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Mr. RHODES. Yes, sir. For example, in readjustment benefits, our outreach program has caused an increase of veterans into the program. Also the unit cost is going up which accounts for a part of it.

We feel that a part of the increase, indeed, may be due to the fact that people are turning now, because of unemployment, to the utilization of veterans benefits. Also cranked into this, was a rate increase.

Mr. OWEN. The significant case increase in the compensation program is due to the full impact of the Vietnam war on the compensation rolls.

CHANGES IN CASELOADS

Mr. TALCOTT. What are the principal changes in caseload?

Mr. OWEN. Mr. Talcott, it is in the Vietnam veterans compensation. That has increased about 48,000 more than we had anticipated and then there has been a lesser decline in the survivors pension caseload than we had anticipated.

Mr. TALCOTT. How accurate are your estimates now? Are you mating the war will wind down quicker?

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Mr. OWEN. Mr. Talcott, this is not a factor in determining our needs for 1971. It could be for future estimates but this is, we think, extremely accurate at this time because our estimate only goes to June 30. Mr. TALCOTT. The supplementals, I suppose, are always more accurate, but the more you can avoid a supplemental, the better. We hope your estimates will be better in the future.

Mr. OWEN. We certainly plan that they will be.

Mr. TALCOTT. Your supplemental is about one-tenth of your total budget.

ACCELERATION OF SEPARATIONS

Mr. WILSON. There is another element causing this change. The Defense Department has been discharging about 100,000 more a year than we had anticipated. This has an effect on us. We get our compensation cases about 18 months after an injury.

Mr. SILBERMAN. Most of the $88 million relates to Vietnam. They are coming on the rolls at the rate of about 7,000 per month. We had anticipated around 4,000 or 4,500. There was the acceleration of separations from the Armed Forces, and we think a better relationship between DOD and the Veterans' Administration in reporting these cases quickly, getting them out of the hospital and then on the compensation rolls, that accounts for the difference. This also accounts for our belief that the estimates for 1972 are very solid.

Mr. GIAIMO. Were the estimates in the 1972 budget calculated at the increased rate?

Mr. SILBERMAN. Yes, sir. We projected in 1972 the similar growth that has occurred in the last half of 1971, for example, the number of cases in 1972 will be 295,000 Vietnam cases which is about an 85,000 increase. About 7,000 cases per month for 12 months which would be approximately 85,000 cases.

INCREASE IN AVERAGE COST PER CASE

Mr. TALCOTT. May I ask what is the principal cause for the increase in the average unit price?

Mr. OWEN. There are two factors, Mr. Talcott. One, the increase in the rate of compensation payable which was an increase effective July 1

at 11 percent and the other is the average rate of disability for the Vietnam veteran.

Mr. TALCOTT. Is the average rate of disability higher for the Vietnam veteran?

Mr. OWEN. We are experiencing higher disability for the Vietnam veteran than for World War II and Korea. It is averaging about 35 percent.

Mr. TALCOTT. Is this the early Vietnam dischargee?

Mr. WILSON. We are talking about a man injured about 18 months ago.

Mr. OWEN. In the latter part of 1969, probably.

Mr. TALCOTT. I have no further questions.

COMPARISON OF SUPPLEMENTAL REQUESTS

Mr. CLAWSON. How does this supplemental request compare with prior year supplemental requests on a percentage basis?

Mr. SHYTLE. This supplemental estimate of $835 million is larger than any we have had since 1950. Last year we had supplementals totaling $768,121,917.

Mr. CLAWSON. My question was on a percentage basis. Your budget is larger, too.

Mr. SILBERMAN. It is about the same on a percentage basis.

We had $273 million in our compensation and pension appropriation last year for supplemental and around $327 million for readjustment benefits.

TWO PAY INCREASES

Mr. TALCOTT. Very seldom do you have two wage increases in one supplemental.

Mr. WILSON. This is quite unusual.

Mr. SHYTLE.I don't remember two in 1 year in one supplemental. Mr. WILSON. There is something else that affects us. If the military men get this pay increase, an increase in survivor benefits will also be felt.

Mr. TALCOTT. The Congress hasn't been as bad to the veteran as many people would portray.

Mr. GIAIMO. When I came on this committee 6 or 7 years ago, the Veterans' Administration budget was about $5 billion and has grown each year since.

LETTER PRAISING VA SERVICES

Mr. TALCOTT. Mr. Chairman, may I have permission to put a letter in the record at this point? It is from a constituent who happened to end up in a veterans hospital. She has terminal cancer. She tells me that she is the only woman there. She is quite pleased-in fact laudatory-about the treatment she was getting from Veterans' Administration officials, doctors, aides, the Red Cross people who help there and everyone connected with the hospital.

She is very pleased and proud of the Veterans' Administration services.

Mr. GIAIMO. Without objection, we will insert the letter in the record at this point.

(The letter referred to follows:)

WARD NO. 6, HINES VA HOSPITAL,
March 22, 1971.

DEAR FRIEND BURT: While sitting around here all day, I decided to write you a letter. At the present time I am a patient at the VA hospital in Hines, Ill. Have been here 3 weeks and it looks like 3 or 4 weeks or longer.

Jimmy came to the Montgomery plant of Western Electric about a year ago and I came to see him, and was not too well so hence my being a patient. They have diagnosed terminal cancer of the breast, so here I am. The treatment is very rugged but they sure are giving me fine care. I would return to Los Angeles to the VA there; but the doctors believe it wiser for me to stay here. This is a large complex and at the present time they about have 1.500 men and I am the only woman here. So you can see I get more than 100 percent cooperation. I will say that it is run very efficiently and everything is spotless.

The food is excellent and plenty of it. They have some of the finest doctors and surgeons I have met. I am grateful indeed that I came here. I am not bedridden, but up and down and their recreation rooms are fine, and the Red Cross girls are wonderful. When they discovered a lady in the place they have showered me with so much it sort of makes me embarrassed. It is a fine organization and they are doing fine work. Several of the Legion posts close by have workers, also the VFW. They have nightly bingo games and you get a $2.50 certificate for the PX.

They have a number of Vietnam amputees here. Young lads, and they are so happy for the care and attention they are receiving.

If you get a chance tell Senator Percy he should take time out and check this place. It's a wonderful place, but my heart really belongs in California. I have heard from the Post, flowers and cards. It was so nice.

I hope to return to California and may try to get into Napa-Yountville home; but until the doctors decide, I will remain here. They had two specialists here from Washington, D.C. and they suggested I be sent there, but at least I know they are willing to help.

There are so many nice men coming here for outpatient care and it is all run so efficiently.

It is a very hard job to run a place like this, but from all I see it is wonderful and gratefully thank all for their help.

This is about all for now and I surely wish you much more success, and we are so happy to have such a fine man in the Congress.

With kindest regards.

Sincerely,

READJUSTMENT BENEFITS

MARIE G. BROWNE.

Mr. GIAIMO. We will turn to readjustment benefits and place in the record the portion of House Document 92-73 that pertains to readjustment benefits and the justification material.

(The material follows:)

READJUSTMENT BENEFITS

For an additional amount for readjustment benefits, $302,200,000, to remain available until expended.

VETERANS' ADMINISTRATION-READJUSTMENT BENEFITS

Additional funds in the amount of $302,200,000 will be required to supplement the initial appropriation for 1971. The continued wide publicity given to VA's educational programs, together with recent increases in educational allowances, have increased 1971 requirements beyond original estimates. In addition, new legislation has generated $19,200,000 of the total $302,200,000 supplemental requirement. Obligations incurred against these funds arise by operation of law and are not administratively controllable.

Increases under present legislation:

In thousands of dollars

Post-Korean conflict veterans-increased average payments and increased demand by eligible veterans for academic and on-thejob training. 1,568,000 trainees compared with a September 1970 projection of 1,394,000 trainees___.

Sons and daughters-Increased participation in this group of veterans' dependents. 52,300 trainees compared with a September 1970 projection of 45,900 trainees____

Total increases under present legislation__‒‒‒ Increases resulting from new legislation:

Public Law 91-584-Liberalization and expansion of certain edu-
cational benefits:

Eligibility of servicemen for GI bill benefits-Reduces the 2-year
active duty requirement to more than 180 days, adding 20,000
trainees in 1971____
Apprenticeship and on-the-job training-Liberalizes the conditions
under which training allowances may be paid.......
Correspondence school training-Bases payment upon the lowest
extended time payment plan or actual cost to the veteran_-_
Extends VA educational benefits to wives and children of service-
men who have been listed for more than 90 days as missing in
action or prisoners of war, estimated trainee load of 200 wives
and 100 children in 1971_.

Public Lak 91-584 total_____

Public Law 91-666-Automobiles and other conveyances for disabled veterans:

Increases from $1,600 to $2,800 the amount allowed toward the purchase price of an automobile or other conveyance for disabled veterans, also certain servicemen, and helps pay for adaptive automobile equipment_-

Total increases for new legislation_____
Proposed 1971 supplemental__

$275,000

8,000

283, 000

5,000

1, 200

200

10, 500

8,700

19, 200

302, 200

Mr. GIAIMO. You are requesting $302.2 million for readjustment benefits. That is really mandatory also, isn't it? It is brought about by the number of trainees being approximately 200,000 greater than was estimated in the original budget request, and also some rising unit costs; is that correct?

Mr. RHODES. That is correct.

Mr. GIAIMO. Are there any questions about readjustment benefits?

MANDATORY PAY INCREASE

Your increased pay costs are brought about by legislation. The total request for four appropriations is $99,898,000. Are there any questions about the increased pay costs?

VETERAN POPULATION

What percentage of the total population are veteran beneficiaries? Mr. RHODES. We estimate that 48 percent of the total population of the United States are potential recipients of veterans benefits provided by the Federal Government. We have a table which shows this.

Mr. GIATMO. We will insert this table in the record at this point. What is the number of World War II veterans?

Mr. WILSON. 14.5 million veterans. Their average age is almost 51 years.

(The table referred to follows:)

VETERAN POPULATION

On June 30, 1970 there were approximately 27.6 million veterans, 65.5 million
family members of living veterans and 3.6 million survivors of deceased veterans.
Thus 96.7 million or 48% of the total population of the United States were
potential recipients of veterans benefits provided by the Federal Government.

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