The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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. f 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 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 .............................................................. 1993 actual 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 .................................................... $28,618 N/A $29,632 $28,294 $30,753 $29,846 $30,753 $30,530 $19,222 $18,500 $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 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 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. 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 1996 est. 220,000 150,000 Total ........................................................................... 367,672 370,000 370,000 Fee: Cases completed ........................................................ 17,240 17,000 17,000 Average employment (including education and training) ...... 53,793 58,090 66,972 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. 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. 137,476 50,856 35,599 831 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 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 Personnel Summary Identification code 36–0160–0–1–703 f 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 1995 actual 1996 est. f 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 1997 est. 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. Obligations by program activity: Direct program: Operating expenses: 00.01 Medical research ................................................... 00.02 Rehabilitation research ......................................... 00.03 Health services research ...................................... 173 26 33 192 29 37 186 27 36 00.91 232 258 249 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 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 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 f 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 ............................................................... 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. 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 86.90 86.93 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 f 68 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. 00.09 00.10 Obligations by program activity: Operating expenses ........................................................ Capital investment ........................................................ 98 4 106 26 111 8 10.00 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 1995 actual Identification code 36–0163–0–1–703 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 ........................................................................... f 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 f 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 ..................... Public enterprise funds: 1995 actual 1996 est. 41 2,254 –6 6 ................... ................... –4 –3 –2 Object Classification (in millions of dollars) Identification code 36–4138–0–3–703 25.2 26.0 31.0 99.0 42 2,295 f 1995 actual 1996 est. Other services ................................................................ ................... Supplies and materials ................................................. 1 Equipment ...................................................................... 1 Subtotal, reimbursable obligations ............................... 2 Total obligations ........................................................ 2 1997 est. 1 1 2 4 1 1 2 4 4 4 CANTEEN SERVICE REVOLVING FUND Program and Financing (in millions of dollars) Identification code 36–4014–0–3–705 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 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... –6 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. 99.9 1997 est. 42 2,295 89.00 90.00 –6 835 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 REHABILITATION ACTIVITIES FUND 1995 actual Identification code 36–4048–0–3–703 1996 est. 1997 est. Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... 3 –3 –3 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. 1994 actual 1995 actual 0101 0102 Revenue ................................................... Expense .................................................... 214 –211 209 –206 1996 est. 245 –240 248 –242 0109 Net income or loss (–) ............................ 3 3 5 6 1996 est. 1997 est. 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 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) Identification code 36–4014–0–3–705 AND Program and Financing (in millions of dollars) 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 97 114 120 .................. 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 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 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 f 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 GENERAL POST FUND, NATIONAL HOMES 4999 Total net position ................................ Total liabilities and net position ............ 6 9 12 837 Object Classification (in millions of dollars) Identification code 36–4026–0–3–703 1995 actual 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 f 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 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 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 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 29 87.00 Total outlays (gross) ................................................. 27 28 29 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 –29 Total, offsetting collections (cash) .................. 1995 actual 1996 est. 1997 est. 29 Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... ................... ................... ................... 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 ................... 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 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 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) Identification code 36–8180–0–7–705 f 1995 actual 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 30 Federal Funds General and special funds: AND 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. Distribution of budget authority by account: Compensation ......................................................................... Pensions .................................................................................. Burial benefits ........................................................................ Distribution of outlays by account: Compensation ......................................................................... Pensions .................................................................................. Burial benefits ........................................................................ 1995 actual 1996 est. 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 ................... ................... 40.00 42.00 New budget authority (gross), detail: Appropriation .................................................................. Transferred from other accounts ................................... 14,173 406 15,176 15,393 29 ................... 43.00 Appropriation (total) .................................................. 14,579 15,205 15,393 70.00 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 ............................................................. 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 COMPENSATION 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) 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 .................................................................................... .................... .................... .................... .................... .................... .................... 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. 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 ................................................. Total .................................................................. Average payment per case, per year ........................ Total obligations (in millions) .......................... 1995 actual 1996 est. 839 01.08 01.09 Peacetime service .......................................................... ................... ................... Persian Gulf conflict ...................................................... ................... ................... 10 1 01.91 02.01 Total survivors ........................................................... ................... ................... Clothing allowance ........................................................ ................... ................... 70 1 02.93 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 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 ................................................. f Total .................................................................. Average payment per case, per year ........................ Total obligations (in millions) .......................... 1 26 3 7,391 127,579 37,443 86,287 45,888 2,825 307,443 $10,094 $3,104 Clothing allowance: Number of veterans ................................................... Average payment per case, per year ........................ Total obligations (in millions) .......................... 1 22 2 6,356 124,788 37,310 88,251 44,832 3,738 305,300 $10,531 $3,216 72,622 $490 $36 65,600 $503 $33 1 18 2 5,466 122,252 37,220 90,261 43,807 4,273 303,300 $10,939 $3,319 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 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 10.00 Total obligations (object class 42.0) ........................ ................... –36 –129 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... New obligations ............................................................. ................... –36 36 –129 129 40.00 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 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... –36 –129 87.00 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 f 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 Change in unpaid obligations: 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 109 –109 115 –115 109 115 118 115 118 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 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 ................................................................. 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 1997 est. 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 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 ................... 14 17 15 75 80 78 108 112 111 8 ................... ................... 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 1,455 –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 1996 est. 88 10 1997 est. 91,500 83,400 10,500 464,200 326,000 10 53,460 1995 actual 91 10 01.01 01.02 01.03 109 89.00 90.00 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. 00.91 87.00 Total outlays (gross) ................................................. 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. 118 –118 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 841 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 READJUSTMENT BENEFITS—Continued 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 $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. 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 1996 est. 1997 est. 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) .............................................. $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. 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 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 f 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 1,582 f 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 90.00 843 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 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). 40 –39 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 42.00 Transferred from other accounts .............................. 24 11 25 39 18 ................... 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 68.00 70.00 45 –45 41 –41 Identification code 36–0120–0–1–701 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) ................................................. 1,436 $7,093 4,002 $224,933 3,850 $219,400 3,700 $218,200 f 1995 actual 1996 est. 1997 est. 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) ...................................................... 1997 est. 1,557 $7,789 Object Classification (in millions of dollars) 2 ................... ................... 38 45 41 Total budgetary resources available for obligation New obligations ............................................................. 1996 est. 1,680 $8,522 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 1995 actual 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 ........................................ 88.90 Total, offsetting collections (cash) .................. –29 –35 –31 –1 –23 –1 –7 –2 –24 –1 –8 –2 –24 –1 –8 –61 –70 –66 845 3999 Total net position ................................ –460 –463 –460 –462 4999 Total liabilities and net position ............ 53 58 68 71 f Object Classification (in millions of dollars) Identification code 36–4012–0–3–701 1995 actual 1996 est. 1997 est. 33.0 42.0 Investments and loans .................................................. Insurance claims and indemnities ................................ 17 49 15 52 13 55 99.9 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): Number of policies ...................................................................... Insurance in force ....................................................................... 1995 actual 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 1996 est. 1997 est. 0101 0102 Revenue ................................................... Expense .................................................... 43 –66 64 –66 73 –70 68 –71 0109 Net income or loss (–) ............................ –23 –2 3 –3 1994 actual 1995 actual 1996 est. 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 8 1 1996 est. 1997 est. 29 31 9 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 ......................................... 87.00 1997 est. 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 1995 actual Obligations by program activity: Operating expenses: 00.01 Death claims ............................................................. 00.02 Dividends ................................................................... 00.03 All other ..................................................................... 86.97 86.98 Balance Sheet (in millions of dollars) Identification code 36–4012–0–3–701 Identification code 36–4010–0–3–701 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 VETERANS REOPENED INSURANCE FUND—Continued Identification code 36–4010–0–3–701 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. Statement of Operations (in millions of dollars) Identification code 36–4010–0–3–701 1994 actual 1995 actual 1996 est. 1997 est. 0101 0102 Revenue ................................................... Expense .................................................... 71 –72 69 –78 68 –69 63 –69 0109 Net income or loss (–) ............................ –1 –9 –1 –6 Balance Sheet (in millions of dollars) Identification code 36–4010–0–3–701 1994 actual 1995 actual 1996 est. 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 3999 4999 Total net position ................................ Total liabilities and net position ............ 562 566 1995 actual 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 ................... ................... 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 3 4 3 4 72.99 73.10 73.20 2 489 –484 7 486 –486 7 500 –500 74.40 74.95 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 ...................... 3 4 3 4 3 4 74.99 Total unpaid obligations, end of year .................. 7 7 7 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 440 44 467 500 19 ................... 87.00 Total outlays (gross) ................................................. 484 486 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 .................... Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3200 Invested capital ....................................... f Object Classification (in millions of dollars) 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 f VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 0109 Net income or loss (–) ............................ Credit accounts: GUARANTY AND –111 –28 –14 .................. 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) .......................... 684 722 482 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 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 87.00 Total outlays (gross) ................................................. 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 ........................................................................... 508 509 215 65 266 1 ................... ................... 468 657 216 722 482 INDEMNITY PROGRAM ACCOUNT (INCLUDING TRANSFER OF FUNDS) 01.99 86.90 86.93 86.97 847 89.00 90.00 –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. 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 Credit accounts—Continued 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 1,453 662 –662 1,330 –1,330 1,453 –1,453 590 1,277 1,404 578 –506 951 –898 1,219 –1,170 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 1,453 87.00 Outlays (gross), detail: Total financing disbursements (gross) ......................... Write-offs for default: Direct loans ............................... –8 –5 –12 1290 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 Spending authority from offsetting collections (total) ................................................................ 70.00 1263 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 88.90 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 1499 Net present value of assets related to direct loans ........................... 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 ........... 126 186 425 617 222 304 425 617 40 181 .................. .................. .................. 420 .................. 609 1 .................. 2 302 5 .................. 8 .................. f 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. 00.01 00.02 00.03 00.04 00.05 00.06 00.07 00.08 00.09 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 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 –2,326 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... Financing disbursements ............................................... –580 47 1 –340 Total, offsetting collections (cash) .................. Status of Guaranteed Loans (in millions of dollars) 1995 actual Identification code 36–4129–0–3–704 1997 est. 3,771 4,117 f 4,117 GUARANTY AND INDEMNITY FUND LIQUIDATING ACCOUNT Program and Financing (in millions of dollars) 00.91 –1,433 –120 –135 4 ................... 21.90 142,769 164,485 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 44,700 55,215 83,743 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) 1996 est. 1997 est. 1101 2,866 3,445 3,399 3,740 121 37 36 40 121 37 36 40 1997 est. 245 6 2 9 –1,324 121,307 1996 est. 267 6 2 11 –406 Outstanding, end of year .......................................... 1995 actual 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 .............. 12 388 Net present value of assets related to direct loans ........................... 3,658 3,771 366 1499 2,987 3,676 115 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 direct loans receivable: 1403 Accounts receivable from foreclosed property ........................................... .................. 2,987 142,769 24,547 1,074 –2,725 1995 actual .................. Total liabilities and net position ............ 121,307 24,032 820 –2,316 1994 actual 18 4999 101,094 22,161 495 –1,930 Identification code 36–4129–0–3–704 .................. 4,117 24,547 Outstanding, end of year ...................................... 337 4,117 3,771 24,032 2390 336 3,771 3,676 22,161 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 ................................... 194 3,676 2,987 2150 2290 337 2,987 Identification code 36–4023–0–3–704 1996 est. 336 Total liabilities .................................... 24,547 –107 –115 .................. 194 2999 24,032 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 ............................................. Net present value of assets related to defaulted guaranteed loans Total assets ........................................ LIABILITIES: 2101 Federal liabilities: Accounts payable ...... 2204 Non-Federal liabilities: Liabilities for loan guarantees .................................. 22,161 2210 2231 2232 2251 .................. 1999 Position with respect to appropriations act limitation on commitments: 2131 Guaranteed loan commitments exempt from limitation Total guaranteed loan commitments ........................ Net value of assets related to post– 1991 acquired defaulted guaranteed loans receivable: Foreclosed property ............................. 849 257 286 262 01.01 01.02 01.03 Total capital investment ....................................... Operating expenses: Property management expense ................................. Sales expense ............................................................ Claims-Individual Homes .......................................... 12 19 150 10 15 176 10 17 161 01.91 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. 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 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) ..................................................... 3,534 $69,614 $246 1996 est. 3,765 $71,006 $267 Individual homes: Number of claims ................................................................... Average amount per payment ................................................ Total obligations (in millions) ................................................ 3,720 $1,681 $6 1996 est. 3,765 $1,715 $6 1995 actual –$7 1996 est. $2 1997 est. 3,339 $4,540 $15 3,574 $4,640 $17 3,381 $72,568 $245 1997 est. 3,381 $1,752 $6 1997 est. $2 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. 0101 0102 Revenue ................................................... Expense .................................................... 347 –403 563 –446 450 –356 360 –285 0109 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 ........................................... 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 1499 1706 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 1996 est. 4,327 $4,451 $19 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. 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) ..................................................... Number of sales .......................................................................... Average amount per sale ............................................................ Total obligations (in millions) ..................................................... 1799 1995 actual 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. 1995 actual 16,569 –659 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 ................................... 1997 est. 1,546 $6,291 $10 1997 est. 17,668 –703 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) ..................................................... 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 11 ................... 98 22 –76 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 34 885 894 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. 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) ................................................. 72.40 105 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 103 104 128 48 –11 ................... 117 117 1995 actual 1996 est. 1997 est. 59 44 52 76 34 14 103 128 48 LOAN GUARANTY DIRECT LOAN FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 36–4125–0–3–704 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources ................... 89.00 90.00 f Object Classification (in millions of dollars) 25.3 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 1997 est. 899 11 ................... 76 14 –11 ................... 1996 est. 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. 22 1995 actual Identification code 36–1025–0–1–704 1995 actual 1996 est. 1997 est. 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 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. 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 Status of Direct Loans (in millions of dollars) Identification code 36–4125–0–3–704 1995 actual 1996 est. 1997 est. Identification code 36–4125–2–3–704 00.03 00.04 1995 actual Obligations by program activity: Interest on Treasury Borrowing ...................................... ................... Payment to Liquidating Account for Enhanced Debt Collection ................................................................... ................... 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 ............................................. 1290 Outstanding, end of year .......................................... 428 933 473 885 669 894 –41 –16 –19 –828 –711 –724 –4 38 40 –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. 4 90 ................... 4 22.00 23.95 Budgetary resources available for obligation: New financing authority (gross) .................................... ................... New obligations ............................................................. ................... 92 –92 4 –4 68.90 894 2 92 1150 885 1997 est. 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 1996 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 ..................................... 1997 est. 67.15 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 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 f f 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 ............ .................. 1995 actual Identification code 36–4025–0–3–704 1995 actual 1996 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... ................... 1 1 22.00 New financing authority (gross) .................................... ................... ................... ................... 21.90 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 1996 est. 1 1 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 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 .................. .................. .................. .................. .................. 1 .................. .................. .................. .................. .................. .................. .................. .................. .................. .................. Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ .................. 1 .................. .................. .................. .................. .................. .................. 3999 .................. .................. .................. .................. Identification code 36–4126–0–3–704 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. 1996 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 .............. 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 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. Obligations by program activity: 10.00 Total obligations ............................................................ ................... ................... ................... Identification code 36–4126–0–3–704 .................. Program and Financing (in millions of dollars) Program and Financing (in millions of dollars) 23.90 23.95 24.90 .................. LOAN GUARANTY REVOLVING FUND LIQUIDATING ACCOUNT LOAN GUARANTY GUARANTEED LOAN FINANCING ACCOUNT Identification code 36–4126–0–3–704 1 853 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: 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 .................................................... 88.90 89.00 90.00 Total, offsetting collections (cash) .................. 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 –1,255 –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 19 528 513 494 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 1996 est. 1997 est. 38,665 –22,021 15,774 –7,487 7,308 –2,546 –692 –890 –729 –178 –89 –44 15,774 7,308 3,989 8,046 4,749 2,801 1,699 216 –94 –322 1,499 191 –46 –284 1,360 173 –44 –258 2390 1,499 1,360 1,231 1995 actual Average number of properties ................................................ Average amount per property ................................................. Total obligations (in millions) ................................................ Budget program— Acquisition of homes. 1995 actual 1996 est. 6,644 $6,227 $41 1995 actual $2 1997 est. 6,391 $6,352 $41 6,455 $6,492 $42 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) ............................................ Manufactured 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 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 1994 actual 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) ................................................ 1997 est. $2 Sales expense.—Sales expense include brokers’ fees and advertising costs incident to the sale of properties owned by VA. 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. Number of property acquisitions processed ........................... Average amount per acquisition ............................................ Total obligations (in millions) ................................................ 1996 est. $3 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 ................................... Outstanding, end of year ...................................... 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. Number of sales ..................................................................... Average amount per sale ....................................................... Total obligations (in millions) ................................................ 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 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 .................. 533 –2 342 –2 332 .................. 320 .................. 1,887 1,619 1,418 1,457 58 38 43 37 41 .................. 40 .................. 1251 Repayments: Repayments and prepayments ................. ................... –29 –25 1290 Outstanding, end of year .......................................... ................... –29 –54 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 f 3999 Total net position ................................ 897 792 650 718 4999 Total liabilities and net position ............ 1,887 1,619 1,418 1,457 1994 actual Identification code 36–4025–4–3–704 1101 ASSETS: Federal assets: Fund balances with Treasury ............................................... f 1995 actual 1996 est. 1997 est. .................. 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 Identification code 36–4025–4–3–704 1999 1995 actual 1996 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 25 87.00 Total outlays (gross) ................................................. ................... 29 25 (INCLUDING TRANSFER OF FUNDS) 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. Program and Financing (in millions of dollars) Identification code 36–1024–0–1–704 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 ................... Total, offsetting collections (cash) .................. ................... –119 Status of Direct Loans (in millions of dollars) 1995 actual 1996 est. Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. ................... ................... 1996 est. 1997 est. Obligations by program activity: Administrative expenses ................................................ 1 ................... ................... 10.00 Total obligations (object class 25.3) ........................ 1 ................... ................... 22.00 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 Total outlays (gross) ................................................. 1 ................... ................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1 ................... ................... 1 ................... ................... –25 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... –90 ................... Identification code 36–4025–4–3–704 1995 actual 00.09 –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. 1210 1997 est. .................. LOAN GUARANTY REVOLVING FUND LIQUIDATING ACCOUNT 89.00 90.00 1996 est. Balance Sheet (in millions of dollars) Note.—This statement excludes unfunded contingent liabilities under loan guarantee and insurance programs. 88.90 855 1997 est. –29 856 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1997 Credit accounts—Continued 88.90 Total, offsetting collections (cash) .................. –1 –3 –6 89.00 90.00 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) 1995 actual 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 ........................................................................... 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. f 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 33 –33 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 ........................................... 1499 Net present value of assets related to direct loans ........................... 68.90 19 29 3 –1 6 –2 Spending authority from offsetting collections (total) ................................................................ 1 2 4 70.00 Total new financing authority (gross) ...................... 7 21 33 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total financing disbursements (gross) ......................... 7 –7 21 –21 33 –33 1995 actual 1 2 1 1 .................. 6 7 8 .................. 6 7 8 1 8 8 9 .................. 1 1 7 .................. 8 1 8 f 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 ............................. ................... 1994 actual Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Debt ........................... 2203 Non-Federal liabilities: Debt ................... 1996 est. 1997 est. 2999 Total liabilities .................................... 1 8 8 9 4999 Total liabilities and net position ............ 1 8 8 9 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 ............................................................. ................... ................... ................... f VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 24.90 Unobligated balance available, end of year: Fund balance ...................................................................... ................... ................... ................... New budget authority (gross), detail: 68.00 Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 5 4 87.00 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... Outlays from permanent balances ................................ 1 Total outlays (gross) ................................................. 1 ................... 1 ................... 1 –4 –1 –3 –1 –2 –1 88.90 –5 –4 –3 3999 Total net position ................................ 32 4999 Total liabilities and net position ............ 35 1995 actual 1996 est. 17 –5 2 14 11 –4 –3 1 ................... 1290 14 11 8 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 15 14 13 17 15 14 (INCLUDING TRANSFER OF FUNDS) 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 1996 est. 1997 est. 00.01 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 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 4 –1 4 –2 4 2 –2 2 ................... 70.00 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 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 1 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’’. 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 ............. 1 NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT 23.90 23.95 24.40 Status of Direct Loans (in millions of dollars) Outstanding, end of year .......................................... 2 Identification code 36–1120–0–1–704 Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... –5 –2 –3 Identification code 36–4024–0–3–704 15 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 .............................................. Total, offsetting collections (cash) .................. Cumulative results of operations ............ 3 Change in unpaid obligations: 72.90 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 ................... 86.97 86.98 3300 857 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. 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 ............................. 1995 actual Identification code 36–1120–0–1–704 1101 3 3 17 13 12 11 17 13 12 11 .................. 1 .................. f 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 ..................................................... .................. 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 1 Program and Financing (in millions of dollars) 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 f 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 Outlays (gross), detail: Total outlays (gross) ...................................................... ................... ................... ................... 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’’. 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. 1997 est. Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 3 3 3 1290 3 3 2 Outstanding, end of year .......................................... 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. WORKLOAD, AMOUNT LOANED AND REPAID 1995 actual Number of loans outstanding ..................................................... Average amount per loan outstanding ....................................... Repayment of loans (in thousands) ........................................... 3,547 $825 $433 1996 est. 1997 est. 3,047 $809 $431 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’’. 2,547 $799 $404 Program and Financing (in millions of dollars) 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 .................................................. 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 ................................ 3 2 2 –2 –2 –2 –1 1 1 .................. 1 1 1 1 1 9 1 1 1 8 8 .................. .................. 1997 est. 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 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1 1 1 1 1 1 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 36–1114–0–1–702 3 1996 est. 00.09 Balance Sheet (in millions of dollars) Identification code 36–4118–0–3–702 1995 actual 1995 actual 1996 est. 1997 est. 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 ......................................... 2 2 2 2.75 0.00 2.75 26.53 1.75 34.83 1329 Weighted average subsidy rate ................................. 2.75 2.75 1.75 3510 3590 Administrative expense data: Budget authority ............................................................ Outlays ........................................................................... 1 1 1 1 1 1 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. f VOCATIONAL REHABILITATION DIRECT LOAN FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 36–4112–0–3–702 1995 actual 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 –2 2 –2 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 ............................................................. 2 2 2 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 Identification code 36–4112–0–3–702 1 2 –2 1 2 –2 1 2 –2 1 1 1 2 2 2 –2 1995 actual 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 1 2 3 1 1 1 1 1 1 ASSETS: Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 direct loans receivable: 1401 Direct loans receivable, gross ............ 1996 est. 1997 est. 1101 1499 Net present value of assets related to direct loans ........................... 1 1 1 1 Total assets ........................................ LIABILITIES: 2103 Federal liabilities: Debt ........................... 3 4 2 2 2 2 2 3 2999 Total liabilities .................................... NET POSITION: 3300 Cumulative results of operations ............ 2 2 2 3 1 1 .................. .................. 3999 Total net position ................................ 1 1 .................. .................. 4999 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. f Trust Funds POST-VIETNAM ERA VETERANS EDUCATION ACCOUNT Unavailable Collections (in millions of dollars) 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 –22 64 –16 64 –19 64 Subtotal appropriation ................................................... Total balance, end of year ............................................ Program and Financing (in millions of dollars) –2 Status of Direct Loans (in millions of dollars) 1 1995 actual 04.00 –2 1 1994 actual 01.99 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... ................... Financing disbursements ............................................... ................... ................... ................... Identification code 36–4112–0–3–702 Outstanding, end of year .......................................... Balance Sheet (in millions of dollars) Spending authority from offsetting collections (total) ................................................................ ................... ................... ................... 72.40 87.00 1290 859 Identification code 36–8133–0–7–702 1995 actual 1996 est. 1997 est. 00.01 00.02 00.03 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 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 Program and Financing (in millions of dollars)—Continued f –5,339 155,596 –4,743 110,041 –4,216 50,188 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 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 ............................................................. 1995 actual 1996 est. 1997 est. 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. 1997 est. –155,596 –110,041 01.01 01.02 Total annual income ...................................................... Total operating expenses ...................................... Capital investment: Policy loans ............................................................... Policy liens ................................................................ 1997 est. 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 10.00 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) .............................................. 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 1996 est. 01.91 70.00 Cash income during the year: Proprietary receipts (contributions from servicepersons) ..................................................... Intrabudgetary transactions: (contributions from Department of Defense) .................................................................................. 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 –504 f 1995 actual 1996 est. 1997 est. 143 136 138 843 922 938 863 885 835 1 ................... ................... 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 1996 est. 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 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 ........................................ 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 70.00 14 11,853 0299 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 ....... 1995 actual 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. Unexpended balance, start of year: 0100 Uninvested balance ....................................................... 0101 U.S. Securities: Par value .............................................. 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 ................................................ Identification code 36–8150–0–7–701 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 new budget authority (gross) .......................... 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. Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Repayments of loans ..................................................................... –2 –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 1 107 95 90 Object Classification (in millions of dollars) Identification code 36–8150–0–7–701 33.0 42.0 43.0 Investments and loans .................................................. Insurance claims and indemnities ................................ Interest and dividends ................................................... 99.9 Total obligations ........................................................ 48 4 101 54 00.91 193 205 207 01.01 Total operating expenses ...................................... Capital investment: Total capital investment ........................................... 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 87.00 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 1995 actual 1996 est. 1997 est. 1 ................... ................... 10 11 11 7 5 4 18 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 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 ........................................ 45 5 103 52 1997 est. 0299 0799 1997 est. 39 5 103 46 21,428 $71 Status of Funds (in millions of dollars) 1995 actual 1996 est. Obligations by program activity: Operating expenses: 00.01 Death claims ............................................................. 00.02 Cash surrenders ........................................................ 00.03 Dividends ................................................................... 00.04 All other ..................................................................... 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 1995 actual 1997 est. 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 .................. .................. 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 37 104 112 1999 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 1,717 1,378 –1,353 1,397 –1,370 1,409 –1,382 1,415 –1,388 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3200 Invested capital ....................................... 863 1995 actual 1996 est. 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 21.40 3999 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. 23.90 23.95 24.40 40.00 40.75 New budget authority (gross), detail: Appropriation .................................................................. Reduction pursuant to P.L. 104–19 .............................. 43.00 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 Investments and loans .................................................. Insurance claims and indemnities ................................ Interest and dividends ................................................... 26 76 117 25 88 117 26 91 116 99.9 Total obligations ........................................................ 219 230 233 324 136 250 –1 ................... ................... 72.40 1997 est. 33.0 42.0 43.0 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 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 ........................................................................... 323 431 136 416 250 322 864 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. 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 .................... .................... 323 136 250 Object Classification (in millions of dollars) 1995 actual Identification code 36–0110–0–1–703 11.3 25.2 26.0 31.0 32.0 Personnel compensation: Other than full-time permanent ........................................................................... Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... Land and structures ...................................................... 99.9 Total obligations ........................................................ f 1996 est. 1997 est. 1 34 1 4 407 1 28 1 3 330 1 32 2 3 292 447 363 330 Personnel Summary Identification code 36–0110–0–1–703 1001 Total compensable workyears: Full-time equivalent employment ............................................................... 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] Total budget authority ................................................... 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. 1995 actual 37 1996 est. 50 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 40.00 40.75 New budget authority (gross), detail: Appropriation .................................................................. Reduction pursuant to P.L. 104–19 .............................. 43.00 Appropriation (total) .................................................. 153 190 189 70.00 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 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 29 104 49 114 49 127 87.00 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. CONSTRUCTION OF 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 f FOR THE 865 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 36–0183–0–1–705 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 Identification code 36–0111–0–1–703 1001 Total compensable workyears: Full-time equivalent employment ............................................................... GRANTS FOR CONSTRUCTION OF 1995 actual 80 1996 est. 80 1997 est. 21.40 80 23.90 23.95 24.40 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 Identification code 36–0181–0–1–703 1995 actual 1996 est. 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 ............................................................. 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 Total budgetary resources available for obligation New obligations ............................................................. 53 –53 47 –47 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 1 1 7 5 –3 9 9 –5 12 4 –3 9 12 13 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 3 5 3 87.00 Total outlays (gross) ................................................. 3 5 3 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 5 3 1 5 1 3 40 –40 PARKING REVOLVING FUND 40 72.40 146 134 140 53 47 40 –64 –41 –44 –1 ................... ................... 134 140 136 f 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 .................................................................. 5 1997 est. Obligations by program activity: 10.00 Total obligations (object class 41.0) ............................ 47 New budget authority (gross), detail: Appropriation .................................................................. 72.40 Program and Financing (in millions of dollars) 23.90 23.95 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 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. 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 44 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. 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 1995 actual 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) ..................................... 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. f 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. f 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 ........................................................ f 23 33 32 23 32 Personnel Summary Identification code 36–0170–0–1–705 1001 Total compensable workyears: Full-time equivalent employment ............................................................... 1995 actual 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 ......................... 1995 actual 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 73 278,000 282,552 285,076 302,000 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) Identification code 36–0129–0–1–705 869 1996 est. 1997 est. 11.1 11.3 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 Total obligations ........................................................ 72 73 77 77 f 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 ............................................................. Identification code 36–0129–0–1–705 11 72 –72 10 73 –73 10 77 –76 10 10 9 1001 Total compensable workyears: Full-time equivalent employment ............................................................... 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 1995 actual 1,315 1996 est. 1,321 1997 est. 1,355 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 ...................... 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 36 179 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 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 ......... 89.00 90.00 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 .................................. 18 1 1996 est. 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 f Total obligations ........................................................ 454 688 708 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 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. Identification code 36–4537–0–4–705 2001 2005 Total compensable workyears: Full-time equivalent employment .................................. Full-time equivalent of overtime and holiday hours 1995 actual 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 ............................... f f 1997 est. Personnel Summary Identification code 36–4539–0–4–705 2001 1995 actual 1996 est. Total compensable workyears: Full-time equivalent employment ............................................................... ................... ................... 1997 est. (in millions of dollars) 1996 est. 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. f 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. TITLE V—GENERAL PROVISIONS 445 GENERAL FUND RECEIPT ACCOUNTS 1995 actual 871 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.