(The statement follows:) As Governor of the Soldiers' Home, I am prepared to justify the funds required to operate the home during fiscal year 1967. While the home's annual appropriation request is forwarded to Congress with the President's budget, the amount is not charged to the taxpayers. All expenditures for the home are financed from a trust fund and not from the general revenues of the Treasury. PURPOSE OF THE HOME The Soldiers' Home was established by the Congress in 1851 for the relief and support of old, invalid, or disabled soldiers of the Regular Army. It was planned as a place for members to spend their remaining days independent of public assistance, with the satisfaction of knowing that their personal contributions helped to make the home possible. This permanent residence has been provided for over a century without cost to the taxpayer. As a matter of fact, while not the original intention behind the home, subsequent analysis shows that the very existence of this establishment brings about substantial savings of Federal funds. A recent study by a joint Army and Air Force committee indicated that a large number of soldiers and airmen continue their military service in order to qualify for membership in the home. Each trained soldier who reenlists automatically saves the extensive and costly training of a replacement to handle the advanced and complex arms and equipment of a modern fighting force. ADMISSION CRITERIA The number of eligibles for membership in the home is increasing rapidly, primarily because of the mass of voluntary enlistments in the early 1940's and the large number of volunteers in both the Army and Air Force which have been maintained since that time. There are now approximately 194,000 Army and Air Force eligibles, and while fortunately only a small percentage are expected to apply for admittance, it is obvious that the demand for membership will continue to increase for many years to come. Eligibility requirements for admission have remained essentially unchanged over the years. In 1947, applicability of the laws governing the home was extended to include airmen, and, of course, enlisted women of both services are also eligible. Membership is a terminal benefit for former warrant officers and enlisted personnel of the two services, with the following qualifications: 1. Honest and faithful service for 20 years or more; 2. Service-connected disabilities rendering them unable to earn a livelihood; or 3. Non-service-connected disabilities rendering them unable to earn a livelihood, provided they have had some service during any war. These criteria maintain the home's fundamental mission of caring for the professional or career soldier and airman, and to recognize and reward service in peace and in war. ADMINISTRATION The general supervision of the home was placed by Congress in a board of commissioners, now consisting of the Governor of the home, six Army officers, and three Air Force officers, ex officio. Subject to approval by the Secretary of the Army, this board has the authority to establish regulations for the general and internal direction of the home. As Governor, I am responsible to this board for the administration of the home. I personally review each budget item, and each expenditure requires my signatory approval after funds have been appropriated. ANNUAL REPORT The law provides for a comprehensive report of the home's activities to be submitted to the Congress at the end of each fiscal year. As part of that report, the law requires the Inspector General of the Army to inspect the home and report the results to Congress. I would like to quote a portion of his report on last year's activities to show that the home continues to be managed for the benefit of the members: "I. GENERAL "2. The Governor and his staff were dedicated to maintaining the health, welfare, and safety of the members and were accomplishing the mission of the home in an outstanding manner. All officers and employees of the home displayed a spirit of cooperation and helpfulness. The Sisters of Charity continued to perform their nursing duties with quiet efficiency and devotion to duty. The sanitation and appearance of the facilities in general were commendable and in particular the cleanliness throughout the hospital was worthy of note." FINANCING The act of 1851 provided that the home be financed from a trust fund rather than from the general revenues of the Treasury. Thus, the home is not a burden on the taxpayer. The balance reported by the Treasury as of October 31, 1965, was $102.5 million. The income to this fund as prescribed by law, is from the following principal sources : 1. A contribution at the rate of 10 cents per month from each enlisted member of the Regular Army and Air Force; 2. Fines and forfeitures imposed upon this personnel by sentence of courts-martial; and 3. Interest of 3 percent per annum on the fund balance in the U.S. Treasury; There are two major factors contributing to a decline in receipts. First, both services have increased standards of enlistment and are continuing to clean out undesirables and misfits in existing ranks. Second, article 15 of the Uniform Code of Military Justice was amended in 1963 to authorize commanding officers to impose forfeitures of pay as nonjudicial punishment which the Comptroller General has decided will not accrue to the home's permanent fund. It is obvious that the loss to the home's capital and income will be considerable, but it is difficult to predict accurately the ultimate effect of the two actions on the fund receipts. It is just as evident that even with the combined income from both services, steadily rising prices and salaries, and the persistently increasing membership will force expenses to exceed income in the foreseeable future. PHYSICAL PLANT The capacity of the domiciliary area is 2,016 beds, and as of January 11, 1966, 1,956 were assigned. While additional spaces have been necessary for some time, the decision to proceed with new construction was deferred until definitive action was taken on the Air Force proposal for a separate home for airmen. For the foreseeable future, the Air Force will remain with the Soldiers' Home. In view of this action, the Board of Commissioners, the Secretary of the Army, and the Bureau of the Budget approved the use of surplus no-year money to develop plans for adding the final two wings to the Sheridan domiciliary building, increasing its bed capacity by 366 beds. The fiscal year 1967 budget now before this committee contains $3,575,000 for the construction which, if approved, should be completed about December 1968. Hospital bed capacity is 492 and on January 11, 1966, there were 414 patients. It is believed that further expansion of the hospital ward wing will be necessary soon after completion of the addition to the Sheridan building. MEMBERSHIP There were 2,613 members at the home on January 11, 1966, not all of whom required bed space. Some were away on extended leave and others were being treated in special hospitals serving the home on a reimbursable basis. The average membership during the past year was 2,522. This year the membership is expected to average 2,603. Based on past growth factors, the size of the pool of enligibles, and the limitation of space available, the fiscal year 1967 budget now for your consideration is based on an estimated average of 2,683. APPROPRIATION REQUEST As previously stated, while the budget now before this committee has conformed to the same budgetary procedures and review as applied to other Government agencies, it is not financed by taxpayers' money. The budget is based on stable, continuing programs, geared to increases in membership and changes in costs. In addition to the $3,575,000 required for new construction I mentioned earlier, $7,433,000 is being requested for operation and maintenance. This is $301,000 greater than the current appropriation because of the following additions: (a) $89,000 to increase the production capabilties of the home laundry by adding seven more employees, purchasing additional and larger capacity machinery, and increasing the utilities serving the laundry. (b) $44,000 to allow the replacement of 29 existing GS-3 nursing assistants with GS-6 nurses. This is required in order to have a registered nurse on each ward around the clock. (c) $59,000 to provide for air conditioning certain areas of the older hospital buildings, updating topographical maps and utilities drawings, cleaning the lower lake, replacing a small portion of the soft water system of the laundry, and replacing old, wooden doors on the heating plant with rolling steel doors. (d) $28,000 to provide additional rations and supplies for the anticipated increase in members and patients. (e) $24,000 to pay the full-year cost in fiscal year 1967 of a GS pay increase granted for part of fiscal year 1966. (f) $53,000 for an increase which is only apparent. It is due to the fact that the cost of annualizing a fiscal year 1965 wage board pay increase is not included in the fiscal year 1966 figures, but is included in the fiscal year 1967 estimate. (g) $14,000 to provide for 1 civilian pharmacist aid, and 10 new member positions as follows: 5 guards, 1 duty sergeant for WAC quarters, 3 attendents for the handicapped, and 1 janitor for the gymnasium. (h) There are miscellaneous changes as follows: $3,000 to increase the daily rate paid St. Elizabeths Hospital; $4,000 for increased contributions by the home to personnel benefit funds; and finally, a decrease of $17,000 due to less equipment and recurring maintenance being scheduled for fiscal year 1967. CONCLUSION I appreciate having the opportunity of coming here to represent the members of the home who gratefully acknowledge the interest taken by this committee in their welfare and future. OPERATION AND MAINTENANCE Mr. FOGARTY. The request for operation and maintenance is $7,433,000, an increase of $357,000 over the 1966 appropriation of $7,076,000. INCREASE IN MEMBERSHIP Your justifications indicate that the membership at the home will go up about 80 in 1967 but you are only budgeting for an increase of 14 in average employment. Is not this ratio of employees to members pretty low? General HAISLLIP. Yes, sir; we have increased the productivity of our employees through the years. We now have 1 employee to every 2.1 members and a few years ago was had 1 employee to every 1.7 members. RATION ALLOWANCE Mr. FOGARTY. What is your ration allowance now and how does it compare with last year and what you have budgeted for next year? General HAISLIP. It is the same; 99 cents for the general mess and $1.03 for the hospital. It is costing more than that to feed them right now. Mr. FOGARTY. Are you getting any complaints? General HAISLIP. Not at all. We have not had a real complaint on the mess in 5 or 6 years. CAPITAL OUTLAY Mr. FOGARTY. You have no appropriation for capital outlay for 1966. The request for 1967 is $3,575,000 to build two wings to the Sheridan domiciliary building. General HAISLIP. Yes, sir. Mr. FOGARTY. How old is the Sheridan building? General HAISLIP. Almost 4 years old. Mr. FOGARTY. You think it is a good idea to add to the existing building rather than to build a separate one? General HAISLIP. Yes. We wanted to build a building with a solid front and four wings but, in view of the Air Force proposal for a separate home for airmen, we did not think it was right to build for 900 men and have 500 leave. Mr. FOGARTY. How soon are you going to need an expansion of your hospital facilities? General HAISLIP. About a year after this building is finished; 1970. PERMANENT FUND Mr. FOGARTY. I notice that the permanent fund is estimated to go down almost $3 million in 1967. Why is this, and do you feel it is something to be concerned about? General HAISLIP. Yes, sir. We are concerned about it. You will remember when they amended article 15 of the Uniform Code of Military Justice, that instead of the summary court trials, commanding officers were authorized to impose pay forfeitures instead. The Comptroller General ruled that such nonjudicial fines will not accrue to the home's permanent fund. That has cut our income considerably, but it is not down to the point where we have to come to Congress and ask that these adminstrative funds be put in our permanent fund to increase the balance. Mr. FOGARTY. Mr. Michel. FEMALE MEMBERS Mr. FLOOD. How many female veterans do you have out there? General HAISLIP. Twenty-six. We cannot take any more until we get space for them. Mr. FLOOD. What are you doing about that? General HAISLIP. One of the wings we are going to build will be for women who will come in in large numbers. They say: "We have no home. This is the only place we can go." They have been in the Army 20 years and are not married and will not live with their relations, so they come to us. JOINT ARMY AND AIR FORCE COMMITTEE REPORT Mr. FLOOD. I am intrigued by the credit you take in this sentence: A recent study by a joint Army and Air Force committee indicated that a large number of soldiers and airmen continue their military service in order to qualify for membership in the home. Each trained soldier who reenlists auto matically saves the extensive and costly training of a replacement to handle the advanced and complex arms and equipment of a modern fighting force. This is the report of a joint Army and Air Force committee? General HAISLIP. Yes, sir. A joint committee. In 1954, I asked the services to evaluate the Soldiers' Home. The Bureau of the Budget was opposed to the home and was trying to close it. I wrote a letter to the two Secretaries and asked them to appoint a committee to find out how valuable the home was and whether it should be continued. After a very elaborate study which has recently been updated, polls were taken of the skilled and trained soldiers and airmen who would have to make the decision whether to leave the service or stay until they could retire on 20 years of service, to ascertain what effect the presence of a soldiers' home would have in holding them to the military service. A very startling number said that qualifying for the home was a strong influence toward keeping them in the service. Mr. FLOOD. You then say: There are now approximately 194,000 Army and Air Force eligibles, and while, fortunately, only a small percentage are expected to apply for admittance * * How do you reconcile that? General HAISLIP. Very easily. They want to qualify for the home against some future need. Most of them have no intention of coming there, but with the idea of security we have nowadays, they want some place where, when they get old and cannot take care of themselves and have no home, they can come, and that place is the Soldiers' Home. Fortunately a very small percentage come, but it has been proven that they feel they want to have that right. Mr. FLOOD. Will the development of social security in the future, including medicare, affect that situation? General HAISLIP. I am not sure, but I know the average income of the members at the home now is considerably less than $3,000 which, according to poverty definitions, is not very much. The updated study was very interesting. Polls of trained skilled technicians and noncommissioned officers showed 25 percent of those in the Air Force said definitely membership in the home had a strong influence in their staying in the service. In the Army, 11 percent said this had a strong influence on their staying in the service. During 1963, 118,100 enlistments expired. If 11 percent of those in the Army decided to stay and 25 percent of those in the Air Force decided to stay, this joint committee estimated it would save the Government $140 million in training costs alone, and this is all net. HEALTH OF MEMBERS Mr. FLOOD. How is the health of your population across the board? General HAISLIP. It is fine. Of course, in our hospital we have very ill and afflicted men, blind men, and men suffering from paralysis and emphysema, but generally most of the domiciliary members are very well. ALCOHOLISM Mr. FLOOD. What is the situation as to alcoholism? |