92D CONGRESS 1ST SESSION S. 1564 IN THE SENATE OF THE UNITED STATES APRIL 19, 1971 Mr. INOUYE introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs A BILL To amend title 38, United States Code, to increase the statutory rates for anatomical loss or loss of use. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That subsection (k) of section 314 of title 38, United 4 States Code, is amended by striking "$47" wherever it 5 appears in such subsection and inserting in lieu thereof 6 "$80". II [No. 32] COMMITTEE ON VETERANS' AFFAIRS, UNITED STATES SENATE VETERANS' ADMINISTRATION, OFFICE OF THE ADMINISTRATOR OF VETERANS' AFFAIRS, Hon. VANCE HARTKE, Washington, D.C., August 18, 1971. Chairman, Committee on Veterans' Affairs, DEAR MR. CHAIRMAN: We are pleased to respond to your request for a report on S. 1564, 92d Congress. It is similar in purpose to S. 357, 91st Congress, which was pending before the Senate Committee on Finance at the close of that Congress. The bill proposes to increase to $80 the existing $47 monthly rate of disability compensation provided in 38 U.S.C. 314(k) for certain anatomical and other losses or losses of use. This rate is payable in addition to the basic percentage and higher statutory rates of disability compensation. The $47 rate provided by section 314 (k) was last increased by Public Law 427, 82d Congress, August 1, 1952. Since 1952, the rates of disability compensation generally have been increased on six occasions (Public Law 695, 93d Congress, August 28, 1954; Public Law 85-168, August 27, 1957; Public Law 87-645, September 7, 1962; Public Law 89-311, October 31, 1965; Public Law 90-493, August 19, 1968; and Public Law 91-376, August 12, 1970) but the $47 rate has been maintained without change. In reporting the rate-increase bill which was ultimately enacted as Public Law 87-645 (S. Rept. No. 1806, 87th Cong.), the Senate Committee on Finance explained the absence of an increase of this rate as follows: 66 . . Inasmuch as all veterans who are entitled to receive the $47 statutory rate will be benefited by the bill by an increase in the basic rate, the committee felt fully justified in taking the action indicated." In reporting on the measures which became the above-mentioned Public Laws 90-493 and 91-376, the House Committee on Veterans' Affairs pointed out that the $47 rate, not increased, is paid in addition to basic rates of compensation, which were increased. The Senate Committee on Finance commented identically regarding the measure which became Public Law 87-645, and did not propose an increase in the $47 rate in connection with the two other mentioned compensation measures. We believe that this history indicates a continued feeling that the rates being paid veterans within the purview of S. 1564 are adequate. It is estimated that the bill, if enacted, would affect some 86,900 cases the first year at an additional cost of approximately $34,324,000. The number affected and the additional cost would increase in subsequent years to 103,000 veterans at an additional cost of $40,685,000 during the 5th year. 66-966-71-No. 32 The Veterans' Administration fully concurs with the conclusion indicated by the Congress that the rates being paid veterans within the purview of S. 1564 are adequate. Accordingly, we recommend against favorable consideration of the bill. Advice has been received from the Office of Management and Budget that there is no objection to the presentation of this report from the standpoint of the administration's program. Sincerely, DONALD E. JOHNSON, Administrator. Vet. Letters 92-32 [No. 31C] COMMITTEE ON VETERANS' AFFAIRS, U.S. SENATE Hon. VANCE HARTKE, OFFICE OF MANAGEMENT AND BUDGET, Chairman, Committee on Veterans' Affairs, DEAR MR. CHAIRMAN: This is in response to your request of April 23, 1971 for the views of this Office on S. 1564, a bill to amend title 38, United States Code, to increase the statutory rates for anatomical loss or loss of use. This bill would increase to $80 the current $47 monthly rate of disability compensation provided under 38 U.S.C. 314(k). In its report on S. 1564, the Veterans' Administration notes that the Congress has on various occasions over the past 19 years increased basic disability compensation rates for veterans, while leaving intact the $47 rate which is provided in addition to the basic rates. The VA concurs with the conclusion indicated by these actions of the Congress that the $47 rate being paid under 38 U.S.C. 314(k) is adequate, and recommends against favorable consideration of S. 1564. We agree with the views expressed in the report of the Veterans' Administration and, accordingly, recommend against enactment of S. 1564. Sincerely, WILFRED H. ROMMEL, Assistant Director for Legislative Reference. О Senator TALMADGE. We are honored indeed to have with us the distinguished Member of the Senate who authored one of the bills we are holding hearings on today, Senator Inouye of Hawaii and you may proceed as you see fit, Senator. STATEMENT OF HON. DANIEL K. INOUYE, A U.S. SENATOR FROM THE STATE OF HAWAII Mr. CHAIRMAN. Few members of this great deliberative body are more aware of the plight of the disabled veteran than I. I have personally faced the experience through which many have endured and many will endure in the future. I was most fortunate in the years following World War II, but other disabled veterans have not been as fortunate and have suffered financially from the substantial increase in the cost of living, particularly the rampant inflation of the last 4 years. Therefore, I introduced S. 1564 on April 19, 1971, in order to increase the statutory award to veterans who have lost one extremity from the current $47 to $80 per month. I am pleased that this committee is now conducting hearings on S. 1564 and I am pleased to state the case for this critical legislation. As this committee knows, a statutory award is a supplemental benefit paid to veterans who have had amputations of a foot, arm, procreative organ, or who suffer from blindness or deafness. While awards for multiple amputations have been increased, the award for a single injury has not risen since 1952. In fact, the rise since 1946, when this program was initiated, has been only $5. Needless to say, this amount is woefully inadequate today. Although disability compensation has increased, this supplemental benefit has barely risen. Moreover, in some rare cases, the statutory award is all some men receive. Two decades of inaction are unjustified and need correction at the earliest possible date. Mr. Chairman, I would like at this time to direct your attention to a report which was sent to you, in letter form, dated August 6, 1971, from Mr. W. H. Rommel, representing the Office of Management and Budget. I would also like to direct the committee's attention to another report sent to you, on letter form, dated August 18, 1971, from Mr. D. E. Johnson, representing the Veterans' Administration. At this time, I feel compelled to make some brief comments about S. 1564 to the committee in response to the above reports. My comments are essentially threefold. First, in opposing S. 1564, I note that Mr. Rommel merely relies upon Mr. Johnson's report which, in turn, relies upon the currently outdated determination of "adequacy" of S. Report No. 1806 by the Senate Finance Committee during the 87th Congress of almost 10 years ago. Rather than provide any current and independent data concerning the present $47 rate, Mr. Johnson merely rests upon a 10year-old congressional finding of "adequacy." Any meaningful and useful report must surely investigate the "adequacy" of the statutory rate in the context of today's economy, and not that of a decade ago. The very reason why I originally introduced S. 1564 is because the current $47 rate is woefully inadequate in light of the substantial in 77-671 - 72 - 3 |