URGENT SUPPLEMENTAL APPROPRIATION BILL, 1971

U.S. Congress,
House.

HEARINGS

BEFORE

[SUBCOMMITTEES OF THE

COMMITTEE ON APPROPRIATIONS.
HOUSE OF REPRESENTATIVES

NINETY-SECOND CONGRESS

FIRST SESSION

59-161 O

Printed for the use of the Committee on Appropriations

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1971

1625.

Oct 71

GENT SUPPLEMENTAL APPROPRIATION BILL, 1971

SUBCOMMITTEE ON HUD-SPACE-SCIENCE

EDWARD P. BOLAND, Massachusetts, Chairman

JOE L. EVINS, Tennessee
GEORGE E. SHIPLEY, Illinois
ROBERT N. GIAIMO, Connecticut
DAVID PRYOR, Arkansas
J. EDWARD ROUSH, Indiana

CHARLES R. JONAS, North Carolina
BURT L. TALCOTT, California
JOSEPH M. McDADE, Pennsylvania
DEL CLAWSON, California

G. Homer Skarin and Hunter L. Spillan, Staff Assistants

TUESDAY, MARCH 30, 1971.

VETERANS' ADMINISTRATION

WITNESSES

F. B. RHODES, DEPUTY ADMINISTRATOR

R. H. WILSON, ASSOCIATE DEPUTY ADMINISTRATOR

J. D. SHYTLE, CONTROLLER

W. D. ROSS, DIRECTOR, BUDGET SERVICE

J. J. CORCORAN, GENERAL COUNSEL

DEPARTMENT OF MEDICINE AND SURGERY

DR. M. J. MUSSER, CHIEF MEDICAL DIRECTOR

DEPARTMENT OF VETERANS BENEFITS

O. B. OWEN, CHIEF BENEFITS DIRECTOR

J. C. PECKARSKY, DEPUTY CHIEF BENEFITS DIRECTOR
E. R. SILBERMAN, DIRECTOR, BUDGETING AND PLANNING
SERVICE

J. T. TAAFFE, JR., DIRECTOR, COMPENSATION, PENSION AND
EDUCATION SERVICE

Mr. GIAIMO. The committee will come to order. We are happy to have with us this morning the Deputy Administrator of the Veterans' Administration and the others listed. We welcome you, Mr. Rhodes.

Mr. RHODES. May I begin by saying Mr. Johnson is unable to be here. He had a speaking engagement that he has had planned for a long time and it is, therefore, my privilege to make this statement on behalf of the Administrator concerning the supplemental.

(1)

GENERAL STATEMENT

The President has transmitted (House Document Number 92–73) supplemental appropriation requirements for VA programs totaling $835,877,000, as follows:

$433.8 million for veterans' compensation and pensions benefit payments;

$302.2 million for veterans' educational and training assistance; $99.9 million for increased pay costs resulting from Federal comparability raises effective December 28, 1969 (Public Law 91-231), and January 10, 1971 (Public Law 91-656).

A tabular summary by appropriation of these additional requirements is attached.

COMPENSATION AND PENSIONS

Almost 80 percent of the $433.8 million requested for compensation and pensions is related to new legislation enacted subsequent to the initial budget submission. The compensation rate increases provided by Public Laws 91-262 and 91-376, along with the pension rate increases provided by Public Laws 91-588 and 91-376, account for most of the new legislation requirement of $345 million. The remaining $88.8 million of the request is due to changes in caseload and increases in average unit costs.

READJUSTMENT BENEFITS

We are requesting an additional amount of $302.2 million for readjustment benefits. Although certain new legislation, such as, Public Laws 91-584 and 91-666, have given rise to some added costs in this account, the primary pressure for increase has come from increased numbers of veterans participating in the academic and on-the-job training programs. Our estimate of the number of trainees is now 180,000 greater than was estimated in the original budget request. This training load increase together with rising unit costs have produced the additional requirements requested.

INCREASED PAY COSTS

Our supplemental appropriation requests for civilian pay act and wage board increases are included as a part of the Government-wide request in title II of the proposed 1971 supplemental bill. The total cost of these increases amounts to over $134 million, of which we are absorbing approximately $34 million. Our net request is $99.9 million. The distribution by appropriation account is shown in the attached tabular summary.

(The summary follows:)

VETERANS' ADMINISTRATION: SUPPLEMENTAL APPROPRIATION REQUEST-1971 (HOUSE DOCUMENT 92-73
DATED MAR. 23, 1971)
TITLE I
[In thousands]

Mr. RHODES. This concludes the general statement, sir. We will be glad to answer any questions.

TOTAL APPROPRIATION FOR 1971

Mr. GIAIMO. What is the total Veterans' Administration appropriation for fiscal year 1971?

Mr. SHYTLE. The total appropriation for 1971 is $9,901,393,000 including $835,877,000 in anticipated supplementals.

Mr. GIAIMO. You are still under $10 billion, but not by much.

ABSORPTION OF PAY RAISE

From which appropriation are you absorbing the $34 million for pay increases?

Mr. RHODES. Actually there was an additional $105 million appropriated for 1971. We discussed this with you when we were before you on the 1972 budget.

Mr. GIAIMO. That was for the medical care appropriation, wasn't it?

Mr. WIILSON. That is correct.

Mr. GIAIMO. You are using $34 million of that $105 million for pay increases?

Mr. RHODES. Yes, sir. Thirty-three million dollars absorbed in medical care-$1 million in other accounts.

ADDITIONAL FUNDS VOTED BY CONGRESS IN 1971

Mr. GIAIMO. Does that mean you don't need it for the purposes for which it was provided?

Mr. SHYTLE. Mr. Chairman, we testified initially on this. The Congress intended that the $105 million be used for medical care, to improve staffing and to provide for several other items of expenditure relating to the direct care of patients.

Due to the lateness of the enactment of this legislation it was not feasible for us to put this money into employment as intended by the Congress. We used $33 million of it for absorption of pay raise and the balance has been put into such things as fee dental and other direct medical care items.

Mr. GIAIMO. As I remember, we had a discussion about some of the special units that we wanted you to get underway as fast as possible. Intensive care units, and some others. We had a long discussion about the fact that they weren't becoming operative as quickly as everyone felt they should. Was any of that $105 million used for those purposes?