans of the
Vietnam era, veterans who entered active duty as a member of
the Armed Forces after May 7, 1975, or service-disabled
veterans. This formula provides an indicator of anticipated
workload and the number of DVOPs required to provide an
acceptable level of service to veterans seeking employment
assistance. DVOPs are located in employment service offices and
outstation sites such as Department of Veterans Affairs
regional offices and Vet Centers.
The Administration's budget includes a request of $83.6
million for the DVOP program which would support 1,705 DVOPs.
To meet the congressionally-mandated staffing level of 1,999
DVOPs in fiscal year 1996, $98.1 million is required. This
increased number of DVOP staff would facilitate the
continuation of TAP services without reducing services provided
to veterans in local employment service offices. Accordingly,
the Committee recommends that the Department of Labor be
provided an additional $14.5 million over the level recommended
by the Administration to fund an additional 294 DVOP positions,
for a total of $98.1 million.
LOCAL VETERANS' EMPLOYMENT REPRESENTATIVES
The Local Veterans' Employment Representative (LVER)
program was established to functionally supervise the provision
of job counseling, testing, job development, referral, and
placement to veterans in local employment services offices.
LVERs participate in TAP workshops and maintain regular contact
with community leaders, employers, labor unions, training
programs, and veterans service organizations in order to keep
them advised of eligible veterans available for employment and
training. LVERs also provide labor exchange information to
veterans and promote and monitor participation of veterans in
federally-funded employment and training programs. Finally,
LVERs monitor the listing of jobs by federal contractors and
subsequent referrals of qualified veterans to these employment
openings, refer eligible veterans to training, supportive
services, and educational opportunities, and assist, through
automated data processing, in securing and maintaining current
information regarding available employment and training
opportunities.
Section 4104(a)(1), Title 38, United States Code, mandates
that the Secretary of Labor make available funding to support
the appointment of at least 1,600 full-time LVERs and the
states' administrative expenses associated with the appointment
of that number of LVERs.
The President's budget includes a request of $77.6 million
to support 1,441 LVERs in fiscal year 1996. In order to meet
the congressionally-mandated LVER staffing level, the Committee
recommends that the Department of Labor be provided an
additional $8.6 million over the level recommended by the
Administration, to fund 159 additional FTEE, for a total of
$86.2 million.
Legislative Proposals and Omnibus Budget Reconciliation Act Extensions
BENEFITS PROGRAMS PROPOSALS
The Committee does not oppose several of the President's
legislative proposals to extend expiring provisions of the
Omnibus Reconciliation Act of 1993. They are extension of the
$90 per month limit on pension benefits to beneficiaries in
Medicaid funded nursing homes, the Internal Revenue Service and
Social Security Administration income records matching for
pension beneficiaries, the two percent fee on no down payment
housing loans, the VA's revised net value calculation for
property resale, and the three percent fee for multiple use
home loans with less than five percent down.
The Committee also does not oppose the President's new
legislative proposal of a two percent fee and 10 percent down
payment on manufactured home loans and will examine the
restrictions on collection of loan guarantee debts.
MONTGOMERY GI BILL
The Committee is disappointed that the Administration's
budget includes a proposal to reduce the Montgomery GI Bill
COLA by one-half, effective October 1, 1995, and to continue
this reduction for five years.
The current level of education benefits earned by members
of our Armed Forces is too low. The average annual cost for
tuition, room, and board at a public four-year college this
year is over $6,000, while private institutions average over
$16,000. The $14,575 basic benefit earned by those who agree to
serve at least three years on active military duty obviously
does not cover the costs of schooling. Accordingly, the
Committee does not wish to see further reduction of the buying
power of this earned benefit.
Additionally, the Committee believes this proposal is
inappropriate because the Administration's budget includes
funding increases for Pell Grants, Perkins Loans, and the
National Service program. In contrast, education benefits
earned by those who volunteer to serve in our nation's armed
services would be reduced. Educational assistance benefits
earned through military service should not be reduced while
education benefits for those who do not serve are increased.
The Committee does not support a one-half COLA and recommends
an additional $12.6 million to fund a full 3.1 percent COLA.
DISABILITY COMPENSATION AND DIC ROUND DOWN
Payments to disabled veterans and dependents of deceased
disabled veterans were rounded down in fiscal year 1995 to fund
disability compensation for Persian Gulf War veterans.
Acceptance of the President's recommendation to extend the
rounding down at the present time could result in the unfair
treatment of veterans in comparison to other COLA recipients.
Therefore, the Committee recommends an additional $29.5 million
to fund a full COLA payment to those recipients for fiscal year
1996.
REPORT TO THE COMMITTEE ON THE BUDGET FROM THE COMMITTEE ON VETERANS'
AFFAIRS ON THE BUDGET PROPOSED FOR FISCAL YEAR 1997, SUBMITTED ON MARCH
18, 1996
SUMMARY TABLE:
ESTIMATES OF COMMITTEE ON VETERANS' AFFAIRS
FOR FISCAL YEAR 1997 BUDGET
[$ in millions]
----------------------------------------------------------------------------------------------------------------
Change
FY 1995 FY 1996 FY 1997 (Estimates
Department of Veterans Affairs Enacted Conference Committee minus
Action Estimates Conference)
----------------------------------------------------------------------------------------------------------------
Veterans Benefits Administration
Compensation and Pensions................................. $17,627 a $18,331 $18,845 $514
Readjustment Benefits..................................... 1,287 1,345 1,382 37
Housing Programs.......................................... 675 645 645 0
All Others................................................ 26 25 26 1
---------------------------------------------------
Total, Veterans Benefits.................................. 19,616 a 20,346 20,898 552
Veterans Health Administration:
Medical Care.............................................. 16,165 16,564 17,069 505
Medical & Prosthetic Research............................. 252 257 267 10
MAMOE..................................................... 70 64 66 2
Health Professional Scholarship........................... 10 0 10 10
---------------------------------------------------
Total, VHA................................................ 16,497 16,885 17,412 527
Departmental Administration
Construction, Major Projects.............................. 354 136 315 179
Construction, Minor Projects.............................. 153 190 200 10
Grants & Parking.......................................... 69 48 51 3
---------------------------------------------------
Subtotal Construction................................. 576 374 566 192
General Operating Expenses................................
VBA..................................................... 676 666 684 18
General Administration.................................. 214 214 217 3
---------------------------------------------------
Subtotal GOE.......................................... 890 880 901 21
National Cemetery System.................................. 73 73 80 7
Office of Inspector General............................... 32 31 32 1
---------------------------------------------------
Subtotal NCS and OIG.................................. 105 104 112 8
---------------------------------------------------
Total, Departmental Administration........................ 1,571 1,358 1,579 221
---------------------------------------------------
Total, Department of Veterans Affairs....................... $37,684 a $38,589 $39,889 $1,300
===================================================
----------------------------------------------------------------------------------------------------------------
a Reflects $681.6 million supplemental appropriation for compensation benefits mainly due to COLA increase
(Public Law 104-57).
BACKGROUND AND COMMITTEE RECOMMENDATIONS
Department of Veterans Affairs
VETERANS HEALTH ADMINISTRATION
The Committee begins its consideration of a fiscal year
1997 budget for medical care at a time that VA medical care
funding for the duration of fiscal year 1996 is not yet
assured.
Veterans' Medical Care
Despite funding uncertainties, the VA health care system is
undergoing a strategic redirection. Changes are occurring at
all levels, ranging from reorganization of its ``headquarters''
and regional offices to a far-reaching decentralization. An
organization which has long attempted to be a hierarchical,
centralized system of decision-making and operations is being
transformed into a more functionally integrated and
decentralized management entity. Re-engineering principles have
been applied to identified patient referral networks resulting
in the management consolidation of 17 VA medical centers. The
transformation is not simply organizational. It is changing the
way the VA delivers health care to veterans.
An illustration of the Department's emphasis upon improved
service-delivery is its expansion of ambulatory care through
the use of primary care teams. The VA estimates that nearly 45
percent of its patients have been assigned to primary care
teams and aspires to 100 percent assignment of patients as a
goal for fiscal year 1997. This can be accomplished through the
expansion of telephone triaging systems and through the
expanded use of primary care providers which would include
greater reliance upon family practice physicians, nurse
practitioners, physician assistants and other health care
extenders. The pace of change to expanded ambulatory care will
differ among VA facilities due to facility missions, patient
population, geographic location and availability of trained
ambulatory care providers, but the Committee is encouraged to
learn that the VA will attempt to meet this goal to have all of
its patients assigned to primary care services by the end of
this calendar year.
Mirroring changing practice patterns in the community,
ambulatory care has become increasingly important in VA health
care delivery. Since 1985, VA outpatient visits have increased
40 percent, from 19.6 million to 27.5 million. During the same
period, the VA has reduced the number of hospital beds it
operates by 35 percent, from 78,357 to 50,788 and hospital
discharges have dropped during that period from more than 1
million to just under 874,000. Although the VA has made
significant progress in this area, it should consider
opportunities for further bed closures, where possible.
As the VA moves toward managed care, these principles
should also be applied to behavioral sciences programs and the
delivery of mental health care. The VA should promote greater
reliance upon outpatient care and look toward reduction of
lengths of stay for certain psychiatric diagnoses, where
appropriate.
The newly implemented network structure, the Veterans
Integrated Service Network (VISN), should provide the VA with a
blueprint for further streamlining and improved service-
delivery. The VA's new networks are expected to be agents of
change, replacing the individual medical center as the basic
budgetary and planning unit of health delivery and function.
The challenge is to manage that change so ``restructuring''
efforts do not compromise patient care. It is the Committee's
view that medical care funding should continue at a level in
fiscal year 1997 which allows the VA to continue its shift
toward less costly and more efficient ambulatory care while
maintaining the quality of care it delivers to eligible
veterans. A substantial increase in funding above the level of
the fiscal year 1996 conference report is needed, however, to
enable the VA to make the positive changes needed to ensure the
integrity of the VA health care system for current and future
veteran patients. The Committee recommends a Medical Care
funding level for fiscal year 1997 of $17 billion, $500 million
above the conference report level.
The VA has instituted substantial change even as it has
reduced medical care staffing. Since 1993, the VA has reduced
that staffing by some seven thousand positions. At the same
time as the VA has been closing hospital wards and increasing
its capacity to provide ambulatory care, the health care
profile of the veteran population is changing. The veteran
population is rapidly aging and declining. From 1996 until
2000, the number of veterans who are 65 and older will increase
3.3 percent, from 9 million to 9.3 million and the number who
are 85 and older will increase 63 percent from 259,000 to
422,000. However, during this period the total number of
veterans will decline from 26 million to 24 million.
Older veterans require more care and care that is more
costly. While the VA has taken important steps to expand its
ambulatory care capacity to treat its patients, the VA has not
aggressively expanded programs needed by elderly, chronically
ill populations, particularly programs which represent
alternatives to institutionalization.
In addition to VA's important role in serving a growing
population of aging veterans, the Congress has increasingly
looked to the VA to respond to the large numbers of veterans
among the nation's homeless. To illustrate the scope of that
problem, a national survey conducted by the Department and
published last month shows that of the more than 29,700
veterans hospitalized on September 30, 1995 by the VA, 6,880
(23 percent) had been homeless at the time of their hospital
admission; of those, 4,164 (14 percent) resided in shelters,
the streets, or similar circumstances, and the remainder were
temporarily ``doubled up'' with family or friends. Among the
heralded homeless programs the VA has mounted or administered
since 1987, there has been considerable community interest in
and support for a grant program authorized by Congress in
Public Law 102-590. Competitive grant awards (and per diem
payments to grantees) under that initiative enable public,
nonprofit and private organizations to establish new programs
targeted to treatment, rehabilitation or other assistance for
homeless veterans. The Committee recommends that an additional
$5 million be dedicated to this grant and per diem program.
The Congress has expected much from the VA health care
system. The VA, in turn, must be given resources sufficient to
meet its many responsibilities. The imperative of reaching a
balanced budget lends weight to the importance of continued
efforts to streamline and reduce unnecessary expenditures.
Eligible veterans are owed, at least, a continuation of the
level of services the VA has been providing them. (In that
regard, the Committee continues to place a high priority on the
enactment of legislation to reform provisions of law governing
eligibility for VA care.) At the same time the Committee
expects further system adjustments to remedy the relative
imbalance in resource distribution among VA health care
facilities. This maldistribution of resources was highlighted
in a February 1996 GAO report, Facilities' Resource Allocations
Could Be More Equitable.
Medical Research
Research has been a major component of the VA health care
system. Opportunities to conduct research with direct clinical
application have attracted exceptional physicians to VA
employment each year. Successful VA research grant applicants
must commit themselves to serving five-eighths to full-time in
VA medical facilities, with a research focus that will directly
benefit veteran patients. However, budget levels which fail to
keep pace with the increased costs of conducting research
effectively shrink the number of new research proposals which
can be funded, regardless of scientific merit. Funding
uncertainties have shaken the confidence of clinician-
researchers in the VA as a stable environment in which to
combine a clinical practice with high-quality investigation.
The potential loss of, or inability to recruit, such physician-
researchers would be felt in the quality of care the VA
delivers.
The VA research program is not only valuable to the VA, but
is also unique in its ability to leverage its funding support
several-fold. VA researchers have historically competed very
successfully for grant support from other funding sources,
ranging from the National Institutes of Health to drug
companies. If real spending power for VA research were to
decline (as would occur, for example, simply in freezing an
existing spending level), the VA could lose several times that
amount and with it the augmented care afforded veteran-
patients.
The Committee believes research initiatives directed toward
patient-centered clinical research, cooperative studies
utilizing combined therapies for the treatment of AIDS, and an
increased focus on outcomes research are areas that not only
will benefit veterans but could have wide application to
provision of cost-effective care in both the public and private
health arenas. The VA, because of its aging and special
populations, should also consider in its overall research
efforts the evaluation of emerging technologies in the field of
cancer research such as radioimmunodetection (RAID) and
radioimmunotherapy (RAIT).
In light of budgetary constraints, the Committee looks
forward to the recommendations of the recently established VA
Research Realignment Advisory Committee which has been charged
with conducting a comprehensive review of the veteran research
program. For these reasons, the Committee recommends for fiscal
year 1997 an additional $10 million above the fiscal year 1996
conference report level of $257 million to allow the program to
remain at or near a current services level.
Major Medical Construction
In carrying out its multi-faceted mission, the VA provides
care and treatment through networks of facilities which range
from small community clinics to complex institutions designed
to serve veterans' specialized health care needs. Much of its
infrastructure consists of older facilities, many of which fail
to meet current expectations of patient privacy, comfort and
efficient medical practice.
Modest budgets for major VA construction have for years
reflected a competition among the system's diverse needs for
construction dollars--modernization of aging facilities,
expansion of unmet needs for ambulatory care and nursing home
care and new and replacement facilities. Available budget
dollars have not kept pace with the system's construction
needs, but the Committee believes that VA construction planning
should be strengthened and integrated with VISN planning and
operations. The Committee continues to support legislation
which, in the case of projects that would expand ambulatory
care capacity, would raise from $3 million to $5 million the
current limit on a minor construction project. Given the
importance of ambulatory care projects and other facility
renovations, the Committee recommends a minor construction
level of $200 million.
The Major Construction budget should receive funding at a
level which would allow the Department to address the most
serious needs, especially projects which improve ambulatory
care capacity, upgrade patient environment, and remedy seismic
problems. Thus, the Committee recommends a major construction
funding level of $300 million.
Looking beyond fiscal year 1997, as the VA moves
increasingly into managed care and away from bed based care,
the Committee expects the VISN Directors to play a pivotal role
in the development of strategic plans to address the future
construction planning needs of the system. This should be
accomplished for the fiscal year 1998 Construction Budget.
In highlighting the role of construction funding in
assuring the provision of needed care to veterans, the
Committee underscores as well the importance of the State home
construction program. In providing construction funding for up
to 65 percent of the cost of high-priority projects, VA grant
support helps assure that the States can be effective partners
in providing critically needed long-term care capacity for our
nation's aging veterans. The Committee recommends $50 million
in funding for this program.
VETERANS BENEFITS ADMINISTRATION
The Veterans Benefits Administration (VBA), which processes
benefit claims and assists veterans in obtaining benefits, is
currently beginning a restructuring program to streamline its
operations. The VBA estimates savings will amount to 470 FTEE
and $60 million over six years. The Committee encourages those
efforts.
Entitlement Programs
Compensation and Dependency and Indemnity Compensation.--
The Committee supports a cost-of-living adjustment (COLA) for
compensation and Dependency and Indemnity Compensation
recipients based on the COLA calculation for Social Security
recipients.
Compensation & Pension Service.--The ability of the VA to
provide timely and quality benefits delivery is heavily
dependent on a combination of proper staffing levels, full
funding for computer modernization initiatives, training and
retention incentives, and inter-departmental cooperation
between the various VA agencies and military service
departments. Over the past decade the number of trained
personnel in the adjudication division has declined by
approximately 40 percent.
The VA is making progress in the direct acquisition of
service records from the Armed Forces immediately following
separation. The computer modernization project has been subject
to significant internal and external scrutiny and the Committee
is hopeful that progress will continue. However, the Committee
remains concerned about the VA's ability to procure and
modernize its benefits information management system without
significant outside assistance. The Committee is also concerned
about the VA's management structure which does not have the
effect of placing overall authority for all the VA computer
programs in one individual. The VA has yet to demonstrate that
internal changes will ensure modernization is pursued in an
efficient and effective manner and in a way that will ensure
maximum interface between VBA and VHA information systems.
Without a significant improvement in communications, the
benefits delivery system will not operate efficiently.
During fiscal year 1995, an average level of 4,558 FTEE
adjudicated approximately 2.5 million benefit claims. During
the same year, VBA received 2.4 million claims. At the
beginning of fiscal year 1995, approximately 385,000 claims
were pending at the VA. The VA projects that the backlog of
claims will decrease during the current fiscal year to 352,000.
In past years, the VA has used significant overtime to reduce
the claims backlog. The Committee appreciates the amount of
overtime spent to reduce the excessive backlog but notes the
high cost associated with such management practices. While the
Committee supports the VA management's actions in this regard,
it expects future reductions in the claims backlog to be
accomplished through improvements in automation, basic business
practices and regulatory reform. The Committee notes that the
VA predicts a claims processing productivity loss of about 16
percent with a decrease in work hours of less than 8.4 percent
as a result of the government shutdown and inclement weather.
Due to Congressional concern regarding the timeliness of
claims processing, Public Law 103-446 established the Veterans
Claims Adjudication Commission to make recommendations on ways
to improve the entire adjudication system. The Committee has
received the Commission's initial findings and looks forward to
its final recommendations. The Committee intends to move
vigorously, in concert with the VA, to improve the system.
At the end of fiscal year 1995, the payment error rate was
2.6 percent. Service errors also remained consistently high at
3.0 percent in fiscal year 1995. Notification accuracy reports
show a 4.8 percent error rate. These error rates are likely to
continue through the current fiscal year and into fiscal years
1997 and 1998.
At a time when the VA's ability to provide timely and high
quality services is crucial, a reduction in FTEE for fiscal
year 1997 beyond that accomplished through restructuring for
modernization is not acceptable. The Committee also recommends
an additional $2 million for a pilot program to demonstrate a
fully automated disability rating and adjudication system,
using artificial intelligence and expert systems.
Vocational Rehabilitation and Counseling Program.--The
Vocational Rehabilitation and Counseling Program (VR&C)
provides rehabilitation and counseling services for eligible
veterans, servicemembers, and their dependents. VR&C's primary
mission is to provide all services and assistance necessary to
enable service-connected disabled veterans to achieve maximum
independence in daily living and, to the maximum extent
feasible, become employable and obtain and maintain suitable
employment. Additionally, VR&C is authorized to provide
educational and vocational counseling services to eligible
active duty members, veterans, and dependents.
VR&C continues to experience a high volume in applications
for Chapter 31 benefits and educational/vocational counseling.
This is due, at least in part, to the reduction in size of the
Armed Forces and transition programs designed to fully inform
separating servicemembers about the VA benefits. Under the
Transition Assistance Program/Disabled Transition Assistance
Program (TAP/DTAP), counseling and other services are provided
by the Departments of Veterans Affairs, Labor, and Defense to
assist separating servicemembers in their transition from
military service to civilian life. Requests for educational/
vocational counseling are expected to increase to 23,000 in the
current fiscal year, a two percent increase over the 1995
level.
Despite increased VR&C staffing levels in the last fiscal
year, the number of staff still cannot accommodate the
workload. Accordingly, VR&C has found it necessary to exercise
its authority to use contract counselors. For instance, the
``Pending Counseling Psychologist (CP) Workload'' category is
defined as the number of months necessary to complete all
pending counseling cases. The VR&C goal is four months. For
fiscal year 1996, the VA projected the pending CP workload to
be eight months. Vocational Rehabilitation Specialists (VRS),
who work closely with each veteran throughout the
rehabilitation period, are projected to have an average
caseload of 256 in fiscal year 1996. A VRS caseload of 125 is
considered optimal and would enable VRS staff to provide the
best possible services to disabled veterans training under
Chapter 31.
VR&C's primary purpose is to serve service-connected
disabled veterans. The Committee has previously stated and
reiterates that it cannot understand why the VA does not accord
this program the priority and the resources it clearly
deserves. Should the Administration propose reductions in FTEE,
the Committee would reject any such proposal. Targets
established for workloads and timeliness standards obviously
cannot be achieved with current staffing levels, and the
unacceptable quality of service will likely deteriorate further
until FTEE levels are increased. Therefore, the Committee
recommends an additional $4.5 million for fiscal year 1997 to
fund an additional 86 FTEE for a total of 800 FTEE.
Education Service.--VA's Education Service is responsible
for several programs, most notably the Montgomery GI Bill
(MGIB) which provides education assistance benefits to
veterans, active duty and National Guard and Reserve personnel.
Consolidation of education claims processing at four
Regional Processing Offices (RPO) is nearly complete. However,
while fully supportive of the VA's efforts to streamline
education operations, the Committee is concerned about the
growing backlog of education claims at some RPO's. Further, the
VA proposes to move the entire Education Service headquarters
staff from Washington to St. Louis, a move the Committee feels
would have a highly negative impact on program management and
policy development. The Committee recommends funding education
program FTEE at a level which would accommodate a four percent
increase in workload for fiscal year 1997, but does not support
funds for movement of central office staff to St. Louis.
General Operating Expenses
The General Operating Expenses account funds both VBA and
the VA's Central Office. VBA administers a broad range of non-
medical benefits to veterans, their dependents, and survivors
through 60 regional offices or medical and regional office
centers. General Administration includes most of the central
office functions located in Washington, DC. The Committee
recommends for 1997 an appropriation of $901 million, an
increase of $21 million above the 1996 level. Included in the
$21 million increase is the Committee's recommendation that $3
million be specifically ear-marked for a Survey of Veterans to
allow the VA to continue its series of surveys aimed at
delineating the characteristics of the veteran population.
Other surveys were conducted during the time periods of 1978,
1979, 1988, and 1993. The data collected from these surveys is
extremely useful not only to the VA but to numerous other
agencies and research groups. The Survey of Veterans is the
only source of data-specific information on VA medical users
and provides a snapshot profile of the veteran population for
longitudinal comparisons.
Board of Veterans' Appeals
The Board of Veterans' Appeals (BVA) continues to
experience significant difficulties meeting the production
levels needed to reduce the nearly 60,000 case backlog of
appeals. At the VA's request, the 103rd Congress provided
several new management tools to the Board as a means to
increase productivity. In fiscal year 1995, the BVA made 28,195
decisions. Unfortunately, 13,402 of those decisions were
remands back to the regional offices. The BVA predicted that it
will produce 32,250 decisions in the current fiscal year, but
may fall short due to the recent government shutdown and bad
weather.
Clearly, production trends are improving at the BVA, but
the BVA's estimated 675 days required to process a claim at the
Board in fiscal year 1996 is unacceptable, and is not likely to
improve noticeably in the near future. It is also clear that
absent a marked decline in appeals from regional office
decisions and/or a reduction in administrative requirements,
the Board in its current form and scope of responsibility
cannot manage the workload.
The BVA states that cases wait only a day or two for a
Board member decision once the staff attorneys have completed
their work preparing the case. Therefore, it appears that a
significant delay in the process is at the staff attorney
level, and not at the Board decision level. The Committee
supports additional FTEE for staff attorneys from redirected
funding so that casework may be completed in a more expeditious
manner.
NATIONAL CEMETERY SYSTEM
Currently, 148 cemeterial installations located in 41
states, the District of Columbia and Puerto Rico comprise the
National Cemetery System (NCS). Since NCS's establishment,
approximately 2.1 million decedents have been interred in
national cemeteries and approximately 6.2 million headstones
and markers have been furnished.
Between fiscal years 1995 and 2010, the veteran population
will decrease by six million (23 percent). As a result, NCS
faces an increasing workload at least through fiscal year 2008.
During these years, approximately 7.5 million members of the
World War II generation will pass away. In fiscal year 1995,
the VA predicted that 515,000 veterans would die. In fiscal
year 2008, that number is projected to increase to 620,000.
Similarly, interments in national cemeteries, including
eligible dependents, will increase from 73,600 in fiscal year
1997 to 104,000 in fiscal year 2008. NCS must have both human
and material resources to accommodate this increase.
In the current fiscal year, the VA expects to inter the
remains of approximately 72,000 veterans, active duty
servicemembers and dependents in national cemeteries. The VA
expects to process 310,000 gravemarker applications in fiscal
year 1996 and 340,000 applications are projected for fiscal
year 1997.
Operating Account
To keep pace with increasing workloads, maintenance and
repair projects, equipment backlogs, supplies and materials,
and uncontrollable miscellaneous expenses, funding should be
increased above the fiscal year 1996 spending level, which was
the same as the fiscal year 1995 level. The Committee
recommends $80 million for fiscal year 1997 and an additional
60 FTEE.
The VA estimates that staffing shortages in excess of 242
wage grade FTEE and 38 general schedule FTEE will exist in
fiscal year 1997. Because of this staffing shortage,
enhancement of cemetery appearances, such as filling in graves
after rain storms, raising and realigning headstones, mowing
and trimming grass and painting and maintenance of equipment,
has become second in priority at NCS and first priority has
been given to timely burials. In addition, funding for
maintenance and repair of the National Cemetery System's
approximately 400 buildings and 100 miles of roads which are
essential to maintain the infrastructure of the cemetery system
remains a critical issue.
The NCS equipment inventory includes more than 8,000 pieces
of equipment with an estimated value of $23 million. Through an
extensive maintenance program, this equipment's longevity has
been extended an average of five years beyond its scheduled
replacement date. In many instances, however, it is no longer
economical to maintain the equipment. With funding that was
available in this fiscal year, the backlog for essential
operating equipment will increase to approximately $9 million.
The Committee recommends an additional $4 million for equipment
and $1 million for additional supplies and materials such as
fertilizer.
Construction
The VA's construction needs for new and existing cemeteries
are addressed through the Major and Minor Construction
appropriations. NCS has focused construction planning on
providing new cemeteries in areas of the country with the
greatest veteran population unserved, extending the life of
existing cemeteries through grave site development, and
repairing and maintaining the infrastructure of the system.
In a 1987 Report to Congress and an update in 1994, the VA
identified the 10 geographic areas of the United States in
which the need for additional burial space for veterans was
greatest. One of the ten, San Joaquin Valley National Cemetery,
in northern California, opened in 1992, while a second, located
near Seattle, Washington, was funded with $10,665,000 in fiscal
year 1995. Construction for the new Tacoma National Cemetery,
in Washington, has already begun. The fiscal year 1996 budget
requested $5.6 million to develop continued burial capacity at
the Florida National Cemetery, which has the highest growth
rate of any cemetery in the system.
Dallas received design funds in fiscal year 1995, but still
requires construction funds if progress is to continue.
Proposed cemetery projects at Albany, Chicago, and Cleveland
still require both design and construction funds to proceed.
Funding of $1.4 million for the design of Chicago, $1 million
for design of Albany, and $1 million for ``various station
design'' is included in the yet to be enacted fiscal year 1996
VA-HUD Appropriations bill. The Committee strongly supports
additional major construction funds at a level to allow NCS to
remain on schedule for opening the four cemetery projects by
2000.
Minor Construction projects are those costing less than $3
million. For the next five years, NCS has identified $90
million in system-wide minor construction projects, however,
NCS budgeted only $9.5 million for these projects in the
current fiscal year. The Committee recommends $20 million in
minor construction funding for fiscal year 1997, which would
prevent further reallocations of limited minor construction
funds within the VA and permit NCS to meet its minor
construction project needs.
Full Time Employee Equivalents (FTEE)
The NCS's workload per FTEE continues to grow. Nationally,
the number of interments will continue to increase to another
annual record of approximately 73,600 per year in fiscal year
1997. Similarly, the number of grave sites maintained is
estimated to reach 2,153,588 in fiscal year 1997. However, the
wage grade FTEE have increased only 2.1 percent since 1984.
Because the increase in workload is unmatched by FTEE
increases, the NCS is continuing to lose ground relative to
overall system maintenance. This results in a decrease in the
appearance and overall condition of the entire system.
The NCS provides national shrines honoring all those who
served in uniform and should be maintained as places of high
honor, dignity and respect. Failure to fund the NCS at a
reasonable level will only exacerbate future staffing
deficiencies and cause additional growth in equipment backlogs
at a time when the number of interments in the National
Cemetery System are projected to increase drastically due to an
aging veteran population. Therefore, the Committee recommends
an additional $2.5 million to fund 60 additional FTEE for
fiscal year 1997, or a similar amount in additional contracting
authority.
State Veterans' Cemetery Grant Program
The State Veterans' Cemetery Grant Program makes grants
available to assist the states to establish, expand, or improve
state-owned veterans cemeteries. The State Cemetery Program is
funded at $1 million for fiscal year 1996. Since its
establishment in 1980, $40.8 million has been obligated through
fiscal year 1995. More than 94 grants have been awarded to 18
states and Guam. The Committee recommends continued funding of
this program at a level to satisfy all requests ready for
federal funding in fiscal year 1997 at $1 million.
U.S. Court of Veterans Appeals
The Veterans' Judicial Review Act, P.L. No. 100-687,
(1988), established the U.S. Court of Veterans Appeals (the
Court) as an executive branch court. The Court is empowered to
review decisions of the Board of Veterans' Appeals and may
affirm, vacate, reverse or remand such decisions as
appropriate. The Court has the authority to decide all relevant
questions of law, to interpret constitutional, statutory, and
regulatory provisions, and to determine the meaning or
applicability of the terms of an action by the Secretary of
Veterans Affairs. The Court also has the authority to compel
actions of the Secretary that are found to have been unlawfully
withheld or unreasonably delayed.
In past years, funding for the Court has included resources
for the Pro Bono Representation program. This program is
designed to provide representation to otherwise unrepresented
veterans whose appeals to the Court appear to have sufficient
merit under law and warrant the Court's attention.
Despite the fact that the Court has indicated it does not
wish to have the program funded from its resources, the
Committee is fully supportive of the Pro Bono program and
believes that, if it is to continue in fiscal year 1997, the
program should be funded within the Court's budget.
Department of Labor
Veterans' Employment and Training Service
Congress has determined that our nation has a
responsibility to meet the employment and training needs of
veterans. To meet those needs, the Secretary of Labor is
required to effectively and vigorously implement policies and
programs which increase opportunities for veterans to obtain
employment, job training, counseling and job placement
services. Such implementation is accomplished through the
Assistant Secretary of Labor for Veterans' Employment and
Training (ASVET). The ASVET is the principal advisor to the
Secretary of Labor with respect to the formulation and
implementation of all departmental policies and procedures
which affect veterans.
Disabled Veterans' Outreach Program
The Disabled Veterans' Outreach Program (DVOP) was
established by Congress to provide intensive employment and
training services to service-connected disabled veterans and
other veterans in need of job search and placement assistance.
DVOPs serve as workshop facilitators for the Transition
Assistance Program (TAP), a 3-day program that provides
transition counseling, job-search training and information,
placement assistance and other information and services to
servicemembers who are within 180 days of separation from
active duty. DVOPs develop job and job-training opportunities
for veterans through contacts with employers. DVOPs also
provide assistance to community-based organizations and
grantees who provide services to veterans under other federal
and federally-funded employment and training programs, such as
the Job Training Partnership Act and the Stewart McKinney Act
program for homeless veterans.
Under section 4103A, title 38, United States Code, the
Secretary of Labor is required to annually make available for
use in each State sufficient funds to support the appointment
of one DVOP specialist for each of the 6,900 veterans residing
in the State who are either veterans of the Vietnam era,
veterans who entered active duty as a member of the Armed
Forces after May 7, 1975, or service-disabled veterans. This
formula provides an indicator of anticipated workload and the
number of DVOPs required to provide an acceptable level of
service to veterans seeking employment assistance. DVOPs are
located in employment service offices and outstation sites such
as Department of Veterans Affairs regional offices and Vet
Centers. The Committee supports full funding for the
statutorily mandated 2,008 FTEE.
Local Veterans' Employment Representatives
The Local Veterans' Employment Representative (LVER)
program was established to functionally supervise the provision
of job counseling, testing, job development, referral and
placement to veterans in local employment services offices.
LVERs participate in TAP workshops and maintain regular contact
with community leaders, employers, labor unions, training
programs and veterans service organizations in order to keep
them advised of eligible veterans available for employment and
training. LVERs also provide labor exchange information to
veterans and promote and monitor participation of veterans in
federally-funded employment and training programs. Finally,
LVERs monitor the listing of jobs by federal contractors and
subsequent referrals of qualified veterans to these employment
openings, refer eligible veterans to training, supportive
services, and educational opportunities, and assist, through
automated data processing, in securing and maintaining current
information regarding available employment and training
opportunities.
Section 4104(a)(1), title 38, United States Code, mandates
that the Secretary of Labor make available funding to support
the appointment of at least 1,600 full-time LVERs and the
states' administrative expenses associated with the appointment
of that number of LVERs. The Committee recommends funding for
fiscal year 1997 to meet the Congressionally mandated LVER
staffing level.
National Veterans Training Institute
The National Veterans Training Institute (NVTI) is operated
under contract by the University of Colorado at Denver and
provides basic and advanced instruction in veterans employment
programs and services. Because this is the only source of
formal training for federal and state employees for veterans
employment programs, NVTI is vital to the success of those
programs. The Committee fully supports a $3 million funding
level.
STATISTICAL DATA--WAR VETERANS AND DEPENDENTS
(As of July 1, 1995)
American Revolution (1775-1784)
Participants.....................................................290,000
Deaths in service..................................................4,000
Last veteran died Apr. 5, 1869..................................Age 109.
Last widow died Nov. 11, 1906....................................Age 92.
Last dependent died Apr. 25, 1911................................Age 90.
War of 1812 (1812-1815)
Participants.....................................................287,000
Deaths in service..................................................2,000
Last veteran died May 13, 1905..................................Age 105.
Last widow died June 28, 1936................................Age unknown
Last dependent died Mar. 12, 1946................................Age 89.
Indian Wars (Approx. 1817-1898)
Participants.....................................................106,000
Deaths in service..................................................1,000
Last veteran died June 18, 1973.................................Age 101.
Veterans and Dependents on Compensation and Pension Rolls
Surviving spouses......................................................3
Children...............................................................2
Mexican War (1846-1848)
Participants......................................................79,000
Deaths in service.................................................13,000
Last veteran died Sept. 3, 1929..................................Age 98.
Last widow died June. 20, 1963...................................Age 89.
Last dependent died Nov. 1, 1962.................................Age 94.
Veterans and Dependents on Compensation and Pension Rolls
Surviving spouses....................................................475
Children..............................................................28
Veterans..............................................................29
Civil War (1861-1865)
(Confederate)
Participants..................................................*1,000,000
Deaths in service...............................................*133,821
Last Confederate veteran died Mar. 16, 1958.....................Age 112.
(Union)
Participants...................................................2,213,000
Deaths in service................................................364,000
Last Union veteran died Aug. 2, 1956............................Age 109.
Veterans and Dependents on Compensation and Pension Rolls
Surviving spouses......................................................2
Children..............................................................22
Spanish-American War (1898-1902)
Participants.....................................................392,000
Deaths in service.................................................11,000
Last veteran died Sept. 10, 1992................................Age 106.
Veterans and Dependents on Compensation and Pension Rolls
Surviving spouses..................................................1,131
Children.............................................................425
World War I (1917-1918)
Participants...................................................4,744,000
Deaths in service................................................116,000
Living veterans#.............................................13,000
Veterans and Dependents on Compensation and Pension Rolls
Parents................................................................4
Surviving spouses.................................................78,909
Children...........................................................8,295
Veterans...........................................................2,838
World War II (Sept. 16, 1940-July 25, 1947)
Participants.............................................a
16,535,000
Deaths in service................................................406,000
Living veterans.........................................b c
7,433,000
Veterans and Dependents on Compensation and Pension Rolls
Parents............................................................6,019
Surviving spouses................................................327,885
Children..........................................................22,128
Veterans.........................................................960,910
Korean Conflict (June 27, 1950-Jan. 31, 1955)
Participants............................................a d
6,807,000
Deaths in service.................................................55,000
Living veterans.....................................b c e i
4,499,000
Veterans and Dependents on Compensation and Pension Rolls
Parents............................................................3,782
Surviving spouses.................................................71,616
Children...........................................................5,317
Veterans.........................................................290,380
Vietnam Era (Aug. 5, 1964-May 7, 1975)
Participants...............................................d
9,200,000
Deaths in service................................................109,000
Living veterans.....................................b e h i
8,273,000
Veterans and Dependents on Compensation and Pension Rolls
Parents............................................................9,425
Surviving spouses.................................................90,683
Children..........................................................18,807
Veterans.........................................................766,393
Persian Gulf War (Aug. 2, 1990-date)
Participants...............................................f
3,700,000
Deaths in service..............................................g
6,526
Living veterans..........................................h i
1,450,000
Veterans and Dependents on Compensation and Pension Rolls
Parents..............................................................263
Surviving spouses..................................................2,636
Children...........................................................4,103
Veterans.........................................................134,376
America's War Totals Through July 1, 1995
Participants##......................................f 41,746,000...
Deaths in service.........................................g
1,087,526
Living war veterans...........................................20,169,000
Living ex-servicemembers......................................26,198,000
Total Veterans and Dependents on Compensation and Pension Rolls
Parents......................................................l
23,406
Surviving spouses...........................................m
612,743
Children.....................................................k
70,501
Veterans..................................................j
2,668,576
__________
# Living veterans does not include World War I veterans with
military service in other eras.
## Persons who served in more than one war period are counted only
once.
* Authoritative statistics for Confederate forces not available.
Estimated 28,000 Confederate personnel died in Union prisons.
** Children connotes a minor or a helpless adult.
a Includes 1,476,000 who served in World War II and the Korean
conflict.
b Includes 217,000 who served in World War II, the Korean conflict,
and the Vietnam era.
c Includes 518,000 who served in both World War II and the Korean
conflict.
d Includes 887,000 served in the Korean conflict and the Vietnam
era.
e Includes 303,000 who served in both the Korean conflict and the
Vietnam era.
f Thru end of December 1995.
g During fiscal years 1991 thru 1995 for Persian Gulf War.
h Includes 244,000 who served in both Persian Gulf War and the
Vietnam era.
i Includes small number who served in the Persian Gulf War, Vietnam
era, and the Korean conflict.
j Includes 513,644 peacetime veterans with service between January
31, 1955, and August 5, 1964; peacetime veterans with service beginning
after May 7, 1975, and all other peacetime periods; 5 World War I
Retired Emergency Officers and 1 Peacetime Special Act.
k Includes 11,374 children of deceased peacetime veterans.
l Includes 3,913 parents of deceased peacetime veterans.
m Includes 39,403 surviving spouses of deceased peacetime veterans.
NOTE: Figures on the number of living veterans reflect final 1990 Census
data and include only veterans living in the U.S. Detail may not add to
total due to rounding.
---------------------------------------------------------------------------
-