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Under existing legislation, 1965.—A supplemental appropriation of $76 thousand is proposed for separate transmittal to permit payment of increased per diem rates to the Philippine Veterans Memorial Hospital for the care and treatment of Commonwealth Army veterans. These rates were recently renegotiated in accordance with provisions of title 38 U.S.C. 632.

CONSTRUCTION OF HOSPITAL AND DOMICILIARY FACILITIES

For hospital and domiciliary facilities, for planning and for major alterations, improvements, and repairs and extending any of the facilities under the jurisdiction of the Veterans Administration or for any of the purposes set forth in sections 5001, 5002, and 5004, title 38, United States Code, [$98,103,000, including necessary expenses of administration, $97,006,000 to remain available until expended: Provided, That the limitation under the head ["Hospital and domiciliary facilities"] "Construction of hospital and domiciliary and modernization for the continued operation of the hospital at 1962 on the amount available for [major alteration, rehabilitation, McKinney, Texas, is reduced from "$2,000,000" to "$1,990,000".] technical services for replacement of the general medical and surgical hospital at Nashville, Tennessee is reduced from "$921,600" to “$846,600.” (Independent Offices Appropriation Act, 1965.)

Grants-in-aid are made to the Republic of the Philip-facilities" in the Independent Offices Appropriation Act, [1957] pines for the medical care and treatment of eligible Philippine Commonwealth Army veterans. Section 632 of Section 632 of title 38, United States Code, as amended, provides for reimbursement at agreed upon patient per diem rates, up to a maximum annual amount of $500 thousand. Medical care and treatment is provided by the Philippine Veterans

Note.-Includes $2,006,000 for activities previously carried under "Medical administration and miscellaneous operating expenses." The amounts obligated in 1964 and 1965 are shown in the schedule as comparative transfers.

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These funds provide for the construction of new hospital | and domiciliary facilities, replacement and relocation of existing hospitals and domiciliaries, acquisition of sites, modernization and other improvements, alterations and additions for medical research facilities, nursing home beds, regional offices, supply depots, and data processing centers, including construction, administrative and related staff activities. This estimate is for the sixth increment for financing a 15-year program to modernize the hospital system. While this program will be primarily for improvements to the older (pre-World War II) hospitals, it will also provide for replacement of 12 hospitals acquired from military surplus, for air conditioning where indicated and for the correction of deficiencies in post-World War II hospitals as necessary to bring them up to modern medical

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39,911 20,167

76,796 98,103 97,006

111,288 119,812 97,618 -1,814 -1,965

109,474 117,847 97,618 103,425 142,574 180,421 -142,574-180,421-185,539

70,325 80,000 92,500

1963

93,450

2,206

1964 129, 885 1,656

1965 166, 703 1,556

95,656 131, 541

1966

171, 150

1,456

168, 259 172, 606

760-bed hospital at Chicago, Ill.; $11,815 thousand for a 480-bed hospital at Columbia, Mo.; $15,109 thousand for the first phase of replacement and modernization at Northport, N.Y.; $1 million to complete first phase of the replacement and modernization at Hines, Ill.; $1,013 thousand to complete 1,040-bed hospital at Los Angeles, Calif.; $703 thousand to complete 1,160-bed hospital at Long Beach, Calif.; $1 million for site acquisition for the 1,000-bed hospital at Long Island, N.Y.; $800 thousand for planning a 760-bed hospital at San Antonio, Tex.; and $1 million for planning a 1,040-bed hospital at San Diego, Calif.

The amount for modernization and other improvement projects includes $24,819 thousand to continue projects for which planning is in process and $9,566 thousand for new projects which will ultimately cost $20,226 thousand. $500 thousand is included for planning the modernization of a hospital building for domiciliary additional 2,000 beds for furnishing nursing home care, in at Wood, Wis.; $5 million is included to provide an accordance with Public Law 88-450. The amount for

research facilities includes $3,392 thousand to continue projects for which planning is in process and $2,190 thousand for new projects. Also included is $2,006 thousand for planning, administration and related staff activities.

In accordance with the Government's policy to provide fallout shelter facilities in new construction, funds are included in this estimate for fallout shelter facilities as follows: For construction and planning Northport, N.Y., $69 thousand. For planning only: San Antonio, Tex., $8 thousand; San Diego, Calif., $8 thousand; and Lexington, Ky., $6 thousand. It is estimated that a total of $245 thousand will be requested in future budgets to complete construction of the shelter facilities at these 3 stations.

1. Hospitals (a) New.-This activity covers the new hospitals and bed-addition projects authorized in 1947 and subsequent years. It provides for 77 projects to add 38,240 beds and 12 projects for conversion of beds at existing hospitals. This activity is scheduled for completion with the construction of the Washington, D.C., 710-bed hospital in 1965.

(b) Replacement and relocation.-This activity provides for replacement and relocation of beds which are housed in temporary, obsolete or hazardous structures. The program, initiated in 1955, currently includes 24 projects for approximately 18,129 beds. Status of beds to be provided under this title follows:

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5. Experimental hospital facilities.-This program was initiated in 1963 to provide experimental facilities to help determine the most advantageous functional arrangements for hospital nursing units and supporting facilities. The only project currently authorized under this title is estimated to cost $475 thousand and was placed under construction in 1963. No new projects are proposed in 1966. 6. Other facilities.-This activity provides for necessary construction at all other Veterans Administration facilities including regional offices, supply depots and data processing centers. No new projects are proposed in 1966. The status of the projects in this program, excluding those which were financially completed as of June 30, 1963, follows (dollars in thousands):

Completed as of June 30, 1964.

Under construction June 30, 1964.

Scheduled to be placed under construction, 1965..

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7. General administration.-This activity provides for planning, administration and related staff activities previously carried under "Medical Administration and Miscellaneous Operating Expenses." The amounts in 1964 and 1965 for this activity are shown in the schedule as comparative transfers.

Object Classification (in thousands of dollars)

Number of Total estimated
projects

cost of projects

Completed as of June 30, 1964.

70

$5,224

Under construction June 30, 1964

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Scheduled to be placed under construction, 1965-
Scheduled to be placed under construction, 1966..
To be placed under construction, after 1966.......

Identification code
29-00-0108-0-1-804

1964

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1965 1966 actual estimate estimate

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2. Domiciliaries.--This activity provides for construction at domiciliary facilities, including restoration centers. The status of the projects in this program, excluding those which were financially completed as of June 30, 1963 follows (dollars in thousands):

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Number of Total estimated
projects

12.0

Personnel benefits....

5,430

cost of projects

21.0

331

$1,800
6.137

22.0 Transportation of things...

Travel and transportation of persons.......

365

369

143

156

179

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23.0 Rent, communications, and utilities..

7

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48

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Grants are to be made to assist the several States to construct State home facilities for furnishing nursing home care to war veterans as authorized by 78 Stat. 501, enacted August 19, 1964. This legislation authorizes the appropriation of $5 million each year for 5 years commencing in 1965 for this purpose. This request covers the first annual increment under this authorization.

Grants may not exceed 50% of the estimated cost of construction of each project. The number of beds for which grant funds may be authorized for any State may not exceed a ratio of 1 per 2,000 war veterans.

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1 Balances of selected resources are identified on the statement of financial condition.

The Veterans Canteen Service was established by Congress in 1946 to furnish at reasonable prices merchandise and services necessary to the comfort and well-being of veterans in hospitals and domiciliaries operated by the Veterans Administration (38 U.S.C. 4201-08).

Budget program.-Sales are expected to be $52,055 thousand in 1965 and it is estimated sales will be $53,941 thousand during 1966. Operating costs will increase

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