VETERANS' ORGANIZATIONS INDEPENDENT BUDGET This year, four of the major veterans service organizationsAMVETS, the Disabled American Veterans (DAV), the Paralyzed Veterans of America (PVA), and the Veterans of Foreign Wars (VFW)-developed and presented to the Committee recommendations for the fiscal year 1989 Veterans' Administration budget. This unprecedented collaborative effort resulted from "a final loss of confidence in OMB's intention or ability to address veterans' issues objectively or to support the moral and legal obligations that this nation has accorded the men and women who have served our country." While these four organizations were responsible for producing this major undertaking, they were supported by the Blinded Veterans Association and the Military Order of the Purple Heart; they also were encouraged and received the cooperation of such organizations as the American Nurses Association, the Association of American Medical Colleges, the National Association of VA Physicians, the American Paraplegia Association, and the American Association of Spinal Cord Injury Workers. Members of the Committee were deeply impressed by this "Independent Budget" presentation; it reflected a high degree of professional knowledge concerning the VA budget and the future of veterans' programs. What was also remarkable was the careful balancing of the many pressing needs of veterans with the overall need to avoid adding unnecessarily to the Federal deficit. For example, of the 15 major VA accounts which make up the VA budget, the Independent Budget recommended only a current services level in 12 accounts. The total increases recommended for the other three accounts amounted to 1.2 per cent of a current services level for 1989. That an Independent Budget was perceived to be necessary by these organizations reflects an increasing separation between the goals of the service organizations and those of the Office of Management and Budget. This was clear from the testimony of the organizations responsible for the Independent Budget, and was echoed by other organizations who testified before the Committee on March 3. According to the Independent Budget, several factors make it virtually impossible for the Administration to present a budget which is consistent with the expectations of the American public and the needs of veterans. The basic strategy of the Independent Budget is: -To assure that all veterans receive the benefits and serv- -To assure that the VA provides these benefits and serv- The following chart summarizes the recommendations of the Independent Budget. The Committee views these recommendations as fair and reasonable given the enormous demand for services, and has strived to make its recommendations consistent with the principles which these recommendations reflect. OVERVIEW THE VETERAN POPULATION Throughout the more than 200-year history of the United States, nearly 38.3 million men and women have served in the Armed Forces during wartime. Nearly 1.1 million servicepersons sacrificed their lives in the defense of our country during periods of armed conflict. At the close of fiscal year 1987, there were approximately 21.6 million living war veterans. A total of 35.3 million served during the Spanish-American War, World War I, World War II, the Korean conflict and Vietnam era and 697,000 died in service to their country. In addition to the 21.6 million living war veterans, there were about 3 million veterans who served only during the peacetime period between the Korean conflict and the Vietnam era, as well as 2.5 million peacetime veterans who entered military service after May 7, 1975, and have since returned to civilian life. An additional 0.4 million other peacetime veterans served prior to the Korean conflict. The total number of veterans living in the United States and Puerto Rico has been declining for several years. The number of living veterans decreased during fiscal year 1987 to 27.5 million, a loss of 213,000 from the end of fiscal year 1987. This contraction of the veteran population resulted from the loss of 443,900 veterans who died during fiscal year 1987 and the reentry of 25,500 veterans into active duty service, partially offset by the 257,000 service personnel discharged from active duty. The median age of all veterans in civilian life as of September 30, 1987 was 53.9 years. Veterans 65 years of age or older totaled 6.0 million (or 1 of every 5 living veterans) at the end of September, 1986. Their numbers are expected to peak at 8.9 million in 1999, then decline to some 5.8 million by 2030. By the year 2000, approximately 3 of every 5 males 65 years of age or over will be veterans. By the end of fiscal year 1995, 1 of every 3 veterans will be 65 years old or older. While the total number of male veterans continues to decline, the female veteran population is growing. Female veterans in the United States and Puerto Rico totaled 1,192,000 at the close of fiscal year 1987. By the year 2000, their numbers are expected to increase to 1,266,000. VETERANS BENEFITS This country has historically provided the veterans of its wars and their survivors with certain aid and benefits in expression of gratitude for their sacrifices and hardships. Programs available to veterans and their dependents or survivors (Office of Management and Budget function 700) are, for the most part, based on long traditions of compensating former servicepersons for hardships incurred in the course of military service. Most of the major programs discussed below are administered by the Veterans' Administration in support of these former members of the armed services and their survivors and dependents. Compensation.-Payment to veterans who have incurred disabilities in military service. Payments vary with the extent of disability and the amount of income foregone because of that disability. The severely disabled also receive fixed statutory awards and dependents' allowances. Dependency and indemnity compensation is paid to survivors of veterans who died from service-connected causes. Pensions.-Payment to non-service-connected disabled and aged wartime veterans and their dependents or to their survivors if the recipients' income falls below certain levels. Readjustment benefits.-Financial assistance for education, training and rehabilitation to veterans and to certain of their dependents or survivors. Hospital and medical care.-Eligibility was revised by Public Law 99-272. Provided, usually in VA facilities, to service-connected disabled veterans, former prisoners of war, veterans exposed to Agent Orange and/or ionizing radiation, veteran pensioners, any other veterans who are unable to pay for the cost of care, as well as certain other veterans on a resource available basis. Dependents of 100 percent service-connected disabled veterans and survivors of veterans who died from a service-connected disability are provided care through an insurance program administered for the VA by the Department of Defense, the Civilian Health and Medical Program of the Veterans' Administration (CHAMPVA). The VA also operates programs such as research and health manpower training to support its medical care delivery system. Other veterans' programs.-Include direct and guaranteed housing loans, life insurance and burial benefits. Congressional Research Service Washington, D.C. 20540 VETERANS' BENEFITS AND SERVICES AS A PART OF THE TOTAL FEDERAL BUDGET The following table indicates total Federal outlays, veterans' benefits and services outlays (function 700) and the percentage for benefits and services for fiscal years 1977 through 1989. TABLE 1. Total Federal Outlays and Veterans' Benefits and Services Outlays The above table indicates that in 1977 the percentage of total Federal outlays spent on veterans' benefits and services was 4.4 percent. Since that time, there has been a general decrease with an estimate for fiscal year 1989 of 2.7 percent. Source: Office of Management and Budget. the United States Government. Fiscal Year 1989. Historical Tables. Budget of |