Observations on the 1984 fiscal year budget Veterans' Administration programs by functional distribution. REPORT OF THE COMMITTEE ON VETERANS' AFFAIRS ON BUDGET MATTERS UNDER ITS JURISDICTION The Committee on Veterans' Affairs is submitting this report on estimates of budget matters under its jurisdiction pursuant to section 301(c) of the Congressional Budget and Impoundment Control Act of 1974, which states: "301(c) On or before March 15 of each year, each standing committee of the House of Representatives shall submit to the Committee on the Budget of the House, each standing committee of the Senate shall submit to the Committee on the Budget of the Senate, and the Joint Economic Committee and Joint Committee on Internal Revenue Taxation shall submit to the Committees on the Budget of both Houses "(1) its views and estimates with respect to all matters set forth in subsection (a) which relate to matters within the respective jurisdiction or functions of such committee or joint committee; and "(2) except in the case of such joint committees, the estimate of the total amounts of new budget authority, and budget outlays resulting therefrom, to be provided or authorized in all bills and resolutions within the jurisdiction of such committee which such committee intends to be effective during the fiscal year beginning on October 1 of such year." This report is based on the best information that is now available to the Committee. It is hoped that the report will be helpful to the Committee on the Budget in preparing its budget targets for the first concurrent resolution. OBSERVATIONS ON THE FISCAL YEAR 1984 BUDGET I. OVERVIEW Throughout the more than 200-year history of the United States, nearly 39 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. Today, there are approximately 24.3 million living war veterans, all of whom saw service in wars fought in the 20th century (i.e., Spanish-American War, World War I, World War II, Korean conflict and Vietnam era). A total of 36 million served during these 5 wars and 697,000 died in service to their country. In addition to the 24.3 million living war veterans, there are nearly 3 million veterans who served only during the peacetime period between the Korean conflict and the Vietnam era as well as 1,372,000 peacetime veterans who entered military service after May 7, 1975 and have since returned to civilian life. The number of living veterans decreased during fiscal year 1982 to 28.522 million, a loss of 151,000 from the end of fiscal year 1981. This contraction of the veteran population resulted from the addition of 294,000 service personnel discharged from active duty, and was more than offset by the re-entry into active duty service of approximately 34,000 who had previously returned to civilian life and the loss of 411,000 veterans who died during fiscal year 1982. The median age of all veterans in civilian life as of September 30, 1982, was 50.8 years. Veterans 65 years of age or older now total more than 3.5 million (or nearly 1 out of every 8 living veterans). Those veterans presently 60-64 years old (3,838,000) will enter the older population group in the next 5 years. Similarly, the surviving veterans among those presently in the 55-59 year age group (4,133,000) will enter the "65 years and older" veteran population during fiscal years 1987 through 1992. By then 1 of every 4 veterans will be 65 years old or older. 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. In order to effectively carry out the intent of a grateful nation the Veterans' Administration was established as an independent agency under the President by Executive Order 5398 of July 21, 1930, in accordance with the Act of July 3, 1930 (46 Stat. 1016). This act authorized the President to consolidate and coordinate Federal agencies especially created for or concerned in the administration of laws providing benefits to veterans. The mission of the Veterans' Administration is to administer veterans' laws effectively, expeditiously and with sympathetic understanding, and to exercise constructive leadership in the field of veterans' affairs. The laws related to veterans benefits are contained in title 38 of the United States Code. The programs available to veterans and their dependents or survivors (which comprise the Office of Management and Budget (OMB) 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 programs in this function are administered by the Veterans' Administration in support of these former members of the armed services and their survivors and dependents. The major veterans programs provide benefits that are similar in many respects to other human resource programs now available to those in the general population. Compensation is paid 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 (DIC) is paid to survivors of veterans who died from service-connected causes. Pensions are paid to non-service-connected disabled and aged wartime veterans and their dependents or to their survivors if the recipients' income falls below certain levels. However, there are several income exclusions in determining eligibility for pensions. Readjustment benefits provide financial assistance for education, training, and rehabilitation to veterans who have served more than 180 days in the military and to certain of their dependents or survivors. Hospital and medical care is provided, usually in Veterans' Administration facilities, to service-connected disabled veterans, former prisoners of war, veteran pensioners, veterans 65 and over, and any other veteran who is unable to pay for the cost of care. Dependents of 100 percent disabled veterans and survivors of veterans who died from a service-connected disability are provided care through an insurance-type program administered for the VA by the Department of Defense, the Civilian Health and Medical Program of the Veterans' Administration (CHAMPVA). Other veterans' programs include direct and guaranteed housing loans, life insurance, and burial benefits. The Veterans' Administration also operates programs such as research and health manpower training to support its medical care delivery system. II. BUDGET OBSERVATION The President's fiscal year 1984 budget for the Veterans' Administration provides for benefits and services to the country's 28.5 million veterans, the 52.2 million members of their families, and the 3.1 million survivors of deceased veterans. For the period October 1, 1983, through September 30, 1984, budget authority of $26.1 billion is requested consisting of appropriations of $25,130,661,000 (which include $134,693,000 savings requiring new legislation), $238,100,000 for proposed legislation and an estimated $714,353,000 under permanent authorizations. Budget outlays for 1984 are estimated at $25.7 billion. The requested budget authority is an increase of $1.1 billion over 1983, caused primarily by anticipated increases in the medical care appropriations and the level of construction funding. 60.6 percent of the fiscal year 1984 budget's projected outlays ($15.223 billion) are for income security programs, i.e., compensation and pensions; over 33 percent ($8.3 billion) goes to health care; and the remainder to readjustment, housing, and other benefits. Nearly the entire function requires current action by the Congress, yet the bulk of these outlays is uncontrollable because of the entitlement nature of the programs. Veterans' Administration average employment for 1984 is expected to increase by 1,914 to a level of 220,785. There is an increase of 2,117 in the Department of Medicine and Surgery including 370 additional nurses and 147 new physicians and a decrease in the Department of Veterans' Benefits of 419 due primarily to a continuing decline in the education training workload. The employment levels for 1982, 1983, and 1984 are as follows: General Administration is increased by 134 employees due to a need for 14 additional employees in the Inspector General's office |