Providence VA Medical Center. The report goes on to say that "the nursing home needs of the veterans within the Primary Service Area (PSA) of the medical center cannot be met today. If a 60-bed NHCU was opened today on facility grounds, it would be at full Occupancy within a month. During the course of this survey, 55

veterans were placed in 28 contract nursing homes from this facility. This did not include 30 placements from the New Bedford area. Also, the waiting list was estimated at between 20-25. Exact figures regarding the waiting list were not revealed to this surveyor." The report continues by stating that no further placement could be done at that time because there was no funding available since it was the end of the fiscal year. The waiting period for veterans was reported by VA staff as only two to three weeks, but the Commandant of the Bristol State Home stated his waiting list included approximately 60 applicants and the waiting period was between six to eight months. The surveyor felt as a result that the figures offered by VA staff were suspect.

Statistics from DM&S show that in FY 1983, 22,340 veterans resided within the Providence PSA between ages 65-74, and 6,886 were age 75 and older. It is estimated in FY 1990, 39,749 veterans will be between the ages of 65-74, and 10,824 will be age 75 and

older.

Figures obtained from the Rhode Island Department of Health and used by GAO in support of its report reflect that providers plan to develop 1,098 additional nursing beds within the next five years either through expansion or new construction. The Providence

Medical Center Director advised our Field Representative that it is certain that by the Spring of 1985, 432 additional beds will become operational and quite likely that 120 more beds will be developed by late 1985. It must be pointed out that if in fact the proposed 552 beds were constructed in the private sector, they would be for use of all citizens of Rhode Island, not just veterans. However, we seriously question the proposed number of beds, and particularly those proposed for 1985. As of September 11, 1984, the date on which our Field Representative left Providence, not one construction project had started within the State.

Recommendation No. 1 contained in the Field Service Report recommends that funding for construction of a 60-bed NHCU be approved, and that the project be given top priority.

Mr. Chairman, on the basis of the Field Service Report and the information provided to us by the Rhode Island American Legion, we wish to reiterate at this time the support of the National Organization of The American Legion for the construction of a Nursing Home Care Unit at VAMC Providence. We are satisfied the unit is needed to provide care for veterans in the Primary Service Area of that VAMC. We believe the data assembled by the General Accounting Office is not accurate or correct, and does not demonstrate an understanding of the needs and problems of the aging veteran population of the Providence area. Our recommendation to the Committee is that funding for the unit be included in the FY 1986 Budget.

Beyond these two special areas of attention, we wish only to

reiterate our concern regarding the wisdom of the proposed reduction in medical construction funding at a time when VA is playing catchup with its capital plant renovation program.

As we have previously stated to the Committee, in a sense the expenditures in this budget area are capital investments, and should not even be included in the total Federal funding that is leading to such high deficits. There is a school of thought in the Congress itself that the capital investments and expenditures of the Federal Government should be identified separately as they are in most business operations.

DEPARTMENT OF MEMORIAL AFFAIRS

The funding request for the Department of Memorial Affairs reflects a slight increase of $97 thousand to $44,269 million for FY 1986. An additional $18.9 million is identified for cemetery construction projects which is up $1.8 million from FY 1985. The American Legion feels that this funding appears adequate. We totally support the construction program that is underway, and which includes the Ft. Mitchell National Cemetery, scheduled to open in the Fall of 1986; the development of 13,000 gravesites and construction of an administration building at Withlacoochee, Florida; and the proposed land purchase in Northern California. continue to work with the Department of Memorial Affairs in attempting to acquire land for the expansion of existing national cemeteries.

We

The total Memorial Affairs program, we believe, is progressing in a satisfactory manner. It is the perception of the Legion that

the program has improved immeasurably since it was placed under VA

jurisdiction.

We commend the progress that is being made, and

trust that the Congress will continue to support VA's plans with

the modest funding needed for this program.

ECONOMIC CONCERNS

Mr. Chairman, The American Legion also has several concerns regarding programs for veterans operated by agencies other than the VA. While some of these programs may not fall within the strict parameters of this Committee's jurisdiction, they nevertheless deserve this Committee's attention.

Within the Department of Labor there are a variety of programs for veterans operated under the direction of the Assistant Secretary of Labor for Veterans Employment and Training (ASVET). The American Legion is generally pleased that the proposed FY 1986 budget for the operation of DOL programs contains no significant cuts. However, it must be understood that any cuts in these programs will be felt more deeply because these programs are already operating on a bare bones budget.

For example, an 8 percent cut in travel funding for the Veterans Employment Service, as contemplated in the FY 1986 budget, can be expected to significantly hamper the efforts of State Directors of Veterans Employment in the execution of their outreach Another example is the cut in funding for the veterans portion of the Job Training Partnership Act (part IV. c.) from $9.7 million in FY 1985 to $7.7 million as proposed for FY

responsibilities.

1986. In this case, already limited funding for those participating

grantees in the States is having an affect on the number and quality of services provided. Further cuts will have a predictable

and negative impact.

Given

In another area, the FY 1986 budget contemplates unhitching State Employment Security Agencies, otherwise known as the job service, from the Federal Government altogether by FY 1988. the fact that State and Regional Directors of the Veterans Employment Service as well as Local Veterans Employment Representatives and Disabled Veterans Outreach Program Specialists all base their operations in local job service offices, a proposal allowing the devolution of the job service has to be viewed with considerable foreboding. Apart from the rationale used to support this proposal, the most obvious and immediate question that remains unanswered is, what will become of employment services to veterans if the proposal is implemented. In the absence of any clear and convincing assurances that these services for veterans will continue as an ongoing Federal obligation to veterans economic readjustment, The American Legion must oppose this proposal.

In another agency, the Small Business Administration (SBA), the FY 1986 budget proposes complete disolution. Regardless of the reasoning behind this proposal, it is important to recognize that it is only in the last few years that veterans have been able to benefit from programs long on the books.

It is only recently that SBA has been providing veterans with the special consideration in their applications for loan guarantees as provided by law for many years. After having been ignored for