LEGISLATIVE BULLETIN

April 2001


Fiscal Year 2002 Budget Process

The President has submitted a "bare bones" budget to Congress, requesting a $1 billion increase in Department of Veterans Affairs (VA) discretionary spending above the fiscal year (FY) 2001 level.  A detailed budget will be submitted later in April.

The House Veterans' Affairs Committee recommended an additional $1.1 billion increase above the President's proposed budget, for a total increase of $2.1 billion in discretionary spending.

On March 21, 2001, the House Budget Committee recommended a $1.7 billion increase over the FY 2001 discretionary spending level. This is about $400 million below the recommendation of the House Veterans' Affairs Committee.  On March 28, 2001, the House passed H. Con. Res. 83, the budget resolution.

During the debate on H. Con. Res. 83, an amendment was offered by Representative Bob Clement (D-TN) to incorporate funding for H.R. 303 into the FY 2002 budget resolution.  However, a substitute amendment was offered by Representative  Mac Thornberry (R-TX) and adopted in the course of the debate.  The text of the amendment follows:

(a) FINDINGS- Congress finds that the Secretary of Defense is the appropriate official for evaluating the existing standards for the provision of concurrent retirement and disability benefits to retired members of the Armed Forces and the need to change these standards.

(b) SENSE OF CONGRESS- It is the sense of Congress that--
(1) the Secretary of Defense should report to the congressional committees of jurisdiction on the provision of concurrent retirement and disability benefits to retired members of the Armed Forces;
(2) the report should address the number of individuals retired from the Armed Forces who would otherwise be eligible for disability compensation, the comparability of the policy to Office of Personnel Management guidelines for civilian Federal retirees, the applicability of this policy to prevailing private sector standards, the number of individuals potentially eligible for concurrent benefits who receive other forms of Federal assistance and the cost of that assistance, and alternative initiatives that would accomplish the same end as concurrent receipt of military retired pay and disability compensation;
 
(3) the Secretary of Defense should submit legislation that he considers appropriate; and
(4) upon receiving such report, the committees of jurisdiction, working with the Committees on the Budget of the House and Senate, should consider appropriate legislation.

On March 27, 2001, National Commander Armando C. Albarran sent a letter to the Speaker of the House Dennis Hastert (R-IL), calling on him to use his position of leadership to ensure the passage of concurrent receipt legislation in this Congress.  A copy of this letter can be found at www.dav.org, and similar letters to the Speaker can be sent from the legislative action page of our web site.

During the Senate debate on the budget for FY 2002, Senators Paul Wellstone (D-MN) and Tim Johnson (D-SD) introduced an amendment to increase funding for VA health care by $1.7 billion above the Administration's recommendation; for an overall increase of $2.6 billion above the FY 2001 level.  This is the same level recommended in the Independent Budget (IB).  This amendment passed by a vote of 53 to 46.  Key to the passage of this amendment was the support of four Republican Senators, John McCain (R-AZ), Arlen Specter (R-PA), John Ensign (R-NV), and James Jeffords (R-VT).  The only Democratic Senator voting against it was Senator Zell Miller (D-GA).

Another amendment, offered by Senator Christopher "Kit" Bond (R-MO), increased VA discretionary spending in FY 2002 by almost $1 billion, raising the total increase for VA discretionary spending by $3.5 billion for FY 2002.  Again, this is the same level of spending recommended in the IB.  The vote was 98 to 1.  Senator George Voinovich (R-OH) was the only dissenting vote.

By voice vote on April 5, 2001, the Senate approved an amendment introduced by Senator Harry Reid (D-NV) to provide funding in the budget resolution to pay for concurrent receipt legislation as contained in H.R. 303 and S. 170.

We are very encouraged by these events; however, the House and Senate conferees must meet in conference to work out the differences in the House and Senate passed versions of the budget resolutions.  Also, the budget resolution is only a "blueprint" and need not be followed by the appropriators.  Therefore, our efforts to encourage our members of Congress to retain these funding increases must continue, as the budget process moves into the final stages.

Highlights of each budget proposal follow below:


Highlights of the Administration's FY 2002 Budget:
· Provides more than $51 billion for veterans' benefits and services:  $28.1 billion for mandatory entitlements and $23.4 billion in net discretionary budget authority to administer veterans' benefits and provide medical care and burial services.
· Increases net discretionary budget authority by $1 billion, or 4.5 percent, over the FY 2001 level.
· "Ensures" that the nation's veterans receive high-quality health care, accurate and timely entitlement benefits, and a continued commitment to make veterans' cemeteries national shrines.
· "Implements" a Presidential initiative to ensure the timely and accurate processing of veterans' disability claims, while strengthening the VA's "duty to assist" role.
· "Focuses" VA's health care system on its core mission of providing high-quality health care to veterans with disabilities or low incomes; and supports the President's new task force to study ways of improving health care access and quality.

Highlights of the House Veterans' Affairs Committee's budget recommendation:
· A $1.525 billion increase for health care.
· Research funding increased by $30 million.
· 830 new employees for claims adjudication, the same increase as recommended in the IB.
· A $2.1 billion increase in total discretionary spending for VA, $1.3 billion less than recommended by the IB, but $1.1 billion more than the Administration's request.

House Budget Committee recommendation:

· $750 million above the Administration's request, for a total increase of $1.75 billion in discretionary funding.

Highlights of the Senate Veterans' Affairs Committee's budget recommendation:
· A $1.8 billion increase for health care.
· Research funding increased by $30 million.
· Almost 900 new employees to address the claims backlog.
· A $2.149 billion increase in total discretionary funding for VA, slightly higher than the recommendations of the House Veterans' Affairs Committee.

Senate Budget recommendation:
· A $2.6 billion increase for VA health care above the FY 2001 level.
· A total increase in discretionary funding of $3.5 billion.

LEGISLATIVE UPDATE

On March 27, 2001, the House of Representatives unanimously passed two important bills affecting veterans.  On twin votes of 417-0, the House approved the Veterans Opportunities Act (H.R. 801) and the Veterans Hospital Emergency Repair Act (H.R. 811).  The measures have been sent to the Senate for action.

The Veterans Opportunities Act upgrades veterans' education, burial, disability, pension, and transition benefits.  The Veterans Hospital Emergency Repair Act authorizes $250 million in fiscal year 2002 and $300 million in FY 2003 for major medical facility repair and construction projects.

H.R. 801 provides retroactive effective date of October 1, 2000, for the $250,000 maximum benefit in the Servicemembers Group Life Insurance, permitting increased benefits to be paid under certain conditions to beneficiaries of servicemembers who lost their lives in the performance of duty.  This would allow beneficiaries of those killed aboard the USS Cole and in recent military aircraft crashes, for example, to receive the higher rate of benefits.

As passed by the House, H.R. 801, the Veterans Opportunities Act would:

· Increase the automobile and adaptive equipment grant for severely disabled veterans from $8,000 to $9,000.
· Increase the grant for specially adapted housing for severely disabled veterans from $43,000 to $48,000, and increase the amount for less severely disabled veterans from $8,250 to $9,250.
· Increase the burial and funeral allowance made to the family of veterans who die from service-connected causes from $1,500 to $2,000, increase the burial and funeral allowances for nonservice-connected veterans from $300 to $500, and increase the burial plot allowances from $150 to $300.
· Expand the Servicemembers' Group Life Insurance (SGLI) program to include spouses and children.  Spousal coverage will not exceed $100,000; child coverage would be $10,000.  Upon termination of SGLI, the spouse's policy could be converted to a private life insurance policy.
· Make the effective date of an increase from $200,000 to $250,000 in the maximum SGLI benefit provided for in Public Law 106-419 retroactive to October 1, 2000, for a servicemember who died in the performance of duty and had the maximum amount of insurance in force.
· Increase from $2,000 to $3,400 the maximum allowable annual ROTC award for benefits under the Montgomery GI Bill.
· Expand VA's work-study program for veterans to include working in their major academic discipline, working in state veterans homes, and helping state approving agencies with outreach efforts.
· Provide for inclusion of certain private technology entities in the definition of education institution.
· Allow the disabled spouse or surviving spouse of a severely disabled service-connected veteran to receive special restorative training.
· Permit veterans to use VA education assistance benefits for a certificate program offered by an accredited institution of higher learning by way of independent study.
· Provide VA the authority to maintain transition assistance offices overseas.
· Extend the time that pre-separation counseling is available to servicemembers leaving the service to as early as 12 months before discharge, and 24 months prior to discharge for military retirees.
· Improve education and training outreach services by requiring each State Approving Agency to conduct outreach programs and provide services to eligible veterans and dependents about state and federal education and training benefits.
· For purposes of VA's outreach programs, defines an eligible dependent as the spouse, surviving spouse, child or dependent parent of a servicemember or veteran. 
· Require VA to ensure that eligible dependents are made aware of VA's services through media and veterans' publications.
· Require VA to provide to the veteran or eligible dependent information concerning VA benefits and services whenever that person first applies for any benefit.


POW/MIA SUMMIT

The Disabled American Veterans will host a national summit on POW/MIA issues on Thursday, September 20, 2001, in Washington, D.C. 

The summit will include briefings and panel discussions which will focus on issues surrounding Americans taken prisoner or listed as missing in action from World War II, the Korean War, the Cold War, the Vietnam War, and the Persian Gulf War.  One of the summit's aims is to assess the current status of efforts to achieve the fullest possible accounting of these missing Americans, including those who might still be alive.  Another is to provide a broad perspective on salient issues as a way of informing and influencing our nation's POW/MIA-related public policy, both current and future.

We will provide more information in the near future about the upcoming summit.  We hope you will be able to join us for this important event. 


BILLS INTRODUCED IN THE 107th CONGRESS

The following bills have been introduced in the House and Senate since February 2001.  This list includes bills of interest to disabled veterans and their families.

· H.R. 764, a bill to amend title 38, United States Code, to provide a presumption of service connection for injuries classified as cold weather injuries which occur in veterans who sustained exposure to cold weather while engaged in military operations.
· H.R. 879, a bill to restore veterans benefits for tobacco-related illnesses as in effect before the enactment of the Transportation Equity Act for the 21st Century.
· H.R. 936, a bill to amend title 38, United States Code, to improve programs for homeless veterans, and for other purposes.
· H.R. 1351, a bill to amend title 38, United States Code, to provide for government-furnished headstones or markers for the marked graves of veterans.
· H.R. 1406, a bill to amend title 38, United States Code, to improve presumptive compensation benefits for veterans with ill-defined illnesses resulting from the Persian Gulf War, and for other purposes.
· S. 278, the Keep Our Promise to America's Military Retirees Act, would require the government to pay 100 percent of health care costs for members who entered active duty on or prior to June 7, 1956, and who subsequently earned longevity retirement, by extending to these retirees the option of coverage under the Federal Employees Health Benefits program.
· S. 405, a bill to amend title 38, United States Code, to improve outreach programs carried out by the VA to provide for more fully informing veterans of benefits available to them under laws administered by the Secretary of Veterans Affairs.
· S. 409, the Persian Gulf War Illness Compensation Act, which would extend the presumptive period for the undiagnosed illnesses provision until December 2011. It would also clarify the standards for compensation for Persian Gulf veterans suffering from undiagnosed illnesses.  The bill would grant compensation for undiagnosed illnesses and for ill-defined conditions such as fibromyalgia.

CONCLUSION

As always, your support of DAV's legislative goals has helped us ensure the passage in the House of a number of provisions in H.R. 801 that address current DAV resolutions to increase benefits for our nation's disabled veterans.  Your support has also ensured increased funding for VA programs thus far in the budget process.

Although our work with Congress is not yet complete, and the legislative staff will probably need your further support throughout this Congress, I hope that you feel a strong sense of accomplishment in helping Congress understand the importance of keeping our government's commitment to its veterans.

Please accept the sincere thanks of the staff for your continued support of DAV's legislative goals and your efforts on behalf of our nation's disabled veterans and their families.

/s/

JOSEPH A. VIOLANTE
National Legislative Director

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