benefit of the scholarship program participant's obligated service, and the involved communities will benefit indirectly by having an additional outside source of registered nurses. This program differs from the military manpower (DOD program) or underserved community (Public Health Service program) needs, in that it is designed to recruit certain disciplines and specialty categories needed in DM&S. These disciplines (medicine and nursing) and physician specialty categories correspond with the needs of the Nation. The program does not increase the numbers of students in medicine and nursing per se but rather creates a cadre of students in these critical areas obligated to the VA. This program is a logical extension of the health manpower training mission of the DM&S. The VA, as a major national health care provider, and with a demonstrated history of training future health care professionals for the Nation, is uniquely qualified to manage and benefit from this scholarship program. The VA, affiliated with 104 of the Nation's medical schools, already has close, mutually beneficial working relationships with these U.S. medical schools. The VA program will have the same basic goals and results as the other Federal programs: (1) to assist in accomplishing the agency's mission; (2) to place physicians and nurses in areas with relative health manpower shortages; and (3) to assist in meeting the health manpower needs of the Nation. The VA program will be considerably more cost efficient than the National Health Service Corps' scholarship program with savings from obligated service in VA hospitals accruing directly to the benefit of the Federal Government. Clearly, the VA hospital system should also be involved in this program on economic grounds alone, notwithstanding the benefit for the veteran patient and the Nation's manpower needs. Cost savings projections indicate an annual net savings in the second program year of $412,000 with an annual net savings of $18,302,000 in the 10th program year. The total cumulative savings to the Federal Government during the 23-year effectiveness of this 10-year program will be approximately $126 million. VETERANS' ADMINISTRATION PROGRAMS BY FUNCTIONAL DISTRIBUTION The programs under the Committee's jurisdiction are administered by the Veterans' Administration and are broken down into several subfunctional classifications. There follows a list of the functions and programs included in the Veterans' Administration budget for fiscal year 1982, as well as a comparison of total budget authority and outlays recommended by the Administration and that proposed by the Committee on Veterans' Affairs. For purposes of clarity, the functions and their respective programs defined by OMB are as follows: 701. Income security for veterans 702. Compensation and pensions: Service-connected compensation Other veterans income security programs Insurance programs: Veterans insurance and indemnities Veterans education, training, and rehabilitation Education loan fund Vocational rehabilitation revolving loan fund 703. Hospital and medical care for veterans 704. Medical and prosethetic research Medical administration and miscellaneous operating expenses Construction, major projects Construction, minor projects Grants for construction of State extended-care facilities Grants to the Republic of the Philippines Assistance for health manpower training institutions Veterans housing Loan guaranty revolving fund Direct loan revolving fund 705. Other veterans benefits and services General operating expenses Canteen service revolving fund Supply fund Consolidated working fund General post fund Grants for construction and operation of State cemeteries |