The change in VA regulations strengthened the criteria defining allowable expenses in determining financial need pursuant to Congressional intent to veterans attending high cost institutions pursuant to congressional intent. Although overall program administration has improved as a result of these changes, VA continues to experience severe problems with loan defaults. According to recent VA data, the cumulative loan default rate jumped from 44 percent as of December 31, 1977, to 65 percent as of September 30, 1980. Committee Recommendation Section 14002 of the bill would prohibit any eligible veteran or person from enrolling in the education loan program on or after October 1, 1981. In fiscal year 1980 the Veterans' Administration made loans to 7,846 individuals costing $6,697,000. In fiscal year 1982 it is estimated that 6,320 loans would be made at a cost of $6,350,000. At a time when the House has directed the Committee on Veterans' Affairs to enact legislative "cost-savings" totaling $110 million for the next fiscal year, and with the default rate exceeding 64 percent under this program, the Committee is recommending that the program be discontinued effective October 1, 1981. The Congressional Budget Office estimates that the enactment of this provision will result in savings of $6 million in outlays in fiscal year 1982; $5 million in outlays in fiscal year 1983; and $4 million in outlays in fiscal year 1984. TERMINATE OUTPATIENT DENTAL TREATMENT FOR CERTAIN VETERANS Section 612(a) of title 38, United States Code, as limited by section 612(b) (2), authorizes the Veterans' Administration to furnish outpatient dental services and treatment and related dental appliances to veterans for dental conditions or disabilities which are serviceconnected but not compensable in degree, if application is made within 1 year of discharge or release or within 1 year of correction of a previously disqualifying discharge. These are dental conditions which did not result from service trauma and are not related to prisoner-of-war status. This "cost-saving" provision is contained in the President's budget request for fiscal year 1982. Those now receiving such outpatient dental treatment are generally veterans whose dental conditions existed during their active military duty but who either did not seek or receive any treatment during service or who began but did not complete treatment during service. These are generally dental conditions the treatment for which is the responsibility of the dental services of the Department of Defense to provide. In his transmittal letter and proposed draft bill submitted to the Speaker of the House on January 19, 1981, the former Administrator, Max Cleland, said: We believe that it is inappropriate for the VA to provide dental services for these minor dental conditions which should have been treated in service. We also believe that some limita tions must be placed on eligibility for these dental services Committee Recommendation Section 14003 of the bill would eliminate outpatient dental treatment for service-connected noncompensable dental conditions which are unrelated to service trauma or prisoner-of-war status. The Committee concurs with the Veterans' Administration that the provision of dental treatment to this category of veterans is more properly the responsibility of the Department of Defense. It should be noted, however, there is no evidence that the Department of Defense has any intention of assuming this responsibility. Unless those discharged after the effective date of this provision are treated for dental conditions attributed to service by the Department of Defense prior to their discharge, the Veterans' Administration will be required to spend millions of dollars in the adjudication of claims for serviceconnected benefits and the additional costs for providing lifetime benefits to those who are successful in the adjudication of their claims could be substantially more than the current cost to the Federal Government. This provision would become effective October 1, 1981. According to the Congressional Budget Office, it is estimated that enactment of this provision would result in "cost-savings" of $36 million in budget authority and outlays in fiscal year 1982: $38 million in budget authority and outlays in fiscal year 1983; and $40 million in budget authority and outlays in 1984. LIMITATION ON PAYMENT OF NON-SERVICE-CONNECTED BURIAL BENEFITS Under current law the Administrator of Veterans' Affairs shall pay an amount, not to exceed $300, to help defray the burial and funeral expenses of a veteran who dies of a non-service-connected disability. The deceased veteran must have been discharged under conditions other than dishonorable, and have been either a wartime or Korean Conflict or Vietnam veteran; or a peacetime veteran entitled to serviceconnected compensation at time of death or discharge or retired for disability incurred in line of duty. In addition, the benefit may be paid if a veteran dies in a VA medical facility. Payment of an amount not exceeding $150 is also authorized to be paid as a plot or interment allowance, in addition to the $300 basic burial allowance, when the veteran is not buried in a national cemetery or other cemetery under the jurisdiction of the U.S. Government. Committee Recommendation Section 14004 of the bill would limit the payment of burial benefits (funeral and plot allowances) in fiscal years 1982, 1983 and 1984, to cases where the income of the deceased veteran and his or her spouse, during the 12-month period preceding the veteran's death, does not exceed $20,000. In determining income for benefit purposes, the Administrator shall make his determination based on the veteran's taxable income in the case of a single veteran or the joint taxable income in the case of a married veteran who filed a joint tax return, or the combined taxable income of the veteran and spouse in the case of a married veteran who filed a separate tax return for the taxable year preceding the taxable year in which death occurred. Taxable income will be the income as defined in section 63 of the Internal Revenue Code of 1954, as amended. The effective date of this provision would be October 1, 1981. According to the Congressional Budget Office, the enactment of this provision would result in a reduction of $42 million in budget authority and outlays in fiscal year 1982, $42 million in 1983 and $12 million in 1984. SUBMISSION OF THE COMMITTEE ON VETERANS' AFFAIRS TO THE INSTRUCTIONS IN SECTION 301 (14) OF H. CON. RES. 115 (FIRST JUNE 10, 1981 1 2 3 4 TITLE XIV--HOUSE COMMITTEE ON VETERANS' AFFAIRS REPEAL OF AUTHORITY FOR PURSUIT OF FLIGHT TRAINING AND TRAINING BY CORRESPONDENCE SEC. 14001. (a)(1) Section 1631 of title 38, United 5 States Code, is amended by striking out subsection (c). (2) Section 1641 of such title is amended to read as follows: 6 7 9 10 11 12 13 14 15 16 17 18 19 20 Requirements ''The provisions of sections 1663, 1670, 1671, 1673, 1674, 1676, 1683, and 1691(a)(1) of this title and the provisions of chapter 36 of this title (with the exception of sections 1777, 1780(b), 1787, and 1798) shall be applicable to the program.''. (b)(1) Section 1652(c) of such title is amended by striking out ''correspondence school,''. (2) Section 1662(c) of such title is amended by striking out or flight training within the provisions of section 1677 of this chapter,''. (3) Section 1673(b) of such title is amended by striking out ''Except as provided in section 1677 of this title, the'' and inserting in lieu thereof ''The''. (4)(A) Section 1677 of such title, relating to flight training, is repealed. (B) The table of sections at the beginning of chapter 34 of such title is amended by striking out the item relating to section 1677. (5) Section 1681 of such title is amended- (A) in subsection (b), by striking out '', other than a program exclusively by correspondence or a program of flight training,''; and (B) by striking out subsection (c) (including the center heading preceding such subsection). (6) Section 1682(a)(1) of such title is amended by 14 striking out '1677 or''. (7)(A) Section 1684 of such title is amended to read as follows: 15 16 17 ''§1684. Apprenticeship or other on-job training 18 19 ''Any eligible veteran may pursue a program of apprenticeship or other on-job training and be paid a 20 training assistance allowance as provided in section 1787 of 21 22 23 this title.''. (B) The item relating to such section in the table of sections at the beginning of chapter 34 of such title is 24 amended to read as follows: ''1684. Apprenticeship or other on-job training.''. |