Vargas opposes restructuring by USDVA; says proposal is flawed and based on old, unreliable data.

SACRAMENTO, Calif.--(BUSINESS WIRE)--April 16, 1996--Announcing his opposition to the United States Department of Veterans Affairs' proposed restructuring, State Veterans Affairs Secretary Jay Vargas today vowed to fight the "ill-conceived" federal government proposal.

Vargas called the Clinton administration's plan flawed and based on old and unreliable data.

Among other things, the plan envisions relocation of VA home loan servicing functions and VA pension servicing, currently done within California, to USDVA offices in Denver and Phoenix, respectively.

Currently, California's 3.3 million veterans can seek assistance with these programs in regional offices located in Los Angeles, Oakland and San Diego.

Should the reorganization take place, California veterans would experience delays in the servicing of claims for benefits they have earned.

USDVA developed the controversial restructuring plan as part of President Bill Clinton's efforts to meet congressional demands for a balanced budget by the year 2002.

"Since becoming secretary of veterans affairs, I have been working very hard to assure that the California Department of Veterans Affairs' motto, `Putting Veterans First,' is a guideline for how we do business and not just an empty phrase. I know (U.S. Secretary of Veterans Affairs) Jesse Brown uses the same motto at the federal level. Frankly, I don't see how the proposed restructuring will meet that standard," said Vargas, a Medal of Honor recipient, Vietnam combat veteran and retired Marine colonel.

Vargas said he began hearing rumors of possible changes in USDVA's structure in the summer of 1995. As those rumors became more persistent, the president of the National Association of State Directors of Veterans Affairs asked him to prepare a report on the restructuring and its impact on California.

NASDVA, an organization comprised of the directors or secretaries of veterans affairs from each state, meets several times annually to keep members informed about issues relating to veterans.

Vargas delivered his report to fellow state veterans affairs officials at a recent NASDVA business meeting held in Washington in March. At the request of the president of NASDVA, Vargas presented his report to Brown and senior USDVA officials the following day.

Prior to the NASDVA meeting, Vargas outlined his concerns in a March 14 letter to Brown.

"I was concerned to learn of the USDVA Field Restructuring Plan and its proposals to transfer significant portions of veterans benefit processing out of California. The restructuring proposal would not provide a reasonable level of service to California veterans.

"As California's...chief advocate for our 3.3 million veterans, I...request that you suspend the restructuring plan...Downsize if you must, but keep in mind that...further reductions will unfairly hurt California's veterans."

CONTACT: California Department of Veterans Affairs

Steven J. Dakota, 916/653-2561