VA spending bill shifts funds to medical care.

President Bush has signed legislation that provides $70 billion for the Department of Veterans Affairs in 2006, including $33 billion in discretionary spending, most of which is for veterans health programs, and $37.2 billion for mandatory programs, primarily for veterans compensation and pensions. The measure designates $1.2 billion in emergency funds to make up for a shortfall in current spending for VA health care. (See the November/December 2005 DAV Magazine.)

The $82.6 billion Military Construction and Veterans Affairs Appropriations bill funds a variety of programs and services administered by the Department of Defense, the VA and other federal agencies. The measure provides a total of $29.1 billion for veterans health programs, including $26.9 billion in direct appropriations and $2.2 billion in offsetting receipts from veterans and their insurance companies.

Direct medical services to veterans is funded at $22.5 billion, some $1.7 billion more than the fiscal year 2005 level. However, the $2.9 billion appropriation for managing and administering the veterans health care system is $1.8 billion below last year's level.

Overall funding levels for VA health care in the measure fall about $1 billion short of recommendations contained in The Independent Budget authored by the DAV, AMVETS, Paralyzed Veterans of America and the Veterans of Foreign Wars.

"The increase in direct medical services and the emergency funds are a step forward, but they are just a short-term fix to a much larger problem," said National Legislative Director Joseph A. Violante. "The shortfalls that were revealed this past summer should have been a wake-up call for the administration and Congress that the veterans health care system needs to have an adequate, reliable funding stream that the current discretionary appropriations process simply does not provide."

The spending bill specifies that at least $2.2 billion of the appropriation for medical services be spent on "specialty mental health care." Conferees also directed the VA to designate three "centers of excellence" to focus on mental health care for veterans.

For medical and prosthetic research, the measure provides $412 million, a $10 million increase over 2005 and $19 million more than the administration's request.

As requested by the administration, the agreement appropriates $3.3 billion for operating and maintaining VA medical facilities, $464 million less than the 2005 level.

The measure does not include the administration's proposals to impose a $250 enrollment fee for certain veterans without service-connected disabilities. Nor does it include the administration's proposal to increase drug co-payment for those veterans to $15.

Also rejected was an administration proposal to restrict payments to state veterans homes for long-term care. Instead, the measure provides $85 million in grants to states for nursing homes and other extended-care facilities. It also directs the VA to work with the National Association of State Veterans Homes and other groups to find cost-effective solutions for providing long-term care and report its findings to Congress by March 31.

The spending measure provides $607 million for major construction, improvements and modernization projects for VA medical facilities, a 33 percent increase over 2005. However, the bill cuts spending for minor construction projects by $66 million.

The measure also appropriates $156 million for VA cemeteries, a 6 percent increase over the 2005 level.

"All in all, funding provided under this measure for the VA is less than adequate, despite an increase in direct medical services for veterans," said Violante.

"Funding for operating and maintaining the VA health care system took a pretty big hit to pay for that increase. The practice of simply shifting money from one account to another is no substitute for fully funding veterans health care."

"In the coming months, the DAV will again be pressing our case with Congress and the administration for full funding for veterans health care and other recommendations in The Independent Budget," Violante said. "Our government simply can't let the funding crisis continue; we need to find a better alternative to the dysfunctional budget and appropriations process that threatens the longterm viability of the veterans health care system."

Veterans Day ...

National Commander Paul W. Jackson, right, and Washington Headquarters Executive Director David W. Gorman salute as "Taps" is played during Veterans Day wreath-laying ceremonies at the Vietnam Veterans Memorial. Veterans Day activities for Commander Jackson included a breakfast at the White House hosted by President Bush and ceremonies honoring veterans at Arlington National Cemetery.