I. VIEWS AND ESTIMATES ON PROGRAMS UNDER COMMITTEE'S JURISDICTION-Con.

The Committee does not necessarily agree with.the
VA conclusions. However, it is accepting the proposal
in an effort to achieve cost savings for fiscal year 1983.
2. Eliminate subsistence allowance for dependents of BA
veterans undergoing vocational rehabilitation.

Current law provides that the dependents of a
service-connected disabled veteran enrolled in the
Vocational Rehabilitation program receive a sub-
sistence allowance. To eliminate the subsistence
allowance for dependents of veterans trying to over-
come vocational handicaps caused by crippling com-
bat injuries would be unjust and in direct opposition
to the policy of the Congress to provide the highest
consideration for the service-connected disabled vet-
eran and his dependents. The Administration pro-
jects a $19.7 million cost saving for this proposal.
The Committee rejects this proposal.

Total-Readjustment Benefits..

00

BA

I. VIEWS AND ESTIMATES ON PROGRAMS UNDER COMMITTEE'S JURISDICTION-Con. [In millions of dollars]

C. Programs authorized by Committee, etc.-Continued
General Operating Expense8:

1. Eliminate the inspection of vocational rehabilitation BA
institutions to ascertain that at least 50 percent of the O
trainees are employed in the field for which they are
trained.

Present law requires schools to show that vocational
objective courses offered to veterans shall have a
50 percent placement record in the vocational objec-
tive for which the veteran was trained for the preced-
ing 2-year period. If schools cannot so demonstrate,
then the schools are disapproved for the training
of veterans.

Schools have objected to the financial burden in complying with the 50 percent rule. At the time the 50 percent rule was enacted, over 600,000 veterans were enrolled in vocational training. Now there are only 65,000 in the program and the VA believes the basic purpose of safeguarding the program has been

served.

1. Authorize contributions for construction projects on BA
land adjacent to and facilitating safe ingress and
egress to national cemeteries.

This proposal would allow the VA to contribute
funds to local governments to improve roadways and
facilities adjacent to national cemeteries.

The Committee agrees with this proposal.

Medical Care:

1. Elimination of construction and operation of Garage BA
and Parking Facilities Revolving Fund, and direct O
appropriation to the Medical Care account.
The proposal would amend Public Law 96-22,
which requires the VA to collect parking fees from
employees to fund the operation and construction of
garage and parking facilities. In view of the Nation's
difficult economic situation, the Committee can find
no justification for the expenditure of an additional
$4.7 million:

The Committee rejects this proposal.

Proposed Legislation-- Receipts:

1. Proprietary receipts....

The Administration proposes to establish a % of 1 percent loan processing fee for all loans guaranteed, insured or made by the VA.

The collection of a funding fee of 1⁄2 of 1 percent would be authorized for all home loans guaranteed, insured, or made by the VA for two primary effects: (1) offset the cost of paying claims on approximately 3.7 percent of loans resulting in foreclosure; (2) deposit the one-time fee in the Treasury as miscellaneous receipts which will be credited as offsets to VA. The Committee will not oppose the proposed legislation. However, the Committee feels two amendments are necessary: (1) deposit the fees into the VA Loan Guaranty Revolving Fund to insure its solvency since quarantees are paid from it in the event of foreclosures; and (2) exempt service-connected disabled veterans from payment as the Committee believes these veterans must receive priority and preferential treatment in view of disabilities incurred in service to their Nation. In addition, the Committee will consider adding the fee to the loan principal to alleviate the one-time cost to the veteran.

BA
O

0

-89.7 -99.8 -104 -89.7 -99.8 -104

I. VIEWS AND ESTIMATES ON PROGRAMS UNDER COMMITTEE'S JURISDICTION-Con. [In millions of dollars]

0

C. Programs authorized by Committee, etc.-Continued
Non-Legislative Proposals:

Medical Care:

1. Studies on contracting out under OMB Circular BA
A-76; and a study on charging user fees to non-service- O
connected disabled veterans for inpatient/outpatient

care.

The Administration proposes to conduct cost comparison studies for contracting out certain indirect hospital services now provided by VA employees at a cost of $2 million. Recent testimony by the VA before the Committee indicated such studies would cost $29.1 million. The Committee does not approve partial funding of such studies without positive identification of how the additional $27.1 million would be obtained. The additional funds could not be taken from the Medical Care accounts in accordance with the provisions of Public Law 97-66.

At a cost of $500,000 the VA proposed study to determine the feasibility of collecting user fees for medical services to non-service-connected disabled veterans not in receipt of pension is contrary to the Committee's belief that eligible veterans should not be charged for medical services.

The Committee rejects both proposals, and urges the Committee on Appropriations to use these funds for the Nurse Scholarship Program.

General Operating Expense8:

1. Study the aging veteran population.....

An comprehensive study on the aging veteran population was conducted as mandated by Public Law 94-581. In establishing priorities for expenditures, the Committee feels funds for such a study would be better utilized to implement the Nurse Scholarship Program to help alleviate the VA nurse shortage which has caused the closing of over 800 hospital beds in 1981.

The Committee rejects this proposal and urges
the Committee on Appropriations to use the funds
for the Nurse Scholarship Program.

b. Committee Initiatives: (Requiring legislation).
Readjustment Benefits:

1. New GI Education Bill.

H.R. 1400 was reported by the Committee on
May 19, 1981. It was also referred to the Committee on
Armed Services, and is pending action by that com-
mittee.

Burial Benefits:

BA
O

1. Provide burial and funeral expenses to certain de- BA
ceased veterans whose remains are unclaimed.

Public Law 97-35, the Omnibus Reconciliation Act
of 1981. provides that the $300 burial and funeral ex-
pense allowance will be paid only in the cases of
deceased veterans in receipt of VA compensation or
pension at time of death, or who died in a VA facility.

Since enactment of Public Law 97-35, the Committee has learned that bodies of some deceased veterans remain unclaimed. Since it was not the intent of Congress that these destitute veterans be deprived of a proper burial, the Committee desires to authorize burial expenses for this small segment of the veteran population.

Committee Initiatives: (No legislation required).

I. VIEWS AND ESTIMATES ON PROGRAMS UNDER COMMITTEE'S JURISDICTION-Con. [In millions of dollars)

C. Programs authorized by Committee, etc.--Continued
Medical Care:

1. Fund Nurse Scholarship Program and 13 FTEE... BA
0

The Committee is concerned that no funding was
requested for the VA Health Professional Scholarship
Program for fiscal year 1983, and that the proposed
budget included a reduction of 13 FTEE already au-
thorized to administer the Program.

VA hospitals have been forced to close over 800 beds
during 1981 due to a shortage of nurses. The Commit-
tee believes funding for the Scholarship Program is
essential in order to create a cadre of registered nurses
with a service obligation to the VA, and to maintain
the number of VA hospital beds needed to meet the
health care needs of veterans.

2. Add 199 FTEE to Medical and Prosthetic Research BA
Program.

The President's fiscal year 1983 budget would add
$9.6 million over the fiscal year 1982 budget funding
for Medical and Prosthetic Research. The Committee
believes that the proposed reduction of 199 FTEE in
Medical and Prosthetic Research is not realistic in
view of the additional funds requested for this Pro-
gram, and recommends an increase of $5 million with
a partial offset of $3 million from the Specially
Adapted Housing fund which the Committee be-
lieves has excess funding.

Total-Programs Authorized by Committee, but BA
funded in annual appropriations.

II. VIEWS AND ESTIMATES ON OUTYEAR INITIATIVES
[In millions of dollars]

C. Major Committee Outyear Initiatives:

The Committee opposes this measure. See comments in I.,
C., 8., 4.

1. Authorize new educational benefits for certain veterans....... BA

The Committee has reported H. R. 1400, to establish new educational assistance programs for veterans and members of the Armed Forces. In addition to restoring lost educational opportunities to individuals whose careers were interrupted by reason of active military service, the bill is also designed to enhance and make more attractive service in the Armed Forces. The Committee has been informed that the Administration is planning to submit similar legislation to the Congress. The cost of H. R. 1400 to the Department of Defense are: $32.7 in BA and $51.7 in O for fiscal year 1984 and $250.5 million in BA and $261.5 million in O.

BA

D. Totals, Committee Views and Estimates on Revenues...... BA

IV. CREDIT BUDGET

[In millions of dollars]

1983

The Veterans' Administration loan guaranty program provides a Federal guaranty to private lending institutions which loan funds to eligible veterans to purchase a home or condominium. There is no prescribed maximum amount of a guaranteed loan; however, the VA guaranty is limited to 60% of the loan up to a maximum of $27,500 for the purchase of a home or condominium to be occupied by the veteran.

The President's new score keeping; i.e., reflecting the full face value or principal of these loans in the credit budget totally distorts the Federal liability in this instance. While this approach may provide certain insight to economists, it does not assist budget analysts who must work and consider actual fiscal obligations. The Committee prefers the accounting display of the Credit Budget to be reflected in the manner used in previous fiscal years.

11, 718. 525