Description of impact and Committee's views The minor construction program affords the VA the opportunity to modernize, maintain and improve medical facilities at a cost of less than $2 million. The reduction of $32 million in budget authority and $8 million in outlays in fiscal year 1982 will impact adversely on the provision of patient privacy and prevent improvements to existing clinical and administration areas. The Committee does not oppose this reduction. Description of impact and Committee's views Mr. Carter's budget included a request for funds for a 12.3 percent legislative increase in compensation and also funds for a similar increase in the ongoing indexed pension program. Mr. Reagan's budget revisions reflect an anticipated lower inflation factor of 11.2 percent and this reduction merely reflects the amount required for the increase in the indexed pension program and for a similar legislative increase in compensation. The Committee neither accepts nor rejects the President's economic assumption concerning an automatic cost-of-living increase for those drawing pension benefits nor for that projected for legislation to effect an identical increase for compensation purposes. The Committee recommends to the Budget Committee that it develop its own economic assumptions in determining the rate of increase to be provided for both compensation and pension purposes. Description of impact and Committee's views A major purpose of the GI bill is to assist veterans in readjusting to civilian life. Over the years, there have been a number of changes in the law intended to minimize what has been described as an aimless pursuit of education and training goals. For example, the GI bill prohibits courses that are avocational or recreational in nature. In this regard, two programs which have received continuous Committee attention to determine if veterans are attaining the educational, vocational or professional goals for which trained or educated are flight and correspondence courses for veterans. For five consecutive years the President has proposed the elimination of flight and correspondence training benefits for veterans. These benefits are designed to enhance readjustment to civilian life and to provide training for employment. The Veterans' Administration, however, has repeatedly informed the Committee that its experience in administering education programs for veterans and their dependents has convinced them that flight and correspondence courses have not fulfilled their intended purpose of aiding the veteran or dependents to obtain employment for which they were trained. In the First Concurrent Budget Resolution on the budget for fiscal year 1981 the House Budget Committee, after stating that the training for these two programs is used for recreational purposes and does not lead to professional full-time employment, recommended that both programs should be eliminated (H. Rept. 96–857). Subsequently, the assistance for these two programs was reduced by P.L. 96-466, the Education and Training Amendments of 1980. Again, this year former President Carter and President Reagan have recommended that flight and correspondence training be eliminated. Former President Carter recommended termination effective after September 30, 1981. President Reagan would terminate these programs after June 30, 1981. The Committee does not necessarily agree with the views of the Veterans' Administration regarding these two programs. To the contrary, the Committee has consistently held that these two programs should be available for the remainder of the life of the present GI bill, which will terminate for all purposes on December 31, 1989. The Committee has not acted favorably on the recommendation to eliminate these two programs. However, it is the view of the Committee that in order to assist the President in his efforts to reduce total Federal spending in fiscal year 1982, the Committee has reluctantly agreed to the President's proposal to eliminate these two programs effective after September 30, 1981. Description of impact and Committee's views The President's budget submitted to the Congress in January of 1981 proposed to extend the delimiting period for entitlement to GI bill benefits for an additional two years for certain disadvantaged veterans. The budget amendments for fiscal year 1982 sent to the Congress in March would eliminate this proposal. The Committee's March 15th report on the budget contains a legislative proposal in Section II, Congressional Proposals, which would expand and improve training and assistance for certain Vietnam veterans who desire to take on-the-job vocational or technical training. As a consequence, the Committee does not approve of this $64.4 million cost savings. Description of impact and Committee's views Public Law 96-330 provided the special pay and special incentive pay to VA physicians and dentists and was a landmark piece of legislation. It provided for the first special pay increase for these personnel since 1975. The law was designed to permit the VA to attract and retain highly qualified professionals. President Carter vetoed the bill. The Congress overrode his veto by votes of 401 to 5 in the House and 85 to 0 in the Senate. The vote to override won by the largest margin in the history of the United States. If there is to be a VA health care delivery system, the cap placed on this pay must remain the one currently provided for in law, not 12 percent of the base pay as proposed in the budget. Should this become law, the Committee on Veterans' Affairs is of the firm belief that physicians and dentists will not be attracted to VA employment, and many of those currently employed would seek other employment. The Committee views this proposal, if enacted, as a breach of faith and is opposed to it. Description of impact and Committee's views This proposal, together with President Carter's proposal, amounts to a reduction of $35 million for this account and represents more than a 30 percent reduction. It is the Committee's opinion that many of these veterans cannot afford even the $5 deductible on mileage related travel of non-service-connected and service-connected conditions. If this proposal is accepted, those veterans who cannot afford even the $5 will be unable to seek necessary or required treatment. Such a reduction is contrary to Congressional intent to ensure that eligible veterans will be able to avail themselves of needed care. A recent survey indicated 36 percent of the VA inpatient population have annual incomes of less than $2,000. The reduction in travel costs will permit less access to VA medical facilities and will be especially devastating to veterans suffering from chronic illnesses. If definitive action is not taken to restore the beneficiary travel funds, either significant reductions in direct patient care will occur or the Department of Medicine and Surgery will be placed in a position of inability to pay a legally mandated benefit due to a saturation of their ability to divert any further funds from within the medical care appropriation. It must be emphasized that any action that will reduce the eligible population will result in a denial of access to care to the most needy (indigent non-service-connected) veterans for recurring outpatient treatment. The Committee opposes this $35 million reduction. |