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DEPARTMENT OF VETERANS AFFAIRS
The 1997 Budget provides $18,904 million in discretionary
budget authority for veterans’ health, benefits, and other services as summarized below:

DESCRIPTION OF DEPARTMENT OF VETERANS AFFAIRS FY 1997 DISCRETIONARY BUDGET AUTHORITY
(in millions of dollars)
Workload (Noncapital
operating costs)

Account

Current
Veterans Health Administration:
Medical Care ................................................................................................................................................ 16,306.2
Medical Research ........................................................................................................................................
257.0
MAMOE (admin) ...........................................................................................................................................
62.2
Grants .......................................................................................................................................................... ................

Additional

New Presence 2

Current Infrastructure
Equipment

NRM 1

Construc- Construction
tion

Initiatives 5

Total

................
................
................
................

17,378.4
257.0
62.2
40.9

89.7

792.5

0.8 ................

129.1

Activations 3

................
475.2
227.0
311.4
58.6 ................
................ ................ ................ ................ ................ ................
................ ................ ................ ................ ................ ................
................ ................ ................
16.6
24.3 ................

Veterans Benefits Administration .........................................................................................................................

662.5

5.3

National Cemetery System ....................................................................................................................................

72.6

Other 4 ...................................................................................................................................................................

245.0

–10.7 a

Total ........................................................................................................................................................

17,605.5

–1.9

11.2 ................

3.5 ................ ................
1.4 ................
487.8

227.0

11.5 ................
18.1

12.3

34.1

5.5 ................ ................
363.1

117.0

13.1

3.0

244.2

92.7

18,904.3

1 NRM

is Non-Recurring Maintenance.
2 New Presence refers to funding for construction in locations previously without VA facilities (e.g. construction of the new Brevard County, Fla., hospital, ambulatory clinic in Honolulu, and grants to states for
construction of new cemeteries or extended care facilities).
3 Activations also includes funding for equipment.
4 Other includes General Operating Expenses for Department-level staff offices and entities such as the Board of Veterans Appeals (VBA), General Counsel, the Office of Inspector General, etc.
5 For VBA, this column includes all of the program funds to support Information Technology except equipment costs and funding requirements associated with restructuring initiatives ($5.9 million).
a Reduction reflects amount removed from GOE for Franchise Fund.

DEPARTMENT OF VETERANS AFFAIRS IMPLEMENTATION OF
GOVERNMENT PERFORMANCE AND RESULTS ACT

THE

The Government Performance and Results Act (GPRA) of
1993 represents the primary vehicle through which VA is
developing more complete and refined performance information to determine better how well its programs are meeting
their intended objectives.
During FY 1995, VA continued its participation in GPRA
pilot projects. All three of the formal pilots—National Cemetery System, Loan Guaranty Program, and New York Regional Office—made progress in developing performance
measures that are tied to strategic goals and objectives. Several other internal pilot projects are also underway. The experience gained through participation in these pilots is being
shared and applied through the Department so that VA will
be positioned to implement the performance planning provisions of GPRA by September 1997.
VA continues to make progress in identifying performance
measures for its major programs. The identification, development, and use of more meaningful performance measures tied
to strategic goals and objectives will continue to be a major
focal point for the Department. The ultimate goal is to develop
and use a single set of performance goals and measures
throughout the program planning, budget formulation, budget
execution, and accountability processes.

VETERANS HEALTH ADMINISTRATION
Federal Funds
General and special funds:
MEDICAL CARE
For necessary expenses for the maintenance and operation of hospitals, nursing homes, and domiciliary facilities; for furnishing, as
authorized by law, inpatient and outpatient care and treatment to
beneficiaries of the Department of Veterans Affairs, including care

and treatment in facilities not under the jurisdiction of the Department; and furnishing recreational facilities, supplies, and equipment;
funeral, burial, and other expenses incidental thereto for beneficiaries
receiving care in the Department; administrative expenses in support
of planning, design, project management, real property acquisition
and disposition, construction and renovation of any facility under
the jurisdiction or for the use of the Department; oversight, engineering
and architectural activities not charged to project cost; repairing, altering, improving or providing facilities in the several hospitals and
homes under the jurisdiction of the Department not otherwise provided
for, either by contract or by the hire of temporary employees and
purchase of materials; uniforms or allowances therefor, as authorized
by 5 U.S.C. 5901–5902; aid to State homes as authorized by 38 U.S.C.
1741; and not to exceed $8,000,000 to fund cost comparison studies
as referred to in 38 U.S.C. 8110(a)(5); $17,008,447,000, plus reimbursements: Provided, That of the funds made available under this
heading, $570,000,000 is for the equipment and land and structures
object classifications only, which amount shall not become available
for obligation until August 1, 1997, and shall remain available until
September 30, 1998.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0160–0–1–703

Obligations by program activity:
Direct program:
Operating expenses:
Provision of veterans health care:
00.01
Acute Hospital Care .........................................
00.02
Rehabilitative Care ...........................................
00.03
Psychiatric Care ...............................................
00.04
Long Term Care ................................................
00.05
Outpatient Care ................................................
00.06
Community Based Care ....................................
00.07
CHAMPVA ...............................................................
00.08
Education and Training ........................................
00.09
Miscellaneous Benefits and Services ...................

1995 actual

4,985
289
1,498
2,381
4,173
287
94
899
616

1996 est.

1997 est.

4,916
280
1,493
2,527
4,577
298
99
939
636

829

4,698
287
1,536
2,719
5,015
308
106
975
656

830

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
90.00

General and special funds—Continued

Outlays ...........................................................................

15,933

16,471

17,136

MEDICAL CARE—Continued
Summary of Budget Authority and Outlays

Program and Financing (in millions of dollars)—Continued
Identification code 36–0160–0–1–703

00.91

1995 actual

1996 est.

1997 est.

15,222

15,765

16,300

01.01
01.02
01.03
01.04
01.05
01.07

Total operating expenses .................................
Capital investment:
Provision of veterans health care:
Acute Hospital Care .........................................
Rehabilitative Care ...........................................
Psychiatric Care ...............................................
Long Term Care ................................................
Outpatient care ................................................
Education and Training ....................................

362
10
85
147
233
1

331
22
81
139
221
1

294
20
72
124
197
1

01.91

Total capital investment ..................................

838

795

708

01.92
02.01

Total direct program .............................................
Reimbursable program ..................................................

16,060
66

16,560
66

17,008
66

10.00

Total obligations ........................................................

16,126

16,626

17,074

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.30 Unobligated balance expiring ........................................

[In millions of dollars]

Enacted/requested:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, not subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................
Adjustment to 1996 continuing resolution levels:
Budget Authority .....................................................................
Outlays ....................................................................................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

16,626
–16,126

17,127
–16,626

17,575
–17,074

501

501

501

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
16,166
16,564
17,008
40.75
Procurement reduction pursuant to P.L. 103–327
–18 ................... ...................
41.00
Transferred to other accounts ................................... ...................
–4 ...................
43.00

68.00
68.10
68.90
70.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections:
Offsetting collections (cash) ................................
Change in orders on hand from Federal sources

16,560

17,008

72
66
66
–6 ................... ...................

Spending authority from offsetting collections
(total) ...........................................................

66

66

66

Total new budget authority (gross) ..........................

16,214

16,626

17,074

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Appropriation .............................
72.95
Orders on hand from Federal sources ......................
72.99
73.10
73.20
73.40

16,148

2,085
34

2,151
28

2,240
28

74.40
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance: Appropriation .............................
Orders on hand from Federal sources ......................

2,119
2,179
2,268
16,126
16,626
17,074
–16,005
–16,537
–17,202
–60 ................... ...................

74.99

Total unpaid obligations, end of year ..................

86.90
86.93
86.97
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

16,005

16,537

17,202

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.40
Non-Federal sources .............................................

–45
–27

–43
–23

–43
–23

88.90
88.95

Total, offsetting collections (cash) ..................
Change in orders on hand from Federal sources .........

–72
–66
–66
6 ................... ...................

89.00

Net budget authority and outlays:
Budget authority ............................................................

2,151
28

2,240
28

2,112
28

2,179

2,268

2,140

14,005
14,218
14,800
1,928
2,253
2,336
66
66
66
6 ................... ...................

16,148

16,560

17,008

16,148
15,933

1996 est.

1997 est.

16,560
16,471

17,008
17,136

.................... ....................
.................... ....................

3
3

....................
....................
16,148
15,933

213 ....................
192
19
16,773
16,663

17,011
17,158

The following table presents a summary of selected performance trends for medical care, research, and education.
The measures address performance covering access, financial
management, customer satisfaction, quality, and workload.

21.40

415
501
501
16,214
16,626
17,074
–3 ................... ...................

1995 actual

1993 actual

Medical Care Summary:
Unique users ....................................................
Inpatient days of acute and rehabilitative
care per unique user per year .....................
Outpatient visits per unique user per year .....
Median waiting time for a subspecialty referral
(stable patient):
Cardiology (days) ..............................................
Ophthalmology (days) .......................................
Obligations per unique user .................................
Obligations per outpatient visit ...........................
Obligations per inpatient discharge .....................
Ratio of outpatient to hospitalized inpatient obligations ............................................................
Aggregate customer service standard score for
inpatients:
Medicine ...........................................................
Surgery ..............................................................
Psychiatry .........................................................
Other (neurology, acute rehabilitation, spinal
cord injury) ...................................................
All departments ................................................
All except psychiatry ........................................
% of inpatients reporting problems in areas of
their preference for care and services:
Medicine ...........................................................
Surgery ..............................................................
Psychiatry .........................................................
Other (neurology, acute rehabilitation, spinal
cord injury) ...................................................
All departments ................................................
All except psychiatry ........................................
Average Joint Commission on Accreditation of
Healthcare Organizations grid scores for
surveyed hospitals .......................................
% of patients receiving care in accordance with
set and accepted standards ............................
% of facilities successfully accredited by survey
organizations ....................................................
Turnover rates:
Physicians:
Full-time .......................................................
Part-time ......................................................
Nurse practitioners:
Full-time .......................................................
Part-time ......................................................
Research Summary:
Total number of projects funded .....................
Total number of new projects funded .............
% of projects receiving extramural funds .......
% of funds coming from extramural sources .
As measured by the appeals process, % of
applicants for VA research support who
accept decisions of merit review boards on
their proposals .............................................
Education Summary:
Total VA funded positions per year .................
Total primary care funded positions per year .
Total individuals rotating through VHA per
year ..............................................................

1994 actual

1995 actual

1997 est

2,764,858

2,787,197

2,858,582

2,858,582

16.0
9.0

15.4
9.6

14.9
10.3

14.0
11.6

61.7
67.8
$5,285
$167
$9,931

53.0
62.1
$5,525
$169
$10,352

39.5
38.0
$5,641
$171
$10,924

25.0
25.0
$5,973
$179
$12,018

0.416

0.438

0.475

0.559

N/A
N/A
N/A

79%
83%
68%

79%
83%
68%

81%
84%
70%

N/A
N/A
N/A

72%
78%
80%

72%
78%
80%

73%
79%
81%

N/A
N/A
N/A

17%
13%
39%

16%
12%
38%

12%
8%
34%

N/A
N/A
N/A

23%
23%
18%

22%
22%
17%

18%
18%
13%

86%

86%

89%

90%

95%

98%

96%

97%

100%

100%

100%

100%

11.5%
16.0%

7.5%
15.0%

7.0%
10.0%

9.0%
13.0%

N/A
N/A

10.0%
16.0%

6.0%
9.0%

6.0%
9.0%

2,003
172
56%
55%

1,870
261
58%
54%

1,771
334
58%
54%

1,598
200
63%
61%

98.3%

98.5%

98.3%

98.5%

10,279
2,943

10,224
2,926

10,637
3,355

10,998
3,577

104,964

108,515

108,703

108,703

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
Mean first year stipend:
Medical residents:
National average stipend ............................
VA average stipend ......................................
Optometry residents:
National average stipend ............................
VA stipend ....................................................
Podiatry residents:
National average stipend ............................
VA stipend ....................................................
Pharmacy residents:
National average stipend ............................
VA stipend ....................................................
Psychology interns:
National average stipend ............................
VA stipend ....................................................

831

Total ...........................................................................
$28,618
N/A

$29,632
$28,294

$30,753
$29,846

$19,222
$19,222

$22,500
$19,222

$22,500
$22,500

$16,200
$15,500

$16,200
$15,500

$22,500
$15,500

$22,500
$22,500

$24,500
$22,500

$24,500
$24,500

$26,500
$24,500

$26,500
$26,500

$15,700
$15,700

$17,000
$15,700

$17,000
$17,000

$17,000
$17,000

370,000

370,000

Fee: Cases completed ........................................................

17,240

17,000

17,000

Average employment (including education and training) ......

53,793

58,090

66,972

$30,753
$30,530

$19,222
$18,500

367,672

This request incorporates a realignment of activities towards reflecting functions similar to other medical care institutions across the nation. Workload estimates continue to reflect a shift away from inpatient care to other care settings
when consistent with desired medical outcomes.
In 1997, increased costs are associated with: (1) payroll
increases; and, (2) the increased cost of drugs and medicines,
communications, provisions, prosthetics, medical and dental
supplies, and operating supplies.
Provision of Veterans Health Care—
Acute hospital care.—Costs for 1997 are estimated to decrease by $254 million for operating medical, neurology,
surgical and contract hospital beds, reflecting the shift to
increased use of ambulatory care.
Estimated operating levels are:
1995 actual

Patients treated ......................................................................
Average daily census ..............................................................
Average employment (including education and training) ......

680,228
16,028
72,764

1996 est.

653,442
14,607
65,585

1997 est.

604,232
12,851
57,958

Rehabilitative care.—An increase of $5 million in 1997
is estimated for providing rehabilitative care, including spinal cord injury care.
Estimated operating levels are:
1995 actual

Patients treated ......................................................................
Average daily census ..............................................................
Average employment (including education and training) ......

19,249
1,779
6,107

1996 est.

18,858
1,643
5,701

1997 est.

18,018
1,473
5,244

Psychiatric care.—An increase of $35 million is estimated
in 1997 for the inpatient care of veterans with problems
related to mental illness including alcohol and drug problems.
1995 actual

Patients treated ......................................................................
Average daily census ..............................................................
Average employment (including education and training) ......

194,448
13,300
27,012

I996 est.

193,000
12,500
25,625

1997 est.

188,000
11,760
24,343

Long-term care.—In 1997, an increase of $177 million
is estimated for the care of residents in intermediate care
beds, VA nursing homes and domiciliaries, community nursing homes and state homes.
Estimated operating levels are:
1995 actual

Patients treated ......................................................................
Average daily census ..............................................................
Average employment (including education and training) ......

140,960
49,934
34,734

1996 est.

138,975
50,164
35,112

137,476
50,856
35,599

NUMBER OF MEDICAL VISITS AND DENTAL WORKLOADS
Medical visits (in thousands):
Outpatient clinic visits .......................................................
Community based visits .....................................................

1995 actual

26,122
2,817

28,195
2,867

29,792
2,902

Total ...........................................................................

28,939

31,062

32,694

Dental:
Staff:
Examinations ..................................................................
Treatments .....................................................................

218,137
149,535

220,000
150,000

1995 actual

Visits (in thousands) ..............................................................
Average employment, (including education and training)

1997 est.

220,000
150,000

2,817
3,038

1996 est.

2,867
3,038

1997 est.

2,902
3,038

Civilian health and medical program of the Department
of Veterans Affairs (CHAMPVA).—A net increase of $7 million is estimated in 1997 for private hospital and outpatient
care for dependents and survivors of certain veterans, reflecting the cost of inflation.
1995 actual

Average daily hospital census ................................................
Outpatient (in thousands) ......................................................
Average employment ...............................................................

142
822
147

1996 est.

150
850
147

1997 est.

150
850
147

Education and training.—An increase of $36 million is
estimated in 1997 for residency and other health training
services.
1995 actual

Average employment (all education and training average
employment has been apportioned to the respective activities) ...............................................................................
Number of trainees .................................................................

8,096
108,703

1996 est.

8,106
108,703

1997 est.

8,106
108,703

Miscellaneous benefits and services.—This covers such
items of nondirect medical care and treatment as beneficiary travel, care of the dead, operation of personnel quarters at medical facilities, and the cost of furnishing supply,
engineering, housekeeping, and other administrative support services to other departments on a nonreimbursable
basis. An increase of $21 million is estimated for 1997.
1995 actual

Average employment ...............................................................

5,891

1996 est.

5,891

1997 est.

5,891

Object Classification (in millions of dollars)
Identification code 36–0160–0–1–703

1997 est.

Outpatient care.—An increase of $414 million is estimated
in 1997 for the cost of outpatient medical and dental care
provided by staff, physicians, and dentists participating
under a fee basis arrangement for certain eligible veterans.
1996 est.

Community based care.—An increase of $9 million is estimated in 1997 for providing care to veterans through a
variety of programs that are primarily non-institutional
based. These include: Adult Day Health Care; Community
Based Domiciliary Aftercare; Community Residential Care;
Compensated Work Therapy/Transitional Residence; Contract Alcohol and Drug Treatment and Rehabilitation;
Home Dialysis; Health Care for Homeless Veterans; Homemaker/Home Health Aide Services; Hospital Based Home
Care; HUD/VA Supported Housing; Intensive Psychiatric
Community Care; Readjustment Counseling; Skilled Home
Care; and Spinal Cord Injury Home Care.
Visits and average employment are included in total outpatient activity as well as to show total outpatient levels.

11.1
11.3
11.5
11.9
12.1
13.0
21.0
21.0
21.0
21.0
22.0
23.1
23.2
23.3
24.0
25.2
25.6

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................
Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons:
Employee travel .....................................................
Beneficiary travel ..................................................
Interagency motor pool payments ........................
All other ................................................................
Transportation of things ...........................................
Rental payments to GSA ...........................................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other contractual services ........................................
Medical care:
Outpatient dental fees ..........................................

1995 actual

1996 est.

1997 est.

6,478
780
811

6,557
790
838

6,757
814
852

8,069
1,855
23

8,185
1,888
13

8,423
1,956
14

36
100
11
31
26
22
48

50
111
12
35
28
23
52

51
112
12
35
28
25
53

415
13
1,157

428
15
1,245

443
15
1,284

12

13

13

832

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued

five percent of third party collections from Category A veterans and one hundred percent of third party collections from
Category C veterans. Medical Care Cost Recovery (MCCR)
will transfer these amounts into the Medical Care account
to improve the quality of health care for veterans. This transfer will take place in the fiscal year following collection.

MEDICAL CARE—Continued
Object Classification (in millions of dollars)—Continued
1995 actual

Identification code 36–0160–0–1–703

25.6
25.6
25.6
25.6

1996 est.

1997 est.

41.0
41.0
43.0

Medical and nursing fees .....................................
Community nursing homes ...................................
Contract hospitalization ........................................
Civilian health and medical program of the Veterans Administration ........................................
Supplies and materials:
Supplies and materials ........................................
Provisions ..............................................................
Equipment .................................................................
Land and structures ..................................................
Grants, subsidies, and contributions:
Grants, subsidies, and contributions ...................
Grants to private organizations ............................
Interest and dividends ..............................................

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

16,060
66

16,560
66

17,008
66

99.9

Total obligations ........................................................

16,126

16,626

17,074

26.0
26.0
31.0
32.0

242
331
150

261
331
165

275
347
173

86

91

98

2,303
98
527
312

2,502
100
571
224

2,601
102
475
232

186
6
1

208
7
2

232
7
2

MEDICAL

AND

PROSTHETIC RESEARCH

For necessary expenses in carrying out programs of medical and
prosthetic research and development as authorized by 38 U.S.C. chapter 73, to remain available until September 30, 1998, $257,000,000,
plus reimbursements.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0161–0–1–703

1995 actual

1996 est.

1997 est.

1995 actual

Identification code 36–0160–0–1–703

1996 est.

1997 est.

173
26
33

192
29
37

186
27
36

00.91

Personnel Summary

Obligations by program activity:
Direct program:
Operating expenses:
00.01
Medical research ...................................................
00.02
Rehabilitation research .........................................
00.03
Health services research ......................................

232

258

249

3
1
2

9
4
5

4
2
3

..............................
and holiday hours

199,605
4,213

195,311
4,099

195,311
4,099

01.01
01.02
01.03

Total operating expenses .................................
Capital investment:
Medical research ...................................................
Rehabilitation research .........................................
Health services research ......................................

..............................
and holiday hours

843
18

843
18

843
18

01.91

Total capital investment ..................................

6

18

9

01.92
02.01

Total direct program .............................................
Reimbursable program ..................................................

238
51

276
51

258
45

10.00

Direct:
Total compensable workyears:
1001
Full-time equivalent employment
1005
Full-time equivalent of overtime
Reimbursable:
Total compensable workyears:
2001
Full-time equivalent employment
2005
Full-time equivalent of overtime

Total obligations ........................................................

289

327

303

MEDICAL CARE
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.30 Unobligated balance expiring ........................................

(Legislative proposal, not subject to PAYGO)

21.40

Program and Financing (in millions of dollars)
Identification code 36–0160–2–1–703

1995 actual

1996 est.

1997 est.

23.90
23.95
24.40

Obligations by program activity:
Direct program:
Operating expenses:
Provision of veterans health care:
00.04
Outpatient care ................................................ ................... ...................

3

10.00

Total obligations (object class 25.6) ........................ ................... ...................

3

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................ ................... ...................
23.95 New obligations ............................................................. ................... ...................

3
–3

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

New budget authority (gross), detail:
40.25 Appropriation (special fund, indefinite) ........................ ................... ...................

3

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

10
20
1
301
308
302
–3 ................... ...................
308
–289
20

328
–327

303
–303

1 ...................

251

257

257

51

51

45

301

308

302

72.40

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................

3
–3

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

3

87.00

Total outlays (gross) ................................................. ................... ...................

3

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ...................
90.00 Outlays ........................................................................... ................... ...................

3
3

Legislation is being proposed in 1997 that will allow the
Veterans Health Administration to retain a portion of third
party recoveries above the annual collection goal. Once the
Department exceeds the goal defined in the legislation additional collections will be shared, with VA retaining twenty-

63
47
67
289
327
303
–302
–307
–302
–3 ................... ...................
47

67

68

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

184
67
50

189
67
51

189
68
45

87.00

Total outlays (gross) .................................................

302

307

302

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–51

–51

–45

Net budget authority and outlays:
Budget authority ............................................................

250

257

257

89.00

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
90.00

Outlays ...........................................................................

251

256

257

The Medical and Prosthetic Research account is comprised
of the following three programs:
Medical research.—This program is comprised of investigator-initiated and special research. In addition to the broad
spectrum of biomedical research projects, priority is given
to research Acquired Immune Deficiency Syndrome and conditions that frequently occur among veterans such as aging,
alcoholism, schizophrenia, delayed stress disorders and other
mental illness, and spinal cord injury and tissue regeneration.
Cooperative studies include surgical treatment of angina pectoris, adjunct treatment of diabetes, and relative potency and
side-effect liability of new and marketed sedatives.
Rehabilitation research.—This program is dedicated to the
development and application of science and technology to improve the care of physically disabled veterans through prostheses for the amputee, improved wheelchairs for the paralyzed, and better joint functions for the arthritic. It also includes care for those with visual, hearing, and speech disorders.
Health services research.—This program provides support
for health services projects at Department of Veterans Affairs
medical centers for improving the effectiveness and economy
of delivery of health services and improving the accessibility
of services to veterans.
In support of the research activities of these three programs, VA applies a variety of budgetary resources including
appropriations from the Medical Care account and reimbursements from the DOD, Grants from the National Institutes
of Health, private proprietary sources, and voluntary agencies
which provide additional support for VA’s researchers. The
first table summarizes all budgetary resources for the Medical
and Prosthetic Research account. The second table shows the
total number of projects.
SUMMARY OF BUDGETARY RESOURCES

Personnel Summary
Identification code 36–0161–0–1–703

Direct:
Total compensable workyears:
1001
Full-time equivalent employment ..............................
1005
Full-time equivalent of overtime and holiday hours
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 est.

1997 est.

Medical and prosthetic research appropriation ..........................
Medical care appropriation .........................................................
Federal grants (NIH) ....................................................................
Other grants (voluntary agencies, private proprietary) ..............
DOD reimbursements ...................................................................

251
378
185
98
19

257
388
194
101
14

257
396
203
106
0

Total budgetary resources .............................................

931

954

962

1995 actual

1996 est.

1997 est.

3,002
23

3,011
23

2,935
23

674

653

550

MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING
EXPENSES
For necessary expenses in the administration of the medical, hospital, nursing home, domiciliary, construction, supply, and research
activities; administrative expenses in support of planning, design,
project management, architectural, engineering, real property acquisition and disposition, construction and renovation of any facility under
the jurisdiction or for the use of the Department of Veterans Affairs,
including site acquisition; engineering and architectural activities not
charged to project cost; and research and development in building
construction technology; $62,207,000, plus reimbursements.
Note.—A regular 1996 appropriaton for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0152–0–1–703

1995 actual

1996 est.

1997 est.

00.01

Obligations by program activity:
Operating expenses: Medical, hospital, nursing home,
and domiciliary administration .................................

69

68

62

10.00

Total obligations ........................................................

69

68

62

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

70
–69

68
–68

62
–62

40.00
42.00

New budget authority (gross), detail:
Appropriation ..................................................................
70
Transferred from other account ..................................... ...................

[In millions of dollars]

1995 actual

833

64
62
4 ...................

43.00

Appropriation (total) ..................................................

70

68

62

70.00

Total new budget authority (gross) ..........................

70

68

62

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

9
69
–71

6
68
–68

6
62
–63

6

6

7

72.40

PROGRAM INDICATORS
1995 actual

Medical and Prosthetic Research projects .................................

1,771

1996 est.

1997 est.

1,743

1,598

Object Classification (in millions of dollars)
Identification code 36–0161–0–1–703

11.1
11.3
11.5
11.9
12.1
21.0
21.0
23.3
24.0
25.5
26.0
31.0

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other than full-time permanent ...........................
Other personnel compensation .............................

1995 actual

38
74
5

Total personnel compensation .........................
117
Civilian personnel benefits .......................................
29
Travel and transportation of persons:
Employee travel .....................................................
2
All other ................................................................ ...................
Communications, utilities, and miscellaneous
charges .................................................................
1
Printing and reproduction .........................................
1
Research and development contracts .......................
56
Supplies and materials .............................................
26
Equipment .................................................................
6

1996 est.

86.90
86.93

1997 est.

40
78
5

41
79
5

123
30

125
31

3
1

2
1

1
1
66
32
18

1
1
57
30
9

99.0
99.0

Subtotal, direct obligations ..................................
Reimbursable obligations ..............................................

238
51

275
52

257
46

99.9

Total obligations ........................................................

289

327

303

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

65
6

62
6

56
6

87.00

Total outlays (gross) .................................................

71

68

63

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

70
71

68
68

62
63

Medical, hospital, nursing home, and domiciliary administration.—Central office staff elements will continue to provide
executive direction for all Department medical and construction programs through program development, implementation,
and the administration of policies, plans, and objectives.
The total employment represents 600 FTE for the 1997
Medical Administration and Miscellaneous Operating Expenses appropriation plus 10 FTE transfer of certain information resources management functions from the General Operating Expenses (GOE) appropriation as part of an initiative
to establish the Agency Chief Information Officer program.

834

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
02.01
02.02

MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING
EXPENSES—Continued

176
11

204
49

187

253

Total: Balances and collections ....................................
1,205
1,288
Appropriation:
05.01 Medical care cost recovery fund ...................................
–104
–132
05.03 Medical care, legislative proposal ................................. ................... ...................

1,409

05.99
07.99

–122
1,287

02.99

Object Classification (in millions of dollars)

Receipts:
Medical cost recovery ....................................................
133
Medical cost recovery, legislative proposal ................... ...................
Total receipts .............................................................

133

04.00

1995 actual

Identification code 36–0152–0–1–703

1996 est.

1997 est.

11.1
11.3
11.5

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................
Other personnel compensation ..................................

45
2
2

45
2
2

40
1
2

11.9
12.1
21.0
23.1
23.3
25.2
26.0
31.0

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons: employee travel
Rental payments to GSA ................................................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................

49
49
8
8
1 ...................
5
5
1
1
3
3
1
1
1
1

43
7
1
5
1
3
1
1

99.9

Total obligations ........................................................

69

62

Subtotal appropriation ...................................................
Total balance, end of year ............................................

–104
1,101

–132
1,156

–119
–3

Program and Financing (in millions of dollars)
Identification code 36–5014–0–2–703

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Operating expenses ........................................................
Capital investment ........................................................

98
4

106
26

111
8

10.00

68

00.09
00.10

Total obligations ........................................................

102

132

119

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

4
104

6
132

6
119

108
–102

138
–132

125
–119

6

6

6

104

132

119

14
102
–102

14
132
–112

34
119
–138

14

34

15

Outlays (gross), detail:
Outlays from new permanent authority .........................
102
112
Outlays from permanent balances ................................ ................... ...................

118
20

Personnel Summary
Identification code 36–0152–0–1–703

1001
1005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

1995 actual

1996 est.

778
1

1997 est.

647
1

21.40

610
1

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

HEALTH PROFESSIONAL SCHOLARSHIP PROGRAM
Program and Financing (in millions of dollars)
60.25
Identification code 36–0163–0–1–703

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations (object class 41.0) ............................

10 ................... ...................

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
23.95 New obligations .............................................................

10 ................... ...................
–10 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................

10 ................... ...................

10.00

40.00

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

15
11
8
10 ................... ...................
–13
–3 ...................
–2 ................... ...................
11

8

3 ...................

10 ................... ...................
13
3 ...................

Health professional scholarship.—To assist in the recruitment and retention of staff, this program provides grants
for tuition, stipend, and other educational expenses for eligible students in programs leading to a degree in nursing or
other allied health disciplines.
MEDICAL CARE COST RECOVERY FUND
Unavailable Collections (in millions of dollars)
Identification code 36–5014–0–2–703

Balance, start of year:
01.99 Balance, start of year ....................................................

1995 actual

1,072

1996 est.

1,101

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

86.97
86.98
87.00

Total outlays (gross) .................................................

102

112

138

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

104
102

132
112

119
138

8

3 ................... ...................
10
3 ...................
13

New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................

1997 est.

1,156

The Medical Care Cost Recovery (MCCR) Fund was established by the Omnibus Budget Reconciliation Act of 1990,
P.L. 100–508. This Fund serves as a depository for all thirdparty insurance collections. A portion of these monies will
be utilized to provide for FTE and other administrative costs
associated with medical care cost recovery efforts. After providing for the estimated cost of operations for the ensuing
year, remaining funds are transferred to the Department of
Treasury before January of the next year.
While the MCCR Fund reflects the program costs of both
third-party and copayment activities, the receipts only reflect
third-party recoveries. The table below presents the complete
relationship between the costs of MCCR activities and the
total collections, regardless of source, resulting from these
activities.
In 1997, the Administration will propose legislation to permanently extend current legal provisions due to expire in
1998. These provisions provide for the collection of third party
health insurance payments for care provided by the VA for
service-connected veterans with nonservice-connected conditions, including copayments and income verification provisions.

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

[In millions of dollars]
Program activity
Third-party recoveries ..................................................................
Copayments and other collections ..............................................

1995 actual

523
51

1996 est.

565
77

1997 est.

648
81

Total collections .............................................................
Total program costs .......................................................
Ratio of costs to collections .......................................................

574
102
17.8%

642
132
20.6%

729
119
16.3%

Object Classification (in millions of dollars)
1995 actual

Identification code 36–5014–0–2–703

1996 est.

1997 est.

11.1
11.5

Personnel compensation:
Full-time permanent ..................................................
Other personnel compensation ..................................

53
14

57
15

59
15

11.9
12.1
21.0
23.3
25.2
26.0
31.0

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................

67
16
2
3
4
6
4

72
17
4
5
5
4
25

74
17
3
5
7
5
8

99.9

Total obligations ........................................................

102

132

119

Personnel Summary
Identification code 36–5014–0–2–703

1005
1011

Total compensable workyears:
Full-time equivalent of overtime and holiday hours
Exempt Full-time equivalent employment .....................

1995 actual

1996 est.

41
2,254

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

–6

–6

6 ................... ...................
–4
–3
–2

This account provides funds for the operating expenses of
VA medical facilities furnishing nursing home care to certain
veterans in receipt of pensions. Title 38 provides that a veteran with no spouse or child will only receive $90 per month
in pension beginning the third full month following the month
of admission to VA furnished nursing home care. The difference between the $90 the veteran receives and the amount
otherwise authorized is transferred to this fund for spending
expenses at the facility furnishing the nursing care.
Object Classification (in millions of dollars)
Identification code 36–4138–0–3–703

25.2
26.0
31.0
99.0
99.9

1997 est.

42
2,295

89.00
90.00

–6

835

42
2,295

1995 actual

1996 est.

Other services ................................................................ ...................
Supplies and materials .................................................
1
Equipment ......................................................................
1
Subtotal, reimbursable obligations ...............................
2
Total obligations ........................................................

1997 est.

1
1
2
4
4

2

1
1
2
4
4

CANTEEN SERVICE REVOLVING FUND
Program and Financing (in millions of dollars)
Identification code 36–4014–0–3–705

Public enterprise funds:

Obligations by program activity:
Operating expenses:
00.01
Acquisitions ...............................................................
00.02
Direct operations .......................................................

MEDICAL FACILITIES REVOLVING FUND
Program and Financing (in millions of dollars)
Identification code 36–4138–0–3–703

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Operating expenses ........................................................
Capital investment ........................................................

1
1

2
2

2
2

10.00

Total obligations ........................................................

2

4

4

1996 est.

1997 est.

119
80

140
93

142
95

Total operating expenses ......................................
Capital investment: Sales program: Purchase of
equipment and leasehold ..........................................

199

233

237

6

11

11

Total obligations ........................................................

205

244

248

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................

21
209

26
245

26
248

230
–205

271
–244

274
–248

26

26

27

209

245

248

22
205
–212

15
244
–242

18
248
–245

15

18

20

00.91
01.01

00.01
00.02

1995 actual

10.00

21.90

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested balance ...................................................
11
21
22.00 New budget authority (gross) ........................................
12
6
22.20 Unobligated balance transferred ................................... ................... ...................
23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

New budget authority (gross), detail:
Current:
42.00
Transferred from other accounts ..............................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

23
6
–12

23
–2

27
–4

17
–4

21

23

13

6 ................... ...................

6

6

6

Total new budget authority (gross) ..........................

12

6

6

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

–3
2
–2

–2
4
–3

–1
4
–4

–2

–1

–1

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................
Outlays from permanent balances ................................
2

1
2
3

70.00

87.00

Total outlays (gross) .................................................

2

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

212

242

245

2
2

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.40
Non-Federal sources .............................................

–2
–207

–2
–243

–2
–246

4

88.90

–209

–245

–248

72.40

86.97
86.98

23.90
23.95
24.90

Total, offsetting collections (cash) ..................

209
242
245
3 ................... ...................

836

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Public enterprise funds—Continued

SPECIAL THERAPEUTIC

CANTEEN SERVICE REVOLVING FUND—Continued
Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 36–4014–0–3–705

AND

REHABILITATION ACTIVITIES FUND

Program and Financing (in millions of dollars)
1995 actual

Identification code 36–4048–0–3–703

1996 est.

1997 est.

1996 est.

1997 est.

The Veterans Canteen Service was established to furnish,
at reasonable prices, merchandise and services necessary to
the comfort and well-being of veterans in VA medical facilities.
Financing.—Operations will be financed from current revenues.

00.01
00.02
00.03

Obligations by program activity:
Contracts ........................................................................
Education and training ..................................................
Operating expenses ........................................................

15
1
8

20
1
10

21
1
11

10.00

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
3
–3
–3

Total obligations ........................................................

24

31

33

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................

3
26

5
31

5
33

29
–24

36
–31

38
–33

5

5

5

26

31

33

1
24
–23

2
31
–31

2
33
–33

2

2

2

21.90

23.90
23.95
24.90

Statement of Operations (in millions of dollars)
1994 actual

1995 actual

0101
0102

Revenue ...................................................
Expense ....................................................

214
–211

209
–206

245
–240

248
–242

0109

Net income or loss (–) ............................

3

3

5

6

Identification code 36–4014–0–3–705

1996 est.

1997 est.

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

Balance Sheet (in millions of dollars)
1994 actual

Identification code 36–4014–0–3–705

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................
1106
Receivables, net .............................
1107
Advances and prepayments ...........
1206 Non-Federal assets: Receivables, net .....
Other Federal assets:
1802
Inventories and related properties .....
1803
Property, plant and equipment, net
1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2104
Resources payable to Treasury ...........
Non-Federal liabilities:
2201
Accounts payable ................................
2207
Other ...................................................
2999

1995 actual

1996 est.

1997 est.

7

3

14

16

37
2
..................
1

38
2
2
..................

39
2
..................
..................

38
3
..................
..................

26
26

27
25

28
31

31
32

99

97

114

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

25

31

33

87.00

Total outlays (gross) .................................................

23

31

33

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–26

–31

–33

120

..................
2

2
1

..................
2

..................
2

13
8

10
5

8
8

7
8

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................
3600 Other ........................................................

23

18

18

17

45
31

44
34

57
40

60
43

3999

Total net position ................................

76

78

97

103

4999

Total liabilities and net position ............

99

96

115

120

Object Classification (in millions of dollars)
1995 actual

Identification code 36–4014–0–3–705

1996 est.

1997 est.

11.1
11.3

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................

38
17

40
17

41
17

11.9
12.1
21.0
25.2
26.0
31.0
99.0

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Subtotal, reimbursable obligations ...............................

55
15
1
3
125
6
205

57
16
1
3
156
11
244

58
16
1
3
159
11
248

99.9

Total obligations ........................................................

205

244

248

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–3 ................... ...................

This revolving fund, established pursuant to the Veterans
Omnibus Health Care Act of 1976, Public Law 94–581, provides a mechanism for the furnishing of rehabilitative services
to certain veteran beneficiaries who are receiving medical
care and treatment from the Department of Veterans Affairs.
Funds to operate the various rehabilitative activities and
provide for the therapeutic work for remuneration for patients
and members in VA health care facilities are derived from
contractual arrangements with private industry or nonprofit
entities. Public Law 102–54 authorizes VA to contract with
any Federal agency, including VA, and authorizes the Fund
to cover the training, education, and travel costs of employees
associated with the rehabilitative programs. This is a selfsustaining fund, and therefore no appropriation is required
to support these activities.
Statement of Operations (in millions of dollars)

Personnel Summary
Identification code 36–4014–0–3–705

2011

Total compensable workyears: Exempt Full-time equivalent employment ......................................................

1994 actual

1995 actual

0101
0102

Revenue ...................................................
Expense ....................................................

16
–15

27
–23

33
–33

35
–35

0109

Net income or loss (–) ............................

1

4

..................

..................

1996 est.

1997 est.

Identification code 36–4048–0–3–703

3,121

1996 est.

3,200

1997 est.

3,250

1997 est.

Balance Sheet (in millions of dollars)
Identification code 36–4048–0–3–703

1995 actual

1996 est.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................

1994 actual

1995 actual

3

7

10

14

2

2

2

2

VETERANS HEALTH ADMINISTRATION—Continued
Trust Funds

DEPARTMENT OF VETERANS AFFAIRS
1206
1803

Non-Federal assets: Receivables, net .....
Other Federal assets: Property, plant
and equipment, net ............................

..................

1

1

1

1

..................

..................

..................

1999

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......

6

10

13

17

1

1

4

2999

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................
3300 Cumulative results of operations ............

1

1

4

1
4

..................
8

..................
8

..................
8

3999

5

8

8

8

Trust Funds

16

837

GENERAL POST FUND, NATIONAL HOMES

4999

Total net position ................................
Total liabilities and net position ............

6

9

12

Object Classification (in millions of dollars)
1995 actual

Identification code 36–4026–0–3–703

1996 est.

1997 est.

8

25.2
26.0
31.0

Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................

17
7
3

18
7
3

19
7
3

8

99.9

Total obligations ........................................................

27

28

29

TRANSITIONAL HOUSING LOAN PROGRAM
(INCLUDING

Object Classification (in millions of dollars)
Identification code 36–4048–0–3–703

25.2
26.0
31.0
99.5
99.9

1995 actual

1996 est.

Other services ................................................................
21
Supplies and materials .................................................
2
Equipment ......................................................................
1
Below reporting threshold .............................................. ...................
Total obligations ........................................................

1997 est.

28
29
1
3
1
1
1 ...................

24

31

33

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

MEDICAL CENTER RESEARCH ORGANIZATIONS
Program and Financing (in millions of dollars)
Identification code 36–4026–0–3–703

1995 actual

1996 est.

Identification code 36–8180–0–7–705

24
3

25
3

26
3

10.00

27

28

29

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................
21.90

23.90
23.95
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................

Unavailable Collections (in millions of dollars)

1997 est.

Obligations by program activity:
00.01 Operating expenses ........................................................
00.02 Capital investment ........................................................
Total obligations ........................................................

TRANSFER OF FUNDS)

For the cost of direct loans, $7,000, as authorized by Public Law
102–54, section 8, which shall be transferred from the ‘‘General post
fund’’: Provided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That these funds
are available to subsidize gross obligations for the principal amount
of direct loans not to exceed $70,000. In addition, for administrative
expenses to carry out the direct loan programs, $54,000, which shall
be transferred from the ‘‘General post fund’’, as authorized by Public
Law 102–54, section 8.

17
27

17
28

17
29

44
–27

45
–28

46
–29

17

17

Balance, start of year:
Balance, start of year ....................................................
Receipts:
02.01 General post fund, national homes, deposits ...............
02.02 General post fund, national homes, interest on investments .........................................................................
01.99

1995 actual

1996 est.

1997 est.

2

2

5

23

27

28

3

3

3

Total receipts .............................................................

26

30

31

Total: Balances and collections ....................................
Appropriation:
05.01 General post fund, national homes ...............................
07.99 Total balance, end of year ............................................

28

32

36

–26
2

–27
5

–28
8

02.99

17

04.00

Program and Financing (in millions of dollars)
New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Identification code 36–8180–0–7–705

27

28

1995 actual

1996 est.

1997 est.

29

Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................

27
–27

28
–28

29
–29

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

27

28

Total outlays (gross) .................................................

27

28

29

Obligations by program activity:
Religious, recreational, and entertainment activities
22
Research activities ........................................................
4
Therapeutic residence maintenance .............................. ...................
Therapeutic residence purchase and renovation ..........
2

23
25
4
4
1
1
1 ...................

29

87.00

00.01
00.02
00.03
00.04
10.00

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.40
Non-Federal sources .............................................

–1
–26

–1
–27

–1
–28

88.90

–27

–28

Total obligations ........................................................

28

29

30

Budgetary resources available for obligation:
Unobligated balance available, start of year: U.S.
Securities: Par value .................................................
22.00 New budget authority (gross) ........................................

37
26

35
27

33
28

63
–28

62
–29

61
–30

35

33

31

26

27

28

2
28
–27

3
29
–27

5
30
–28

3

5

7

26

27

26

21.41

–29

Total, offsetting collections (cash) ..................

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ........................................................................... ................... ................... ...................

23.90
23.95
24.41

60.27

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: U.S. Securities: Par value .....................................................
New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
72.40

These nonprofit corporations provide a flexible funding
mechanism for the conduct of approved research at Department of Veterans Affairs medical centers. These organizations
will derive funds to operate various research activities from
Federal and non-Federal sources. No appropriation is required
to support these activities.

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

838

VETERANS HEALTH ADMINISTRATION—Continued
Trust Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
COMPENSATION

GENERAL POST FUND, NATIONAL HOMES—Continued
TRANSITIONAL HOUSING LOAN PROGRAM—Continued
(INCLUDING

TRANSFER OF FUNDS)—Continued

Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 36–8180–0–7–705

1996 est.

1997 est.

86.98

Outlays from permanent balances ................................

1

2

2

87.00

Total outlays (gross) .................................................

27

27

28

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

26
27

27
27

For the payment of compensation benefits to or on behalf of veterans
as authorized by law, $15,393,198,000, to remain available until expended, of which not to exceed $2,098,000 shall be reimbursed to
‘‘General operating expenses’’ for necessary expenses as authorized by
chapters 11, 13, 51, 53, 55 and 61 of title 38, United States Code.
For the payment, after June 30 of the current fiscal year, of compensation benefits to or on behalf of veterans as authorized by law,
for unanticipated costs incurred for the current fiscal year, such sums
as may be necessary. (38 U.S.C. 107, and chapters 11, 13, and 61)

28
28

This fund consists of gifts, bequests, and proceeds from
the sale of property left in the care of the facilities by former
beneficiaries, patients’ fund balances, and proceeds from the
sale of effects of beneficiaries who die leaving no heirs or
without having otherwise disposed of their estate. Such funds
are used to promote the comfort and welfare of veterans at
hospitals, nursing homes, and domiciliaries where no general
appropriation is available. Public Law 102–54 authorizes compensation work therapy and therapeutic transitional housing
and loan programs to be funded from the General Post Fund.
In addition, donations from pharmaceutical companies, nonprofit corporations, and individuals to support VA medical
research are deposited into this fund. (38 U.S.C. chs. 83 and
85.)
Also under this heading are the activities of the Transitional Housing Loan Program. This program provides loans
to nonprofit organizations to assist them in leasing housing
units exclusively for use as a transitional group residence
for veterans who are in (or who have recently been in) a
program for the treatment of substance abuse. The amount
of the loan cannot exceed $4,500 for any single residential
unit and each loan must be repaid within two years through
monthly installments. The total amount of loans outstanding
at any time may not exceed $100,000.
Object Classification (in millions of dollars)
1995 actual

Identification code 36–8180–0–7–705

1996 est.

1997 est.

21.0
25.2
26.0
31.0
99.5

Travel and transportation of persons ............................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Below reporting threshold ..............................................

6
10
8
3
1

6
10
8
3
2

6
10
8
3
3

99.9

Total obligations ........................................................

28

29

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
1995 actual

Identification code 36–0153–0–1–701

1996 est.

1997 est.

00.02
00.03
00.04
00.05
00.06
00.07

Obligations by program activity:
World War I ....................................................................
World War II ...................................................................
Korean conflict ...............................................................
Vietnam era ...................................................................
Peacetime service ..........................................................
Persian Gulf conflict ......................................................

4
3,478
1,140
4,370
2,307
342

3
3,412
1,155
4,583
2,402
432

2
3,277
1,138
4,687
2,436
500

00.91
01.04
01.05
01.06
01.07
01.08
01.09

Total veterans ............................................................
World War I ....................................................................
World War II ...................................................................
Korean conflict ...............................................................
Vietnam era ...................................................................
Peacetime service ..........................................................
Persian Gulf conflict ......................................................

11,642
73
1,266
372
903
453
35

11,987
65
1,302
394
945
461
49

12,040
57
1,321
411
1,005
465
58

01.91
02.01

Total survivors ...........................................................
Clothing allowance ........................................................

3,103
36

3,216
33

3,317
33

02.93
09.01

Total compensation ...................................................
Payment to general operating expenses .......................

14,781
2

15,235
2

15,391
2

10.00

Total obligations ........................................................

14,783

15,237

15,393

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

238
14,579

34 ...................
15,205
15,393

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

14,817
–14,783

15,239
–15,237

15,393
–15,393

34 ................... ...................

30

General and special funds:
PENSIONS

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.
Activities formerly included in this account are proposed to be financed by three separate
appropriation accounts in 1997 and are presented below in the ‘‘Compensation’’, ‘‘Pensions’’,
and ‘‘Burial benefits and miscellaneous assistance’’ accounts. Amounts for 1995, 1996, and
1997 are shown on a comparable basis. The following table shows the distribution of the
amounts (dollars in millions) appropriated in 1995 and 1996 and requested in 1997.

1996 est.

Appropriation (total) ..................................................

14,579

15,205

15,393

Total new budget authority (gross) ..........................

14,579

15,205

15,393

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

Federal Funds

1995 actual

15,176
15,393
29 ...................

36
14,783
–14,806

13
15,237
–14,109

1,142
15,393
–15,382

13

1,142

1,153

72.40

VETERANS BENEFITS ADMINISTRATION

Distribution of budget authority by account:
Compensation .........................................................................
Pensions ..................................................................................
Burial benefits ........................................................................
Distribution of outlays by account:
Compensation .........................................................................
Pensions ..................................................................................
Burial benefits ........................................................................

14,173
406

70.00

AND

New budget authority (gross), detail:
Appropriation ..................................................................
Transferred from other accounts ...................................

43.00

COMPENSATION

40.00
42.00

1997 est.

$14,579
3,017
109

$15,203
2,995
115

$15,393
2,987
118

14,806
3,024
109

14,109
2,757
115

15,382
2,975
118

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

14,579
227

14,063
46

14,240
1,142

87.00

Total outlays (gross) .................................................

14,806

14,109

15,382

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

14,579
14,806

15,205
14,109

15,393
15,382

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
Budget Authority .....................................................................
Outlays ....................................................................................

1995 actual

14,579
14,806

1996 est.

15,205
14,109

1997 est.

15,393
15,382

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
Legislative proposal, not subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................
Legislative proposal, subject to PAYGO:
Budget Authority .....................................................................
Outlays ....................................................................................

839

....................
....................

Total:
Budget Authority .....................................................................
Outlays ....................................................................................

–36
–36

14,579
14,806

15,169
14,073

307
276
–129
–129
15,571
15,529

This appropriation would provide for the payment of compensation benefits to veterans and survivors. Compensation
is paid to veterans for disabilities incurred in or aggravated
during active military service. Death and Indemnity Compensation is paid to survivors of servicepersons or veterans
whose death occurred while on active duty or as a result
of service-connected disabilities.
The Secretary may pay a clothing allowance to each veteran
who uses a prescribed medication for a service-connected skin
condition, or wears a prosthetic or orthopedic appliance (including a wheelchair) which, in the judgment of the Secretary,
tends to damage or tear the clothing of such veteran.
Caseload and cost tables shown below do not include proposed legislation.

Total ..................................................................
Average payment per case, per year ........................
Total obligations (in millions) ..........................

1995 actual

1996 est.

Peacetime service .......................................................... ................... ...................
Persian Gulf conflict ...................................................... ................... ...................

10
1

01.91
02.01

Total survivors ........................................................... ................... ...................
Clothing allowance ........................................................ ................... ...................

70
1

Total compensation ................................................... ................... ...................

307

10.00

Total obligations (object class 42.0) ........................ ................... ...................

307

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

307
–307

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

307

73.10
73.20
74.40

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ...................

307
–276
31

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

276

87.00

Total outlays (gross) ................................................. ................... ...................

276

89.00
90.00

AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS
Veterans:
Mexican border period ...............................................
World War I ................................................................
World War II ...............................................................
Korean conflict ..........................................................
Vietnam era ...............................................................
Peacetime service ......................................................
Persian Gulf conflict .................................................

01.08
01.09

02.93

.................... ....................
.................... ....................

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

307
276

1997 est.

13
733
709,248
192,309
699,729
503,733
120,179

11
530
674,100
188,600
708,082
521,377
147,500

11
390
638,700
184,600
715,472
538,327
169,900

2,225,944
$5,230
$11,643

2,240,200
$5,351
$11,988

2,247,000
$5,357
$12,041

Legislation will be proposed to provide a cost-of-living adjustment (COLA) to all compensation beneficiaries including
spouses and children. This increase, effective December 1,
1996, is expected to be 2.8 percent and cost $307 million
in fiscal year 1997.
COMPENSATION
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)

Survivors:
Prior to Spanish-American War .................................
Spanish-American War ..............................................
Mexican border period ...............................................
World War I ................................................................
World War II ...............................................................
Korean conflict ..........................................................
Vietnam era ...............................................................
Peacetime service ......................................................
Persian Gulf conflict .................................................

1
26
3
7,391
127,579
37,443
86,287
45,888
2,825

1
22
2
6,356
124,788
37,310
88,251
44,832
3,738

1
18
2
5,466
122,252
37,220
90,261
43,807
4,273

1995 actual

Identification code 36–0153–4–1–701

00.01
00.02

1996 est.

Obligations by program activity:
COLA round down .......................................................... ................... ...................
Repeal Gardner decision ................................................ ...................
–36

1997 est.

–18
–111

Clothing allowance:
Number of veterans ...................................................
Average payment per case, per year ........................
Total obligations (in millions) ..........................

305,300
$10,531
$3,216

72,622
$490
$36

65,600
$503
$33

65,800
$503
$33

COMPENSATION
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 36–0153–2–1–701

1995 actual

1996 est.

1997 est.

00.02
00.03
00.04
00.05
00.06
00.07

Obligations by program activity:
World War I ....................................................................
World War II ...................................................................
Korean conflict ...............................................................
Vietnam era ...................................................................
Peacetime service ..........................................................
Persian Gulf conflict ......................................................

...................
...................
...................
...................
...................
...................

................... ...................
...................
64
...................
22
...................
92
...................
48
...................
10

00.91
01.04
01.05
01.06
01.07

Total veterans ............................................................
World War I ....................................................................
World War II ...................................................................
Korean conflict ...............................................................
Vietnam era ...................................................................

...................
...................
...................
...................
...................

...................
...................
...................
...................
...................

236
1
28
9
21

–129

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ...................
New obligations ............................................................. ...................

–36
36

–129
129

New budget authority (gross), detail:
Appropriation .................................................................. ...................

–36

–129

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ...................
Total outlays (gross) ...................................................... ...................

–36
36

–129
129

Outlays (gross), detail:
Outlays from new current authority .............................. ...................

–36

–129

87.00

303,300
$10,939
$3,319

–36

86.90

307,443
$10,094
$3,104

Total obligations (object class 42.0) ........................ ...................

40.00

Total ..................................................................
Average payment per case, per year ........................
Total obligations (in millions) ..........................

10.00

Total outlays (gross) ................................................. ...................

–36

–129

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ...................
Outlays ........................................................................... ...................

–36
–36

–129
–129

This legislative proposal would permanently round down
annual COLA increases to the next lower full dollar amount.
Legislation will also be proposed to clarify entitlement to
benefits for disabilities resulting from medical care or vocational rehabilitation services provided by VA. This provision
would repeal the Supreme Court ruling in the Gardner v.
Brown case.
PENSIONS
For the payment of pension benefits to or on behalf of veterans
as authorized by law, $2,986,932,000, to remain available until ex-

840

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
89.00
90.00

PENSIONS—Continued
pended; of which not to exceed $24,319,000 shall be reimbursed to
‘‘General operating expenses’’ and ‘‘Medical care’’ for necessary expenses as authorized by chapters 51, 53, 55, and 61 of title 38, United
States Code; and of which such sums as may be earned on an actual
qualifying patient basis, shall be reimbursed to ‘‘Medical facilities
revolving fund’’ to augment the funding of individual medical facilities
for nursing home care provided to pensioners as authorized by chapter
55: Provided, That $12,000,000 previously transferred from ‘‘Compensation and Pensions’’ to ‘‘Medical Facilities Revolving Fund’’ shall
be transferred to this heading.
For the payment, after June 30 of the current fiscal year, of pension
benefits to or on behalf of veterans as authorized by law, for unanticipated costs incurred for the current fiscal year, such sums as may
be necessary. (38 U.S.C. chapters 15 and 61.)
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0154–0–1–701

1995 actual

1996 est.

1997 est.

3,017
3,024

2,995
2,757

2,987
2,975

Pension benefits may be paid to veterans or their survivors.
A veteran’s entitlement is based on active duty service of
a specific length (normally 90 days or more) during a designated war period, disabilities considered permanent and
total, and countable income below established levels. There
is no disability requirement for survivor cases. Income support is provided at established benefit levels.
Veterans who are under the age of 45 and are in receipt
of a disability pension will be evaluated to determine whether
a vocational goal is reasonably feasible. Those for whom a
vocational goal is feasible are eligible for a program of vocational training.
An automatic annual cost-of-living increase comparable to
the annual social security increase is provided for those pensioners in the improved program and to parents receiving
dependency and indemnity compensation. The increase, effective with payments made on January 1, 1997, is expected
to be 2.8 percent.
AVERAGE NUMBER OF PENSION CASES AND PAYMENTS

Obligations by program activity:
Pensions:
Veterans:
04.01
Improved law ........................................................
04.02
Prior law ................................................................
04.03
Old law ..................................................................

2,092
92
1

2,099
78
1

2,105
66
1

04.91

2,185

2,178

2,172

05.01
05.02
05.03

Total veterans ...................................................
Survivors:
Improved law ........................................................
Prior law ................................................................
Old law ..................................................................

667
140
3

663
125
2

661
112
2

05.91

Total survivors ..................................................

810

790

775

06.93

2,995

2,968

09.01
09.02

Total pensions .......................................................
Other expenses:
Medical facility expenses ..........................................
Reimbursement to GOE and VHA ..............................

2
20

09.91

Total other expenses .............................................

10.00

Total obligations ........................................................

Veterans:
Improved law ..........................................................................
Prior law ..................................................................................
Old law and service ................................................................

1995 actual

377,117
57,388
774

372,498
48,664
638

367,151
41,317
532

Total ...............................................................................
Average payment per case, per year ......................................

435,279
$5,019

421,800
$5,163

409,000
$5,310

Total obligations (in millions) .......................................

$2,185

$2,178

$2,172

2,947

Survivors:
Improved law ..........................................................................
Prior law ..................................................................................
Old law and service ................................................................

216,191
142,567
4,684

210,291
126,988
3,821

205,264
113,314
3,122

3
23

3
24

Total ...............................................................................
Average payment per case, per year ......................................

363,442
$2,230

341,100
$2,318

321,700
$2,411

22

26

27

Total obligations (in millions) .......................................

$811

$791

$776

3,017

2,994

2,974

Vocational training:
Trainees ...................................................................................
Average benefit per year ........................................................

148
$1,694

100
$1,740

50
$1,780

Budgetary resources available for obligation:
22.00 New budget authority (gross) ........................................
3,017
2,994
22.20 Unobligated balance transferred ................................... ................... ...................
23.90
23.95
24.40

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

Total budgetary resources available for obligation
3,017
2,995
New obligations .............................................................
–3,017
–2,994
Unobligated balance available, end of year:
Uninvested balance ................................................... ................... ...................

2,987
12
2,999
–2,974
25

1996 est.

1997 est.

Total obligations (in millions) 1 ..................................... .................... .................... ....................
1 Amounts

round to less than $1 million.

BURIAL BENEFITS

AND

MISCELLANEOUS ASSISTANCE

For the payment of burial benefits, emergency and other officers’
retirement pay, adjusted-service credits and certificates, payment of
premiums due on commercial life insurance policies guaranteed under
Article IV of the Soldiers’ and Sailors’ Civil Relief Act of 1940, as
amended, and for other benefits as authorized by law, $117,724,000,
to remain available until expended. (38 U.S.C. 107, 1312, 1977, and
2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540–548; 43
Stat. 122, 123; 45 Stat. 735; 76 Stat. 1198.)

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
41.00
Transferred to other accounts ...................................

3,343
–326

3,044
2,987
–50 ...................

43.00

3,017

2,995

62.00

Appropriation (total) .............................................
Permanent:
Transferred from other accounts ..............................

70.00

Total new budget authority (gross) ..........................

3,017

2,994

2,987

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

8
3,017
–3,024

3
2,994
–2,757

239
2,974
–2,975

Program and Financing (in millions of dollars)

3

239

240

2,987

1 ................... ...................

72.40

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

87.00

Total outlays (gross) .................................................

3,015
2,755
2,975
8
2 ...................
1 ................... ...................
3,024

2,757

2,975

Identification code 36–0155–0–1–701

Obligations by program activity:
Burial benefits:
07.01
Burial allowances ......................................................
07.02
Burial plots ................................................................
07.03
Service-connected deaths .........................................
07.04
Burial flags ...............................................................
07.05
Headstones and markers ..........................................
07.07
Graveliners .................................................................

1995 actual

38
13
13
14
24
6

1996 est.

38
13
13
15
27
8

1997 est.

37
13
13
16
28
9

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
07.91
08.03
08.04

Total burial benefits .............................................
Special allowance dependents ......................................
Equal access to justice .................................................

107
1
1

113
1
1

116
1
1

08.91

Total miscellaneous assistance ................................

2

2

2

10.00

Total obligations (object class 42.0) ........................

109

115

118

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

109
–109

115
–115

118
–118

40.00
41.00
42.00

New budget authority (gross), detail:
Appropriation ..................................................................
111
112
118
Transferred to other accounts .......................................
–2 ................... ...................
Transferred from other accounts ................................... ...................
3 ...................

43.00

Appropriation (total) ..................................................

109

115

118

70.00

Total new budget authority (gross) ..........................

109

115

118

841

READJUSTMENT BENEFITS
For the payment of readjustment and rehabilitation benefits to or
on behalf of veterans as authorized by 38 U.S.C. chapters 21, 30,
31, 34, 35, 36, 39, 51, 53, 55, and 61, $1,227,000,000, to remain
available until expended: Provided, That funds shall be available
to pay any court order, court award or any compromise settlement
arising from litigation involving the vocational training program authorized by section 18 of Public Law 98–77, as amended.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0137–0–1–702

Obligations by program activity:
Direct program:
Education and training:
00.01
Sons and daughters .............................................
00.02
Spouses .................................................................

1995 actual

1996 est.

1997 est.

109
–109

115
–115

91
10

88
10

86
10

Total education and training ...........................
Special assistance to disabled veterans:
Vocational rehabilitation .......................................
Housing grants .....................................................
Automobiles, adaptive equipment, maintenance
and repair .........................................................

101

98

96

298
16

349
16

388
16

27

22

18

01.91
02.01
02.02
02.03

Total special assistance to disabled veterans
Work study .................................................................
Payments to states ...................................................
All-volunteer Assistance: Veteran’s basic benefits

341
29
13
672

387
34
13
747

422
38
13
809

02.93

Change in unpaid obligations:
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................

1,156

1,279

1,378

03.01
03.02
03.03
03.04

Total direct program .............................................
Reimbursable program:
Veterans’ basic benefits ...........................................
Veterans’ supplementary benefits .............................
Reservists benefits ....................................................
Jobs program .............................................................

04.92

Total reimbursable ................................................

204

209

204

10.00

Total obligations ........................................................

1,360

1,488

1,582

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.30 Unobligated balance expiring ........................................

65
1,395
–5

93
152
1,554
1,431
–7 ...................

118
–118

00.91
01.01
01.02
01.03

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................

109

115

118

87.00

109

115

118

89.00
90.00

Total outlays (gross) .................................................
Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

109
109

115
115

118
118

Burial benefits.—Provides for: (a) the payment of an allowance of $300 (plus transportation charges where death occurs
under VA care) to reimburse, in part, the burial and funeral
expense of an eligible deceased veteran; (b) the payment of
$150 for a plot allowance where an eligible veteran is not
buried in a national cemetery or other cemetery under the
jurisdiction of the United States; (c) the payment of a burial
allowance up to $1,500 when a veteran dies as the result
of service-connected disability; (d) furnishing a flag to drape
the casket of each deceased veteran entitled thereto; (e) furnishing a headstone or marker for the grave of a veteran
and, in certain cases, eligible dependents; and (f) authority
to provide graveliners in the National cemetery system.
NUMBER OF BURIAL BENEFITS
1995 actual

Burial allowance ..........................................................................
Burial plot ...................................................................................
Service-connected death .............................................................
Burial flags .................................................................................
Headstone markers ......................................................................
Headstone allowance ...................................................................
Graveliners ...................................................................................

93,921
84,617
10,040
447,206
284,786
30
45,787

1996 est.

92,700
84,000
10,300
682,800
320,000
20
52,284

21.40

23.90
23.95
24.40

1997 est.

91,500
83,400
10,500
464,200
326,000
10
53,460

Miscellaneous assistance.—Provides for: (a) payments to
emergency officers of World War I and certain officers of
the Regular Establishment who have retired because of service-connected disability; (b) payments for claims made pursuant to the provision of the World War Adjusted Compensation
Act of 1924, as amended; (c) a special allowance (38 U.S.C.
1312) to dependents of certain veterans who died after December 31, 1956, but who were not fully and currently insured
under the Social Security Act; and (d) payments authorized
by the Equal Access to Justice Act.

1996 est.

1997 est.

Retired Officers ...........................................................................
6
5
4
Adjusted service and dependence pay ....................................... .................... .................... ....................
Special allowance dependents ....................................................
158
158
158
Equal Access to Justice payments ..............................................
265
265
265

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

1,455
–1,360
93

1,640
–1,488

1,582
–1,582

152 ...................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
41.00
Transferred to other accounts ...................................

1,287
1,345
1,227
–95 ................... ...................

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

1,192

202

210

204

Total new budget authority (gross) ..........................

1,395

1,554

1,431

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

85
1,360
–1,394

51
1,488
–1,484

55
1,582
–1,579

51

55

58

1,107
1,345
197
138
89 ...................

1,227
204
147

1,394

1,579

68.00
70.00

1,345

1,227

72.40

MISCELLANEOUS ASSISTANCE CASELOAD
1995 actual

14
17
15
75
80
78
108
112
111
8 ................... ...................

86.90
86.97
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

87.00

Total outlays (gross) .................................................

1,484

842

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued

CASELOAD AND AVERAGE COST DATA

Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 36–0137–0–1–702

1996 est.

1997 est.

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
88.40
Non-Federal sources .............................................

–197
–210
–204
–5 ................... ...................

88.90

Total, offsetting collections (cash) ..................

–202

–210

–204

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1,192
1,191

1,344
1,274

1,227
1,375

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1995 actual
1996 est.
Budget Authority .....................................................................
1,192
1,345
Outlays ....................................................................................
1,191
1,273
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

1,192
1,191

1,345
1,273

1997 est.

1,227
1,374
–20
–20
1,207
1,354

This appropriation finances educational assistance allowances for certain peacetime veterans and for eligible dependents of those veterans: (a) who died from service-connected
causes or have a total and permanent rated service-connected
disability; and (b) servicepersons who were captured or missing in action. In addition, certain disabled veterans are provided with vocational rehabilitation, specially adapted housing
grants, and automobile grants with the associated approved
adaptive equipment. The funding level in 1997 will consist
of appropriated funds of $1,227 million and available funds
from 1996 of $152 million.
The following table provides a comparison of trainees and
costs for the Dependents Educational Assistance program.
NUMBER OF TRAINEES AND COST
Sons and daughters:
Number of trainees .................................................................
Average cost per trainee ........................................................

1995 actual

34,793
$2,607

33,925
$2,608

33,097
$2,609

Total cost (in millions) ..................................................

$91

$88

Vocational Rehabilitation:
Number of trainees:
10% rated disabled ...........................................................
rehabilitated .......................................................................
20% rated disabled ...........................................................
rehabilitated .......................................................................
30% rated disabled ...........................................................
rehabilitated .......................................................................
40% rated disabled ...........................................................
rehabilitated .......................................................................
50% rated disabled ...........................................................
rehabilitated .......................................................................
60% rated disabled ...........................................................
rehabilitated .......................................................................
70% rated disabled ...........................................................
rehabilitated .......................................................................
80% rated disabled ...........................................................
rehabilitated .......................................................................
90% rated disabled ...........................................................
rehabilitated .......................................................................
100% rated disabled .........................................................
rehabilitated .......................................................................
Total number of trainees ...............................................
Total number rehabilitated ............................................
Percent of total rehabilitated ........................................
Average cost per trainee ........................................................

1995 actual

3,806
1,308
13,913
1,367
11,218
1,294
6,649
833
3,639
452
2,612
373
1,004
156
489
81
151
37
4,366
281
47,847
6,182
12.92
$6,231

3,311
1,530
15,304
1,604
13,224
1,506
8,004
968
4,176
510
3,132
411
1,392
187
696
97
348
44
4,872
310
54,459
7,167
13.16
$6,405

2,881
1,835
16,834
1,925
14,523
1,807
8,790
1,162
4,586
611
3,440
493
1,529
225
764
117
382
53
5,351
372
59,080
8,600
14.56
$6,571

Total cost (in thousands) ..............................................

$298,132

$348,810

$388,215

Housing grants:
Number of housing grants .....................................................
Average cost per grant ...........................................................

486
$33,620

486
$33,620

486
$33,620

Total cost (in thousands) ..............................................

READJUSTMENT BENEFITS—Continued

1996 est.

1997 est.

$16,327

$16,327

$16,327

Automobiles or other conveyances:
Number of conveyances ..........................................................
Average cost per conveyance .................................................

1,141
$4,921

1,141
$4,921

1,141
$4,921

Total cost (in thousands) ..............................................

$5,615

$5,615

$5,615

Adaptive equipment (including maintenance, repair and installation for automobiles):
Number of items .....................................................................
Average cost ...........................................................................

6,878
$3,139

5,097
$3,224

3,777
$3,311

Total cost (in thousands) ..............................................

$21,589

$16,433

$12,506

Work-Study.—Certain veterans pursuing a program of rehabilitation, education, or training, who are enrolled as a fulltime student, can work up to 250 hours and receive a maximum of $1,062.50 per semester, paid at the rate of the Federal or State minimum wage, whichever is higher.

$86

1996 est.

1997 est.

Spouses and widow(ers):
Number of trainees .................................................................
Average cost per trainee ........................................................

4,648
$2,052

4,743
$2,052

4,841
$2,051

Total cost (in millions) ..................................................

$10

$10

$10

Special assistance to disabled veterans.—Service-disabled
veterans requiring vocational rehabilitation receive assistance
to cover the costs of subsistence, tuition, books, supplies, and
equipment.
Specially adapted housing grants, up to a maximum of
$38,000, are provided to certain severely disabled veterans.
Veterans who suffer service-connected blindness or who have
lost the use of both upper extremities can receive up to
$6,500.
An allowance, up to a maximum of $5,500, is provided
to certain service-disabled veterans and servicepersons toward
the purchase price of an automobile. Adaptive equipment and
the maintenance and replacement of such equipment is also
provided.
The following table shows a caseload and cost comparison
for these beneficiaries.

1995 actual

Number of contracts ...............................................................

34,707

1996 est.

46,192

1997 est.

51,888

Payments to States.—State approving agencies are reimbursed for the costs of inspecting, approving, and supervising
programs of education and training offered by educational
institutions and training establishments in which veterans,
dependents, and reservists are enrolled or are about to enter.
All Volunteer Force educational assistance (Montgomery GI
Bill).—Public Law 98–525, enacted October 19, 1984, established two new peacetime educational programs: an assistance
program for veterans who enter active duty during the period
beginning July 1, 1985; and an assistance program for certain
members of the Selected Reserve. The Readjustment benefits
appropriation pays the basic benefit allowance for the peacetime veterans. Supplementary educational assistance for
peacetime veterans and the basic benefit allowance for reservists are financed by payments from the Department of Defense and the Department of Transportation.
The following table shows a caseload and cost comparison
for these beneficiaries under existing legislation, and reflects
the supplemental request.
CASELOAD AND AVERAGE COST DATA
Veterans:
Number of trainees .................................................................

1995 actual

291,958

1996 est.

301,776

1997 est.

320,084

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
Average cost per trainee ........................................................

$2,604

$2,796

$2,821

Total cost (in thousands) ..............................................

1 $760,390

2 $843,907

843

3 $902,867

Reservists:
Number of trainees .................................................................
Average cost per trainee ........................................................

97,246
$1,111

114,825
$988

109,243
$1,013

Total cost (in thousands) ..............................................

$108,004

$113,471

$110,693

1 Includes
and $74,854
2 Includes
and $79,900
3 Includes
and $78,300

$671,873 thousand of basic benefits (VA funded), $13,663 thousand of basic benefits (DOD funded),
thousand of supplemental benefits (DOD funded).
$747,407 thousand of basic benefits (VA funded), $16,600 thousand of basic benefits, (DOD funded)
thousand of supplemental benefits (DOD funded).
$809,167 thousand of basic benefits (VA funded), $15,400 thousand of basic benefits (DOD funded)
thousand of supplemental benefits (DOD funded).

Jobs Training.—Public Law 102–484 authorized the Department of Defense to enter into agreements with the Departments of Labor and Veterans Affairs to provide job assistance
to members of the Armed Forces who are forced or induced
to leave military service on or after August 2, 1990 as part
of the drawdown. There was $9 million available to fund
this program until September 30, 1995.
Veterans:
Number of participants ..........................................................
Average cost per participant ..................................................
Total cost (in thousands) ..............................................

1995 actual

1996 est.

1997 est.

10,994 .................... ....................
$698 .................... ....................

Object Classification (in millions of dollars)

41.0
99.0
99.9

Direct obligations: Grants, subsidies, and contributions ...........................................................................
Reimbursable obligations: Subtotal, reimbursable obligations .......................................................................
Total obligations ........................................................

1995 actual

1996 est.

1997 est.

1,156

1,279

1,378

204

209

204

1,360

1,488

Outlays ........................................................................... ................... ...................

–20

The Administration is proposing legislation to overturn the
Court of Veterans Appeals decision in Davenport v. Brown,
which invalidated VA’s long-standing regulations requiring a
substantial linkage between the veteran’s service-connected
disability and his or her employment handicap.
REINSTATED ENTITLEMENT PROGRAM FOR SURVIVORS UNDER PUBLIC
LAW 97–377
Program and Financing (in millions of dollars)
Identification code 36–0200–0–1–701

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Direct program:
00.01
Benefit payments ......................................................
00.02
Administrative expenses, VA .....................................
00.03
Cole v. Brown payments ...........................................

21
1
4

00.91
01.01

Total direct program .............................................
Return of overpayment ..................................................

26
21
18
1 ................... ...................

10.00

Total obligations ........................................................

27

21

18

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

26
–27

21
–21

18
–18

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

26

21

18

19
27
–35

10
21
–24

6
18
–18

10

6

6

$8,151 .................... ....................

To facilitate account restructuring and consolidation, Readjustment Benefits also reflects budget information for the Veterans’ Job Training program. Eligibility for the Veterans’ Job
Training program terminated on March 31, 1990.

Identification code 36–0137–0–1–702

90.00

68.00

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

19
17
1
1
1 ...................

72.40

1,582
86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

16
19

21
18
4 ...................

87.00

Total outlays (gross) .................................................

35

24

18

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–26

–21

–18

READJUSTMENT BENEFITS
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 36–0137–4–1–702

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Direct program:
Special assistance to disabled veterans:
01.01
Vocational rehabilitation ....................................... ................... ...................

–20

02.93

Total direct program ............................................. ................... ...................

–20

10.00

Total obligations ........................................................ ................... ...................

–20

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

–20
20

40.00

New budget authority (gross), detail:
Appropriation .................................................................. ................... ...................

–20

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................

–20
20

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................

–20

87.00

Total outlays (gross) ................................................. ................... ...................

–20

89.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ...................

–20

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
9
4 ...................

In accordance with Public Law 97–377, this program restores social security benefits to certain surviving spouses
or children of veterans who died of service-connected causes.
Financing is provided in the form of offsetting collections from
the Department of Defense.
CASELOAD AND AVERAGE COST DATA
1995 actual

Spouses .......................................................................................
Average benefit ...........................................................................
Obligations (in millions) .............................................................
Children .......................................................................................
Average benefit ...........................................................................
Obligations (in millions) .............................................................

496
$9,936
$5
1,922
$8,120
$16

1996 est.

440
$10,277
$5
1,710
$8,327
$14

1997 est.

390
$10,631
$4
1,520
$8,493
$13

Object Classification (in millions of dollars)
Identification code 36–0200–0–1–701

25.2
42.0
44.0

Other services ................................................................
Insurance claims and indemnities ................................
Refunds ..........................................................................

99.9

Total obligations ........................................................

1995 actual

1996 est.

1997 est.

1
2
1
25
19
17
1 ................... ...................
27

21

18

844

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
VETERANS INSURANCE

AND

INDEMNITIES

For military and naval insurance, national service life insurance,
servicemen’s indemnities, service-disabled veterans insurance, and veterans mortgage life insurance as authorized by 38 U.S.C. chapter
19; 70 Stat. 887; 72 Stat. 487, $38,970,000, to remain available until
expended.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

National service life insurance policies:
Number of policies ..................................................................
Amount of insurance ..............................................................
VMLI policies:
Number of policies ..................................................................
Amount of insurance ..............................................................

Program and Financing (in millions of dollars)
Identification code 36–0120–0–1–701

1995 actual

1996 est.

1997 est.

Obligations by program activity:
00.04 Payment to national service life insurance fund ..........
00.05 Payment to service-disabled veterans insurance fund
00.06 Total operating expenses ...............................................

2
29
8

2
35
8

1
31
9

10.00

39

45

41

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

sued to World War II veterans with service-connected disabilities.
Veterans mortgage life insurance (VMLI).—Payments are
made to mortgage holders under this program which provides
mortgage protection life insurance to veterans who have received a grant for specially adapted housing due to severe
disabilities.
The general decline in the number of policies and the
amount of insurance in force is expected to continue in 1997
as indicated in the following table (dollars in thousands).
1995 actual

1996 est.

1997 est.

1,680
$8,522

1,557
$7,789

1,436
$7,093

4,002
$224,933

3,850
$219,400

3,700
$218,200

Payment to service-disabled veterans insurance fund.—Payments are made to the service-disabled veterans insurance
fund to supplement the premiums and other receipts of the
fund in amounts necessary to pay claims on insurance policies
issued to veterans with service-connected disabilities.

21.40

23.90
23.95

Object Classification (in millions of dollars)

2 ................... ...................
38
45
41

Total budgetary resources available for obligation
New obligations .............................................................

40
–39

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
42.00
Transferred from other accounts ..............................

24
11

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

35

43

39

2

2

2

Total new budget authority (gross) ..........................

38

45

41

70.00

41
–41

Identification code 36–0120–0–1–701

1995 actual

1996 est.

1997 est.

25
39
18 ...................

68.00

45
–45

41.0
42.0

Grants, subsidies, and contributions ............................
Insurance claims and indemnities ................................

29
10

37
8

32
9

99.9

Total obligations ........................................................

39

45

41

Public enterprise funds:
SERVICE-DISABLED VETERANS INSURANCE FUND
Program and Financing (in millions of dollars)
Identification code 36–4012–0–3–701

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................

1 ................... ...................
39
45
41
–39
–45
–41

86.90
86.97
86.98

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

34
41
37
2
2
2
3 ................... ...................

87.00

Total outlays (gross) .................................................

1995 actual

1996 est.

1997 est.

72.40

39

45

41

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: VMLI premiums

–2

–2

–2

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

36
37

43
43

39
39

89.00
90.00

Obligations by program activity:
Operating expenses:
00.01
Death claims .............................................................
00.02
All other .....................................................................

38
11

42
13

45
13

00.91

49

55

58

01.01

Total operating expenses ......................................
Capital investment:
Total capital investment ...........................................

17

12

10

10.00

Total obligations ........................................................

66

67

68

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................

8
62

3
70

6
66

70
–66

73
–67

72
–68

3

6

5

61

70

66

3
66
–63

5
67
–70

4
68
–68

5

4

4

21.90

23.90
23.95
24.90

Note.—The Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit
schedules previously shown for this account have been discontinued.

Military and naval insurance.—Payments are made to the
U.S. Government life insurance fund for certain World War
I veterans for extra hazards of military service and for claims
on war risk insurance issued to servicemen and veterans of
World War I.
National service life insurance.—Payments are made to the
national service life insurance fund for certain World War
II veterans for: (a) the extra hazards of service; (b) gratuitous
insurance granted to certain persons unable to apply for national service life insurance; and (c) death claims on policies
under the waiver of a premium while the insured was on
active duty.
Payments are also made to policyholders and beneficiaries
on nonparticipating national service life insurance policies is-

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

52
11

62
8

58
10

87.00

Total outlays (gross) .................................................

63

70

68

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from VI and I ............
Non-Federal sources:
88.40
Interest on loans ..............................................
88.40
Insurance premiums earned ............................
88.40
Optional settlements ........................................
88.40
Repayments of loans ........................................

845

3999

–35
–2
–24
–1
–8

–2
–24
–1
–8

–61

–70

–66

–463

–460

–462

Total liabilities and net position ............

53

58

68

71

–31

–1
–23
–1
–7

–460

4999
–29

Total net position ................................

Object Classification (in millions of dollars)
Identification code 36–4012–0–3–701

1995 actual

1996 est.

1997 est.

Total, offsetting collections (cash) ..................

33.0
42.0

Investments and loans ..................................................
Insurance claims and indemnities ................................

17
49

15
52

13
55

99.9

88.90

Total obligations ........................................................

66

67

68

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
2
2
2

VETERANS REOPENED INSURANCE FUND

This fund finances the payment of claims on
nonparticipating life insurance policies issued and currently
is open for new issues to veterans having service-connected
disabilities. The program provides insurance coverage for
service-disabled veterans at standard rates. Administrative
expenses are paid from the General operating expenses appropriation.
Operating costs—
Death claims.—Represents payments to designated beneficiaries.
All other.—Represents payments to policyholders who
surrender their policies for their cash value and hold endowment policies which have matured.
Capital investment.—A policyholder may borrow up to 94
percent of the value of his policy.
The trend in the number and amount of policies in force
is indicated in the following table (dollars in thousands):
1995 actual

Number of policies ......................................................................
Insurance in force .......................................................................

1996 est.

1997 est.

166,203
$1,518,916

163,679
$1,503,900

161,265
$1,490,800

Financing.—Operations are financed from premiums and
other receipts. Additional funds are received by transfer from
the veterans’ insurance and indemnities appropriation, instead of direct appropriations to this fund.
Operating results and financial condition.—Since premium
and other receipts are insufficient to cover operations, the
fund continues to project liabilities in excess of assets. The
deficit is expected to reach an estimated $462 million by
September 30, 1997.

1994 actual

1995 actual

Identification code 36–4010–0–3–701

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

43
–66

64
–66

73
–70

68
–71

0109

Net income or loss (–) ............................

–23

–2

3

1995 actual

1996 est.

32
31
10

35
29
9

00.91

69

73

73

01.01

Total operating expenses ......................................
Capital investment:
Policy loans ...............................................................

7

6

6

10.00

Total obligations ........................................................

76

79

79

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.90
Fund balance .............................................................
21.91
U.S. Securities: Par value .........................................

1 ...................
500
498

1
491

21.99
22.00

Total unobligated balance, start of year .............
New budget authority (gross) ........................................

501
73

498
72

492
67

23.90
23.95

Total budgetary resources available for obligation
574
New obligations .............................................................
–76
Unobligated balance available, end of year:
Fund balance ............................................................. ...................
U.S. Securities: Par value .........................................
498

570
–79

559
–79

1
490

1
478

24.90
24.91
24.99

Total unobligated balance, end of year ....................

498

491

479

68.00

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

73

72

67

24
76
–72

28
79
–76

32
79
–76

28

32

35

Outlays (gross), detail:
Outlays from new permanent authority .........................
72
Outlays from permanent balances ................................ ...................

72
4

67
9

72

76

76

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
U.S. Securities: Par value .........................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.91 Unpaid obligations, end of year: Obligated balance:
U.S. Securities: Par value .........................................

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
1601 Net value of assets related to pre–1992
direct loans receivable and acquired
defaulted guaranteed loans receivable: Direct loans, gross ....................

40

49

56

1999

87.00

1997 est.

8
1

10
2

Total outlays (gross) .................................................

–50

–48

–44

60

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources: Interest on U.S. securities .........
Non-Federal sources:
88.40
Interest on loans ..............................................
88.40
Insurance premiums earned ............................
88.40
Repayments of loans ........................................

–1
–18
–5

–1
–17
–6

–1
–16
–6

–73

–72

–67

1101

11
2

1997 est.

29
31
9

86.97
86.98

Balance Sheet (in millions of dollars)
1994 actual

1996 est.

Obligations by program activity:
Operating expenses:
00.01
Death claims .............................................................
00.02
Dividends ...................................................................
00.03
All other .....................................................................

–3

Identification code 36–4012–0–3–701

1995 actual

72.91

Statement of Operations (in millions of dollars)
Identification code 36–4012–0–3–701

Program and Financing (in millions of dollars)

8
3

Total assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2206
Pension and other actuarial liabilities
2207
Other ...................................................

53

58

68

71

88.90

3
509
1

4
516
1

4
523
1

4
528
1

89.00
90.00

2999

513

521

528

533

Note.—The Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit
schedules previously shown for this account have been discontinued.

8
–468

3
–466

6
–466

5
–467

This fund pays claims and administrative costs on participating life insurance policies issued during the period May

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3200 Invested capital .......................................

Total, offsetting collections (cash) ..................

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–2
4
9

846

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Public enterprise funds—Continued

Object Classification (in millions of dollars)

VETERANS REOPENED INSURANCE FUND—Continued

1, 1965, through May 2, 1966, under three life insurance
programs: (1) service-disabled standard insurance; (2) servicedisabled rated insurance; and (3) nonservice disabled insurance availing disabled World War II and Korean conflict veterans an opportunity to acquire life insurance coverage who
were no longer eligible for other Government insurance.
Budget program—
Death claims.—Represents payments to designated beneficiaries.
Dividends.—Policyholders participate in the distribution
of annual dividends.
All other.—This represents payments to the General operating expenses appropriation for the administrative costs
of processing claims and maintaining the accounts, and to
those policyholders who: (a) surrender their policies for cash
value; (b) hold endowment policies which have matured;
and (c) have purchased total disability income coverage and
subsequently become disabled.
Policy loans made.—A policyholder may borrow up to 94
percent of the cash value of his policy at an interest rate
adjusted to reflect private sector borrowing costs.
The following table reflects the decrease in the number
of policies and the amount of insurance in force (dollars
in thousands):
1995 actual

Number of policies ..................................................................
Insurance in force ...................................................................

102,020
$770,664

1996 est.

1997 est.

97,650
$751,800

92,990
$729,800

Financing.—Operations are financed from premiums collected from policyholders and interest on investments. Excess
earnings of the fund are now distributed to the policyholders
in the form of an annual dividend.

1994 actual

1995 actual

1996 est.

1996 est.

1997 est.

33.0
42.0
43.0

Investments and loans ..................................................
Insurance claims and indemnities ................................
Interest and dividends ...................................................

7
35
34

7
38
35

7
40
32

99.9

Total obligations ........................................................

76

79

79

SERVICEMEN’S GROUP LIFE INSURANCE FUND
Program and Financing (in millions of dollars)
1995 actual

Identification code 36–4009–0–3–701

00.01
00.02

Obligations by program activity:
Premium payments ........................................................
All other .........................................................................

10.00

1996 est.

1997 est.

485
486
4 ...................

499
1

Total obligations (object class 41.0) ........................

489

486

500

Budgetary resources available for obligation:
Unobligated balance available, start of year: U.S.
Securities: Par value .................................................
22.00 New budget authority (gross) ........................................

42
461

15
472

1
500

503
–489

487
–486

501
–500

15

1

1

21.91

23.90
23.95
24.91

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: U.S. Securities: Par value .....................................................

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in orders on hand from Federal sources

459
472
500
2 ................... ...................

1997 est.

68.90

Spending authority from offsetting collections
(total) ................................................................

461

472

500

70.00

Total new budget authority (gross) ..........................

461

472

500

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Offsetting Collections ................ ...................
72.95
Orders on hand from Federal sources ......................
2

Statement of Operations (in millions of dollars)
Identification code 36–4010–0–3–701

1995 actual

Identification code 36–4010–0–3–701

3
4

3
4

69
–78

68
–69

63
–69

0109

Net income or loss (–) ............................

–1

–9

–1

7
486
–486

7
500
–500

3
4

3
4

3
4

Total unpaid obligations, end of year ..................

7

7

7

86.97
86.98

71
–72

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance: Offsetting Collections ................
Orders on hand from Federal sources ......................

74.99

Revenue ...................................................
Expense ....................................................

2
489
–484

74.40
74.95

0101
0102

72.99
73.10
73.20

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

440
44

467
500
19 ...................

87.00

Total outlays (gross) .................................................

484

486

–6

Balance Sheet (in millions of dollars)
Identification code 36–4010–0–3–701

1994 actual

1995 actual

1996 est.

1997 est.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................
1106
Receivables, net .............................
1206 Non-Federal assets: Receivables, net .....
1601 Net value of assets related to pre–1992
direct loans receivable and acquired
defaulted guaranteed loans receivable: Direct loans, gross ....................

1

..................

..................

..................

524
12
1

526
12
..................

522
11
1

514
10
1

24

26

28

29

1999

Total assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2206
Pension and other actuarial liabilities
2207
Other ...................................................

562

565

562

553

34
508
3

38
516
2

41
510
3

43
506
3

2999

545

557

555

553

501
–484

498
–489

491
–483

479
–477

17

9

8

2

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3200 Invested capital .......................................
3999
4999

Total net position ................................
Total liabilities and net position ............

562

566

563

555

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources: Withholdings from serviceman’s pay .....
88.95 Change in orders on hand from Federal sources .........

89.00
90.00

500

–459
–472
–500
–2 ................... ...................

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
23
14 ...................

Budget program.—This fund finances the payment of group
life insurance premiums to private insurance companies
under the Servicemen’s Group Life Insurance Act of 1965,
as amended.
Statement of Operations (in millions of dollars)
Identification code 36–4009–0–3–701

0101
0102

Revenue ...................................................
Expense ....................................................

1994 actual

1995 actual

418
–529

461
–489

1996 est.

472
–486

1997 est.

500
–500

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
0109

Net income or loss (–) ............................

–111

–28

–14

..................
86.90
86.93
86.97
87.00

Credit accounts:
GUARANTY

AND

For the cost of direct and guaranteed loans, such sums as may
be necessary to carry out the purpose of the program, as authorized
by 38 U.S.C. chapter 37, as amended: Provided, That such costs,
including the cost of modifying such loans, shall be as defined in
section 502 of the Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, $107,703,000, which may be transferred
to and merged with the appropriation for ‘‘General operating expenses’’.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Unavailable Collections (in millions of dollars)
Identification code 36–1119–0–1–704

Balance, start of year:
Balance, start of year ....................................................

03.00
04.00

Offsetting Collections ....................................................
Total: Balances and collections ....................................
Appropriation:
05.01 Guaranty and indemnity program account ...................
07.99 Total balance, end of year ............................................

1995 actual

1996 est.

1997 est.

469

176

216

176
645

216 ...................
392
216

–469
176

–176
–216
216 ...................

Program and Financing (in millions of dollars)
Identification code 36–1119–0–1–704

Obligations by program activity:
Direct loan subsidy ........................................................
Guaranteed loan subsidy ...............................................
Reestimates of direct loan subsidy ...............................
Interest on reestimates of the direct loan subsidy
Reestimates of the guaranteed loan subsidy ...............
Interest on reestimates of the guaranteed loan subsidy ............................................................................
00.09 Administrative expenses ................................................
00.01
00.02
00.05
00.06
00.07
00.08

1995 actual

1996 est.

1997 est.

6
262
7
1
290

17
13
375
361
13 ...................
3 ...................
238 ...................

53
65

11 ...................
65
108

10.00

Total obligations ........................................................

684

722

482

22.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................

684

722

482

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

684
–684

722
–722

482
–482

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
40.05
Appropriation (indefinite) ..........................................

65
65
150 ...................

108
158

43.00

215

266

68.00
68.26
68.45
68.90
70.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections:
Offsetting collections (cash) Total downward
reestimate .........................................................
Offsetting collections (unavailable balances) ......
Portion not available for obligation (limitation
on obligations) .................................................

65

176
469

697 ...................
176
216

–176

–216 ...................

Spending authority from offsetting collections
(total) ...........................................................

469

657

216

Total new budget authority (gross) ..........................

684

722

684

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–176

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

508
509

89.00
90.00

722

482

–697 ...................

25
25

482
482

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 36–1119–0–1–704

Direct loan levels supportable by subsidy budget authority:
1159 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
1329 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
1339 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
1349 Total subsidy outlays .....................................................
Guaranteed loan levels supportable by subsidy budget
authority:
2159 Total loan guarantee levels ...........................................
Guaranteed loan subsidy (in percent):
2329 Weighted average subsidy rate .....................................
Guaranteed loan subsidy budget authority:
2339 Total subsidy budget authority ......................................
Guaranteed loan subsidy outlays:
2349 Total subsidy outlays .....................................................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

1995 actual

1996 est.

1997 est.

604

1,197

1,417

1.06

1.46

0.95

6

17

13

6

17

13

22,161

24,032

24,547

1.18

1.56

1.47

262

375

361

262

375

361

65
65

65
65

108
108

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond, (including modifications of
direct loans or loan guarantees that resulted from obligations
or commitments in any year) as well as for the administrative
expenses of this program. The subsidy amounts are estimated
on a net present value basis.
The Guaranty and Indemnity Fund was established to replace the Loan Guaranty Revolving Fund with respect to
loans closed after December 31, 1989. The following Federal
guaranty protects lenders against losses: (a) for loans of
$45,000, or less, 50 percent of the loan is guaranteed; (b)
for loans greater than $45,000, but not more than $56,250,
$22,500; (c) for loans more than $56,250 but less than
$144,000, the lesser of $36,000 or 40 percent of the loan;
or (d) for loans greater than $144,000, the lesser of $50,750
or 25 percent of the loan.
The Administration is proposing legislation which will make
permanent three provisions of OBRA 1993 due to expire in
1998: (1) the loan origination fee increase of .75 percent;
(2) the three-percent fee for multiple home loans with less
than five percent down; and (3) the current law on resale
losses on loans.

482

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
1 ................... ...................
73.10 New obligations .............................................................
684
722
482
73.20 Total outlays (gross) ......................................................
–684
–722
–482
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation ............................................................. ................... ................... ...................
72.40

Total outlays (gross) .................................................

215
65
266
1 ................... ...................
468
657
216

INDEMNITY PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

01.99

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

847

Object Classification (in millions of dollars)
Identification code 36–1119–0–1–704

25.3

1995 actual

1996 est.

1997 est.

41.0

Purchases of goods and services from Government
accounts ....................................................................
Grants, subsidies, and contributions ............................

65
619

65
657

108
374

99.9

Total obligations ........................................................

684

722

482

848

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
1263

GUARANTY

AND

INDEMNITY DIRECT LOAN FINANCING ACCOUNT

Program and Financing (in millions of dollars)
Identification code 36–4127–0–3–704

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................
Cash advances ..............................................................
Property sales expense ..................................................
Property improvement expense ......................................
Property management/other expense .............................
Pymt of dwnward reest. to Program Acct .....................
Pymt. of excess interest earned to Program Acct.

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
22.00 New financing authority (gross) ....................................
23.95 New obligations .............................................................
New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.47
Portion applied to debt reduction .............................

67.15

68.90

1995 actual

1996 est.

1997 est.

604
1,197
1,417
57
19
34
1 ................... ...................
................... ...................
1
................... ...................
1
...................
1 ...................
...................
102 ...................
...................
11 ...................
662

1,330

1,453

Write-offs for default: Direct loans ...............................

–8

–5

–12

1290

Credit accounts—Continued

Outstanding, end of year ..........................................

227

546

802

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.
Balance Sheet (in millions of dollars)
Identification code 36–4127–0–3–704

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1404
Foreclosed property .............................

1994 actual

1995 actual

1996 est.

1997 est.

93
3

113
5

..................
..................

..................
..................

126
..................

185
1

425
..................

617
..................

1101

662
–662

1,330
–1,330

1,453
–1,453

590

1,277

1,404

578
–506

951
–898

1,219
–1,170

Spending authority from offsetting collections
(total) ................................................................

72

53

49

Total new financing authority (gross) ......................

662

1,330

1,453

Change in unpaid obligations:
72.90 Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

41
662
–701

2
1,330
–1,328

5
1,453
–1,453

2

5

5

701

1,328

1499

Net present value of assets related
to direct loans ...........................

126

186

425

617

222

304

425

617

40
181

..................
..................

..................
420

..................
609

1
..................

2
302

5
..................

8
..................

1,453

70.00

87.00

Outlays (gross), detail:
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from program account .................................................................
–15
–33
–14
Non-Federal sources:
88.40
Repayments of principal ..................................
–4
–7
–12
88.40
Interest received on loans ................................
–17
–38
–51
88.40
Fees ..................................................................
–5
–12
–14
88.40
Interest from Treasury ......................................
–41 ................... ...................
88.40
Loan sale proceeds, net ...................................
–499
–820
–1,074
88.40
Cash sale of properties .................................... ...................
–5
–11
88.40
Other revenue ...................................................
3
–36
–43

1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2104
Resources payable to Treasury ...........
Non-Federal liabilities:
2201
Accounts payable ................................
2204
Liabilities for loan guarantees ...........
2999

Total liabilities ....................................

222

304

425

617

4999

Total liabilities and net position ............

222

304

425

617

GUARANTY

AND

INDEMNITY GUARANTEED LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)

Identification code 36–4129–0–3–704

1995 actual

1996 est.

1997 est.

Total, offsetting collections (cash) ..................

–578

–951

–1,219

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

84
123

379
377

234
234

Obligations by program activity:
Acquisition of homes .....................................................
Losses on defaulted loans .............................................
Property sales expense ..................................................
Property management expense ......................................
Property improvement expense ......................................
Loans acquired ..............................................................
Payment of downward reestimate to program account
Payment of excess interest to program account ..........
Other expenses ...............................................................

10.00

88.90

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08
00.09

Total obligations ........................................................

761

2,400

1,976

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................

2,854
1,335

3,428
2,315

3,343
2,327

4,189
–761

5,743
–2,400

5,670
–1,976

3,428

3,343

3,693

1,335

2,315

2,327

12
761
–755

18
2,400
–2,362

56
1,976
–1,986

18

56

47

406
1,324
1,433
107
366
388
19
75
91
10
24
31
7
14
17
33
13
16
167
462 ...................
9
122 ...................
3 ................... ...................

21.90

Status of Direct Loans (in millions of dollars)
Identification code 36–4127–0–3–704

1995 actual

1996 est.

1997 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
604
1,197
1,417
1150

Total direct loan obligations .....................................

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
Repayments:
1251
Repayments and prepayments ..................................
1253
Proceeds from loan asset sales to the public with
recourse .................................................................
1262 Adjustments: Discount on loan asset sales to the
public or discounted .................................................

604

1,197

1,417

150
604

227
1,197

546
1,417

–21

–7

–12

–495

–820

–1,074

–3

–46

–63

23.90
23.95
24.90

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS

87.00

Outlays (gross), detail:
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from program account .....................
88.00
Recoveries from direct loans conveyed to the
direct loan financing account .....................
88.25
Interest on uninvested funds ...............................
Non-Federal sources:
88.40
Funding fees .....................................................
88.40
Cash sale of properties ....................................
88.40
Other collections ...............................................
88.90

89.00
90.00

755

2,362

1,986
1504
1599

–604

–624

–361

–33
–207

–875
–154

–1,068
–164

–424
–50
–17

–441
–210
–11

–476
–246
–11

–1,335

–2,315

Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
Foreclosed property .............................

..................

Net present value of assets related
to defaulted guaranteed loans

..................

194

336

337

2,987

3,676

3,771

4,117

..................

18

..................

..................

2,987

3,658

3,771

4,117

1999

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

1
–340

194

336

337

–2,326

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................
Financing disbursements ...............................................
–580
47

849

Total, offsetting collections (cash) ..................

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 36–4129–0–3–704

2999

Total liabilities ....................................

2,987

3,676

3,771

4,117

4999

Total liabilities and net position ............

2,987

3,676

3,771

4,117

GUARANTY

AND

INDEMNITY FUND LIQUIDATING ACCOUNT

Program and Financing (in millions of dollars)
Identification code 36–4023–0–3–704

1996 est.

1997 est.

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Capital investment:
00.01
Acquisition of homes .................................................
239
00.02
Property improvements ..............................................
6
00.04
Cash advances .......................................................... ...................
00.05
Acquisition of defaulted guaranteed loans ..............
12

267
6
2
11

245
6
2
9

00.91

Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation

22,161

24,032

24,547

2150

22,161

24,032

24,547

101,094
22,161
495
–1,930

121,307
24,032
820
–2,316

142,769
24,547
1,074
–2,725

115

366

388

–406

–1,324

–1,433

–120
–135
4 ...................

21.90

Total guaranteed loan commitments ........................

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Guarantees of loans sold to the public with recourse
Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2262
Terminations for default that result in acquisition
of property .............................................................
2263
Terminations for default that result in claim payments ....................................................................
2264
Other adjustments, net .............................................
2210
2231
2232
2251

2290

Outstanding, end of year ..........................................

121,307

142,769

164,485

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

44,700

55,215

83,743

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................
2390

Outstanding, end of year ......................................

22
115
–2
–98

37
366
–4
–290

109
388
–11
–353

37

109

133

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond (including modifications of guaranteed
loans that resulted from commitments in any year). The
amounts in this account are a means of financing and are
not included in the budget totals.
Balance Sheet (in millions of dollars)
Identification code 36–4129–0–3–704

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
1403
Accounts receivable from foreclosed
property ...........................................

1994 actual

1995 actual

1996 est.

1997 est.

1101

1499

Net present value of assets related
to direct loans ...........................

2,866

3,445

3,399

3,740

121

37

36

40

121

37

36

40

286

262

12
19
150

10
15
176

10
17
161

01.91

–107
–115

257

01.01
01.02
01.03

Total capital investment .......................................
Operating expenses:
Property management expense .................................
Sales expense ............................................................
Claims-Individual Homes ..........................................
Total operating expenses ......................................

181

201

188

02.93

Claims-Individual Homes ..........................................

438

487

450

10.00

Total obligations (object class 33.0) ........................

438

487

450

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................

251
626

439
361

311
390

877
–438

800
–487

701
–450

439

311

251

626

361

390

41
438
–456

23
487
–485

26
450
–452

23

26

24

23.90
23.95
24.90

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

286
170

361
123

390
62

87.00

Total outlays (gross) .................................................

456

485

452

–322

–349

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal Sources: Payments from Direct Loan Financing Account ...............................................
–571
Non-Federal sources:
88.40
Loan and other repayments .............................
4
88.40
Sale of homes, cash ........................................
–49
88.40
Interest on loans ..............................................
–3
88.40
Collection of claims (veteran indebtedness)
–7
88.40
Other revenue ................................................... ...................
88.90

Total, offsetting collections (cash) ..................

–626

3
3
–34
–38
–2
–2
–5
–4
–1 ...................
–361

–390

850

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts—Continued
GUARANTY

AND

Property management expense.—Property management
expenses include all the costs of ownership of acquired properties except capitalized expenditures made incident to the
acquisition and rehabilitation of properties.

INDEMNITY FUND LIQUIDATING ACCOUNT—
Continued

Program and Financing (in millions of dollars)—Continued

1995 actual
Identification code 36–4023–0–3–704

89.00
90.00

1995 actual

1996 est.

1997 est.

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–170
124
62

Status of Direct Loans (in millions of dollars)
Identification code 36–4023–0–3–704

1210
1231
1251
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

1290

Outstanding, end of year ..........................................

1995 actual

1996 est.

1997 est.

22
13
12
4 ................... ...................
–1 ................... ...................
–12
–1 ...................
13

12

12

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2251 Repayments and prepayments ......................................
Adjustments:
2262
Terminations for default that result in acquisition
of property .............................................................
2263
Terminations for default that result in claim payments ....................................................................

1995 actual

1996 est.

1997 est.

1,546
$6,291
$10

1,639
$6,429
$11

Property sales expense.—Sales expense includes brokers’
fees and advertising costs incident to the sale of properties
owned by VA.
Number of sales ..........................................................................
Average amount per sale ............................................................
Total obligations (in millions) .....................................................

1996 est.

4,327
$4,451
$19

1997 est.

3,339
$4,540
$15

3,574
$4,640
$17

Loss on defaulted guaranteed loans.—These payments are
made to lenders in accordance with the VA guaranty contract. In most home loan cases, they represent the difference between the amount owed by the veteran on a defaulted loan and the value of the foreclosed property as
established by VA.

1997 est.

1995 actual

17,668
–703

16,569
–659

15,467
–615

–246

–267

–245

–150

–176

–162

Outstanding, end of year ..........................................

16,569

15,467

14,445

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

6,214

5,800

5,417

2290

1996 est.

1,660
$7,015
$12

1995 actual

Status of Guaranteed Loans (in millions of dollars)
Identification code 36–4023–0–3–704

Average number of properties .....................................................
Average amount per property ......................................................
Total obligations (in millions) .....................................................

Individual homes:
Number of claims ...................................................................
Average amount per payment ................................................
Total obligations (in millions) ................................................

1996 est.

3,631
$41,222
$150

1997 est.

4,183
$42,046
$176

3,757
$42,971
$161

Statement of Operations (in millions of dollars)
Identification code 36–4023–0–3–704

1994 actual

1995 actual

1996 est.

1997 est.

2390

Outstanding, end of year ......................................

40
149
–7
–164

18
127
–5
–119

21
108
–4
–100

18

21

25

As required by section 502 of the Congressional Budget
Act of 1974, this account records all cash flows to and from
the Government resulting from direct loans obligated and loan
guarantees committed prior to 1992. This account is shown
on a cash basis. All new activity in this program in 1992
and beyond (including modifications of direct loans or loan
guarantees that resulted from obligations or commitments in
any year) is recorded in corresponding program and financing
accounts.
Budget program—
Acquisition of homes.—
Number of property acquisitions processed ...............................
Average amount per acquisition .................................................
Total obligations (in millions) .....................................................

Property improvements.—
Number of properties improved ..................................................
Average amount per property ......................................................
Total obligations (in millions) .....................................................

347
–403

563
–446

450
–356

360
–285

Net income or loss (–) ............................

–56

117

94

75

Balance Sheet (in millions of dollars)
Identification code 36–4023–0–3–704

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
1402
Interest receivable ..............................
1403
Accounts receivable from foreclosed
property ...........................................

3,534
$69,614
$246

1996 est.

3,765
$71,006
$267

1499

1706

1997 est.

3,381
$72,568
$245

1803
1901

Net present value of assets related
to direct loans ...........................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Foreclosed property .............................
Value of assets related to loan
guarantees .................................
Other Federal assets:
Property, plant and equipment, net
Other assets ........................................

1999

1995 actual

3,720
$1,681
$6

1996 est.

3,765
$1,715
$6

1997 est.

3,381
$1,752
$6

1995 actual

–$7

1996 est.

$2

1997 est.

$2

1994 actual

1995 actual

1996 est.

1997 est.

273

453

319

264

..................

..................

2

2

23

84

176

161

23

84

178

163

..................

13

..................

..................

..................

13

..................

..................

170
..................

103
–84

133
..................

117
..................

466

569

630

544

21
..................

13
–1

11
..................

9
..................

1101

1799
1995 actual

Cash advances—
Vendee loans.—Small cash advances are occasionally
made to borrowers to cover taxes, hazard insurance, and
necessary repairs. These amounts are added to the loan
balance.
Total obligations (in millions) .....................................................

Revenue ...................................................
Expense ....................................................

0109
Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................

0101
0102

Total assets ........................................
LIABILITIES:
2101 Federal liabilities: Accounts payable ......
2207 Non-Federal liabilities: Other ..................
2999

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................
3300 Cumulative results of operations ............

21

12

11

9

193
251

116
441

99
520

84
451

3999

Total net position ................................

444

557

619

535

4999

Total liabilities and net position ............

465

569

630

544

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
LOAN GUARANTY PROGRAM ACCOUNT

851

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

(INCLUDING TRANSFER OF FUNDS)

For the cost of direct and guaranteed loans, such sums as may
be necessary to carry out the program, as authorized by 38 U.S.C.
chapter 37, as amended: Provided, That such costs, including the
cost of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, $33,810,000, which may be transferred
to and merged with the appropriation for ‘‘General operating expenses’’.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–81, P.L. 104–92, and P.L. 104–
99.

Unavailable Collections (in millions of dollars)
Identification code 36–1025–0–1–704

Balance, start of year:
01.99 Balance, start of year ....................................................

1995 actual

131

03.00
04.00

Offsetting Collections .................................................... ...................
Total: Balances and collections ....................................
131
Appropriation:
05.01 Loan guaranty program .................................................
–44
07.99 Total balance, end of year ............................................
87

1996 est.

87

22

–14
8

Program and Financing (in millions of dollars)
Identification code 36–1025–0–1–704

1995 actual

1996 est.

1997 est.

00.01
00.05
00.06
00.09

Obligations by program activity:
Direct loan subsidy ........................................................
Reestimates of the direct loan subsidy ........................
Interest on reestimates of the direct loan subsidy
Administrative expenses ................................................

21
14
8
59

10.00

Total obligations ........................................................

103

128

48

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

103
–103

128
–128

48
–48

52

34

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
59
Permanent:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ................................ ...................
68.26
Offsetting collections (unavailable balances) ......
44
68.45
Portion not available for obligation (limitation
on obligations) ................................................. ...................
68.90
70.00

16
14
50 ...................
10 ...................
52
34

894

2.34

1.81

1.56

21

16

14

21

16

14

Guaranteed loan levels supportable by subsidy budget
authority:
2159 Total loan guarantee levels ...........................................
Guaranteed loan subsidy (in percent):
2329 Weighted average subsidy rate .....................................

1

1

1

13.34

14.29

15.04

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

59
59

52
52

34
34

3510
3590

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated and loan guarantees
committed in 1992 and beyond (including modifications of
direct loans or loan guarantees that resulted from obligations
or commitments in any year) as well as the administrative
expenses of this program. The subsidy amounts are estimated
on a net present value basis.
The purpose of the VA home loan guaranty program is
to facilitate the extension of mortgage credit on favorable
terms by private lenders to eligible veterans. As of January
1, 1990, the guaranty on all new loan originations is provided
by the Guaranty and Indemnity Fund, except for manufactured home loans. Guaranty amounts made prior to the establishment of the new Fund will be paid from the Loan Guaranty Revolving Fund in case of foreclosure. The guaranty
protects lenders against the following losses: (a) for loans
of $45,000 or less, 50 percent of the loan is guaranteed; (b)
for loans greater than $45,000, but not more than $56,250,
$22,500; (c) for loans more than $56,250 but less than
$144,000, the lesser of $36,000 or 40 percent of the loan;
or (d) for loans greater than $144,000, the lesser of $50,750
or 25 percent of the loan.
Object Classification (in millions of dollars)
Identification code 36–1025–0–1–704

Spending authority from offsetting collections
(total) ...........................................................

44

76

14

33.0

Purchases of goods and services from Government
accounts ....................................................................
Investments and loans ..................................................

Total new budget authority (gross) ..........................

103

128

48

99.9

Total obligations ........................................................

2 ................... ...................
103
128
48
–105
–128
–48

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

59
52
34
2 ................... ...................
44
76
14

87.00

Total outlays (gross) .................................................

1997 est.

885

25.3

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................

1996 est.

899

11 ...................
76
14
–11 ...................

1995 actual

Direct loan levels supportable by subsidy budget authority:
1159 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
1329 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
1339 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
1349 Total subsidy outlays .....................................................

1997 est.

11 ...................
98
22
–76
22

Identification code 36–1025–0–1–704

1995 actual

1996 est.

1997 est.

59
44

52
76

34
14

103

128

48

72.40

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

Program and Financing (in millions of dollars)
Identification code 36–4125–0–3–704

1995 actual

1996 est.

1997 est.

103
104

128

48

–11 ...................

117
117

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.09

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................
Property sales expense ..................................................
Property management expense ......................................
Property improvement expense ......................................
Pymt. to receipt acct. for dwnward reest. ....................
Payment of excess interest earned to receipt account
Cash advances/other expenses .....................................

10.00

105

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources ...................

89.00
90.00

LOAN GUARANTY DIRECT LOAN FINANCING ACCOUNT

Total obligations ........................................................

1,040

908

910

22.00

Budgetary resources available for obligation:
New financing authority (gross) ....................................

1,040

908

910

48
48

899
885
894
139
9
13
1
1
1
...................
1
1
...................
1
1
...................
10 ...................
...................
1 ...................
1 ................... ...................

852

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts—Continued

Balance Sheet (in millions of dollars)

LOAN GUARANTY DIRECT LOAN FINANCING ACCOUNT—Continued

Identification code 36–4125–0–3–704

Program and Financing (in millions of dollars)—Continued
Identification code 36–4125–0–3–704

23.95

New obligations .............................................................

–910

856

869

880

987
–803

842
–803

854
–824

Spending authority from offsetting collections
(total) ................................................................

184

39

30

Total new financing authority (gross) ......................

1,040

908

910

Change in unpaid obligations:
72.90 Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

87.00

1997 est.

–908

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.47
Portion applied to debt reduction .............................

70.00

1996 est.

–1,040

67.15

68.90

1995 actual

Outlays (gross), detail:
Total financing disbursements (gross) .........................

152
1,040
–1,187

4
908
–908

4
910
–910

4

4

4

1,187

908

910

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Accounts Receivables, net ............................................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable and related
foreclosed property, net ..................
1404
Foreclosed property .............................
1499

Net present value of assets related
to direct loans ...........................

1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2102
Interest payable ..................................
2104
Resources payable to Treasury ...........
Non-Federal liabilities:
2201
Interest payable ..................................
2203
Debt .....................................................
2999

1994 actual

1995 actual

1996 est.

1997 est.

925

905

890

900

15

12

..................

..................

319
..................

355
5

355
..................

358
..................

319

360

355

358

1,259

1,277

1,245

1,258

4
..................
..................

..................
5
1,272

..................
10
1,338

..................
13
1,395

148
1,107

..................
..................

..................
..................

..................
..................

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

1,259

1,277

1,348

1,408

..................

..................

–103

–150

3999

Total net position ................................

..................

..................

–103

–150

4999

Total liabilities and net position ............

1,259

1,277

1,245

1,258

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Payments from program account .........................
Non-Federal sources:
88.40
Repayment and prepayments of principal (–)
88.40
Interest received on loans ................................
88.40
Loan sale proceeds, net ...................................
88.40
Fees ..................................................................
88.40
Cash sale of properties ....................................
88.40
Other revenue ...................................................

–43

–27

–14

(Legislative proposal, not subject to PAYGO)

–9
–98
–833
–8
–1
5

–17
–66
–673
–9
–24
–26

–19
–73
–684
–9
–29
–26

Program and Financing (in millions of dollars)

88.90

Total, offsetting collections (cash) ..................

–987

–842

–854

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................
90.00 Financing disbursements ...............................................

53
200

66
66

56
56

LOAN GUARANTY DIRECT LOAN FINANCING ACCOUNT

1995 actual

00.03
00.04

1995 actual

Obligations by program activity:
Interest on Treasury Borrowing ...................................... ...................
Payment to Liquidating Account for Enhanced Debt
Collection ................................................................... ...................

Outstanding, end of year ..........................................

90 ...................

1996 est.

1997 est.

4

Budgetary resources available for obligation:
New financing authority (gross) .................................... ...................
New obligations ............................................................. ...................

92
–92

4
–4

68.90

1290

4

92

1150

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
Repayments:
1251
Repayments and prepayments ..................................
1253
Proceeds from loan asset sales to the public with
recourse .................................................................
1262 Adjustments: Discount on loan asset sales to the
public or discounted .................................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................

2

Total obligations ........................................................ ...................

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ...................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ..................................... ...................
68.47
Portion applied to debt reduction ............................. ...................

923

1997 est.

10.00

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
923
885
894
Total direct loan obligations .....................................

1996 est.

22.00
23.95

Status of Direct Loans (in millions of dollars)
Identification code 36–4125–0–3–704

Identification code 36–4125–2–3–704

885

894

428
933

473
885

669
894

–41

–16

–19

–828

–711
38

40

90 ...................
29
–27

25
–21

Spending authority from offsetting collections
(total) ................................................................ ...................

2

4

70.00

Total new financing authority (gross) ...................... ...................

92

4

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ...................
Total financing disbursements (gross) ......................... ...................

92
–92

4
–4

87.00

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ...................

92

4

Offsets:
Against gross financing authority and financing disbursements:
88.00
Offsetting collections (cash) from: Repayment from
Liquidating Account for debt collection ............... ...................

–29

–25

Net financing authority and financing disbursements:
Financing authority ........................................................ ...................
Financing disbursements ............................................... ...................

63
63

–21
–21

–724

–4

67.15

–7 ................... ...................
–8 ................... ...................
473

669

860

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.

89.00
90.00

This schedule shows the off-budget financing effects of the
Administration’s proposal to repeal restrictions on the collection of loan guaranty debts and authorize VA to collect all

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS

loan guaranty debts by Federal income tax refund offset. This
proposal would take effect in 1996.

4999

Total liabilities and net position ............

..................

1

853

..................

..................

LOAN GUARANTY REVOLVING FUND LIQUIDATING ACCOUNT
LOAN GUARANTY GUARANTEED LOAN FINANCING ACCOUNT

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)
1995 actual

Identification code 36–4025–0–3–704
1995 actual

Identification code 36–4126–0–3–704

1996 est.

Obligations by program activity:
10.00 Total obligations ............................................................ ................... ................... ...................
Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ...................................................................... ...................
1
1
22.00 New financing authority (gross) .................................... ................... ................... ...................

21.90

23.90
23.95
24.90

Total budgetary resources available for obligation ...................
1
1
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year: Fund
balance ......................................................................
1
1 ...................

87.00

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ................... ................... ...................

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ................... ................... ...................

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 36–4126–0–3–704

1996 est.

1

1

692
38
32
3
63

890
49
24
2
48

729
40
19
2
37

00.91

828

1,013

827

01.01
01.02
01.05
01.06

Total capital investment .......................................
Operating expenses:
Property management expense .................................
Sales expense ............................................................
Claims processed ......................................................
Other expenses ..........................................................

41
63
178
24

41
42
62
64
175
149
1 ...................

01.91

Total operating expenses ......................................

306

279

255

10.00

Total obligations (object class 33.0) ........................

1,134

1,292

1,082

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................

282
1,255

403
1,176

287
1,163

1,537
–1,134

1,579
–1,292

1,450
–1,082

403

287

369

1,255

1,176

1,163

58
1,134
–1,143

49
1,292
–1,285

57
1,082
–1,091

49

57

48

21.90

1

2150

1

1

1

2210
2231
2232
2251
2263

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
2
836
1,510
Disbursements of new guaranteed loans ......................
1
1
1
Guarantees of loans sold to the public with recourse
833
673
684
Repayments and prepayments ...................................... ................... ................... ...................
Adjustments: Terminations for default that result in
claim payments ......................................................... ................... ................... ...................

2290

Outstanding, end of year ..........................................

2299

Memorandum:
Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

836

834

1997 est.

Obligations by program activity:
Capital investment:
00.01
Acquisition of homes .................................................
00.02
Property improvements ..............................................
00.03
Repurchase of loans sold, net ..................................
00.06
Cash advances, vendee loans ..................................
00.07
Acquisition of defaulted guaranteed loans ..............

23.90
23.95
24.90

1997 est.

Position with respect to appropriations act limitation
on commitments:
2131 Guaranteed loan commitments exempt from limitation
Total guaranteed loan commitments ........................

1996 est.

1997 est.

1,510

674

2,195

685

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from loan guarantees committed
in 1992 and beyond (including modifications of guaranteed
loans that resulted from commitments in any year). The
amounts in this account are a means of financing and are
not included in the budget totals.
Balance Sheet (in millions of dollars)
1994 actual

1995 actual

..................

1

1

..................

1

1

1

..................
..................
..................

..................
..................
1

..................
..................
..................

..................
..................
..................

..................

..................

..................

..................

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

..................

1

..................

..................

..................

..................

..................

..................

3999

..................

..................

..................

..................

1101

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................

1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2104
Resources payable to Treasury ...........
2105
Other ...................................................
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................
2999

Total net position ................................

1997 est.

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
72.90

86.97
86.98
87.00

Outlays (gross), detail:
Outlays from new permanent authority .........................
1,143
Outlays from permanent balances ................................ ...................
Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from loan guarantee
direct loan financing account ..........................
Non-Federal sources:
88.40
Loan and other repayments .............................
88.40
Cash sale of properties ....................................
88.40
Collection of veteran indebtedness ..................
88.40
Interest income .................................................
88.40
Sale of loans, net .............................................
88.40
Other Income ....................................................

1,176
1,091
109 ...................

1,143

1,285

1,091

–899

–885

–894

–70
–56
–45
–140
–133
–136
–48
–46
–44
–65
–53
–42
–30 ................... ...................
–3
–3
–2

1

Identification code 36–4126–0–3–704

1996 est.

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................

88.90

89.00
90.00

Total, offsetting collections (cash) ..................

–1,255

–1,176

–1,163

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–112
109
–72

Summary of Budget Authority and Outlays
(in millions of dollars)

1995 actual

1996 est.

1997 est.

Enacted/requested:
Budget Authority ..................................................................... .................... .................... ....................
Outlays ....................................................................................
–112
109
–72
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... .................... ....................
Outlays .................................................................................... ....................
–90 ....................

854

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Credit accounts—Continued

Repurchase of loans sold, net.

LOAN GUARANTY REVOLVING FUND LIQUIDATING ACCOUNT—
Continued

1995 actual

Number of loans repurchased ................................................
Average amount per repurchase ............................................
Total obligations (in millions) ................................................

Summary of Budget Authority and Outlays—Continued
(in millions of dollars)

1995 actual

1996 est.

1997 est.

Total:
Budget Authority ..................................................................... .................... .................... ....................
Outlays ....................................................................................
–112
19
–72

Identification code 36–4025–0–3–704

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments:
1251
Repayments and prepayments ..................................
1253
Proceeds from loan asset sales to the public with
recourse .................................................................
1261 Adjustments: Capitalized interest .................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................

1210
1231

1290

Outstanding, end of year ..........................................

1995 actual

Total obligations (in millions) ................................................
1996 est.

1997 est.

628
528
513
24 ................... ...................
–47

–40

–38

–28 ................... ...................
9
8
7
–8
–50

–7
24

–7
19

528

513

Identification code 36–4025–0–3–704

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Repayments and prepayments ......................................
Adjustments:
2262
Terminations for default that result in acquisition
of property .............................................................
2263
Terminations for default that result in claim payments ....................................................................
2210
2251

2290

Outstanding, end of year ..........................................

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

1995 actual

1997 est.

38,665
–22,021

15,774
–7,487

7,308
–2,546

–692

–890

–729

–178

–89

–44

15,774

7,308

1996 est.

$3

1995 actual

Average number of properties ................................................
Average amount per property .................................................
Total obligations (in millions) ................................................

1997 est.

$2

$2

1996 est.

6,644
$6,227
$41

1997 est.

6,391
$6,352
$41

6,455
$6,492
$42

Sales expense.—Sales expense include brokers’ fees and
advertising costs incident to the sale of properties owned
by VA.
1995 actual

Number of sales .....................................................................
Average amount per sale .......................................................
Total obligations (in millions) ................................................

1996 est.

584
$31,956
$19

Property management expense.—Property management
expenses include all the costs of ownership of acquired properties except capitalized expenditures made incident to the
acquisition and rehabilitation of properties.

494

Status of Guaranteed Loans (in millions of dollars)

1997 est.

778
$31,268
$24

Cash advances—
Vendee loans.—Small cash advances are occasionally
made to borrowers to cover taxes, hazard insurance, and
necessary repairs. These amounts are added to the loan
balance.
1995 actual

Status of Direct Loans (in millions of dollars)

1996 est.

1,037
$30,655
$32

1996 est.

15,935
$3,943
$63

1997 est.

15,480
$4,022
$62

15,517
$4,110
$64

Loss on defaulted guaranteed loans.—These payments are
made to lenders in accordance with the VA guaranty contract. In most home loan cases, they represent the difference between the amount owed by the veteran on a defaulted loan and the value of the foreclosed property as
established by VA.
Individual homes:
Number of claims ...............................................................
Average amount per payment ............................................
Total obligations (in millions) ............................................

1995 actual

1996 est.

1997 est.

13,264
$13,081
$174

12,909
$13,343
$172

10,854
$13,637
$148

743
$6,236
$5

412
$6,361
$3

224
$6,501
$1

3,989

8,046

4,749

2,801

Manufactured homes:
Number of claims ...............................................................
Average amount per payment ............................................
Total obligations (in millions) ............................................

Statement of Operations (in millions of dollars)

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................

1,699
216
–94
–322

1,499
191
–46
–284

1,360
173
–44
–258

2390

1,499

1,360

1,231

Outstanding, end of year ......................................

Identification code 36–4025–0–3–704

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, all cash flows to and
from the Government resulting from direct loans obligated
and loan guarantees committed prior to 1992. This account
is shown on a cash basis. All new activity in this program
in 1992 and beyond (including modifications of direct loans
or loan guarantees that resulted from obligations or commitments in any year) is recorded in corresponding program and
financing accounts.
Budget program—
Acquisition of homes.
1995 actual

Number of property acquisitions processed ...........................
Average amount per acquisition ............................................
Total obligations (in millions) ................................................

12,613
$54,872
$692

1996 est.

15,901
$55,969
$890

1997 est.

12,746
$57,201
$729

1995 actual

13,817
$2,751
$38

1996 est.

17,419
$2,806
$49

1997 est.

13,963
$2,868
$40

1995 actual

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

1,096
–661

898
–923

787
–857

809
–825

0109

Net income or loss (–) ............................

435

–25

–70

–16

Balance Sheet (in millions of dollars)
Identification code 36–4025–0–3–704

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Investments ....................................
1206 Non-Federal assets: Accounts Receivable, net ..............................................
Net value of assets related to post–
1991 direct loans receivable:
1402
Interest receivable ..............................
1403
Credit program receivables and related forclosed property, net ..............
1499

Property improvements.
Number of properties improved ..............................................
Average amount per property .................................................
Total obligations (in millions) ................................................

1994 actual

1706
1799

1994 actual

1995 actual

1996 est.

1997 est.

354

457

287

369

394

273

265

255

1

1

1

1

10

8

7

7

..................

540

526

505

Net present value of assets related
to direct loans ...........................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Foreclosed property .............................

10

548

533

512

597

..................

..................

..................

Value of assets related to loan
guarantees .................................

597

..................

..................

..................

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS

1803
1901

Other Federal assets:
Property, plant and equipment, net
Other assets ........................................

1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2105
Other ...................................................
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................
2999

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................
3300 Cumulative results of operations ............
3500 Future funding requirements ..................

855

1251
533
–2

342
–2

332
..................

320
..................

1,887

1,619

1,418

43
37

41
..................

40
..................

–29

–25

1290

Outstanding, end of year .......................................... ...................

–29

–54

1,457

58
38

Repayments: Repayments and prepayments ................. ...................

Statement of Operations (in millions of dollars)
Identification code 36–4025–4–3–704

1994 actual

1995 actual

Revenue ...................................................
Expense ....................................................

..................
..................

..................
..................

119
–29

25
–25

Net income or loss (–) ............................

..................

..................

90

..................

894

747

727

699

0101
0102

990

827

768

739

0109

1,525
269
–897

1,154
385
–747

924
212
–486

739
246
–267

1996 est.

1997 est.

Balance Sheet (in millions of dollars)
1994 actual

1995 actual

..................

..................

90

75

Total assets ........................................
LIABILITIES:
2105 Federal liabilities: Other ..........................

..................

..................

90

75

..................

..................

90

75

(Legislative proposal, subject to PAYGO)

2999

Total liabilities ....................................

..................

..................

90

75

Program and Financing (in millions of dollars)

4999

Total liabilities and net position ............

..................

..................

90

75

3999

Total net position ................................

897

792

650

718

4999

Total liabilities and net position ............

1,887

1,619

1,418

Identification code 36–4025–4–3–704

1,457
1101

Note.—This statement excludes unfunded contingent liabilities under loan guarantee and insurance programs.

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................

1999

LOAN GUARANTY REVOLVING FUND LIQUIDATING ACCOUNT

Identification code 36–4025–4–3–704

1995 actual

1996 est.

1996 est.

1997 est.

1997 est.

Obligations by program activity:
Capital investment:
00.06
Payment to Direct Loan Financing due to enhanced
debt collection ...................................................... ...................

29

25

10.00

Total obligations (object class 33.0) ........................ ...................

29

25

22.00
22.40

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ...................
Capital transfer to general fund ................................... ...................

23.90
23.95

Total budgetary resources available for obligation ...................
New obligations ............................................................. ...................

29
–29

25
–25

68.00

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ...................

119

25

DIRECT LOAN PROGRAM ACCOUNT

119
25
–90 ...................

Change in unpaid obligations:
73.10 New obligations ............................................................. ...................
73.20 Total outlays (gross) ...................................................... ...................

29
–29

25
–25

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................

29

Total outlays (gross) ................................................. ...................

29

For the cost of direct loans, such sums as may be necessary to
carry out the program, as authorized by 38 U.S.C. chapter 37, as
amended: Provided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974, as amended: Provided further, That during 1997,
within the resources available, not to exceed $300,000 in gross obligations for direct loans are authorized for specially adapted housing
loans.
In addition, for administrative expenses to carry out the direct loan
program, $80,000, which may be transferred to and merged with
the appropriation for ‘‘General operating expenses’’.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

25

87.00

(INCLUDING TRANSFER OF FUNDS)

25

Program and Financing (in millions of dollars)
Identification code 36–1024–0–1–704

1995 actual

1996 est.

1997 est.

88.90

89.00
90.00

Total, offsetting collections (cash) .................. ...................

00.09

1 ................... ...................

Budgetary resources available for obligation:
New budget authority (gross) ........................................

1 ................... ...................

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

1 ................... ...................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

1 ................... ...................
–1 ................... ...................

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

1 ................... ...................

87.00

–119

Total outlays (gross) .................................................

1 ................... ...................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1 ................... ...................
1 ................... ...................

–25

Status of Direct Loans (in millions of dollars)

1210

Total obligations (object class 25.3) ........................

–90 ...................
–29
–25

This schedule shows the effects of the Administration’s proposal to repeal restrictions on collection of loan guaranty
debts. The VA would be permitted to collect all loan guaranty
debts by Federal salary offset or Federal income tax refund
offset. This proposal would take effect in 1996.

1995 actual

1 ................... ...................

10.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ........................................................................... ...................
–90 ...................

Identification code 36–4025–4–3–704

Obligations by program activity:
Administrative expenses ................................................

22.00

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources: Receipt from financing account
due to debt collection ...................................... ...................
88.40
Non-Federal sources: Enhanced debt collection ...................

1996 est.

Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ................... ...................

1997 est.

–29

856

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
88.90

Total, offsetting collections (cash) ..................

–1

–3

–6

89.00
90.00

Credit accounts—Continued

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

6
6

18
18

27
27

DIRECT LOAN PROGRAM ACCOUNT—Continued
(INCLUDING TRANSFER OF FUNDS)—Continued

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

Status of Direct Loans (in millions of dollars)
Identification code 36–1024–0–1–704

1329

Direct loan subsidy (in percent):
Weighted average subsidy rate .....................................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

1995 actual

1996 est.

1997 est.
1995 actual

Identification code 36–4128–0–3–704

11.76

28.13

46.77

1 ................... ...................
1 ................... ...................

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................
1112 Unobligated direct loan limitation ................................
1113 Unobligated limitation carried forward .........................
1150

As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated in 1992 and beyond
(including modifications of direct loans that resulted from obligations in any year) as well as the administrative expenses
of this program. The subsidy amounts are estimated on a
net present value basis.
Direct loans to veterans.—Specially Adapted Housing (SAH)
loans are made to certain totally disabled veterans to supplement grants authorized to assist the veteran in acquiring
suitable housing units with special features necessary due
to the nature of their disabilities. Veterans receiving SAH
loans are exempt from the loan origination fee.
Direct (vendee) loans.—A vendee loan is established when
a VA-owned property is sold on terms to a veteran or a
non-veteran. Under current law, a veteran or a non-veteran
receiving a vendee loan is charged a loan origination fee of
1 percent.

1210
1231
1251
1264
1290

1996 est.

1997 est.

1 ................... ...................
–52
–31 ...................
57
51
31

Total direct loan obligations .....................................

6

20

31

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
1
6
27
Disbursements: Direct loan disbursements ...................
6
20
31
Repayments: Repayments and prepayments .................
–1 ................... ...................
Write-offs for default: Other adjustments, net ............. ...................
1 ...................
Outstanding, end of year ..........................................

6

27

58

To facilitate account restructuring and consolidation, the
Direct Loan Financing Account also reflects budget information for the Native American Veterans Housing Direct Loan
Financing Account and the Transitional Housing Loans Financing Account.
As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond (including modifications of direct loans that resulted from obligations in any year). The amounts in this
account are a means of financing and are not included in
the budget totals.

DIRECT LOAN FINANCING ACCOUNT

Balance Sheet (in millions of dollars)

Program and Financing (in millions of dollars)
Identification code 36–4128–0–3–704
Identification code 36–4128–0–3–704

1995 actual

1996 est.

1997 est.

00.01
00.02

Obligations by program activity:
Direct loans/Recoveries paid to other accounts ...........
Interest on treasury borrowing ......................................

6
1

20
1

31
2

10.00

Total obligations ........................................................

7

21

33

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

7
–7

21
–21

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
1403
Accounts receivable from foreclosed
property ...........................................

33
–33

1499

Net present value of assets related
to direct loans ...........................

1999

New financing authority (gross), detail:
67.15 Authority to borrow (indefinite) .....................................
6
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
1
68.47
Portion applied to debt reduction ............................. ...................
68.90

19

29

3
–1

6
–2

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................
2203 Non-Federal liabilities: Debt ...................

1994 actual

1995 actual

1996 est.

1997 est.

1

2

1

1

..................

6

7

8

..................

6

7

8

1

8

8

9

..................
1

1
7

..................
8

1
8

1

2

Total new financing authority (gross) ......................

7

21

Change in unpaid obligations:
New obligations .............................................................
Total financing disbursements (gross) .........................

7
–7

21
–21

8

8

9

Total liabilities and net position ............

1

8

8

9

33

73.10
73.20

1

4

70.00

Total liabilities ....................................

4999

Spending authority from offsetting collections
(total) ................................................................

2999

33
–33

DIRECT LOAN REVOLVING FUND LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 36–4024–0–3–704

Outlays (gross), detail:
87.00 Total financing disbursements (gross) .........................

7

21

33
10.00

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal source: Payments from program account ...................
–2
–2
Non-Federal sources:
88.40
Non-Federal sources: repayment of principal ................... ...................
–1
88.40
Interest on loans .............................................. ...................
–1
–3
88.40
Interest on uninvested funds ...........................
–1 ................... ...................

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations ............................................................ ................... ................... ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................
22.40 Capital transfer to general fund ...................................
21.90

23.90
23.95

14 ................... ...................
5
4
3
–18
–4
–3

Total budgetary resources available for obligation
1 ................... ...................
New obligations ............................................................. ................... ................... ...................

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
24.90

Unobligated balance available, end of year: Fund
balance ...................................................................... ................... ................... ...................

4

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
3
2
1
73.10 New obligations ............................................................. ................... ................... ...................
73.20 Total outlays (gross) ......................................................
–1
–2 ...................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................
2
1 ...................

87.00

Outlays (gross), detail:
Outlays from new permanent authority ......................... ...................
Outlays from permanent balances ................................
1
Total outlays (gross) .................................................

1 ...................
1 ...................

1

2

1

1

Total net position ................................

32

Total liabilities and net position ............

35

15

14

13

17

15

14

3

72.90

86.97
86.98

15

4999
5

Cumulative results of operations ............

3999
New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

3300

857

NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)

For administrative expenses to carry out the direct loan program
authorized by 38 U.S.C. chapter 37, subchapter V, as amended,
$434,000; which may be transferred to and merged with the appropriation for ‘‘General operating expenses’’.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

2 ...................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Loan and other repayments .............................
88.40
Interest on loans ..............................................

–4
–1

–3
–1

–2
–1

88.90

–5

–4

Program and Financing (in millions of dollars)

–3

Total, offsetting collections (cash) ..................

Identification code 36–1120–0–1–704

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
–5
–2
–3

1995 actual

Identification code 36–4024–0–3–704

1996 est.

17
–5
2

14
11
–4
–3
1 ...................

1290

14

11

Outstanding, end of year ..........................................

1997 est.

Obligations by program activity:
Direct loan subsidy ........................................................

1

2

2

10.00

Total obligations (object class 41.0) ........................

1

2

2

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
4
4
2
22.00 New budget authority (gross) ........................................ ................... ................... ...................
21.40

1997 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................
1264 Write-offs for default: Other adjustments, net .............

1996 est.

00.01

23.90
23.95
24.40

Status of Direct Loans (in millions of dollars)

1995 actual

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

4
–1

4
–2

4

2
–2

2 ...................

New budget authority (gross), detail:
Total new budget authority (gross) ............................... ................... ................... ...................

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

1
–1

2
–2

2
–2

86.93

8

70.00

Outlays (gross), detail:
Outlays from current balances ......................................

1

2

2

87.00

Total outlays (gross) .................................................

1

2

2

Statement of Operations (in millions of dollars)
Identification code 36–4024–0–3–704

1994 actual

1995 actual

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

2
..................

1
..................

1
..................

1
..................

0109

Net income or loss (–) ............................

2

1

1

1

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
1
2
2

Balance Sheet (in millions of dollars)
Identification code 36–4024–0–3–704

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
1403
Accounts receivable from foreclosed
property ...........................................

1994 actual

1995 actual

18

3

1996 est.

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)

1997 est.

Identification code 36–1120–0–1–704

1101

1499

1706

Net present value of assets related
to direct loans ...........................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
Foreclosed property .............................

3

3

17

13

12

11

17

13

12

11

..................

1

..................

Direct loan levels supportable by subsidy budget authority:
1159 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
1329 Weighted average subsidy rate .....................................
Direct loan subsidy budget authority:
1339 Total subsidy budget authority ......................................
Direct loan subsidy outlays:
1349 Total subsidy outlays .....................................................

1995 actual

1996 est.

1997 est.

6

20

31

7.72

7.72

7.72

1

2

2

1

2

2

..................

EDUCATION LOAN FUND LIQUIDATING ACCOUNT
1799

Value of assets related to loan
guarantees .................................

1999

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2105
Other ...................................................
2999

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................

..................

1

..................

35

17

15

14

2
1

2
..................

1
..................

1
..................

3

2

1

Program and Financing (in millions of dollars)

..................

1

Identification code 36–4118–0–3–702

10.00

21.90
17

13

13

12

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations ............................................................ ................... ................... ...................
Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................

8 ................... ...................

858

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
3300

Credit accounts—Continued

Cumulative results of operations ............

1

–7

1

1

EDUCATION LOAN FUND LIQUIDATING ACCOUNT—Continued

3999

Total net position ................................

9

1

1

1

Program and Financing (in millions of dollars)—Continued

4999

Total liabilities and net position ............

9

1

1

1

1995 actual

Identification code 36–4118–0–3–702

1996 est.

1
–8

1997 est.

22.00
22.40

New budget authority (gross) ........................................
Capital transfer to general fund ...................................

1
–1

1
–1

23.90
23.95

Total budgetary resources available for obligation
1 ................... ...................
New obligations ............................................................. ................... ................... ...................

VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)

68.00

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

1

1

1

73.10

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................

87.00

For the cost of direct loans, $49,000 as authorized by 38 U.S.C.
chapter 31, as amended: Provided, That such costs, including the
cost of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974, as amended: Provided further,
That these funds are available to subsidize gross obligations for the
principal amount of direct loans not to exceed $2,822,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $507,000 which may be transferred to and
merged with the appropriation for ‘‘General operating expenses’’.

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

EDUCATION LOAN FUND PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Deductions for
offsetting collections: Non-Federal sources .........

89.00
90.00

–1

–1

–1

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–1
–1
–1

Note.—A regular 1996 appropriation for these accounts had not been enacted at the
time this budget was prepared. The 1996 amounts included in this budget are based on
the levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L.
104–99.

Status of Direct Loans (in millions of dollars)
1995 actual

Identification code 36–4118–0–3–702

1996 est.

For the cost of direct loans, $1,000, as authorized by 38 U.S.C.
3698, as amended: Provided, That such costs, including the cost of
modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That
these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $3,000.
In addition, for administrative expenses necessary to carry out the
direct loan program, $204,000; which may be transferred to and
merged with the appropriation for ‘‘General operating expenses’’.

1997 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................

3

3

3

1290

3

3

2

Outstanding, end of year ..........................................

WORKLOAD, AMOUNT LOANED AND REPAID
1995 actual

3,547
$825
$433

1996 est.

1997 est.

3,047
$809
$431

Identification code 36–1114–0–1–702

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1604
Direct loans and interest receivable,
net ..................................................

2,547
$799
$404

1994 actual

1995 actual

1996 est.

1997 est.

8

..................

..................

..................

1101

1699
1999

Value of assets related to direct
loans ..........................................

Total assets ........................................
NET POSITION:
3100 Appropriated capital ................................

1996 est.

1997 est.

00.09

Obligations by program activity:
Administrative expenses ................................................

1

1

1

10.00

Total obligations (object class 25.3) ........................

1

1

1

22.00

Budgetary resources available for obligation:
New budget authority (gross) ........................................

1

1

1

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

1

1

1

73.10
73.20

Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

1
–1

1
–1

1
–1

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

1

1

1

87.00

Total outlays (gross) .................................................

1

1

1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

1
1

1
1

1
1

Balance Sheet (in millions of dollars)
Identification code 36–4118–0–3–702

1995 actual

89.00
90.00

To facilitate account restructuring and consolidation, the
Education Loan Fund Liquidating Account also reflects budget information for the Vocational Rehabilitation Revolving
Fund Liquidating Account.
As required by the Federal Credit Reform Act of 1990,
this account records, for the Education Loan fund, all cash
flows to and from the Government resulting from direct loans
obligated prior to 1992. All new activity in this program in
1992 and beyond is recorded in corresponding program and
financing accounts.

Number of loans outstanding .....................................................
Average amount per loan outstanding .......................................
Repayment of loans (in thousands) ...........................................

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 36–1114–0–1–702

1995 actual

1996 est.

1997 est.

3

2

2

–2

–2

–2

–1

1

1

..................

1

1

1

1

1

1

1

8

8

..................

..................

2

2

2

2.75
0.00

2.75
26.53

1.75
34.83

Weighted average subsidy rate .................................

2.75

2.75

1.75

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays ...........................................................................

1
1

1
1

1
1

1

9

Direct loan levels supportable by subsidy budget authority:
1159 Total direct loan levels ..................................................
Direct loan subsidy (in percent):
1320 Voc. Rehab. Loan Subsidy rate .....................................
1320 Education Loan Subsidy rate .........................................
1329

3

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds

DEPARTMENT OF VETERANS AFFAIRS

This fund provides loans of up to $791 (based on indexed
Chapter 31 Subsistence allowance rate) to veterans enrolled
in a program of vocational rehabilitation who are temporarily
in need of additional funds to meet their expenses.
To facilitate account restructuring and consolidation, the
Vocational Rehabilitation Loan Program Account also reflects
budget information for the Education Loan Fund Program
Account. The Education Loan program provides loans of up
to $2,500 to dependents of veterans who are eligible for training benefits under chapter 35, title 38, U.S.C. and who are
without sufficient funds to meet their education related expenses.
As required by the Federal Credit Reform Act of 1990,
this account records, for this program, the subsidy costs associated with the direct loans obligated in 1992 and beyond,
as well as the administrative expenses of this program. The
subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.

1

1

1

Balance Sheet (in millions of dollars)
1994 actual

Identification code 36–4112–0–3–702

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............

1995 actual

1996 est.

1997 est.

2

3

1

1

1

1

1

1

1101

1499

Net present value of assets related
to direct loans ...........................

1996 est.

1997 est.

00.01

Obligations by program activity:
Direct loans ....................................................................

2

2

2

10.00

Total obligations ........................................................

2

2

2

22.00

Budgetary resources available for obligation:
New financing authority (gross) ....................................

2

2

2

2

2
2
–2

1

1

1

3

4

2

2

2

2

2

3

2999

Total liabilities ....................................
NET POSITION:
3300 Cumulative results of operations ............

2

2

2

3

1

1

..................

..................

Total net position ................................

1

1

..................

..................

Total liabilities and net position ............

3

3

2

3

1999

To facilitate account restructuring and consolidation, the
Vocational Rehabilitation Direct Loan Financing Account also
reflects budget information for the Education Direct Loan
Financing Account.
As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992
and beyond. The amounts in the account are means of financing and are not included in the budget totals.

2

2
–2

1

Total assets ........................................
LIABILITIES:
2103 Federal liabilities: Debt ...........................

4999

Program and Financing (in millions of dollars)
1995 actual

Outstanding, end of year ..........................................

3999

VOCATIONAL REHABILITATION DIRECT LOAN FINANCING ACCOUNT

Identification code 36–4112–0–3–702

1290

859

2
–2

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.47
Portion applied to debt reduction .............................
67.15

68.90
70.00

Total new financing authority (gross) ......................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
Outlays (gross), detail:
Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

89.00
90.00

POST-VIETNAM ERA VETERANS EDUCATION ACCOUNT

Spending authority from offsetting collections
(total) ................................................................ ................... ................... ...................
2

2

2

Identification code 36–8133–0–7–702

1995 actual

1996 est.

1997 est.

Balance, start of year:
Balance, start of year ....................................................
Receipts:
02.01 Deductions from military pay ........................................
02.02 Contributions ..................................................................

65

64

64

5
16

5
11

4
15

02.99

Total receipts .............................................................

21

16

19

Total: Balances and collections ....................................
Appropriation:
05.01 Post-Vietnam era veterans education account .............

86

80

83

–22

–16

–19

05.99
07.99

1
2
–2

1
2
–2

1
2
–2

1

1

1

2

2

2

–22
64

–16
64

–19
64

04.00

–2

–2

Identification code 36–8133–0–7–702

1995 actual

1996 est.

1997 est.

00.01
00.02
00.03
1996 est.

1997 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans .............................................

2

2

2

1150

Total direct loan obligations .....................................

2

2

2

1210
1231
1251

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................

1
2
–2

1
2
–2

1
2
–2

Obligations by program activity:
Payment to post-Vietnam era trainees .........................
Payment to section 901 trainees ..................................
Participant disenrollments .............................................

33
1
26

24
1
32

18
1
56

10.00

Status of Direct Loans (in millions of dollars)
1995 actual

Subtotal appropriation ...................................................
Total balance, end of year ............................................

Program and Financing (in millions of dollars)

–2

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ................... ................... ...................

Identification code 36–4112–0–3–702

Unavailable Collections (in millions of dollars)

01.99

72.40

87.00

Trust Funds

Total obligations ........................................................

60

57

75

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

264
22

226
16

185
19

286
–60

242
–57

204
–75

226

185

130

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

860

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
Balance unavailable for obligation ........................................
Undisbursed balance of fund, end of year .................................

POST-VIETNAM ERA VETERANS EDUCATION ACCOUNT—Continued

–5,339
155,596

–4,743
110,041

–4,216
50,188

Program and Financing (in millions of dollars)—Continued
Object Classification (in millions of dollars)
1995 actual

Identification code 36–8133–0–7–702

1996 est.

1997 est.
Identification code 36–8133–0–7–702

New budget authority (gross), detail:
60.27 Appropriation (trust fund, indefinite) ............................
60.45 Portion precluded from obligation .................................

27
–5

21
–5

23
–4

63.00

Appropriation (total) ..................................................

22

16

19

70.00

Total new budget authority (gross) ..........................

22

16

1995 actual

1996 est.

1997 est.

19

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

41.0
44.0

Grants, subsidies, and contributions ............................
Refunds ..........................................................................

34
26

25
32

19
56

99.9

Total obligations ........................................................

60

57

75

NATIONAL SERVICE LIFE INSURANCE FUND

72.40

–8
60
–58

–6
57
–54

–4
75
–75

Unavailable Collections (in millions of dollars)
Identification code 36–8132–0–7–701

1995 actual

1996 est.

1997 est.

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

22
36

16
38

19
56

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ...................
Receipts:
02.01 Premium and other receipts ..........................................
272
281
02.02 Interest ...........................................................................
1,074
1,042
02.03 Payments from general and special funds ...................
2
2

87.00

Total outlays (gross) .................................................

58

54

75

02.99

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

22
58

16
54

19
75

–6

–4

–4

CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES
[In thousands]

1,325

1,251

Total: Balances and collections ....................................
1,348
Appropriation:
05.01 National Service Life Insurance fund ............................
–1,348
07.99 Total balance, end of year ............................................ ...................

1,325

1,252

–1,324
1

–1,250
2

Program and Financing (in millions of dollars)
Identification code 36–8132–0–7–701

1996 est.

1997 est.

Total budget authority .................................................................
$21,689
$15,860
$19,008
Servicepersons ........................................................................
$5,339
$4,743
$4,216
Transferred from Department of Defense (bonus) ................. ....................
8,470
6,292
Transferred from Department of Defense (matching) ............
15,285
1,808
7,800
Transferred from Department of Defense (Section 901) ........
1,054
839
700
Transferred from Department of Defense (Section 903) ........
11 .................... ....................
Total participants (end of year) ..................................................
355,159
325,059
243,550
Total contributors (end of year) ..................................................
3,039
2,700
2,400
Average contribution per contributor (actual dollars) ................
$1,757
$1,757
$1,757
Number of disenrollments ...........................................................
24,488
30,100
81,509
Total refunds ...............................................................................
$25,817
$31,725
$56,036
Total trainees ..............................................................................
18,927
14,000
10,400
Total trainee cost ........................................................................
$32,593
$24,108
$17,909
Average cost per trainee (actual dollars) ...................................
$1,722
$1,722
$1,722
Section 901 trainees ...................................................................
232
194
162
Section 901 trainee cost .............................................................
$1,003
$839
$700

The status of the fund, excluding noncash transactions, is
as follows (in thousands of dollars):
1995 actual

–198,659

1996 est.

01.01
01.02

Total annual income ......................................................

825
31
37
29
779
78
28

860
30
21
26
730
78
28

1,807

1,773

143
136
138
1 ................... ...................

Total capital investment .......................................

144

136

138

Total obligations ........................................................

1,850

1,943

1,911

Budgetary resources available for obligation:
Unobligated balance available, start of year: U.S.
Securities: Par value .................................................
22.00 New budget authority (gross) ........................................

10,836
1,868

10,854
1,837

10,748
1,754

12,704
–1,850

12,691 ...................
–1,943
–1,911

10,854

10,748

10,590

1,348

1,324

1,250

520

513

504

Total new budget authority (gross) ..........................

1,868

1,837

1,754

14
1,017

10
1,100

5
1,133

1,031
1,850
–1,770

1,110
1,943
–1,916

1,138
1,911
–1,858

10

5

5

21.91

23.90
23.95
24.91

60.27
68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: U.S. Securities: Par value .....................................................
New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

–110,041

4,743

4,216

16,350

11,117

14,792

21,689

15,860

19,008

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Appropriation .........................................................
72.41
U.S. Securities: Par value .....................................

Cash outlays during the year:
Payments to trainees ..............................................................
Refunds to participants (disenrollments) ..............................

33,596
25,817

24,947
31,725

18,609
56,036

72.99
73.10
73.20

Total cash outlay ...........................................................

59,413

56,672

74,645

5,339

1,706

1997 est.

10.00

70.00
Cash income during the year: Proprietary receipts (contributions from servicepersons) .....................................................
Intrabudgetary transactions: (contributions from Department of
Defense) ..................................................................................

Total operating expenses ......................................
Capital investment:
Policy loans ...............................................................
Policy liens ................................................................

1996 est.

01.91

1997 est.

–155,596

1995 actual

Obligations by program activity:
Operating expenses:
00.01
Death claims .............................................................
746
00.02
Disability claims ........................................................
31
00.03
Matured endowments ................................................
35
00.04
Cash surrenders ........................................................
32
00.05
Dividends ...................................................................
790
00.06
Interest paid on dividend credits and deposits .......
73
00.07
Payment to general operating expenses ................... ...................
00.91

1995 actual

258
991
2

1,348

04.00

This account consists of voluntary contributions by eligible
servicepersons and matching contributions provided by the
Department of Defense. The fund provides educational assistance payments to participants who entered the service after
December 31, 1976, and are pursuing training under chapter
32, title 38, U.S.C. Section 901 is a non-contributory program
with educational assistance provided by the Department of
Defense. Public Law 99–576, enacted October 28, 1986, closed
the program permanently for new enrollments effective March
31, 1987. The estimated activity in the fund follows:

Undisbursed balance of fund, start of year ...............................

Total receipts .............................................................

1

74.40

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance:
Appropriation .........................................................

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
74.41

U.S. Securities: Par value .....................................

1,100

1,133

1,185

74.99

Total unpaid obligations, end of year ..................

1,110

1,138

1,190

Identification code 36–8132–0–7–701

Investments and loans ..................................................
Insurance claims and indemnities ................................
Interest and dividends ...................................................
Below reporting threshold ..............................................
Total obligations ........................................................

861

Object Classification (in millions of dollars)

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

520
1,249

513
1,403

504
1,355

33.0
42.0
43.0
99.5

87.00

Total outlays (gross) .................................................

1,770

1,916

1,858

99.9

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Repayments of loans ........................................
88.40
Optional settlements ........................................
88.40
Net income offsets adjustments ......................

–113
–7
–400

–117
–7
–389

–121
–5
–378

88.90

–520

–513

1995 actual

1996 est.

1997 est.

143
136
138
843
922
938
863
885
835
1 ................... ...................

–504

1,850

1,943

1,911

UNITED STATES GOVERNMENT LIFE INSURANCE FUND
Unavailable Collections (in millions of dollars)
Identification code 36–8150–0–7–701

Total, offsetting collections (cash) ..................

1995 actual

1996 est.

1997 est.

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Interest and profits on investments in public debt
securities ...................................................................
9
7
7
Appropriation:
05.01 United States government life insurance fund .............
–9
–7
–7
07.99 Total balance, end of year ............................................ ................... ................... ...................
01.99

Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

1,348
1,249

1,324
1,403

1,250
1,354

Note.—The Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit
schedules previously shown for this account have been discontinued.

This fund was established in 1940 for the World War II
servicemen’s and veterans’ insurance program. Over 22 million policies have been issued under this program. Activity
of the fund reflects a rising claim workload. The trend in
the number and amount of policies in force is shown as follows (dollars in millions):
1995 actual

Number of policies .....................................................
Insurance in force ......................................................

1996 est.

2,219,497
$19,862

1997 est.

2,124,277
$19,465

2,025,027
$19,023

This fund is operated on a commercial basis to the extent
possible. The income of the fund is derived from premium
receipts, interest on investments, and payments which are
made to the fund from the Veterans insurance and indemnities appropriation.
Assets of the fund, which are largely invested in special
Treasury interest-bearing securities and in policy loans, are
expected to decrease from $12,932 million as of September
30, 1996 to $12,829 million as of September 30, 1997. The
actuarial estimate of policy obligations as of September 30,
1997, total $12,717 million, leaving a balance of $112 million
for contingency reserves.
The status of the fund, excluding noncash transactions, is
as follows (in millions of dollars):

1995 actual

Identification code 36–8150–0–7–701

Obligations by program activity:
Operating expenses:
00.01
Death claims .............................................................
00.03
Matured endowments ................................................
00.05
Dividends ...................................................................
00.06
Interest paid on dividend credits and deposits .......

1996 est.

1995 actual

8
2
6
1

1996 est.

1997 est.

8
2
5
1

8
1
5
1

00.91
01.01

Total operating expenses ......................................
Capital investment: Policy loans ...................................

10.00

Total obligations ........................................................

18

16

15

17
16
15
1 ................... ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year: U.S.
Securities: Par value .................................................
22.00 New budget authority (gross) ........................................

96
10

87
9

79
9

106
–18

96
–16

86
–15

87

79

72

9

7

7

2

2

1

10

9

9

21.91

23.90
23.95
24.91

60.27
68.00

Status of Funds (in millions of dollars)
Identification code 36–8132–0–7–701

Program and Financing (in millions of dollars)

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: U.S. Securities: Par value .....................................................
New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................
Spending authority from offsetting collections: Offsetting collections (cash) ..............................................

1997 est.

70.00

Unexpended balance, start of year:
0100 Uninvested balance .......................................................
0101 U.S. Securities: Par value ..............................................

14
11,853

10
11,954

5
11,983

0199

11,867

11,964

11,988

272

287

258

1,074

1,047

991

2

2

2

520

513

504

1,868

1,848

1,755

–1,770

–1,824

–1,355

10
11,954

5
11,983

11,964

11,988

Total new budget authority (gross) ..........................

Total balance, start of year ......................................
Cash income during the year:
Proprietary receipts:
0220
NSLI fund, Premium and other receipts ...................
Intragovernmental transactions:
0240
NSLI fund, Interest ....................................................
0241
NSLI fund, Payments from general and special
funds .....................................................................
Offsetting collections:
0289
Offsetting Collections ................................................
0299

Total cash income .....................................................
Cash outgo during year:
0500 National Service Life Insurance fund ............................
Unexpended balance, end of year:
0700 Uninvested balance .......................................................
0701 U.S. Securities: Par value ..............................................
0799

Total balance, end of year ........................................

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Appropriation .........................................................
72.41
U.S. Securities: Par value .....................................
72.99
73.10
73.20

74.40
74.41

1 ................... ...................
19
19
18

Total unpaid obligations, start of year ................
20
19
18
New obligations .............................................................
18
16
15
Total outlays (gross) ......................................................
–20
–19
–15
Unpaid obligations, end of year:
Obligated balance:
Appropriation ......................................................... ................... ................... ...................
U.S. Securities: Par value .....................................
19
18
18

74.99

Total unpaid obligations, end of year ..................

19

18

18

5
12,383

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

2
16

2
17

1
14

12,388

87.00

Total outlays (gross) .................................................

20

19

15

862

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
VETERANS SPECIAL LIFE INSURANCE FUND

UNITED STATES GOVERNMENT LIFE INSURANCE FUND—Continued

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)—Continued
Identification code 36–8455–0–8–701
Identification code 36–8150–0–7–701

1995 actual

1996 est.

1995 actual

1996 est.

1997 est.

1997 est.

–2

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

9
18

7
17

7
14

89.00
90.00

Note.—The Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit
schedules previously shown for this account have been discontinued.

This fund was established in 1919 to receive premiums
and pay claims on insurance issued under the provisions of
the War Risk Insurance Act. The general decline in the activity of the fund is indicated in the following table (dollars
in millions):
1995 actual

Number of policies ......................................................................
Insurance in force .......................................................................

25,108
$85

1996 est.

0100
0101

Unexpended balance, start of year:
Uninvested balance .......................................................
U.S. Securities: Par value ..............................................

0199

Total balance, start of year ......................................
Cash income during the year:
Intragovernmental transactions:
0240
Interest and profits on investments in public debt
securities, USGLI, VA ............................................
Offsetting collections:
0289
Offsetting Collections ................................................

1996 est.

1 ................... ...................
116
106
97
117

106

97

9

7

7

2

2

33.0
42.0
43.0

Investments and loans ..................................................
Insurance claims and indemnities ................................
Interest and dividends ...................................................

99.9

Total obligations ........................................................

207

26

25

26

10.00

Total obligations ........................................................

219

230

233

Budgetary resources available for obligation:
Unobligated balance available, start of year: U.S.
Securities: Par value .................................................
22.00 New budget authority (gross) ........................................

1,378
238

1,397
242

1,409
239

1,616
–219

1,639
–230

1,648
–233

1,397

1,409

1,415

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

238

242

239

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.90
Fund balance ........................................................
72.91
U.S. Securities: Par value .....................................

1
131

1
150

1
161

132
219
–201

151
230
–218

162
233
–219

74.90
74.91

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance:
Fund balance ........................................................
U.S. Securities: Par value .....................................

1
150

1
161

1
176

74.99

Total unpaid obligations, end of year ..................

151

162

177

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

72
130

68
150

39
180

Total outlays (gross) .................................................

201

218

219

–146

–145

–142

–2
–74
–2
–13

–5
–73
–3
–15

–5
–72
–3
–17

–238

–242

–239

21.91

23.90
23.95
24.91

68.00

72.99
73.10
73.20

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: U.S. Securities: Par value .....................................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.20
Interest on U.S. securities ....................................
Non-Federal sources:
88.40
Interest on loans ..............................................
88.40
Insurance premiums earned ............................
88.40
Optional settlements ........................................
88.40
Repayments of loans ........................................
88.90

107

95

90

Object Classification (in millions of dollars)
Identification code 36–8150–0–7–701

205

1

Total cash income .....................................................
9
9
8
Cash outgo during year:
0500 United States government life insurance fund .............
–20
–17
–14
Unexpended balance, end of year:
0700 Uninvested balance ....................................................... ................... ................... ...................
0701 U.S. Securities: Par value ..............................................
107
97
90
Total balance, end of year ........................................

193

01.01

Total operating expenses ......................................
Capital investment:
Total capital investment ...........................................

1997 est.

0299

0799

48
4
101
54

21,428
$71

Status of Funds (in millions of dollars)
1995 actual

45
5
103
52

1997 est.

23,088
$77

The fund is operated on a commercial basis to the extent
possible. The income of the fund is derived from interest
on investments and payments from the Veterans insurance
and indemnities appropriation. Effective January 1, 1983, premiums were discontinued since reserves held in the fund were
adequate to meet future liabilities of the program.
Assets of the fund, which are largely invested in interestbearing securities and policy loans, are estimated to decrease
from $105 million as of September 30, 1996, to $97 million
as of September 30, 1997, as an increasing number of policies
mature through death or disability. The actuarial evaluation
of policy obligations as of September 30, 1997, totals $95
million, leaving a balance of $2 million for contingency reserves.
The status of the fund, excluding noncash transactions, is
as follows (in millions of dollars):

Identification code 36–8150–0–7–701

39
5
103
46

87.00

–2

Obligations by program activity:
Operating expenses:
00.01
Death claims .............................................................
00.02
Cash surrenders ........................................................
00.03
Dividends ...................................................................
00.04
All other .....................................................................
00.91

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Repayments of
loans .....................................................................

1995 actual

1996 est.

1997 est.

1 ................... ...................
10
11
11
7
5
4
18

16

15

89.00
90.00

Total, offsetting collections (cash) ..................

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–37
–23
–20

Note.—The Department of Veterans Affairs insurance policy loans are not an extension of Federal credit. Credit
schedules previously shown for this account have been discontinued.

This fund finances the payment of claims on life insurance
policies issued before January 3, 1957, to veterans who served
in the Armed Forces subsequent to April 1, 1951. No new
policies can be issued. Policyholders may elect to purchase
total disability income coverage with the payment of additional premiums.
Budget program—
Death claims.—Represents payments to designated beneficiaries.
Cash surrenders.—A policyholder may terminate his or
her insurance by cashing in the policy for its cash value.

CONSTRUCTION
Federal Funds

DEPARTMENT OF VETERANS AFFAIRS

Dividends.—Policyholders participate in the distribution
of annual dividends.
All other.—Classified in this category are payments to
policyholders who: (a) hold endowment policies which have
matured; (b) have purchased total disability income coverage and subsequently become disabled; and (c) are paid
interest on dividend credits and deposits.
The following table reflects the decrease in the number
of policies and the amounts of insurance in force (dollars
in millions):
1995 actual

Number of policies ..................................................................
Insurance in force ...................................................................

1996 est.

262,851
$2,858

1997 est.

256,690
$2,831

250,110
$2,801

Financing.—Payments from this fund are financed primarily from premium receipts and interest on investments.
Operating results and financial condition.—Favorable mortality experience on insurance written against this fund has
kept death claim payments well below the amount of premium and interest receipts, thereby producing an annual increase in the total revenue of the fund. Excess earnings of
the fund are now distributed to the policyholders in the form
of an annual dividend.
Statement of Operations (in millions of dollars)
Identification code 36–8455–0–8–701

1994 actual

1995 actual

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

229
–229

228
–226

229
–229

225
–225

0109

Net income or loss (–) ............................

..................

2

..................

863

CONSTRUCTION
Federal Funds
General and special funds:
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving any of the facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, or for any of the purposes set forth in sections 316,
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title
38, United States Code, including planning, architectural and engineering services, maintenance or guarantee period services costs associated with equipment guarantees provided under the project, services
of claims analysts, offsite utility and storm drainage system construction costs, and site acquisition, where the estimated cost of a project
is $10,000,000 or more or where funds for a project were made available in a previous major project appropriation, $249,900,000, to remain available until expended; Provided, That except for advance
planning of projects funded through the advance planning fund and
the design of projects funded through the design fund, none of these
funds shall be used for any project which has not been considered
and approved by the Congress in the budgetary process; Provided
further, That no funds from any other account except the ‘‘Parking
revolving fund’’, may be obligated for constructing, altering, extending,
or improving a project which was approved in the budget process
and funded in this account until one year after substantial completion
and beneficial occupancy by the Department of Veterans Affairs of
the project or any part thereof with respect to that part only.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

..................

Program and Financing (in millions of dollars)
Identification code 36–0110–0–1–703

Balance Sheet (in millions of dollars)
Identification code 36–8455–0–8–701

1994 actual

1995 actual

1996 est.

1997 est.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1102
Treasury securities, par ..................
1106
Receivables, net .............................
1206 Non-Federal assets: Receivables, net .....
1601 Net value of assets related to pre–1992
direct loans receivable and acquired
defaulted guaranteed loans receivable: Direct loans, gross ....................

1

1

1

1

1,509
36
2

1,546
94
..................

1,570
37
3

1,590
37
3

81

37

104

Total assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2206
Pension and other actuarial liabilities
2207
Other ...................................................

1,630

1,678

1,715

1,744

151
1,435
20

168
1,465
20

184
1,486
19

198
1,500
19

2999

1,606

1,652

1,689

1,397
–1,370

1,409
–1,382

1,415
–1,388

1997 est.

00.01
00.02
00.04
00.05
00.06
00.07
00.08

Obligations by program activity:
Replacement and modernization ...................................
Nursing home care ........................................................
Research and education ................................................
Outpatient improvements ..............................................
Other improvements .......................................................
National cemeteries .......................................................
Replacement or renovation of regional offices .............

10.00

Total obligations ........................................................

447

363

330

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

891
323

768
136

541
250

1,214
–447

904
–363

791
–330

768

541

460

143
98
53
36 ................... ...................
11 ................... ...................
48
95
116
141
159
26
34
6
134
34
5
1

1,717

1,378
–1,353

1996 est.

112

1999

1995 actual

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3200 Invested capital .......................................

21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

Total net position ................................

25

27

27

27

4999

Total liabilities and net position ............

1,631

1,679

1,716

1,744

Object Classification (in millions of dollars)
Identification code 36–8455–0–8–701

1995 actual

1996 est.

New budget authority (gross), detail:
Appropriation ..................................................................
Reduction pursuant to P.L. 104–19 ..............................

43.00

3999

40.00
40.75

Appropriation (total) ..................................................

323

136

250

70.00

Total new budget authority (gross) ..........................

323

136

250

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

810
447
–431

826
363
–416

773
330
–322

826

773

781

72.40

1997 est.

33.0
42.0
43.0

Investments and loans ..................................................
Insurance claims and indemnities ................................
Interest and dividends ...................................................

26
76
117

25
88
117

26
91
116

99.9

Total obligations ........................................................

219

230

324
136
250
–1 ................... ...................

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

1
430

6
410

11
311

87.00

Total outlays (gross) .................................................

431

416

322

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

323
431

136
416

250
322

233

864

CONSTRUCTION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued
CONSTRUCTION, MAJOR PROJECTS—Continued
Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1995 actual
Budget Authority .....................................................................
323
Outlays ....................................................................................
431
Adjustment to 1996 continuing resolution levels:
Budget Authority ..................................................................... ....................
Outlays .................................................................................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

323
431

1996 est.

136
416

1997 est.

250
322

62 ....................
3
17
198
419

250
339

The major construction request improves access to VA
health care for thousands of veterans and expands VA’s national cemetery system. Funds are included for a new hospital
and nursing home at Brevard County, Florida, and a replacement hospital at Travis Air Force Base in California. Funds
are also requested for construction of an outpatient clinic
and renovation of related support space at Tripler Army Medical Center in Honolulu, Hawaii. Outpatient improvements
will also be funded at Wilkes-Barre, Pennsylvania. Funds are
provided to correct patient environmental deficiencies at VA
hospitals in Marion, Indiana; Salisbury, North Carolina; and
Pittsburgh (UD), Pennsylvania. Two new cemeteries will be
constructed at Chicago, Illinois, and Dallas/Fort Worth, Texas.
Additional funds are provided to remove asbestos from Department-owned buildings, to pay VA’s share of the costs related to the cleanup of hazardous waste, to reimburse the
Judgment Fund for the payment of claims and settlements,
and to support advanced planning and design activities.

with equipment guarantees provided under the project, services of
claims analysts, offsite utility and storm drainage system construction
costs, and site acquisition, or for any of the purposes set forth in
sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and
8122 of title 38, United States Code, where the estimated cost of
a project is less than $10,000,000; $189,241,000, to remain available
until expended, along with unobligated balances of previous ‘‘Construction, minor projects’’ appropriations which are hereby made available for any project where the estimated cost is less than $10,000,000:
Provided, That funds in this account shall be available for (1) repairs
to any of the nonmedical facilities under the jurisdiction or for the
use of the Department which are necessary because of loss or damage
caused by any natural disaster or catastrophe, (2) temporary measures
necessary to prevent or to minimize further loss by such causes, and
(3) capital contribution payments under enhanced-use leases, authorized by subchapter V of chapter 81 of title 38, United States Code,
not to exceed $3,000,000 per lease.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0111–0–1–703

1995 actual

1996 est.

1997 est.

00.01
00.02
00.04
00.06
00.07
00.08

Obligations by program activity:
Nursing home care ........................................................
Research and education ................................................
Other improvements .......................................................
National cemeteries .......................................................
Computer centers, additions and alterations ...............
Replacement or renovation of regional offices .............

15
9
111
9
2
5

18
3
140
9
7
10

13
4
140
15
7
11

10.00

Total obligations ........................................................

151

187

190

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

29
153

30
190

32
189

182
–151

220
–187

221
–190

30

32

32

21.40

[In millions of dollars]

1995 actual

1996 est.

1997 est.

Replacement and modernization .................................................
105
33
75
Research and Education .............................................................
26 .................... ....................
Outpatient and extended care ....................................................
205
28
59
Safety deficiencies ...................................................................... .................... .................... ....................
Functional modernization and plant maintenance .....................
33
71
84
Other departments ......................................................................
13
10
35
Supplemental appropriation provided under P.L. 103–211 ....... .................... .................... ....................
Reprogramming/transfer .............................................................
–26 .................... ....................
Design fund offset ...................................................................... ....................
–5
–3
Rescission pursuant to P.L. 104–19 ..........................................
–31 .................... ....................
Procurement reduction pursuant to P.L. 103–327 .................
–1 .................... ....................

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

323

136

250

Object Classification (in millions of dollars)
1995 actual

Identification code 36–0110–0–1–703

11.3

1996 est.

1997 est.

25.2
26.0
31.0
32.0

Personnel compensation: Other than full-time permanent ...........................................................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Land and structures ......................................................

1
34
1
4
407

1
28
1
3
330

1
32
2
3
292

99.9

Total obligations ........................................................

447

363

330

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

43.00

Appropriation (total) ..................................................

153

190

189

Total new budget authority (gross) ..........................

153

190

189

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

138
151
–133

157
187
–163

181
190
–177

157

181

195

154
190
189
–1 ................... ...................

72.40

1995 actual

37

1996 est.

50

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

29
104

49
114

49
127

87.00

Personnel Summary
Identification code 36–0110–0–1–703

New budget authority (gross), detail:
Appropriation ..................................................................
Reduction pursuant to P.L. 104–19 ..............................

70.00

Total budget authority ...................................................

40.00
40.75

Total outlays (gross) .................................................

133

163

177

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

153
133

190
163

189
177

1997 est.

50

CONSTRUCTION, MINOR PROJECTS
For constructing, altering, extending, and improving any of the facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated

The Construction, minor projects appropriation, which
funds construction projects costing less than $3 million, is
used to reduce risks to patient life and safety, correct code
deficiencies, and improve ambulatory care settings. Legislation is being proposed to increase the limit on minor construction projects from $3 million to $10 million.

CONSTRUCTION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
GRANTS

Object Classification (in millions of dollars)
1995 actual

Identification code 36–0111–0–1–703

1996 est.

FOR THE

CONSTRUCTION

OF

865

STATE VETERANS CEMETERIES

For grants to aid States in establishing, expanding, or improving
State veteran cemeteries as authorized by 38 U.S.C. 2408, $1,000,000,
to remain available until expended.

1997 est.

11.3

Personnel compensation:
Other than full-time permanent ...............................

4

5

5

11.9
25.2
26.0
31.0
32.0

Total personnel compensation ..............................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Land and structures ......................................................

4
31
1
3
112

5
38
2
4
138

5
39
2
4
140

99.9

Total obligations ........................................................

151

187

190

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0183–0–1–705

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations ............................................................

5

9

4

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

10
5

10
1

3
1

15
–5

11
–9

4
–4

10.00

Personnel Summary
1995 actual

Identification code 36–0111–0–1–703

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

80

1996 est.

80

1997 est.

21.40

80
23.90
23.95
24.40

GRANTS

FOR

CONSTRUCTION

OF

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

10

3 ...................

STATE EXTENDED CARE FACILITIES

For grants to assist States to acquire or construct State nursing
home and domiciliary facilities and to remodel, modify or alter existing hospital, nursing home and domiciliary facilities in State homes,
for furnishing care to veterans as authorized by 38 U.S.C. 8131–
8137, $39,909,000, to remain available until expended.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

40.00

New budget authority (gross), detail:
Appropriation ..................................................................

5

1

7
5
–3

9
9
–5

12
4
–3

9

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1

12

13

72.40

Program and Financing (in millions of dollars)
86.93
1995 actual

1996 est.

53

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

6 ................... ...................
47
47
40

40

21.40

23.90
23.95

Total budgetary resources available for obligation
New obligations .............................................................

53
–53

47
–47

5

3

Total outlays (gross) .................................................

3

5

3

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

5
3

1
5

1
3

1997 est.

Obligations by program activity:
10.00 Total obligations (object class 41.0) ............................

47

3

87.00

Identification code 36–0181–0–1–703

Outlays (gross), detail:
Outlays from current balances ......................................

40
–40

This program will enable the Department to assist States
in establishing, expanding, or improving State-operated veterans cemeteries.
Public enterprise funds:

New budget authority (gross), detail:
40.00 Appropriation ..................................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

47

47

PARKING REVOLVING FUND

40

72.40

146
134
140
53
47
40
–64
–41
–44
–1 ................... ...................
134

140

For the parking revolving fund as authorized by 38 U.S.C. 8109,
income from fees collected, to remain available until expended, which
shall be available for all authorized expenses except operations and
maintenance costs, which will be funded from ‘‘Medical care’’.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

136

Program and Financing (in millions of dollars)
Identification code 36–4538–0–3–703

86.93

Outlays (gross), detail:
Outlays from current balances ......................................

64

41

87.00

Total outlays (gross) .................................................

64

41

44

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

47
64

47
41

40
44

1995 actual

1996 est.

1997 est.

44
00.01
01.01

Obligations by program activity:
Operating expenses: Parking leases ..............................
Capital investment: parking construction program ......

1
17

2
6

2
2

10.00

Total obligations ........................................................

18

8

4

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................

25
18

26
3

21
3

43
–18

29
–8

24
–4

26

21

20

21.40

In 1996, the Department plans to obligate $47.4 million
to assist nine States to acquire or construct State home facilities for furnishing domiciliary or nursing home care to veterans, and expand, remodel, or alter existing buildings for furnishing domiciliary, nursing home, or hospital care to veterans.

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

866

CONSTRUCTION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997
90.00

Public enterprise funds—Continued

Outlays ........................................................................... ................... ................... ...................

PARKING REVOLVING FUND—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 36–4538–0–3–703

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

1995 actual

1996 est.

1997 est.

16 ................... ...................

2

3

3

Total new budget authority (gross) ..........................

18

3

3

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

17
18
–11

24
8
–15

17
4
–13

24

17

8

70.00

72.40

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

87.00

Total outlays (gross) .................................................

1 ................... ...................
8
12
10
2
3
3
11

15

The Pershing Hall Revolving Fund was created to operate
and manage Pershing Hall, an asset of the United States,
located in Paris, France. All operating expenses for Pershing
Hall are borne by the Revolving Fund and all receipts generated by the operation of Pershing Hall are deposited in
the Revolving Fund.
To facilitate account restructuring and consolidation, the
Pershing Hall Revolving Fund also reflects budget information for the Nursing Home Revolving Fund and Grants to
the Republic of the Philippines. The Nursing Home Revolving
Fund provides for the construction, alteration, and acquisition
(including site acquisition) of nursing home facilities and is
available only as provided in appropriations acts. The Grants
to the Republic of the Philippines previously provided for
the effective care and treatment of U.S. veterans in the Veterans Memorial Medical Center (VMMC). However, with the
suspension of U.S. veteran admission to the VMMC, the continuing appropriation of U.S. funds to maintain and upgrade
the physical plant at this facility was discontinued.

DEPARTMENTAL ADMINISTRATION

13

Federal Funds
Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

General and special funds:
GENERAL OPERATING EXPENSES
–2

–3

–3

16 ................... ...................
9
12
10

The Parking Revolving Fund provides funding for the construction and lease of parking facilities at various medical
centers. Income from fees collected will be used for leases.
Object Classification (in millions of dollars)
Identification code 36–4538–0–3–703

1995 actual

1996 est.

Program and Financing (in millions of dollars)

Rental payments to others ............................................
Land and structures ......................................................
Subtotal, reimbursable obligations ...............................

1
17
18

2
6
8

2
2
4

99.9

Total obligations ........................................................

18

8

4

PERSHING HALL REVOLVING FUND
Program and Financing (in millions of dollars)
1995 actual

1996 est.

1997 est.

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
1
1
1
22.00 New budget authority (gross) ........................................ ................... ................... ...................
21.40

23.90
23.95
24.40

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

1997 est.

23.2
32.0
99.0

Identification code 36–4018–0–3–705

For necessary operating expenses of the Department of Veterans
Affairs, including uniforms or allowances therefor; not to exceed
$25,000 for official reception and representation expenses; hire of passenger motor vehicles; and reimbursement of the General Services
Administration for security guard services, and the Department of
Defense for the cost of overseas employee mail; $843,730,000: Provided,
That funds under this heading shall be available to administer the
Service Members Occupational Conversion and Training Act.

Total budgetary resources available for obligation
1
1
1
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year:
Uninvested balance ...................................................
1
1
1

Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
1
1
1
73.10 New obligations ............................................................. ................... ................... ...................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................
1
1
1

87.00

Outlays (gross), detail:
Total outlays (gross) ...................................................... ................... ................... ...................

89.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................

Identification code 36–0151–0–1–705

1995 actual

1996 est.

1997 est.1

Obligations by program activity:
Direct program:
Veterans benefits:
00.01
Executive direction ................................................
30
36 ...................
00.02
Veterans assistance ..............................................
73
76 ...................
00.03
Compensation, pension, and education ...............
197
209 ...................
00.04
Compensation and Pensions ................................ ................... ...................
226
00.05
Education .............................................................. ................... ...................
55
00.06
Vocational rehabilitation and counseling .............
38
39
46
00.07
Support services ...................................................
201
199
225
00.08
Information Resources Management ....................
96
101
89
2 .............................................................
15 ...................
2
00.09
Insurance
00.11
General administration .........................................
214
213
201
00.91
01.01
01.02
01.03

Subtotal, direct program ......................................
864
Reimbursable program:
Loan Guaranty ...........................................................
82
Insurance ................................................................... ...................
Other ..............................................................................
120

873

844

80
32
122

137
32
72

01.91

Subtotal, reimbursable program ...............................

202

234

241

10.00

Total obligations ........................................................

1,066

1,107

1,085

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ................................................... ...................
22.00 New budget authority (gross) ........................................
1,092
21.40

23.90
23.95
24.40

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................

1,092
–1,066

26 ...................
1,082
1,085
1,108
–1,107

1,085
–1,085

26 ................... ...................

DEPARTMENTAL ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ................................
68.10
Change in orders on hand from Federal sources
68.90
70.00

848

844

208
234
241
–6 ................... ...................

Spending authority from offsetting collections
(total) ...........................................................

202

234

241

Total new budget authority (gross) ..........................

1,092

1,082

1,085

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance: Appropriation .............................
72.95
Orders on hand from Federal sources ......................
72.99
73.10
73.20
73.40

890

74.40
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Adjustments in expired accounts ..................................
Unpaid obligations, end of year:
Obligated balance: Appropriation .............................
Orders on hand from Federal sources ......................

74.99

91
10

121
4

82
4

101
126
86
1,066
1,107
1,085
–1,019
–1,147
–1,086
–22 ................... ...................
121
4

82
4

81
4

Total unpaid obligations, end of year ..................

126

86

85

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

765
58
196

763
150
234

760
85
241

87.00

Total outlays (gross) .................................................

1,019

1,147

1,086

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
88.95 Change in orders on hand from Federal sources .........
Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

Compensation and pensions.—Provides timely and efficient processing of claims for veterans and dependents relating to compensation and pension benefits under the various laws enacted by Congress.
Compensation and Pension Summary:
Accomplished workload: (in thousands)
Original claims ....................................
Adjustment/supplemental claims ........
Ancillary and special reviews .............
Vocational rehabilitation .....................
Average days to complete claim:
Original compensation ........................
Original pension ..................................
Original death pension ........................
Original death indemnity compensation ..................................................
Average direct labor hours to complete
claim:
Original compensation ........................
Original pension ..................................
Original death pension ........................
Original death indemnity compensation ..................................................
Accuracy of claims processing:
Service/control accuracy ......................
Payment accuracy ...............................
Notification accuracy ...........................
Standard adjudication productivity

1993
actual

1994
actual

1995
actual

1996 est.

1997 est.

444
2,064
480
70

462
1,908
447
76

440
1,250
467
78

418
1,298
574
74

423
1,291
575
66

189
119
67

213
123
65

181
98
50

150
89
53

122
84
49

102

111

92

78

72

5.57
2.77
1.62

5.35
2.82
1.82

6.01
3.06
1.82

N/A
N/A
N/A

N/A
N/A
N/A

3.75

3.78

3.67

N/A

N/A

N/A
N/A
N/A
102.3

97.0%
97.5%
94.5%
98.4

96.9%
97.4%
95.2%
93.2

97.3%
97.7%
95.2%
N/A

97.6%
97.8%
95.5%
N/A

Education.—Provides timely and efficient processing of
claims for veterans and dependents relating to education
benefits under the various laws enacted by Congress.
WORKLOAD

–202
–234
–241
6 ................... ...................

896
817

848
913

844
845

1 The program activity distribution in FY 1997 reflects the first phase of a long-term initiative to shift all
VBA administrative and support costs to the five business programs (Compensation and Pensions; Education;
Loan Guaranty; Vocational Rehabilitation; and Insurance).
2 In FY 1996 and FY 1997, administrative costs of certain Insurance programs will be funded by reimbursements.

This appropriation provides for the administration of
nonmedical veterans benefits through the Veterans Benefits
Administration (VBA) and the Department’s top management
direction and administrative support, including data processing, fiscal, personnel, and legal services. The 1997 request
includes funds to support restructuring initiatives which focus
on improving service to veterans, increasing access points
and reducing future operating costs.
Veterans benefits.—Determines eligibility and adjudicates
all claims for compensation, pensions, educational assistance,
housing loan assistance, and insurance awards. Greater efficiencies will be achieved as a result of an initiative to modernize the data processing and telecommunications capabilities
of VBA. A summary of VBA’s program objectives and anticipated workload is included in the following paragraphs along
with additional performance information for the compensation
and pensions and loan guaranty programs. The measures for
these programs address performance in the areas of: timeliness; accuracy; financial management; and customer satisfaction.
Veterans assistance.—Provides information, advice, and
assistance concerning veterans’ benefits under the law to
all veterans, their dependents, and survivors.

[In thousands]

Education:
Original claims .......................................................................
Adjustments/supplemental claims .........................................

1995 actual

202
1,009

1996 est.

189
1,122

1997 est.

168
1,143

Loan guaranty.—Facilitates the extension of private capital, on more liberal terms than generally available to nonveterans, to: assist veterans and servicepersons in obtaining
housing credits; provide grants to aid permanently and totally disabled veterans in acquiring specially adapted housing; and assist veterans in retaining their homes during
periods of temporary economic difficulty through intensive
supplemental mortgage loan servicing.
Loan Guaranty Summary:
Loan guaranties issued (in thousands) .............................................
Claims paid (in thousands) ................
Properties disposed (in thousands) ....
Veteran satisfaction in obtaining a
certificate of eligibility ...................
Early foreclosure rate ..........................
Defaults reported as a % of guaranteed loans outstanding ...................
Administrative cost:
Per guaranty issued ............................
Per default processed .........................
Per portfolio loan .................................
Per property sold .................................
Property inventory level (in thousands)
Percent of customers satisfied ................
Percent of lenders satisfied ....................
Foreclosure Avoidance Through Servicing
(FATS) ratio ..........................................
Personal supplemental servicing contacts with homeowners (in thousands)
Average time in months from default
to termination ......................................

1993
actual

1994
actual

1995
actual

1996 est.

1997 est.

383
31
31

602
27
26

263
23
25

250
35
32

250
33
35

N/A
0.7%

N/A
0.8%

N/A
1.2%

N/A
1.3%

87%
1.3%

3.2%

3.2%

3.1%

3.1%

3.1%

N/A
N/A
N/A
N/A
11
N/A
N/A

N/A
N/A
N/A
N/A
11
N/A
N/A

$147
$188
$307
$616
9
93%
68%

$156
$170
$257
$647
14
94%
70%

$317
$284
$237
$911
13
94%
71%

27.5

33.1

37.3

31.0

33.0

227

207

232

122

125

N/A

N/A

14.6

14.5

14.5

OTHER WORKLOAD

WORKLOAD

[In thousands]

[In thousands]

Veterans assistance:
Veterans assistance contacts and other ...........................
Fiduciary and field examinations .......................................
Compliance surveys/liaison action .....................................

867

1995 actual

11,313
73
32

1996 est.

10,755
72
34

1997 est.

10,744
72
35

Loan guaranty:
Construction and valuation ....................................................
Loan processing ......................................................................
Loan service and claims ........................................................
Property management .............................................................

1995 actual

750
760
428
59

1996 est.

778
775
391
57

1997 est.

758
793
764
55

868

DEPARTMENTAL ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

General and special funds—Continued

OFFICE

GENERAL OPERATING EXPENSES—Continued

Vocational rehabilitation and counseling.—Provides counseling and assistance to enable veterans with service-connected disabilities to achieve maximum independence in
daily living and, to the maximum extent feasible, obtain
and maintain suitable employment.
WORKLOAD

OF

INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in carrying
out the Inspector General Act of 1978, as amended, $31,175,000.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 36–0170–0–1–705

1995 actual

1996 est.

1997 est.

[In thousands]

Vocational rehabilitation and counseling:
Evaluation and planning ........................................................
Rehabilitation services ...........................................................
Employment services status ...................................................
Interrupted status ...................................................................
Vocational/educational counseling .........................................

1995 actual

47
48
7
18
18

1996 est.

54
54
9
19
17

60
59
10
19
15

Insurance.—Provides life insurance protection for servicepersons and veterans. The VA administers five life insurance programs and supervises three others through contractual agreements with commercial companies.
WORKLOAD
[In thousands]

1995 actual

Insurance:
Policy service actions .............................................................
Collections ...............................................................................
Disability claims .....................................................................
Insurance awards ...................................................................

1,703
4,040
52
478

1996 est.

1,537
3,798
50
660

00.10
01.01

Obligations by program activity:
Direct program ...............................................................
Reimbursable program ..................................................

32
1

31
1

31
1

10.00

Total obligations ........................................................

33

32

32

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

32
–33

32
–32

32
–32

32

31

31

1

1

1

Total new budget authority (gross) ..........................

32

32

32

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

6
33
–32

7
32
–32

7
32
–32

7

7

7

1997 est.

1997 est.

1,440
3,559
47
698

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

72.40

General administration.—Contains Department executive
direction and supporting offices, the General Counsel, the
Board of Veterans Appeals, and the Board of Contract Appeals.
Object Classification (in millions of dollars)
1995 actual

Identification code 36–0151–0–1–705

11.1
11.5
11.9
12.1
13.0
21.0
21.0
22.0
23.1
23.2
23.3
24.0
25.2
26.0
31.0
99.0
99.0
99.5
99.9

Direct obligations:
Personnel compensation:
Full-time permanent .............................................
Other personnel compensation .............................
Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Travel and transportation of persons:
Employee travel .....................................................
Interagency motor pool payments ........................
Transportation of things ...........................................
Rental payments to GSA ...........................................
Rental payments to others ........................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Other services ............................................................
Supplies and materials .............................................
Equipment .................................................................

1996 est.

1997 est.

483
19

483
14

467
11

502
101
3

497
103
5

478
101
5

11
2
2
81
10

11
2
2
85
10

10
2
2
75
9

38
5
70
25
14

47
6
70
11
24

40
5
84
12
21

Subtotal, direct obligations ..................................
864
873
844
Reimbursable obligations ..............................................
202
234
241
Below reporting threshold .............................................. ................... ................... ...................
Total obligations ........................................................

1,066

1,107

1,085

Personnel Summary
Identification code 36–0151–0–1–705

Direct:
Total compensable workyears:
1001
Full-time equivalent employment1 ............................
1005
Full-time equivalent of overtime and holiday hours
Reimbursable:
Total compensable workyears:
2001
Full-time equivalent employment ..............................
2005
Full-time equivalent of overtime and holiday hours

1995 actual

1996 est.

1997 est.

12,649
230

11,990
173

11,115
124

3,336
176

3,547
128

3,267
48

1 Reflects common service FTE treated as reimbursements in all years and the effects of Credit Reform, per
P.L. 101–508.

86.90
86.93
86.97

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................

29
3
1

29
2
1

29
2
1

87.00

Total outlays (gross) .................................................

32

32

32

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

–1

–1

–1

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

31
32

31
31

31
31

89.00
90.00

This appropriation provides Department-wide audit, investigation, and essential inspection and support functions to
identify and report weaknesses and deficiencies in VA programs and operations that create conditions for existing or
potential instances of fraud, waste, and mismanagement. The
audit function plans and conducts internal programmatic audits of all facets of VA operations. The investigative function
conducts proactive and reactive investigations of improper and
illegal activities involving VA programs, personnel, beneficiaries, and other third parties. The support function provides normal office administrative support as well as contract
audit services for all applicable Department contracts, personnel, and information security for the VA, and legislatively
mandated medical care quality assurance review and oversight.
Public Law 100–527, the Department of Veterans Affairs
Act, established a minimum level of full-time positions for
the Office of Inspector General (IG) based on the number
of full-time positions as of the date of enactment, plus an
additional 40 positions. The minimum level for VA’s IG office
is 417 FTE. This budget request funds 358 FTE positions;
59 fewer than the Secretary is required to provide for under
Public Law 100–527.

DEPARTMENTAL ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
Object Classification (in millions of dollars)
1995 actual

Identification code 36–0170–0–1–705

1996 est.

1997 est.

11.1

Personnel compensation:
Full-time permanent ..................................................

23

11.9
12.1
21.0
23.1
25.2

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to GSA ................................................
Other services ................................................................

23
23
23
5
5
5
2
2
2
2
2
2
1 ................... ...................

99.9

Total obligations ........................................................

23

33

32

23

32

Personnel Summary
1995 actual

Identification code 36–0170–0–1–705

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1996 est.

389

371

1997 est.

358

NATIONAL CEMETERY SYSTEM
For necessary expenses for
National Cemetery System,
cemeterial expenses; purchase
cemeterial operations; and
$76,864,000.

the maintenance and operation of the
including uniforms or allowances;
of passenger motor vehicles for use in
hire of passenger motor vehicles,

Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Presidential Memorial Certificates issued .......
Requests for interment taken by hub cemeteries on the weekends ................................
Requests for interment taken on the weekend
that result in final arrangements in the
ensuing week ...............................................
Interments per FTE ...........................................
Veterans using a burial option ........................
Veteran population served by the existence of
a burial option within a reasonable distance of place of residence .........................

869

278,000

282,552

285,076

302,000

5,558

5,528

5,755

5,800

91%
250
10.0%

90%
250
9.9%

90%
248
9.7%

90%
250
10.2%

65.6%

66.5%

67.3%

68.8%

The Office of Memorial Affairs provides monuments and
other memorial benefits to veterans and their eligible family
members, including receiving and processing applications for
headstones and markers, ordering headstones and markers,
determining the eligibility of decedent, type of headstone or
marker to be furnished, authorizing inscriptions, and administering the Presidential Memorial Certificate Program.
To facilitate account restructuring and consolidation, the
National Cemetery System also reflects budget information
for the National Cemetery Gift Fund. Through this Trust
Fund, the Secretary is authorized to accept gifts and bequests
which are made for the purpose of beautifying national cemeteries or are determined to be beneficial to such cemeteries,
or are made for the purpose of the operation, maintenance,
or improvement of the National Memorial Cemetery of Arizona.
Object Classification (in millions of dollars)
1995 actual

Identification code 36–0129–0–1–705

Program and Financing (in millions of dollars)

1996 est.

1997 est.

1996 est.

1997 est.

00.10

Obligations by program activity:
Direct obligations ...........................................................

72

73

77

10.00

Total obligations ........................................................

72

73

77

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................
New obligations .............................................................

73
–72

73
–73

77
–77

New budget authority (gross), detail:
40.00 Appropriation ..................................................................

73

73

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................

36
6

37
6

38
7

11.9
12.1
21.0
23.1
23.3
25.2
26.0
31.0

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to GSA ................................................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................

42
11
1
1
3
6
5
3

43
12
1
1
3
6
5
2

45
12
1
1
4
6
5
3

99.9

1995 actual

Identification code 36–0129–0–1–705

11.1
11.3

Total obligations ........................................................

72

73

77

77

Personnel Summary
Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

1995 actual

Identification code 36–0129–0–1–705

11
72
–72

10
73
–73

10
77
–76

10

10

1996 est.

1997 est.

9

1001

Total compensable workyears: Full-time equivalent
employment ...............................................................

1,315

1,321

1,355

Intragovernmental funds:

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

63
9

66
7

69
7

87.00

Total outlays (gross) .................................................

72

73

76

SUPPLY FUND
Program and Financing (in millions of dollars)
Identification code 36–4537–0–4–705

Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

73
72

73
73

77
76

The following table presents a summary of performance
trends for the National Cemetery System. The measures address performance covering workload, productivity, and access.
National Cemetery System Summary:
Interments performed .......................................
Full-casket ...................................................
In-ground cremain .......................................
Columbaria niches .......................................
Occupied graves maintained ...........................
In-ground gravesites ....................................
Columbaria niches .......................................
Developed acres maintained ............................
Headstone/marker applications processed ......

1993 actual

1994 actual

1995 actual

1997 est.

67,329
50,285
15,259
1,785
1,986,719
1,970,166
16,553
5,038
342,235

68,636
50,354
16,782
1,500
2,039,379
2,020,946
18,433
5,355
315,383

70,522
50,725
16,703
3,094
2,091,683
2,070,673
21,010
5,410
301,657

73,600
52,100
18,400
3,100
2,204,500
2,179,500
25,000
5,803
345,000

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Operating expenses:
Procurement, distribution, and services program:
00.01
Cost of goods sold ................................................
00.02
Other .....................................................................
Publication and reproduction program:
00.03
Cost of goods sold ................................................
00.04
Other .....................................................................

405
30

617
36

649
34

11
7

13
8

14
9

00.91

Total operating expenses ......................................
Capital investment:
Procurement, distribution, and services program:
Purchase of equipment .........................................

453

674

706

1

14

2

10.00

Total obligations ........................................................

454

688

708

21.90

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................

106

62

60

01.01

870

DEPARTMENTAL ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1997

Intragovernmental funds—Continued

Object Classification (in millions of dollars)

SUPPLY FUND—Continued

Identification code 36–4537–0–4–705

22.00
22.40

New budget authority (gross) ........................................
Capital transfer to general fund ...................................

23.90
23.95
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in orders on hand from Federal sources
68.90
70.00

1995 actual

1996 est.

1997 est.

477
686
710
–67 ................... ...................
516
–454

748
–688

770
–708

62

60

62

495
686
710
–18 ................... ...................

Spending authority from offsetting collections
(total) ................................................................

477

686

710

Total new budget authority (gross) ..........................

477

686

710

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Fund balance .............................
72.95
Orders on hand from Federal sources ......................

11.1
11.5
11.9
12.1
21.0
22.0
23.1
23.3
24.0
25.1
25.2
26.0
31.0
31.0
99.0
99.5
99.9

Personnel compensation:
Full-time permanent ..................................................
Other personnel compensation ..................................

40
179

38
179

292
454
–527

219
688
–690

217
708
–710

74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance: Fund balance .............................
Orders on hand from Federal sources ......................

40
179

38
179

74.99

Total unpaid obligations, end of year ..................

219

217

215

86.97
86.98

Outlays (gross), detail:
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

477
50

686
710
4 ...................

87.00

Total outlays (gross) .................................................

527

690

89.00
90.00

19
1

1997 est.

19
1

Total personnel compensation ..............................
19
20
20
Civilian personnel benefits ............................................
3
4
5
Travel and transportation of persons ............................
1
2
2
Transportation of things ................................................
3
4
4
Rental payments to GSA ................................................
2
2
1
Communications, utilities, and miscellaneous charges
1
2
2
Printing and reproduction ..............................................
11
14
14
Advisory and assistance services ..................................
8
8
9
Other services ................................................................ ................... ................... ...................
Supplies and materials .................................................
223
394
414
Equipment:
Equipment .................................................................
1
14
2
Equipment .................................................................
182
225
237
Subtotal, reimbursable obligations ...............................
454
689
710
Below reporting threshold .............................................. ...................
–1
–2
Total obligations ........................................................

454

710

–495
–686
–710
18 ................... ...................

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
32
4 ...................

Under the provisions of 38 U.S.C. 8121, the Supply Fund
is responsible for the operation and maintenance of a supply
system for VA. The Supply Fund is an intragovernmental
revolving fund without fiscal year limitations.
Budget program.—The fund provides financial support for:
(1) a National Acquisition Center or central contracting office;
(2) the maintenance of field station inventories; (3) a service
and distribution center; (4) a publications depot; (5) a service
and reclamation program; (6) a national prosthetics distribution center; and (7) an asset management service.
Costs for the administration of supply activities at VA field
stations are not financed by the Supply Fund. These costs
are charged directly to applicable appropriations.
Financing.—Costs of supplies, equipment, and services acquired through the Supply Fund and Supply Fund operating
costs are recovered through reimbursements from the VA appropriations and other Government agencies receiving goods
and services. For 1997, Supply Fund sales are estimated to
reach $535.0 million. Average inventory needed to support
those sales will be $36.0 million.
Operating results.—The Fund operated at a profit of $3.5
million in 1995. The new total of retained earnings is $40.0
million, which has been used to finance inventory growth.
Operating expense as related to sales was 8.4 percent.

1995 actual

Identification code 36–4537–0–4–705

36
179

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
88.95 Change in orders on hand from Federal sources .........

18
1

1996 est.

688

708

Personnel Summary
95
197

72.99
73.10
73.20

1995 actual

Identification code 36–4537–0–4–705

Program and Financing (in millions of dollars)—Continued

2001
2005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

404
6

1996 est.

418
6

1997 est.

408
6

FRANCHISE FUND
There is hereby established in the Treasury a franchise fund pilot,
as authorized by section 403 of Public Law 103–356, to be available
as provided in such section for costs of capitalizing and operating
the following services to be included in the franchise fund: data processing services, payroll services, law enforcement training, security
and investigations, records management and storage, and specialized
adaptive training: Provided, That any inventories, equipment, and
other assets pertaining to the services to be provided by the franchise
fund, either on hand or on order, less the related liabilities or unpaid
obligations, and any appropriations made prior to the current year
for the purpose of providing capital, shall be transferred from the
General Operating Expense account and merged with the fund: Provided further, That fees charged fund customers may be paid in advance from funds available to the Department and other federal agencies for which such centralized services are performed, at rates which
will return in full all expenses of operation, including terminal leave
liabilities, depreciation of plant and equipment, and amortization of
software: Provided further, That amounts charged fund customers
for terminal leave liabilities, depreciation, and amortization of software, and any amounts attributable to operational efficiencies may
be retained by the fund for the purposes of liquidating fund terminal
leave liabilities and for investments in capital equipment or other
enhancements to financial management or data processing systems
used to provide franchise fund services: Provided further, That any
amounts resulting from operational efficiencies may be retained in
the fund up to an amount which, when added to other such amounts
retained from each fiscal year, does not exceed, at the end of the
fiscal year, ten percent of the gross annual customer billings for the
latest fiscal year ended: Provided further, That no later than thirty
days after the end of each fiscal year amounts in excess of this reserve
limitation shall be transferred to the Treasury: Provided further, That
such franchise fund pilot shall terminate pursuant to section 403(f)
of Public Law 103–356.
Program and Financing (in millions of dollars)
Identification code 36–4539–0–4–705

1995 actual

1996 est.

1997 est.

10.00

Obligations by program activity:
Total obligations ............................................................ ................... ...................

50

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
New obligations ............................................................. ................... ...................

50
–50

TITLE V—GENERAL PROVISIONS
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ................... ...................

50

73.10
73.20

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total outlays (gross) ...................................................... ................... ...................

50
–50

86.97

Outlays (gross), detail:
Outlays from new permanent authority ......................... ................... ...................

50

87.00

Total outlays (gross) ................................................. ................... ...................

50

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources ................... ...................

–50

68.00

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ........................................................................... ................... ................... ...................

The VA was chosen as a pilot Franchise Fund agency under
P.L. 103–356, the Government Management and Reform Act
of 1994. Beginning in FY 1997, administrative services included in the Franchise Fund will be financed on a fee-forservice basis rather than through VA’s General Operating
Expenses Appropriation. The VA’s Franchise Fund is a revolving fund used to supply common administrative services on
the basis of services supplied. Service Activities are expected
to have billings of about $55 million and employ 445 people,
who were transferred from their parent organizations.
The Franchise Fund concept is intended to increase competition for government administrative services resulting in
lower costs and higher quality.
Object Classification (in millions of dollars)
1995 actual

1996 est.

...................
...................
...................
...................
...................
...................
...................
...................

...................
...................
...................
...................
...................
...................
...................
...................

21
3
2
2
18
3
1
50

Total obligations ........................................................ ................... ...................

50

Identification code 36–4539–0–4–705

11.1
12.1
21.0
23.1
23.3
25.2
26.0
99.0
99.9

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to GSA ................................................
Communications, utilities, and miscellaneous charges
Other services ................................................................
Supplies and materials .................................................
Subtotal, reimbursable obligations ...............................

1997 est.

871

SEC. 102. Appropriations available to the Department of Veterans
Affairs for 1997 for salaries and expenses shall be available for services authorized by 5 U.S.C. 3109.
SEC. 103. No appropriations in this Act for the Department of Veterans Affairs (except the appropriations for ‘‘Construction, major
projects’’, ‘‘Construction, minor projects’’, and the ‘‘Parking revolving
fund’’) shall be available for the purchase of any site for or toward
the construction of any new hospital or home.
SEC. 104. No appropriations in this Act for the Department of Veterans Affairs shall be available for hospitalization or examination of
any persons (except beneficiaries entitled under the laws bestowing
such benefits to veterans, and persons receiving such treatment under
5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204), unless reimbursement
of cost is made to the ‘‘Medical Care’’ account at such rates as may
be fixed by the Secretary of Veterans Affairs.
SEC. 105. Appropriations available to the Department of Veterans
Affairs for fiscal year 1997 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’ shall
be available for payment of prior year accrued obligations required
to be recorded by law against the corresponding prior year accounts
within the last quarter of fiscal year 1996.
SEC. 106. Appropriations accounts available to the Department of
Veterans Affairs for fiscal year 1997 shall be available to pay prior
year obligations of corresponding prior year appropriations accounts
resulting from title X of the Competitive Equality Banking Act, Public
Law 100–86, except that if such obligations are from trust fund accounts they shall be payable from ‘‘Compensation and pensions’’.
SEC. 107. Notwithstanding any other provision of law, during fiscal
year 1997, the Secretary of Veterans Affairs shall, from the National
Service Life Insurance Fund (38 U.S.C. 1920), the Veterans’ Special
Life Insurance Fund, (38 U.S.C. 1923), and the United States Government Life Insurance Fund (38 U.S.C. 1955), reimburse the ‘‘General
operating expenses’’ account for the cost of administration of the insurance programs financed through those accounts: Provided, That reimbursement shall be made only from the surplus earnings accumulated
in an insurance program in fiscal year 1997, that are available for
dividends in that program after claims have been paid and actuarially
determined reserves have been set aside: Provided further, That if
the cost of administration of an insurance program exceeds the amount
of surplus earnings accumulated in that program, reimbursement
shall be made only to the extent of such surplus earnings: Provided
further, That the Secretary shall determine the cost of administration
for fiscal year 1997, which is properly allocable to the provision of
each insurance program and to the provision of any total disability
income insurance included in such insurance program.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Personnel Summary
1995 actual

Identification code 36–4539–0–4–705

2001

1996 est.

Total compensable workyears: Full-time equivalent
employment ............................................................... ................... ...................

1997 est.

TITLE V—GENERAL PROVISIONS
445

GENERAL FUND RECEIPT ACCOUNTS
(in millions of dollars)
1995 actual

1996 est.

1997 est.

Offsetting receipts from the public:
36–243100 Fees and other charges for medical services,
VA .......................................................................................
36–247300 Contributions from military personnel, Veteran’s Educational Assistance Act of 1984 .........................

440

466

525

166

243

253

General Fund Offsetting receipts from the public .....................

606

709

778

ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)

SEC. 101. Any appropriation for 1997 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’ may be transferred to any other of the mentioned appropriations.

SEC. 501. Appropriations and funds available for the administrative
expenses of the Department of Housing and Urban Development and
the Selective Service System shall be available in the current fiscal
year for purchase of uniforms, or allowances therefor, as authorized
by 5 U.S.C. 5901–5902; hire of passenger motor vehicles; and services
as authorized by 5 U.S.C. 3109.
SEC. 502. Funds of the Department of Housing and Urban Development subject to the Government Corporation Control Act or section
402 of the Housing Act of 1950 shall be available, without regard
to the limitations on administrative expenses, for legal services on
a contract or fee basis, and for utilizing and making payment for
services and facilities of Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage
Corporation, Federal Financing Bank, Resolution Trust Corporation,
Federal Reserve banks or any member thereof, Federal Home Loan
banks, and any insured bank within the meaning of the Federal
Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811–
1831).
SEC. 503. No part of any appropriation contained in this Act shall
remain available for obligation beyond the current fiscal year unless
expressly so provided herein.
SEC. 504. No funds appropriated by this Act may be expended—
(1) pursuant to a certification of an officer or employee of the
United States unless—

872

TITLE V—GENERAL PROVISIONS—Continued
Federal Funds—Continued

(A) such certification is accompanied by, or is part of, a voucher
or abstract which describes the payee or payees and the items
or services for which such expenditure is being made, or
(B) the expenditure of funds pursuant to such certification, and
without such a voucher or abstract, is specifically authorized by
law; and
(2) unless such expenditure is subject to audit by the General
Accounting Office or is specifically exempt by law from such audit.
SEC. 505. None of the funds provided in this Act to any department
or agency may be expended for the transportation of any officer or
employee of such department or agency between his domicile and
his place of employment, with the exception of any officer or employee
authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C.
7905.
SEC. 506. None of the funds provided in this Act may be used
for payment, through grants or contracts, to recipients that do not
share in the cost of conducting research resulting from proposals not
specifically solicited by the Government: Provided, That the extent
of cost sharing by the recipient shall reflect the mutuality of interest
of the grantee or contractor and the Government in the research.
SEC. 507. None of the funds in this Act may be used, directly
or through grants, to pay or to provide reimbursement for payment
of the salary of a consultant (whether retained by the Federal Government or a grantee) at more than the daily equivalent of the rate
paid for Level IV of the Executive Schedule, unless specifically authorized by law.
SEC. 508. None of the funds provided in this Act shall be used
to pay the expenses of, or otherwise compensate, non-Federal parties
intervening in regulatory or adjudicatory proceedings. Nothing herein
affects the authority of the Consumer Product Safety Commission pursuant to section 7 of the Consumer Product Safety Act (15 U.S.C.
2056 et seq.).
SEC. 509. Except as otherwise provided under existing law or under
an existing Executive order issued pursuant to an existing law, the
obligation or expenditure of any appropriation under this Act for
contracts for any consulting service shall be limited to contracts which
are (1) a matter of public record and available for public inspection,
and (2) thereafter included in a publicly available list of all contracts
entered into within twenty-four months prior to the date on which
the list is made available to the public and of all contracts on which
performance has not been completed by such date. The list required
by the preceding sentence shall be updated quarterly and shall include
a narrative description of the work to be performed under each such
contract.

THE BUDGET FOR FISCAL YEAR 1997
SEC. 510. Except as otherwise provided by law, no part of any
appropriation contained in this Act shall be obligated or expended
by any executive agency, as referred to in the Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for services
unless such executive agency (1) has awarded and entered into such
contract in full compliance with such Act and the regulations promulgated thereunder, and (2) requires any report prepared pursuant to
such contract, including plans, evaluations, studies, analyses and
manuals, and any report prepared by the agency which is substantially derived from or substantially includes any report prepared pursuant to such contract, to contain information concerning (A) the contract pursuant to which the report was prepared, and (B) the contractor who prepared the report pursuant to such contract.
SEC. 511. Except as otherwise provided in section 505, none of
the funds provided in this Act to any department or agency shall
be obligated or expended to provide a personal cook, chauffeur, or
other personal servants to any officer or employee of such department
or agency.
SEC. 512. None of the funds provided in this Act to any department
or agency shall be obligated or expended to procure passenger automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles
per gallon average of less than 22 miles per gallon.
SEC. 513. None of the funds appropriated in title I of this Act
shall be used to enter into any new lease of real property if the
estimated annual rental is more than $300,000 unless the Secretary
submits, in writing, a report to the Committees on Appropriations
of the Congress and a period of 30 days has expired following the
date on which the report is received by the Committees on Appropriations.
SEC. 514. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.—It is the sense of the Congress that, to the greatest extent
practicable, all equipment and products purchased with funds made
available in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial assistance to, or
entering into any contract with, any entity using funds made available
in this Act, the head of each Federal agency, to the greatest extent
practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress.
SEC. 515. None of the funds appropriated in this Act may be used
to implement any cap on reimbursements to grantees for indirect costs,
except as published in Office of Management and Budget Circular
A–21.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102