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DEPARTMENT OF VETERANS AFFAIRS The 1998 Budget provides $18,705 million in discretionary budget authority for veterans’ health, benefits, and other services. DEPARTMENT OF VETERANS AFFAIRS IMPLEMENTATION OF THE GOVERNMENT PERFORMANCE AND RESULTS ACT 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 better determine how well its programs are meeting their intended objectives. During FY 1996, VA made significant advancements toward the effective implementation of GPRA by reinvigorating the Department’s strategic management process; enhancing the performance measures for all three of the major program offices; developing an initial set of goals, objectives, and performance measures for each of the staff offices; continuing its participation as a pilot agency in reports streamlining so as to consolidate various reporting requirements into two primary documents; and restructuring the annual budget submission so that it serves to satisfy the performance planning requirements of GPRA. Future GPRA efforts will focus on enhancing the relationship between goals of individual programs and goals of the Department; developing improved measures of program efficiency (unit cost) and program outcomes; modifying information systems to ensure that data are available on each measure; developing benchmark levels of performance that the organization is ultimately striving to achieve; and better linking organizational goals and performance with individual employee goals and performance. The ultimate aim is to develop and use a single set of performance goals and measures throughout the program planning, budget formulation, budget execution, and accountability processes. NEW RESOURCES FOR VETERANS MEDICAL CARE The request in 1998 establishes a new course for veterans’ health care that emphasizes and supports an emerging dynamic, business-like, healthcare system that is innovative and cost effective, and will improve the health and well-being of veterans throughout the Nation. The VA healthcare system will expand and improve with future budget increases provided by the proposed retention of all medical collections and user fees. The net total of these is an estimated $468 million in FY 1998 ($591 million less $123 million in administrative expenses). The budget schedule includes a legislative proposal to retain earnings from Medical Care Cost Recovery (MCCR) program third party and user fee collections as reimbursements to Medical Care starting on October 1, 1997. VA also plans to begin a demonstration program in 1998 to test the feasibility of ‘‘Medicare subvention’’, i.e. billing Medicare for healthcare provided to Medicare eligible Category C veterans. By 2002, assuming that Congress authorizes a Medicare subvention demonstration, and it is successful, and that Congress decides to allow VA to expand it nationwide, the combination of the Medicare reimbursements and allowing VA to retain medical collections and user fees would support a 30 percent lower unit cost and 20 percent more veterans served with 10 percent of the VA healthcare budget from non-appropriated revenues. It would also give veterans more healthcare provider choices. The schedule also includes appropriation adjustments to have Compensation and Pension exams directly funded from Veterans Benefit Administration (VBA) resources ($68 million reduced from Medical Care in 1998), and to allow two-year spending availability for up to 8.3 percent (one month) of resources made available. Proposal to Supplement Budget Authority with Medical Care Receipts [Dollars in millions] 1996 actual 1997 est. 1998 est. Budget Authority (BA) ................................................................. 16,551 17,013 Proposal to keep MCCR receipts: Gross collections ..................................................................... .................... .................... Administration cost ................................................................. .................... .................... Net Supplement to BA ............................................................ .................... .................... 16,959 Total ............................................................................................. 17,427 16,551 591 –123 468 17,013 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); ø$17,008,447,000,¿ $16,958,846,000, plus reimbursements: Provided, That øof the funds made available under this heading, $700,000,000 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.¿ not to exceed 8.3 percent of amounts made available herein shall remain available until September 30, 1999: Provided further, That funds under this heading shall be available for medical examinations required for benefits claims under title 38, United States Code. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Note: In addition to resources requested here, $468 million in net resources would be provided by an accompanying legislative proposal. 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 Nursing home care ........................................... 1996 actual 5,225 377 1,535 1,594 1997 est. 1998 est. 5,038 375 1,558 1,767 889 4,663 343 1,428 1,831 890 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 90.00 General and special funds—Continued Outlays ........................................................................... 16,048 17,028 16,702 MEDICAL CARE—Continued Summary of Budget Authority and Outlays Program and Financing (in millions of dollars)—Continued Identification code 36–0160–0–1–703 1996 actual (in millions of dollars) 1997 est. 1998 est. 00.05 00.06 00.07 00.08 00.09 Subacute care .................................................. Residential care ............................................... Outpatient care ................................................ Miscellaneous benefits and services ............... CHAMPVA ............................................................... 544 245 5,184 692 91 495 269 5,939 699 92 453 271 6,426 727 92 00.91 15,487 16,232 16,234 01.01 01.02 01.03 01.04 01.05 01.06 01.07 01.08 01.09 Total operating expenses ................................. Capital investment: Provision of veterans health care: Acute hospital care .......................................... Rehabilitative care ........................................... Psychiatric care ................................................ Nursing home care ........................................... Subacute care .................................................. Residential care ............................................... Outpatient care ................................................ Miscellaneous benefits and services ............... CHAMPVA ............................................................... 01.91 Total capital investment .................................. 820 863 806 01.92 02.01 Total direct program ............................................. Reimbursable program .................................................. 16,307 66 17,095 75 17,040 146 10.00 Total obligations ........................................................ 16,373 17,170 17,186 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.30 Unobligated balance expiring ........................................ 335 354 329 21 22 21 59 62 58 45 47 44 21 22 21 14 15 14 298 314 293 26 27 26 1 ................... ................... 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 501 731 650 16,617 17,088 17,105 –14 ................... ................... 17,104 –16,373 17,819 –17,170 17,755 –17,186 731 650 569 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 40.75 Reduction pursuant to P.L. 104–134 ....................... 16,564 17,013 16,959 –21 ................... ................... 43.00 16,543 68.00 68.26 68.90 70.00 Appropriation (total) ............................................. Permanent: Spending authority from offsetting collections: Offsetting collections (cash) ................................ Offsetting collections (unavailable balances) ...... 17,013 16,959 66 75 146 8 ................... ................... Spending authority from offsetting collections (total) ........................................................... 74 75 146 Total new budget authority (gross) .......................... 16,617 17,088 17,105 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 ............................................................. 72.40 2,179 2,394 2,460 16,373 17,170 17,186 –16,114 –17,103 –16,848 –44 ................... ................... 2,394 2,460 2,798 86.90 86.93 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 14,131 1,917 66 14,526 2,502 75 14,192 2,510 146 87.00 Total outlays (gross) ................................................. 16,114 17,103 16,848 Enacted/requested: 1996 actual 1997 est. Budget Authority ..................................................................... 16,551 17,013 Outlays .................................................................................... 16,048 17,028 Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... –47 –19 –53 –22 –123 –23 88.90 Total, offsetting collections (cash) .................. –66 –75 –146 89.00 Net budget authority and outlays: Budget authority ............................................................ 16,551 17,013 16,959 17,013 17,028 1996 actual 1997 projected 16,959 16,702 591 591 17,550 17,293 PERFORMANCE MEASURES 1994 actual Medical Care Summary: Unique users (in millions) .................. Chronic disease index ......................... Prevention index .................................. Percentage of inpatients receiving care in accordance with externally set and accepted standards .......... Percentage of patients reporting their care as very good or excellent: Inpatient .......................................... Outpatient ....................................... Percentage of networks improving performance on two-thirds of customer service standards ................. Bed-days of care per 1,000 unique users ............................................... Percentage of appropriate surgical and invasive diagnostic procedures performed on ambulatory basis ..... Percentage of patients enrolled in primary care ........................................ Percentage of medical care residents trained in primary care .................. 1995 actual 1998 projected 2.811 N/A N/A 2.890 N/A N/A 2.937 0.46 0.34 2.937 0.92 0.68 3.072 0.95 0.95 98 96 96 97 98 N/A N/A 60 60 65 61 70 70 75 75 N/A N/A 86 91 95 3,523 3,183 2,525 2,275 2,025 35 39 52 58 65 20 66 72 75 80 34.0 37.5 38.5 41.0 43.5 The performance measures and workloads reported in this schedule represent the total estimated workloads for fiscal years 1996–1998. Fiscal year 1998 estimated performance measures and workload levels can only be fully accomplished with: (1) approval of resources in this schedule; (2) passage of proposed legislation referenced in the following schedule; and (3) achieving receipts estimated. The short narrative descriptions of net change by program sub-activity that introduces these workload levels also include obligations and the average employment estimates in total, the aggregate of both regular and proposed legislation schedules. Provision of Veterans Health Care— Acute hospital care.—Costs for 1998 are estimated to decrease by $194 million for operating medical, neurology, surgical, contract and State home hospital beds, reflecting the shift to increased use of ambulatory care. Estimated operating levels are: 1996 actual Patients treated ...................................................................... Average daily census .............................................................. Average employment ............................................................... 621,495 13,948 67,902 1997 est. 575,334 12,266 61,175 1998 est. 560,377 11,364 57,364 Rehabilitative care.—A decrease of $18 million in 1998 is estimated for providing rehabilitative care, including spinal cord injury care. Estimated operating levels are: 1996 actual Patients treated ...................................................................... Average daily census .............................................................. Average employment ............................................................... Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... 88.40 Non-Federal sources ............................................. 16,551 16,048 1998 est. 18,625 1,642 5,724 1997 est. 18,021 1,516 5,344 1998 est. 17,537 1,399 4,998 Psychiatric care.—A decrease of $71 million is estimated in 1998 for the inpatient care of veterans with problems related to mental illness, including alcohol and drug problems. 1996 actual Patients treated ...................................................................... 177,287 I997 est. 172,624 1998 est. 167,985 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS Average daily census .............................................................. Average employment ............................................................... 11,037 25,162 9,558 22,474 11.3 11.5 Other than full-time permanent ........................... Other personnel compensation ............................. 863 783 717 801 704 763 Nursing home care.—In 1998, an increase of $116 million is estimated for the care of residents in VA nursing homes, contract nursing homes and State nursing homes. Estimated operating levels are: 11.9 12.1 13.0 8,152 1,900 11 8,207 1,935 148 8,015 1,914 15 31 108 12 31 25 23 55 51 118 12 34 30 25 63 52 123 12 32 30 26 66 430 13 1,221 464 15 1,363 465 14 1,528 12 275 338 143 13 289 325 150 14 303 364 158 85 85 85 2,317 92 632 187 2,608 95 567 256 2,673 94 545 258 41.0 41.0 43.0 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 .......................................... Medical and nursing fees ..................................... Community nursing homes ................................... Contract hospitalization ........................................ Civilian Health and Medical Program of the Department of Veterans Affairs ........................... 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 .............................................. 207 6 1 232 8 2 245 7 2 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 16,307 66 17,095 75 17,040 146 99.9 Total obligations ........................................................ 16,373 17,170 17,186 1996 actual Patients treated ...................................................................... Average daily census .............................................................. Average employment ............................................................... 82,390 33,733 19,567 10,357 23,944 891 1997 est. 86,091 35,182 20,494 1998 est. 87,446 35,876 20,806 Subacute care.—A decrease of $22 million is estimated in 1998 for the treatment of veterans who require a level of care between acute and long-term care, as provided in VA hospital intermediate bed sections. 1996 actual Patients treated ........................................................................... Average daily census .................................................................. Average employment ................................................................... 32,691 5,085 9,634 1997 est. 28,605 4,369 8,399 1998 est. 27,836 4,032 7,832 Residential care.—An increase of $12 million is estimated in 1998 for the care of veterans in locations other than their own homes, such as residential rehabilitation and domiciliary care programs. 1996 actual Patients treated ........................................................................... Average daily census .................................................................. Average employment ................................................................... 28,036 9,319 3,700 1997 est. 29,142 9,612 3,864 1998 est. 29,674 9,905 3,932 Outpatient care.—An increase of $758 million is estimated in 1998 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 ......................................................... Readjustment counseling ....................................................... 1996 actual 28,360 935 760 29,209 935 767 31,504 935 774 Total ........................................................................... 30,055 30,911 33,213 1997 est. 21.0 21.0 21.0 21.0 22.0 23.1 23.2 23.3 24.0 25.2 25.6 25.6 25.6 25.6 25.6 26.0 26.0 31.0 32.0 1998 est. Dental: Staff: Examinations .................................................................. Treatments ..................................................................... 234,968 152,373 235,000 150,000 235,000 150,000 Total ........................................................................... 387,341 385,000 385,000 Fee: Cases completed ........................................................ 16,647 16,500 16,500 Average employment ............................................................... 56,906 59,653 Personnel Summary 1996 actual Identification code 36–0160–0–1–703 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 63,911 1997 est. 1998 est. .............................. and holiday hours 194,364 3,470 188,143 3,395 177,987 3,141 .............................. and holiday hours 789 14 857 15 1,666 29 Note: An additional 7,664 FTE are funded through the legislative proposal authorizing Medical Care to retain medical collections and user fees. MEDICAL CARE (Legislative proposal, not subject to PAYGO) 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 $27 million is estimated for 1998. 1996 actual Average employment ............................................................... 6,416 1997 est. 5,985 1998 est. 5,858 Civilian health and medical program of the Department of Veterans Affairs (CHAMPVA).—No change is estimated in 1998 for private hospital and outpatient care for dependents and survivors of certain veterans. 1996 actual Average daily hospital census ................................................ Outpatient (in thousands) ...................................................... Average employment ............................................................... 150 822,637 142 1997 est. 150 822,637 142 1998 est. 150 822,637 142 Object Classification (in millions of dollars) Identification code 36–0160–0–1–703 11.1 Direct obligations: Personnel compensation: Full-time permanent ............................................. 1996 actual 6,506 1997 est. 6,689 1998 est. 6,548 Program and Financing (in millions of dollars) 1996 actual 1997 est. Obligations by program activity: Reimbursements: Operating expenses: Provision of veterans health care: 00.01 Acute hospital care .......................................... 00.02 Rehabilitative care ........................................... 00.03 Psychiatric care ................................................ 00.04 Nursing home care ........................................... 00.05 Subacute care .................................................. 00.06 Residential care ............................................... 00.07 Outpatient care ................................................ ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... 172 13 55 46 17 9 246 00.91 ................... ................... 558 Identification code 36–0160–2–1–703 01.01 01.02 01.03 01.04 01.05 01.06 01.07 01.91 Total operating expenses ................................. Capital investment: Provision of veterans health care: Acute hospital care .......................................... Rehabilitative care ........................................... Psychiatric care ................................................ Nursing home care ........................................... Subacute care .................................................. Residential care ............................................... Outpatient care ................................................ ................... ................... ................... ................... ................... ................... ................... 1998 est. ................... ................... ................... ................... ................... ................... ................... 14 1 2 2 1 1 12 Total capital investment .................................. ................... ................... 33 892 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued MEDICAL CARE—Continued Program and Financing (in millions of dollars)—Continued Identification code 36–0160–2–1–703 1996 actual 1997 est. 1998 est. 01.92 Total reimbursement program .............................. ................... ................... 591 10.00 Total obligations ........................................................ ................... ................... 591 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 591 –591 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... Act of 1990 make it difficult to fund discretionary programs with receipts that are not authorized in appropriations acts, the Administration is proposing a change in the requirements to facilitate the enactment of proposals such as this one. The additional expenditures described below include the administrative costs of collecting receipts and user fees for the medical services provided. Provision of Veterans Health Care— Acute hospital care—Medical collections and user fees provide an estimated $186 million in 1998 for operating medical, neurology, and surgical hospital beds. 591 Change in unpaid obligations: 73.10 New obligations ............................................................. ................... ................... 73.20 Total outlays (gross) ...................................................... ................... ................... 591 –591 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. ................... ................... 591 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 591 591 89.00 90.00 The request in 1998 establishes a new course for veterans’ health care that emphasizes and supports an emerging dynamic, business-like healthcare system that is innovative and cost effective, and will improve the health and well being of veterans throughout the Nation. The VA healthcare system will expand and improve with future budget increases provided by the proposed retention of all medical collections and user fees. The net total of these is an estimated $468 million in FY 1998 ($591 million less $123 million in administrative expenses). The budget schedule includes a legislative proposal to retain earnings from Medical Care Cost Recovery (MCCR) program third party and user fee collections as reimbursements to Medical Care starting on October 1, 1997. VA also plans to begin a demonstration program in 1998 to test the feasibility of ‘‘Medicare subvention’’, i.e.—billing Medicare for healthcare provided to Medicare eligible Category C veterans. By FY 2002, assuming that the Congress authorizes a Medicare subvention demonstration and it is successful, and that Congress decides to allow VA to expand it nationwide, the combination of the Medicare reimbursements and allowing VA to retain medical collections and user fees would support a 30 percent lower unit cost and 20 percent more veterans served with 10 percent of the VA healthcare budget from non-appropriated revenues. It would also give veterans more healthcare provider choices. The MCCR legislation proposed for FY 1998 repeals Section 1729(g) of title 38, United States Code, and inserts language requiring all amounts recovered or collected (third party, medical fees and other receipts) for medical care and other services furnished to be deposited in the Department of Veterans Affairs’ Medical Care account and be available until expended. At the same time, the existing Medical Care Cost Recovery (MCCR) Fund is proposed for termination. These additional expenditures within this discretionary account are being funded through offsetting receipts as the result of the merger of the MCCR activities with the Medical Care account. This is one of several proposals in the budget to charge fees to users directly availing themselves of, or subject to, a government service, program, or activity, in order to cover the government’s costs. Legislation will be proposed to authorize the fees and, upon enactment of the authorization, a budget amendment to the current appropriations language will be proposed to make the fees available for expenditure. Because the current requirements of the Budget Enforcement 1998 est. Patients treated ...................................................................................................................... Average daily census ............................................................................................................. Average employment .............................................................................................................. 15,835 315 2,390 Rehabilitative care.—Medical collections and user fees provide an estimated $14 million in 1998 for rehabilitative care, including spinal cord injury care. 1998 est. Patients treated ...................................................................................................................... Average daily census ............................................................................................................. Average employment .............................................................................................................. 513 41 208 Psychiatric care.—Medical collections and user fees provide an estimated $57 million in 1998 for inpatient care of veterans with problems related to mental illness, including alcohol and drug problems. 1998 est. Patients treated ...................................................................................................................... Average daily census ............................................................................................................. Average employment .............................................................................................................. 4,911 279 938 Nursing home care.—Medical collections and user fees provide an estimated $48 million in 1998 for the care of residents in VA nursing homes. 1998 est. Patients treated ...................................................................................................................... Average daily census ............................................................................................................. Average employment .............................................................................................................. 1,128 409 839 Subacute care.—Medical collections and user fees provide an estimated $18 million in 1998 for the treatment of veterans who require a level of care between acute and longterm care, as provided in VA hospital immediate bed sections. 1998 est. Patients treated ...................................................................................................................... Average daily census ............................................................................................................. Average employment .............................................................................................................. 814 118 327 Residential care.—Medical collections and user fees provide an estimated $10 million in 1998 for the care of veterans in locations other than their own homes, such as residential rehabilitation and domiciliary care programs. 1998 est. Patients treated ...................................................................................................................... Average daily census ............................................................................................................. Average employment .............................................................................................................. 657 174 163 Outpatient care.—Medical collections and user fees provide an estimated $258 million in 1998 for the cost of outpatient medical care provided by VA staff and other health professionals participating under a fee basis arrangement for certain eligible veterans. NUMBER OF MEDICAL VISITS 1998 est. Medical visits (in thousands) ................................................................................................ Staff ................................................................................................................................... Fee ...................................................................................................................................... 921 27 Total ............................................................................................................................... Average employment .............................................................................................................. 948 2,799 Object Classification (in millions of dollars) Identification code 36–0160–2–1–703 99.0 99.9 1996 actual 1997 est. 1998 est. Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... ................... ................... 591 Total obligations ........................................................ ................... ................... 591 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS Personnel Summary 1996 actual Identification code 36–0160–2–1–703 1997 est. 1998 est. Total compensable workyears: 2001 Full-time equivalent employment .................................. ................... ................... 2005 Full-time equivalent of overtime and holiday hours ................... ................... MEDICAL AND 7,664 73 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, ø1998, $262,000,000¿ 1999, $234,374,000, plus reimbursements. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 36–0161–0–1–703 1996 actual 1997 est. 1998 est. Obligations by program activity: Direct program: Operating expenses: 00.01 Medical research ................................................... 00.02 Rehabilitation research ......................................... 00.03 Health services research ...................................... 192 23 30 210 24 32 178 22 33 00.91 245 266 233 01.01 01.02 01.03 Total operating expenses ................................. Capital investment: Medical research ................................................... Rehabilitation research ......................................... Health services research ...................................... 8 1 2 7 1 2 5 1 1 01.91 Total capital investment .................................. 11 10 7 01.92 02.01 Total direct program ............................................. Reimbursable program .................................................. 256 51 276 45 240 46 10.00 Total obligations ........................................................ 307 321 893 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 Department of Defense, 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. 286 SUMMARY OF BUDGETARY RESOURCES Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.30 Unobligated balance expiring ........................................ 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: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 70.00 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 ............................................................. [In millions of dollars] 20 20 6 308 307 280 –1 ................... ................... 327 –307 20 327 –321 286 –286 1997 est. 1998 est. 257 335 209 106 16 262 328 217 110 20 234 325 224 113 * Total budgetary resources ............................................. 923 937 896 1996 actual 1997 projected 6 ................... *DoD reimbursements for FY 1998 are unknown. 257 262 PERFORMANCE MEASURES 234 1994 actual 51 45 46 308 307 280 72.40 52 79 94 307 321 286 –283 –305 –288 2 ................... ................... 79 94 Research Summary: Total number of projects funded ............. Total number of new projects funded Number of cooperative studies ................ Number of VA-funded studies involving VA patients or VA data bases ............ Percentage of projects receiving total or partial funding from extra-VA sources Percentage of funds coming from extramural sources ...................................... 1995 actual 1,870 261 28 1,771 334 31 1,666 192 35 1,644 200 37 1,469 120 37 972 854 786 786 786 58 58 57 59 64 54 54 59 61 64 Identification code 36–0161–0–1–703 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 178 54 51 192 68 45 172 70 46 87.00 Total outlays (gross) ................................................. 283 305 288 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –51 –45 –46 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 257 232 262 260 234 242 1998 projected Object Classification (in millions of dollars) 93 86.90 86.93 86.97 89.00 90.00 1996 actual Medical and prosthetic research appropriation .......................... Medical care appropriation ......................................................... Federal grants (NIH) .................................................................... Other grants (voluntary agencies, private proprietary) .............. DOD reimbursements ................................................................... 11.1 11.3 11.5 11.9 12.1 21.0 23.3 24.0 25.5 26.0 Direct obligations: Personnel compensation: Full-time permanent ............................................. Other than full-time permanent ........................... Other personnel compensation ............................. Total personnel compensation ......................... Civilian personnel benefits ....................................... Employee travel ......................................................... Communications, utilities, and miscellaneous charges ................................................................. Printing and reproduction ......................................... Research and development contracts ....................... Supplies and materials ............................................. 1996 actual 1997 est. 1998 est. 34 68 4 41 76 4 39 71 4 106 27 2 121 28 2 114 24 2 1 1 73 22 1 1 80 32 1 1 69 22 894 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued MEDICAL AND construction programs through program development, implementation, and the administration of policies, plans, and objectives. PROSTHETIC RESEARCH—Continued Object Classification (in millions of dollars)—Continued Object Classification (in millions of dollars) 1996 actual Identification code 36–0161–0–1–703 1997 est. 1998 est. 31.0 41.0 Equipment ................................................................. Grants, subsidies, and contributions ........................ 11 11 7 13 ................... ................... 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 256 51 276 45 240 46 99.9 Total obligations ........................................................ 307 321 286 Personnel Summary Identification code 36–0161–0–1–703 Direct: Total compensable workyears: 1001 Full-time equivalent employment .............................. 1005 Full-time equivalent of overtime and holiday hours Reimbursable: 2001 Total compensable workyears: Full-time equivalent employment ............................................................... 1996 actual 1997 est. 1998 est. 2,595 17 2,833 17 2,522 17 655 527 1996 actual Identification code 36–0152–0–1–703 11.9 12.1 13.0 21.0 23.1 23.3 25.2 26.0 31.0 Total personnel compensation .............................. 43 44 43 Civilian personnel benefits ............................................ 6 7 6 Benefits for former personnel ........................................ 1 ................... ................... Travel and transportation of persons: employee travel ................... 1 1 Rental payments to GSA ................................................ 5 5 5 Communications, utilities, and miscellaneous charges 1 ................... ................... Other services ................................................................ 3 3 3 Supplies and materials ................................................. 1 1 1 Equipment ...................................................................... 3 ................... 1 99.9 Total obligations ........................................................ 1001 1005 Program and Financing (in millions of dollars) Identification code 36–0152–0–1–703 40 1 2 40 2 2 63 61 39 2 2 60 Personnel Summary Identification code 36–0152–0–1–703 For necessary expenses in the administration of the medical, hospital, nursing home, domiciliary, construction, supply, and research activities, as authorized by law; 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; ø$61,207,000¿ $60,160,000, plus reimbursements. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 1998 est. 11.1 11.3 11.5 431 MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING EXPENSES 1997 est. Personnel compensation: Full-time permanent .................................................. Other than full-time permanent ............................... Other personnel compensation .................................. Total compensable workyears: Full-time equivalent employment .................................. Full-time equivalent of overtime and holiday hours 1996 actual 1997 est. 635 1 1998 est. 610 1 565 1 HEALTH PROFESSIONAL SCHOLARSHIP PROGRAM Program and Financing (in millions of dollars) Identification code 36–0163–0–1–703 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 1996 actual 1997 est. 1998 est. 72.40 10 4 4 –6 ................... ................... 4 4 4 86.93 1996 actual 1997 est. Outlays (gross), detail: Outlays from current balances ...................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 6 ................... ................... 1998 est. Obligations by program activity: 00.01 Operating expenses: Integrated health care system administration ........................................................... 63 61 60 10.00 Total obligations ........................................................ 63 61 60 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 63 –63 61 –61 60 –60 40.00 New budget authority (gross), detail: Appropriation .................................................................. 63 61 60 6 63 –57 13 61 –68 6 60 –60 13 6 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 ............................................................. Health professional scholarship.—To assist in the recruitment and retention of staff, this program provided grants for tuition, stipend, and other educational expenses for eligible students in programs leading to a degree in nursing or other allied health disciplines. No appropriation for this account was requested in FY 1997 and none is requested for FY 1998. 72.40 MEDICAL CARE COST RECOVERY FUND Unavailable Collections (in millions of dollars) Identification code 36–5014–0–2–703 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. 86.93 Outlays from current balances ...................................... 53 4 56 12 55 5 87.00 Total outlays (gross) ................................................. 57 68 60 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 63 57 61 68 60 60 1997 est. Balance, start of year: Balance, start of year .................................................... 1,101 1,060 Receipts: 02.01 Medical cost recovery .................................................... 93 97 02.02 Medical cost recovery, legislative proposal, not subject to PAYGO ................................................................... ................... ................... 02.03 Medical cost recovery, legislative proposal, subject to PAYGO ................................................................... ................... ................... 01.99 04.00 Supervision and administration of VA’s comprehensive and integrated healthcare system.—Central office staff elements provide executive direction for all Department medical and 1996 actual Total: Balances and collections .................................... 1,194 1,157 Appropriation: 05.01 Medical care cost recovery fund ................................... –126 –119 05.03 Medical care cost recovery fund, legislative proposal subject to PAYGO ...................................................... ................... ................... 1998 est. 1,038 176 176 –176 1,214 –123 123 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 05.04 Medical care .................................................................. 05.99 07.99 Subtotal appropriation ................................................... Total balance, end of year ............................................ [In millions of dollars] –8 ................... ................... 1996 actual –134 1,060 –119 ................... 1,038 1,214 1996 actual 1997 est. 1998 est. 00.09 00.10 Obligations by program activity: Operating expenses ........................................................ Capital investment ........................................................ 103 16 114 5 10.00 Total obligations ........................................................ 119 119 123 23.90 23.95 24.40 60.25 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: Appropriation (special fund, indefinite) ........................ 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 ............................................................. 1998 est. 495 62 471 62 523 68 Total collections ............................................................. Total program costs ....................................................... Ratio of costs to collections ....................................................... 557 119 21.3% 533 120 22.4% 591 123 20.8% 118 5 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 1997 est. Program activity Third-party recoveries .................................................................. Copayments and other collections .............................................. Program and Financing (in millions of dollars) Identification code 36–5014–0–2–703 895 Object Classification (in millions of dollars) 1996 actual Identification code 36–5014–0–2–703 1997 est. 1998 est. 11.1 11.5 6 126 14 119 13 123 132 –119 133 –119 136 –123 14 13 13 126 119 123 Personnel compensation: Full-time permanent .................................................. Other personnel compensation .................................. 57 15 59 16 61 16 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 ...................................................................... 72 16 3 4 4 4 16 75 17 3 5 7 7 5 77 17 3 5 8 8 5 99.9 Total obligations ........................................................ 119 119 123 Personnel Summary 72.40 14 23 23 119 119 123 –109 –119 –123 –1 ................... ................... 23 23 24 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... 109 119 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 126 109 119 119 1005 1011 123 89.00 90.00 Identification code 36–5014–0–2–703 123 123 Total compensable workyears: Full-time equivalent of overtime and holiday hours Exempt Full-time equivalent employment ..................... 1996 actual 1997 est. 46 2,269 46 2,295 1998 est. 46 2,295- MEDICAL CARE COST RECOVERY FUND (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) Identification code 36–5014–4–2–703 Summary of Budget Authority and Outlays 1996 actual 1997 est. 1998 est. 00.09 00.10 Obligations by program activity: Operating expenses ........................................................ ................... ................... Capital investment ........................................................ ................... ................... –118 –5 10.00 Total obligations ........................................................ ................... ................... –123 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... –123 123 60.25 New budget authority (gross), detail: Appropriation (special fund, indefinite) ........................ ................... ................... –123 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total outlays (gross) ...................................................... ................... ................... –123 123 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... ................... –123 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –123 –123 (in millions of dollars) 1996 actual 1997 est. Enacted/requested: Budget Authority ..................................................................... 126 119 Outlays .................................................................................... 109 119 Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 126 109 1998 est. 123 123 –123 –123 119 .................... 119 .................... 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 1998, 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. Language is being proposed that would merge all medical related collections with the Medical Care account. VA is expected to receive a net increase of $468 million in funds to support the medical care of veterans through this concept. Object Classification (in millions of dollars) Identification code 36–5014–4–2–703 1996 actual 1997 est. 1998 est. 11.1 11.5 Personnel compensation: Full-time permanent .................................................. ................... ................... Other personnel compensation .................................. ................... ................... –61 –16 11.9 Total personnel compensation .............................. ................... ................... –77 896 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued ference 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. MEDICAL CARE COST RECOVERY FUND—Continued Object Classification (in millions of dollars)—Continued Object Classification (in millions of dollars) 1996 actual 1997 est. ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... –17 –3 –5 –8 –8 –5 Total obligations ........................................................ ................... ................... –123 Identification code 36–5014–4–2–703 12.1 21.0 23.3 25.2 26.0 31.0 99.9 Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Communications, utilities, and miscellaneous charges Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... 1998 est. Identification code 36–4138–0–3–703 26.0 31.0 99.0 99.9 1005 1011 1996 actual 1997 est. Identification code 36–4014–0–3–705 –46 –2,295 Program and Financing (in millions of dollars) 1996 actual Obligations by program activity: Operating expenses ........................................................ ................... Capital investment ........................................................ 1 Total obligations ........................................................ Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.21 Unobligated balance transferred to other accounts Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... New budget authority (gross), detail: 68.00 Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 1 1998 est. 1 1 1 1 2 2 17 6 6 2 2 2 –12 ................... ................... 87.00 1997 est. 1998 est. 131 87 132 86 Total operating expenses ...................................... Capital investment: Sales program: Purchase of equipment and leasehold .......................................... 195 218 218 7 7 7 Total obligations ........................................................ 202 225 225 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.90 Fund balance ............................................................. 21.91 U.S. Securities: Par value ......................................... –12 38 –14 42 –15 42 21.99 22.00 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 26 204 28 225 27 226 230 –202 253 –225 253 –225 24.90 24.91 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ............................................................. U.S. Securities: Par value ......................................... –14 42 –15 42 –14 42 8 –2 8 –2 24.99 Total unobligated balance, end of year .................... 28 27 28 6 6 5 68.00 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 204 225 226 15 202 –204 14 225 –225 15 225 –226 14 15 15 2 2 2 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) ................................................. 204 225 226 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... 88.40 Non-Federal sources ............................................. –2 –202 –2 –223 –1 –225 –2 88.90 –204 –225 –226 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –1 2 2 89.00 90.00 Outlays (gross), detail: Outlays from new permanent authority ......................... 1 Outlays from permanent balances ................................ ................... Total outlays (gross) ................................................. Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources 89.00 90.00 1996 actual 7 –1 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 1 ................... ................... 73.10 New obligations ............................................................. 1 2 2 73.20 Total outlays (gross) ...................................................... –1 –4 –4 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. ................... ................... ................... 86.97 86.98 2 117 78 10.00 1997 est. 21.40 23.90 23.95 24.40 Obligations by program activity: Operating expenses: 00.01 Acquisitions ............................................................... 00.02 Direct operations ....................................................... 00.91 01.01 MEDICAL FACILITIES REVOLVING FUND 10.00 2 1 1 1 2 23.90 23.95 Public enterprise funds: 00.01 00.02 Total obligations ........................................................ 1998 est. 1 1 2 Program and Financing (in millions of dollars) 1998 est. Total compensable workyears: Full-time equivalent of overtime and holiday hours ................... ................... Exempt Full-time equivalent employment ..................... ................... ................... Identification code 36–4138–0–3–703 1997 est. CANTEEN SERVICE REVOLVING FUND Personnel Summary Identification code 36–5014–4–2–703 1996 actual Supplies and materials ................................................. ................... Equipment ...................................................................... 1 Subtotal, reimbursable obligations ............................... 1 1 –2 2 2 2 2 4 4 –2 This account provides funds for the operating expenses of VA medical facilities furnishing nursing home care to certain veterans in receipt of pensions. Title 38 provides that a veteran with no spouse or child will only receive $90 per month in pension beginning the third full month following the month of admission to VA furnished nursing home care. The dif- Total, offsetting collections (cash) .................. 202 225 226 2 ................... ................... Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –2 ................... ................... 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. VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New budget authority (gross) ........................................ Statement of Operations (in millions of dollars) 897 21.90 1995 actual Identification code 36–4014–0–3–705 1996 actual 1997 est. 1998 est. 0101 0102 Revenue ................................................... Expense .................................................... 209 –206 209 –206 225 –221 225 –222 0109 Net income or loss (–) ............................ 3 3 4 3 5 32 8 35 8 37 37 –29 43 –35 45 –37 8 8 8 32 35 37 2 29 –29 1 35 –32 4 37 –33 1 4 8 Outlays (gross), detail: Outlays from new permanent authority ......................... 29 32 33 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. –32 –35 –37 23.90 23.95 24.90 Balance Sheet (in millions of dollars) 1995 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 1996 actual 1997 est. 68.00 1998 est. 3 .................. 2 4 38 2 2 .................. 40 1 2 .................. 41 2 2 .................. 42 2 1 1 27 25 24 28 25 28 26 28 Total assets ........................................ LIABILITIES: Federal liabilities: 2101 Accounts payable ................................ 2104 Resources payable to Treasury ........... Non-Federal liabilities: 2201 Accounts payable ................................ 2207 Other ................................................... 97 95 100 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 ............................................................. 104 2999 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 1999 2 1 .................. 1 1 2 .................. 2 10 5 9 8 8 8 9 8 Total liabilities .................................... NET POSITION: 3200 Invested capital ....................................... 3600 Other ........................................................ 18 18 19 19 44 34 42 35 47 34 46 39 3999 Total net position ................................ 78 77 81 85 4999 Total liabilities and net position ............ 96 95 100 104 Object Classification (in millions of dollars) 1996 actual Identification code 36–4014–0–3–705 1997 est. 1998 est. 11.1 11.3 Personnel compensation: Full-time permanent .................................................. Other than full-time permanent ............................... 40 14 41 18 40 18 11.9 12.1 21.0 22.0 23.3 24.0 25.2 26.0 31.0 99.0 Total personnel compensation .............................. 54 Civilian personnel benefits ............................................ 15 Travel and transportation of persons ............................ 1 Transportation of things ................................................ ................... Communications, utilities, and miscellaneous charges ................... Printing and reproduction .............................................. ................... Other services ................................................................ 3 Supplies and materials ................................................. 123 Equipment ...................................................................... 6 Subtotal, reimbursable obligations ............................... 202 59 18 3 1 1 1 6 128 8 225 58 18 3 1 1 1 6 129 8 225 225 225 99.9 Total obligations ........................................................ 202 72.40 86.97 89.00 90.00 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) Identification code 36–4048–0–3–703 2011 SPECIAL THERAPEUTIC AND 3,065 1997 est. 1998 est. 3,200 3,200 REHABILITATION ACTIVITIES FUND Program and Financing (in millions of dollars) Identification code 36–4048–0–3–703 1996 actual 1997 est. 1998 est. Obligations by program activity: Reimbursable Program: 00.01 Contracts ................................................................... 00.02 Education and training ............................................. 00.03 Operating expenses ................................................... 18 1 10 22 1 12 23 2 12 10.00 29 35 37 Total obligations ........................................................ 1996 actual 1997 est. 1998 est. Revenue ................................................... Expense .................................................... 27 –23 32 –27 35 –35 37 –37 0109 Net income or loss (–) ............................ 4 5 .................. .................. 1997 est. 1998 est. Balance Sheet (in millions of dollars) 1996 actual Total compensable workyears: Exempt Full-time equivalent employment ...................................................... 1995 actual 0101 0102 Personnel Summary Identification code 36–4014–0–3–705 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –3 –3 –3 Identification code 36–4048–0–3–703 ASSETS: Federal assets: 1101 Fund balances with Treasury ............. Investments in US securities: 1106 Receivables, net ............................. 1206 Non-Federal assets: Receivables, net ..... 1803 Other Federal assets: Property, plant and equipment, net ............................ 1999 Total assets ........................................ LIABILITIES: 2101 Federal liabilities: Accounts payable ...... 2999 Total liabilities .................................... NET POSITION: 3200 Invested capital ....................................... 3300 Cumulative results of operations ............ 3999 Total net position ................................ 1995 actual 1996 actual 7 10 13 16 2 1 1 1 1 1 1 1 .................. 1 1 1 10 13 16 19 1 1 4 7 1 1 4 7 .................. 8 1 11 .................. 11 .................. 11 8 12 11 11 898 VETERANS HEALTH ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Public enterprise funds—Continued SPECIAL THERAPEUTIC Trust Funds REHABILITATION ACTIVITIES FUND— Continued øTRANSITIONAL HOUSING LOAN PROGRAM¿ GENERAL POST FUND, NATIONAL HOMES AND (INCLUDING TRANSFER OF FUNDS) Balance Sheet (in millions of dollars)—Continued Identification code 36–4048–0–3–703 4999 Total liabilities and net position ............ 1995 actual 1996 actual 9 13 1997 est. 15 1998 est. 18 Object Classification (in millions of dollars) Identification code 36–4048–0–3–703 1996 actual 1997 est. 1998 est. 25.2 26.0 31.0 Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... 26 2 1 31 3 1 33 3 1 99.9 Total obligations ........................................................ 29 35 37 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. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Unavailable Collections (in millions of dollars) Identification code 36–8180–0–7–705 MEDICAL CENTER RESEARCH ORGANIZATIONS Program and Financing (in millions of dollars) Identification code 36–4026–0–3–703 1996 actual 1997 est. 1998 est. 00.01 00.02 Obligations by program activity: Operating expenses ........................................................ Capital investment ........................................................ 25 3 26 3 26 3 10.00 Total obligations ........................................................ 28 29 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 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) ..................................... 18 28 18 29 47 –29 47 –29 18 18 18 28 29 1996 actual 1997 est. 1998 est. 2 2 5 24 28 29 3 3 3 Total receipts ............................................................. 27 31 32 Total: Balances and collections .................................... Appropriation: 05.01 General post fund, national homes ............................... 07.99 Total balance, end of year ............................................ 29 33 37 –27 2 –28 5 –29 8 02.99 04.00 18 29 46 –28 Balance, start of year: 01.99 Balance, start of year .................................................... Receipts: 02.01 General post fund, national homes, deposits ............... 02.02 General post fund, national homes, interest on investments ......................................................................... 29 Program and Financing (in millions of dollars) Identification code 36–8180–0–7–705 00.01 00.02 00.03 00.04 10.00 1996 actual Obligations by program activity: Religious, recreational, and entertainment activities 21 Research activities ........................................................ 3 Therapeutic residence maintenance .............................. ................... Therapeutic residence purchase and renovation .......... 1 1997 est. 1998 est. 21 22 3 4 1 1 1 ................... 28 –28 29 –29 29 –29 Outlays (gross), detail: 86.97 Outlays from new permanent authority ......................... 28 29 29 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... 88.40 Non-Federal sources ............................................. –1 –27 –1 –28 –1 –28 88.90 –28 –29 –29 Total, offsetting collections (cash) .................. Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... ................... ................... ................... 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. Object Classification (in millions of dollars) Identification code 36–4026–0–3–703 25.2 26.0 31.0 99.9 Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... Total obligations ........................................................ 1996 actual 17 8 3 28 1997 est. 18 8 3 29 1998 est. 18 8 3 29 Total obligations ........................................................ 25 26 27 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.40 Uninvested balance ................................................... 21.41 U.S. Securities: Par value ......................................... –1 36 –3 40 –1 40 21.99 22.00 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 35 27 37 28 39 29 23.90 23.95 62 –25 65 –26 68 –27 24.40 24.41 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... U.S. Securities: Par value ......................................... –3 40 –1 40 –1 42 24.99 Change in unpaid obligations: 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... Total unobligated balance, end of year .................... 37 39 41 60.27 New budget authority (gross), detail: Appropriation (trust fund, indefinite) ............................ 27 28 29 3 25 –24 5 26 –25 6 27 –25 5 6 7 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 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 22 2 23 2 23 2 87.00 Total outlays (gross) ................................................. 24 25 25 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 27 24 28 25 29 25 VETERANS BENEFITS ADMINISTRATION Federal Funds DEPARTMENT OF VETERANS AFFAIRS 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. 899 counts. Amounts for 1996, 1997, and 1998 are shown on a comparable basis. The following table shows the distribution of the amounts (dollars in millions) appropriated in 1996 and 1997 and requested in 1998. Distribution of budget authority by account: Compensation ......................................................................... Pensions .................................................................................. Burial benefits ........................................................................ Distribution of outlays by account: Compensation ......................................................................... Pensions .................................................................................. Burial benefits ........................................................................ 1996 actual 1997 est. 1998 est. 15,415 3,074 114 16,163 3,145 117 16,438 3,184 119 14,222 2,834 114 16,160 3,141 117 16,436 3,177 119 COMPENSATION For the payment of compensation benefits to or on behalf of veterans and a pilot program for disability examinations as authorized by law, $16,437,688,000, to remain available until expended, of which not to exceed $2,083,000 shall be reimbursed to ‘‘General operating expenses’’ for necessary expenses as authorized by chapters 11, 13, 18, 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.) Program and Financing (in millions of dollars) Object Classification (in millions of dollars) Identification code 36–0153–0–1–701 1996 actual Identification code 36–8180–0–7–705 1997 est. 21.0 25.2 26.0 31.0 32.0 Travel and transportation of persons ............................ Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... Land and structures ...................................................... 1 11 6 4 3 1 12 6 4 3 1 12 6 4 4 99.9 Total obligations ........................................................ 25 26 27 VETERANS BENEFITS ADMINISTRATION Federal Funds General and special funds: øCOMPENSATION AND 1996 actual 1997 est. 1998 est. 1998 est. PENSIONS¿ øFor the payment of compensation benefits to or on behalf of veterans as authorized by law (38 U.S.C. 107, chapters 11, 13, 51, 53, 55, and 61); pension benefits to or on behalf of veterans as authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, emergency and other officers’ retirement pay, adjusted-service credits and certificates, payment of premiums due on commercial life insurance policies guaranteed under the provisions of Article IV of the Soldiers’ and Sailors’ Civil Relief Act of 1940, as amended, and for other benefits as authorized by law (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); $18,671,259,000, to remain available until expended: Provided, That not to exceed $26,417,000 of the amount appropriated shall be reimbursed to ‘‘General operating expenses’’ and ‘‘Medical care’’ for necessary expenses in implementing those provisions authorized in the Omnibus Budget Reconciliation Act of 1990, and in the Veterans’ Benefits Act of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding source for which is specifically provided as the ‘‘Compensation and pensions’’ appropriation: Provided further, That 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 the Veterans’ Benefits Act of 1992 (38 U.S.C. chapter 55). For an additional amount for ‘‘Compensation and Pensions’’, $100,000,000, to be made available upon enactment of this Act, to remain available until expended.¿ Activities formerly included in this account are proposed to be financed by three separate appropriation accounts in 1998 and are presented below in the ‘‘Compensation’’, ‘‘Pensions’’, and ‘‘Burial benefits and miscellaneous assistance’’ ac- Obligations by program activity: Compensation: Veterans: 00.02 World War I ........................................................... 00.03 World War II .......................................................... 00.04 Korean conflict ...................................................... 00.05 Vietnam era .......................................................... 00.06 Peacetime service ................................................. 00.07 Persian Gulf conflict ............................................. 3 3,421 1,160 4,722 2,479 467 2 3,201 1,128 4,846 2,534 569 2 3,168 1,166 5,286 2,773 708 12,252 12,280 13,103 01.04 01.05 01.06 01.07 01.08 01.09 Total veterans ................................................... Survivors: World War I ........................................................... World War II .......................................................... Korean conflict ...................................................... Vietnam era .......................................................... Peacetime service ................................................. Persian Gulf conflict ............................................. 63 1,279 382 928 452 45 52 1,232 374 951 432 51 46 1,274 393 1,043 442 60 01.91 02.01 Total survivors .................................................. Clothing allowance .................................................... 3,149 37 3,092 36 3,258 38 16,399 03.02 03.03 Total compensation ............................................... 15,437 15,409 Children: Vietnam Era ............................................................... ................... ................... Ch 18 Voc Rehab ...................................................... ................... ................... 03.91 09.01 09.02 Total Children ....................................................... ................... ................... Payment to general operating expenses ....................... 2 2 Medical Exam Pilot Program ......................................... ................... 8 21 2 16 00.91 02.93 18 3 09.91 Total other ................................................................. 2 10 18 10.00 Total obligations (object class 42.0) ........................ 15,440 15,418 16,438 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 33 15,415 8 ................... 15,410 16,438 21.40 23.90 23.95 24.40 40.00 41.00 42.00 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 15,448 –15,440 15,418 –15,418 16,438 –16,438 8 ................... ................... New budget authority (gross), detail: Appropriation .................................................................. 15,275 15,564 16,438 Transferred to other accounts ....................................... ................... –154 ................... Transferred from other accounts ................................... 140 ................... ................... 43.00 Appropriation (total) .................................................. 15,415 15,410 16,438 70.00 Total new budget authority (gross) .......................... 15,415 15,410 16,438 900 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued COMPENSATION—Continued Program and Financing (in millions of dollars)—Continued 1996 actual Identification code 36–0153–0–1–701 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 ............................................................. 1997 est. 1998 est. 72.40 13 15,440 –14,222 1,232 15,418 –15,407 1,243 16,438 –16,436 1,232 1,243 1,245 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 14,176 46 14,175 1,232 15,193 1,243 87.00 Total outlays (gross) ................................................. 14,222 15,407 16,436 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 15,415 14,222 15,410 15,407 Average payment per case, per year ........................ Total obligations (in millions) .......................... 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 ................................................. ...................... ...................... ...................... ...................... $3,095 $3 1 19 2 6,232 124,731 37,250 89,636 44,766 3,604 1 14 2 5,254 122,057 37,093 93,182 43,677 4,120 1 10 2 4,431 119,530 36,967 96,812 42,620 4,627 Total .................................................................. Average payment per case, per year ........................ Total obligations (in millions) .......................... 306,241 $10,286 $3,150 305,400 10,609 3,240 305,000 10,683 3,258 Clothing allowance: Number of veterans ................................................... Average payment per case, per year ........................ Total obligations (in millions) .......................... 73,102 $503 $37 73,700 518 $37 74,300 518 $38 16,438 16,436 COMPENSATION (Legislative proposal, not subject to PAYGO) Summary of Budget Authority and Outlays Program and Financing (in millions of dollars) (in millions of dollars) Enacted/requested: Budget Authority ..................................................................... Outlays .................................................................................... Supplemental proposal: Budget Authority ..................................................................... Outlays .................................................................................... Legislative proposal, not subject to PAYGO: Budget Authority ..................................................................... Outlays .................................................................................... Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... Outlays .................................................................................... 1996 actual 1997 est. 1998 est. 15,410 15,407 .................... .................... 16,438 16,436 753 .................... 753 .................... .................... .................... .................... .................... 331 298 .................... .................... .................... .................... –17 –17 Total: Budget Authority ..................................................................... Outlays .................................................................................... 15,415 14,222 16,163 16,160 16,752 16,717 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. Dependency 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. Compensation and vocational rehabilitation is provided to the children of Vietnam veterans who were born with the birth defect spina bifida. 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) .......................... Children of Vietnam era veterans: Children ..................................................................... Average payment per case, per year ........................ Total obligations (in millions) .......................... Chapter 18 Vocational rehabilitations: Rehabilitations .......................................................... 1996 actual 1997 est. 1998 est. 11 483 671,110 188,427 709,079 522,233 151,764 11 330 634,900 184,700 719,659 539,300 184,600 9 230 595,700 180,700 729,461 558,800 217,200 2,243,107 $5,462 $12,252 2,263,500 $5,692 $12,883 2,282,100 $5,741 $13,102 ...................... ...................... ...................... ...................... ...................... ...................... 2,000 $9,219 $18 ...................... ...................... 860 1996 actual 1997 est. Obligations by program activity: Compensation: Veterans: 00.03 World War II .......................................................... 00.04 Korean conflict ...................................................... 00.05 Vietnam era .......................................................... 00.06 Peacetime service ................................................. 00.07 Persian Gulf conflict ............................................. ................... ................... ................... ................... ................... ................... ................... ................... ................... ................... 63 23 106 56 14 00.91 15,415 14,222 ................... ................... 262 Identification code 36–0153–2–1–701 1998 est. 01.04 01.05 01.06 01.07 01.08 01.09 Total veterans ................................................... Survivors: World War I ........................................................... World War II .......................................................... Korean conflict ...................................................... Vietnam era .......................................................... Peacetime service ................................................. Persian Gulf conflict ............................................. ................... ................... ................... ................... ................... ................... 1 27 8 22 9 1 01.91 02.01 Total survivors .................................................. ................... ................... Clothing allowance .................................................... ................... ................... 68 1 02.93 Total compensation ............................................... ................... ................... 331 10.00 Total obligations (object class 42.0) ........................ ................... ................... 331 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... New obligations ............................................................. ................... ................... 331 –331 40.00 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... 331 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 86.90 86.93 ................... ................... ................... ................... ................... 331 ................... ................... –298 ................... ................... 33 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... 298 Outlays from current balances ...................................... ................... ................... ................... 87.00 Total outlays (gross) ................................................. ................... ................... 298 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... 331 298 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, VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 1997, is expected to be 2.7 percent and cost $331 million in fiscal year 1998. 05.91 Total survivors ............................................. 802 783 765 06.93 3,065 3,118 3,152 2 19 2 24 2 24 21 26 26 Total direct program ............................................. 3,086 Reimbursable program: Minimum income for widows program ..................... ................... 3,144 3,178 1 6 3,145 3,184 COMPENSATION 07.01 07.02 Total pensions .................................................. Other expenses: Medical facility expenses ...................................... Reimbursement to GOE and VHA ......................... (Legislative proposal, subject to PAYGO) 07.91 Total other expenses ........................................ 08.00 1996 actual Identification code 36–0153–4–1–701 1997 est. 1998 est. 09.01 Obligations by program activity: Compensation: Veterans: 00.03 COLA Round down ................................................ ................... ................... –17 02.93 Total compensation ............................................... ................... ................... –17 10.00 Total obligations (object class 42.0) ........................ ................... ................... –17 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... ................... 23.95 New obligations ............................................................. ................... ................... –17 17 New budget authority (gross), detail: Appropriation .................................................................. ................... ................... –17 40.00 10.00 Change in unpaid obligations: 73.10 New obligations ............................................................. ................... ................... 73.20 Total outlays (gross) ...................................................... ................... ................... –17 17 Outlays (gross), detail: 86.90 Outlays from new current authority .............................. ................... ................... –17 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –17 –17 89.00 90.00 901 Total obligations ........................................................ 22.00 22.22 Budgetary resources available for obligation: New budget authority (gross) ........................................ Unobligated balance transferred from other accounts 23.90 23.95 24.40 68.00 70.00 3,074 3,145 3,184 12 ................... ................... Total budgetary resources available for obligation 3,086 3,145 3,184 New obligations ............................................................. –3,086 –3,145 –3,184 Unobligated balance available, end of year: Uninvested balance ................................................... ................... ................... ................... New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 41.00 Transferred to other accounts ................................... 42.00 Transferred from other accounts .............................. 43.00 3,086 3,044 2,989 3,178 –160 ................... ................... 190 155 ................... Appropriation (total) ............................................. 3,074 Permanent: Spending authority from offsetting collections: Offsetting collections (cash) ..................................... ................... 3,144 3,178 1 6 Total new budget authority (gross) .......................... 3,074 3,145 3,184 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 3,086 –2,834 254 3,145 –3,141 258 3,184 –3,183 254 258 260 72.40 This legislative proposal would provide for a permanent round down of the annual COLA increase. Legislation will also be proposed to deny service connection for disability or death due to an injury or disease resulting from tobacco use while on active duty which becomes manifest after service discharge and beyond any applicable presumptive period. PENSIONS For the payment of pension benefits to or on behalf of veterans as authorized by law, $3,178,055,000, to remain available until expended; of which not to exceed $24,297,000 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. 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.) Program and Financing (in millions of dollars) Identification code 36–0154–0–1–701 1996 actual 1997 est. 1998 est. Obligations by program activity: Direct program: Pensions: Veterans: 04.01 Improved law .................................................... 04.02 Prior law ........................................................... 04.03 Old law ............................................................. 2,184 78 1 2,268 2,331 66 56 1 ................... 04.91 2,263 2,335 2,387 673 127 2 666 115 2 659 104 2 05.01 05.02 05.03 Total veterans .............................................. Survivors: Improved law .................................................... Prior law ........................................................... Old law ............................................................. 86.90 86.93 86.97 86.98 87.00 Outlays (gross), detail: Outlays from new current authority .............................. 2,831 2,886 2,919 Outlays from current balances ...................................... 3 254 258 Outlays from new permanent authority ......................... ................... 1 6 Outlays from permanent balances ................................ ................... ................... ................... 2,834 3,141 3,183 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources ................... –1 –6 3,144 3,140 3,178 3,177 89.00 90.00 Total outlays (gross) ................................................. Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 3,074 2,834 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, 1998, is expected to be 2.7 percent. VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued 902 THE BUDGET FOR FISCAL YEAR 1998 07.91 08.03 08.04 AVERAGE NUMBER OF PENSION CASES AND PAYMENTS 1996 actual 1997 est. 1998 est. Veterans: Improved law .......................................................................... Prior law .................................................................................. Old law and service ................................................................ 373,947 49,134 636 373,577 41,892 531 373,693 35,758 449 Total ............................................................................... Average payment per case, per year ...................................... 423,717 $5,338 416,000 $5,610 112 1 1 115 1 1 117 1 1 Total miscellaneous assistance ................................ 2 2 2 10.00 PENSIONS—Continued Total burial benefits ............................................. Special allowance dependents ...................................... Equal access to justice ................................................. 08.91 General and special funds—Continued Total obligations (object class 42.0) ........................ 114 117 119 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 114 –114 117 –117 119 –119 40.00 41.00 42.00 New budget authority (gross), detail: Appropriation .................................................................. 112 118 119 Transferred to other accounts ....................................... ................... –1 ................... Transferred from other accounts ................................... 2 ................... ................... 409,900 $5,821 Total obligations (in millions) ....................................... $2,262 $2,334 $2,386 Survivors: Improved law .......................................................................... Prior law .................................................................................. Old law and service ................................................................ 209,467 128,367 3,855 203,349 115,169 3,182 197,865 103,504 2,631 Total ............................................................................... Average payment per case, per year ...................................... 341,689 $2,349 321,700 $2,434 304,000 $2,517 Total obligations (in millions) ....................................... 803 783 765 Minimum Income for Widows Program: Widows .................................................................................... .................... Average benefit per case, per year ............................................. .................... Total obligations (in millions) ....................................... .................... Vocational training: Trainees ................................................................................... 136 Average benefit per year ........................................................ $2,625 $1 $6 110 $2,700 85 $2,776 round to less than $1 million. Object Classification (in millions of dollars) 1996 actual Identification code 36–0154–0–1–701 42.0 99.0 99.9 Direct obligations: Insurance claims and indemnities 3,086 Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... ................... Total obligations ........................................................ 3,086 1997 est. 1998 est. 3,144 3,178 1 6 3,145 3,184 The Administration is proposing legislation which will make permanent two provisions of the Omnibus Budget Reconciliation Act of 1993 due to expire at the end of 1998: (1) authorization of VA access to certain Internal Revenue Service data for determining eligibility for veterans pension benefits; and (2) limiting pension benefits to Medicaid-eligible beneficiaries in nursing homes. BURIAL BENEFITS AND 114 117 119 70.00 Total new budget authority (gross) .......................... 114 117 119 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total outlays (gross) ...................................................... 114 –114 117 –117 119 –119 Outlays (gross), detail: Outlays from new current authority .............................. 114 117 119 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 114 114 117 117 119 119 793 $7,133 Total obligations (in millions) 1 ..................................... .................... .................... .................... 1 Amounts Appropriation (total) .................................................. 86.90 800 $1,736 43.00 MISCELLANEOUS ASSISTANCE 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 outer burial receptacles in the National Cemetery System. NUMBER OF BURIAL BENEFITS 1996 actual Burial allowance .......................................................................... Burial plot ................................................................................... Service-connected death ............................................................. Burial flags ................................................................................. Headstone markers ...................................................................... Headstone allowance ................................................................... Outer burial receptacles .............................................................. 90,775 80,715 9,262 439,752 319,758 14 47,220 1997 est. 1998 est. 88,400 88,200 77,000 73,500 9,400 9,500 448,800 457,200 326,000 332,000 10 .................... 51,734 52,354 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, $119,300,000, 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; Stat. 76 Stat. 1198.) (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 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. Program and Financing (in millions of dollars) MISCELLANEOUS ASSISTANCE CASELOAD 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 Outer burial receptacles ............................................ 1996 actual 35 12 12 16 29 8 1997 est. 35 12 12 17 30 9 1998 est. 35 11 12 18 31 10 1996 actual 1997 est. 1998 est. Retired Officers ........................................................................... 4 3 2 Adjusted service and dependence pay ....................................... .................... .................... .................... Special allowance dependents .................................................... 152 152 152 Equal Access to Justice payments .............................................. 206 220 220 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, VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, ø$1,377,000,000¿ $1,366,000,000, 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. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Obligations by program activity: Direct program: Education and training: 00.01 Sons and daughters ............................................. 00.02 Spouses ................................................................. 1996 actual 1997 est. 94 11 96 12 Total education and training ........................... Special assistance to disabled veterans: Vocational rehabilitation ....................................... Housing grants ..................................................... Automobiles, adaptive equipment, maintenance and repair ......................................................... 101 105 108 355 14 358 14 341 14 27 27 28 01.91 02.01 02.02 02.03 Total special assistance to disabled veterans Work study ................................................................. Payments to states ................................................... All-volunteer assistance: Veterans’ basic benefits 396 26 13 689 399 26 13 805 383 28 13 880 02.91 All-volunteer assistance and other ...................... 728 844 921 02.93 1,225 1,348 1,412 03.01 03.02 03.03 Total direct program ............................................. Reimbursable program: Veterans’ basic benefits ........................................... Veterans’ supplementary benefits ............................. Reservists benefits .................................................... 14 74 95 14 72 98 11 70 99 03.91 Total reimbursables .............................................. 183 184 180 10.00 Total obligations ........................................................ 1,408 1,532 1,592 93 1,338 27 1,561 46 1,546 01.01 01.02 01.03 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.10 Resources available from recoveries of prior year obligations ....................................................................... 22.30 Unobligated balance expiring ........................................ 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 9 –5 1,435 –1,408 27 10 ................... –21 ................... 1,577 –1,532 88.90 Total, offsetting collections (cash) .................. –183 –184 –180 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1,155 1,212 1,377 1,342 1,366 1,409 1998 est. 91 10 00.91 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... –183 –184 –180 88.40 Non-Federal sources ............................................. ................... ................... ................... 89.00 90.00 Program and Financing (in millions of dollars) Identification code 36–0137–0–1–702 1,592 –1,592 46 ................... New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 41.00 Transferred to other accounts ................................... 1,345 1,377 1,366 –190 ................... ................... 43.00 Appropriation (total) ............................................. Permanent: Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 1,155 1,377 1,366 183 184 180 Total new budget authority (gross) .......................... 1,338 1,561 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 1998 will consist of appropriated funds of $1,366 million and available funds from 1997 of $46 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 ........................................................ 1996 actual 35,685 $2,559 36,609 $2,560 37,558 $2,560 Total cost (in millions) .................................................. $91 $94 $96 Spouses and widow(ers): Number of trainees ................................................................. Average cost per trainee ........................................................ 4,969 $2,067 5,273 $2,068 5,597 $2,069 Total cost (in millions) .................................................. $10 $11 $12 70.00 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 73.45 Adjustments in unexpired accounts .............................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 72.40 86.90 86.93 86.97 86.98 87.00 51 1,408 –1,396 –9 54 54 50 1,532 1,592 –1,526 –1,589 –10 ................... 50 53 Outlays (gross), detail: Outlays from new current authority .............................. 1,104 1,342 1,366 Outlays from current balances ...................................... ................... ................... 43 Outlays from new permanent authority ......................... 183 184 180 Outlays from permanent balances ................................ 109 ................... ................... Total outlays (gross) ................................................. 1,396 1,526 1,589 1997 est. 1998 est. 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. 1,546 68.00 903 CASELOAD AND AVERAGE COST DATA 1996 actual 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 ........................................................... 3,987 787 15,056 2,182 12,055 1,784 7,270 1,102 3,845 586 2,746 404 1,051 173 485 97 154 1997 est. 3,919 905 14,800 2,508 11,849 2,051 7,146 1,267 3,779 674 2,699 465 1,033 199 477 111 151 1998 est. 3,635 1,081 13,728 2,995 10,992 2,449 6,630 1,513 3,506 804 2,504 555 958 238 442 133 140 904 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 3 Includes $880 million of basic benefits (VA funded), $11 million of basic benefits (DOD funded) and $70 million of supplemental benefits (DOD funded). General and special funds—Continued READJUSTMENT BENEFITS—Continued Object Classification (in millions of dollars) CASELOAD AND AVERAGE COST DATA—Continued 1996 actual 1997 est. 1998 est. rehabilitated ....................................................................... 100% rated disabled ......................................................... rehabilitated ....................................................................... Total number of trainees ............................................... Total number rehabilitated ............................................ Percent of total rehabilitated ........................................ Average cost per trainee ........................................................ 38 5,072 242 51,721 7,395 14.30 $6,856 42 4,986 278 50,839 8,500 16.72 $7,045 50 4,625 332 47,160 10,150 21.52 $7,238 Total cost (in millions) .................................................. $355 $358 429 $33,535 429 $33,535 429 $33,535 Total cost (in millions) .................................................. $14 $14 $14 Automobiles or other conveyances: Number of conveyances .......................................................... Average cost per conveyance ................................................. 843 $5,496 843 $5,496 843 $5,496 Total cost (in millions) .................................................. $5 $5 $5 Adaptive equipment (including maintenance, repair and installation for automobiles): Number of items ..................................................................... Average cost ........................................................................... 6,734 $3,318 6,593 $3,411 6,455 $3,500 Total cost (in millions) .................................................. $22 $22 $23 1996 actual 1997 est. 1998 est. $341 Housing grants: Number of housing grants ..................................................... Average cost per grant ........................................................... Identification code 36–0137–0–1–702 99.0 99.9 1996 actual 30,887 1997 est. 27,864 1998 est. 28,687 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. CASELOAD AND AVERAGE COST DATA Veterans: Number of trainees ................................................................. Average cost per trainee ........................................................ 1996 actual 296,353 $2,623 323,400 $2,755 345,300 $2,784 Total cost (in millions) .................................................. 1$777 2 $891 3 $961 Reservists: Number of trainees ................................................................. Average cost per trainee ........................................................ 86,196 $1,101 82,400 $1,187 80,300 $1,235 Total cost (in millions) .................................................. $95 $98 Total obligations ........................................................ 1997 est. 1,348 1,412 183 184 180 1,408 1,532 1,592 Program and Financing (in millions of dollars) 1996 actual 1997 est. 1998 est. Obligations by program activity: Direct program: 00.01 Benefit payments ...................................................... 00.02 Administrative expenses, VA ..................................... 00.03 Cole v. Brown payments ........................................... 21 19 18 1 1 1 1 ................... ................... 00.91 Total direct program ............................................. 23 20 19 10.00 Total obligations ........................................................ 23 20 19 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 22 –23 20 –20 19 –19 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 22 20 19 11 23 –20 12 20 –20 12 19 –19 12 12 12 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 ............................................................. 72.40 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 10 10 8 12 7 12 87.00 Total outlays (gross) ................................................. 20 20 19 88.00 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: Federal sources –22 –20 –19 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –2 ................... ................... 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 1998 est. benefits (VA funded), $14 million of basic benefits (DOD funded), and $74 funded). benefits (VA funded), $14 million of basic benefits, (DOD funded) and $72 funded). 1,225 REINSTATED ENTITLEMENT PROGRAM FOR SURVIVORS UNDER PUBLIC LAW 97–377 $99 1 Includes $689 million of basic million of supplemental benefits (DOD 2 Includes $805 million of basic million of supplemental benefits (DOD Direct obligations: Grants, subsidies, and contributions ........................................................................... Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... Identification code 36–0200–0–1–701 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 $1,187.50 per semester, paid at the rate of the Federal ($5.15 on 9/1/97) or State minimum wage, whichever is higher. Number of contracts ............................................................... 41.0 1996 actual Spouses ....................................................................................... Average benefit ........................................................................... Obligations (in millions) ............................................................. Children ....................................................................................... Average benefit ........................................................................... Obligations (in millions) ............................................................. 432 $10,334 $4,464 1,729 $9,299 $16,078 1997 est. 380 $10,759 $4,089 1,580 $9,543 $15,078 1998 est. 340 $11,190 $3,805 1,440 $9,966 $14,350 Object Classification (in millions of dollars) Identification code 36–0200–0–1–701 99.0 Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... 1996 actual 23 1997 est. 20 1998 est. 19 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 99.9 Total obligations ........................................................ VETERANS INSURANCE AND 23 20 19 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, ø$38,970,000¿ $51,360,000, to remain available until expended. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 36–0120–0–1–701 1996 actual 1997 est. 1998 est. 00.04 00.05 00.06 Obligations by program activity: Payment to National service life insurance fund ......... Payment to Service-disabled veterans insurance fund Total operating expenses ............................................... 2 34 9 2 31 9 Total obligations ........................................................ 45 42 54 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ 23.95 New obligations ............................................................. 45 –45 41 –42 54 –54 ceived 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 1998 as indicated in the following table (dollars in thousands). National service life insurance policies: Number of policies .................................................................. Amount of insurance .............................................................. VMLI policies: Number of policies .................................................................. Amount of insurance .............................................................. 25 39 51 18 ................... ................... 43.00 Appropriation (total) ............................................. Permanent: Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 43 39 2 45 41 53 1,260 $6,350 3,890 $229,115 3,740 $228,400 3,590 $230,000 1996 actual 1997 est. 1998 est. Grants, subsidies, and contributions ............................ Insurance claims and indemnities ................................ 36 9 33 9 45 9 99.9 Total obligations ........................................................ 45 42 54 2 Total new budget authority (gross) .......................... 1998 est. 1,383 $7,000 41.0 42.0 51 2 1997 est. 1,514 $7,692 Object Classification (in millions of dollars) Identification code 36–0120–0–1–701 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 42.00 Transferred from other accounts .............................. 1996 actual 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. 2 43 9 10.00 905 68.00 70.00 Public enterprise funds: SERVICE-DISABLED VETERANS INSURANCE FUND Program and Financing (in millions of dollars) Identification code 36–4012–0–3–701 1996 actual 1997 est. 1998 est. Obligations by program activity: Operating expenses: 00.01 Death claims ............................................................. 00.02 All other ..................................................................... 39 13 43 13 48 13 00.91 01.01 Total operating expenses ...................................... Capital investment ........................................................ 52 14 56 14 61 14 Total obligations ........................................................ 66 70 75 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New budget authority (gross) ........................................ 3 69 6 66 3 77 72 –66 72 –70 80 –75 6 3 3 69 66 77 5 66 –66 5 70 –71 4 75 –74 5 4 4 Change in unpaid obligations: 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 45 –45 42 –41 54 –53 86.90 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from new permanent authority ......................... 43 2 39 2 51 2 10.00 87.00 Total outlays (gross) ................................................. 45 41 53 21.90 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 ........................................................................... 43 43 39 39 53 53 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. 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 issued 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 re- 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 ................................ 61 5 66 5 70 4 87.00 Total outlays (gross) ................................................. 66 71 74 –34 –31 –43 –3 –23 –1 –8 –2 –23 –1 –9 –2 –22 –1 –9 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 ........................................ 906 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Public enterprise funds—Continued Object Classification (in millions of dollars) SERVICE-DISABLED VETERANS INSURANCE FUND—Continued Identification code 36–4012–0–3–701 Program and Financing (in millions of dollars)—Continued 1996 actual 1997 est. 1998 est. 88.90 89.00 90.00 Total, offsetting collections (cash) .................. 1997 est. –69 Investments and loans .................................................. Insurance claims and indemnities ................................ 14 52 14 56 14 61 99.9 1996 actual Identification code 36–4012–0–3–701 33.0 42.0 Total obligations ........................................................ 66 70 75 1998 est. –66 –77 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –3 5 –3 VETERANS REOPENED INSURANCE FUND Program and Financing (in millions of dollars) 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): 1996 actual Number of policies ...................................................................... Insurance in force ....................................................................... 1997 est. 1998 est. 163,053 $1,492,311 158,833 $1,464,200 156,723 $1,436,300 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 $451 million by September 30, 1998. Identification code 36–4010–0–3–701 1996 actual 1997 est. 1998 est. Obligations by program activity: Operating expenses: 00.01 Death claims ............................................................. 00.02 Dividends ................................................................... 00.03 All other ..................................................................... 31 30 9 36 31 9 39 27 8 00.91 01.01 Total operating expenses ...................................... Capital investment: Policy loans ................................... 71 7 76 7 74 7 10.00 Total obligations ........................................................ 78 83 81 Budgetary resources available for obligation: Unobligated balance available, start of year: 21.90 Fund balance ............................................................. ................... 21.91 U.S. Securities: Par value ......................................... 498 1 492 1 480 21.99 22.00 Total unobligated balance, start of year ............. New budget authority (gross) ........................................ 498 72 493 71 481 66 23.90 23.95 570 –78 564 –83 547 –81 24.90 24.91 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ............................................................. U.S. Securities: Par value ......................................... 1 492 1 480 1 465 24.99 Total unobligated balance, end of year .................... 493 481 466 68.00 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... 72 71 66 28 78 –73 33 83 –79 36 81 –78 33 36 39 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 ......................................... 72.91 Statement of Operations (in millions of dollars) 1995 actual 1996 actual 0101 0102 Revenue ................................................... Expense .................................................... 64 –66 72 –67 68 –69 79 –71 0109 Net income or loss (–) ............................ –2 5 –1 8 Identification code 36–4012–0–3–701 1997 est. 1998 est. 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 69 4 71 8 66 12 87.00 Total outlays (gross) ................................................. 73 79 78 Balance Sheet (in millions of dollars) Identification code 36–4012–0–3–701 1995 actual 1996 actual 1997 est. 1998 est. 55 59 65 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 ........................................ Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2206 Pension and other actuarial liabilities 2207 Other ................................................... 58 67 69 76 88.90 4 516 1 4 520 1 5 522 1 5 522 1 89.00 90.00 2999 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 .................... 49 1999 1101 8 1 11 1 7 3 9 2 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3200 Invested capital ....................................... 521 525 528 528 3 –466 6 –463 3 –462 5 –456 3999 Total net position ................................ –463 –457 –459 –451 4999 Total liabilities and net position ............ 58 68 69 77 Total, offsetting collections (cash) .................. –48 –46 –43 –1 –17 –6 –2 –17 –6 –2 –15 –6 –72 –71 –66 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 1 9 12 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 pays claims and administrative costs on participating life insurance policies issued during the period May 1, 1965, through May 2, 1966, under three life insurance programs: (1) service-disabled standard insurance; (2) servicedisabled rated insurance; and (3) nonservice disabled insur- VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS ance 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): 1996 actual Number of policies .................................................................. Insurance in force ................................................................... 97,502 $750,079 1997 est. 1998 est. 92,782 $730,000 87,852 $706,800 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. 1995 actual 1996 actual SERVICEMEMBERS’ GROUP LIFE INSURANCE FUND Program and Financing (in millions of dollars) 1997 est. 1998 est. 0101 0102 Revenue ................................................... Expense .................................................... 69 –78 68 –62 65 –66 61 –62 0109 Net income or loss (–) ............................ –9 6 –1 –1 00.01 00.03 10.00 ASSETS: Federal assets: 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 .................... 1995 actual 1996 actual 526 12 .................. 525 12 .................. 1997 est. Obligations by program activity: Premium payments ........................................................ 474 Payment to GOE account ............................................... ................... 1998 est. 509 1 492 1 Total obligations (object class 41.0) ........................ 474 510 493 Budgetary resources available for obligation: Unobligated balance available, start of year: U.S. Securities: Par value ................................................. 22.00 New budget authority (gross) ........................................ 15 467 7 504 1 492 482 –474 511 –510 493 –493 7 1 1 467 504 492 4 474 –476 3 510 –510 3 493 –492 3 3 3 21.91 23.90 23.95 24.91 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: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: offsetting collections ................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 74.40 Unpaid obligations, end of year: Obligated balance: offsetting collections ................................................. 72.40 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 461 15 503 7 491 1 87.00 Total outlays (gross) ................................................. 476 510 492 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources: Withholdings from serviceman’s pay ..... –467 –504 –492 Balance Sheet (in millions of dollars) Identification code 36–4010–0–3–701 1996 actual Identification code 36–4009–0–3–701 86.97 86.98 Statement of Operations (in millions of dollars) Identification code 36–4010–0–3–701 907 1997 est. 516 11 1 1998 est. 504 10 1 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... 8 6 ................... Budget program.—This fund finances the payment of group life insurance premiums to private insurance companies under the Servicemembers’ Group Life Insurance Act of 1965, as amended. Statement of Operations (in millions of dollars) 26 28 29 30 Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2206 Pension and other actuarial liabilities 2207 Other ................................................... 565 565 557 545 0101 0102 38 516 2 41 508 2 45 496 2 48 482 2 0109 2999 557 551 543 532 Credit accounts: 498 –489 492 –478 481 –467 465 –452 1999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3200 Invested capital ....................................... 3999 Total net position ................................ 9 14 14 13 4999 Total liabilities and net position ............ 566 565 557 545 Object Classification (in millions of dollars) Identification code 36–4010–0–3–701 1996 actual 1997 est. 1998 est. 33.0 42.0 43.0 Investments and loans .................................................. Insurance claims and indemnities ................................ Interest and dividends ................................................... 7 37 34 7 42 34 7 44 30 99.9 Total obligations ........................................................ 78 83 81 1995 actual 1996 actual Revenue ................................................... Expense .................................................... 461 –489 467 –475 504 –510 493 –493 Net income or loss (–) ............................ –28 –8 –6 .................. Identification code 36–4009–0–3–701 1997 est. 1998 est. VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT øGUARANTY AND INDEMNITY PROGRAM ACCOUNT¿ (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: Provided further, That during fiscal year 1998, 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 and guaranteed loan programs, ø$105,226,000¿ $160,437,000, which may be transferred to and merged with the appropriation for ‘‘General 908 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued øGUARANTY AND Summary of Budget Authority and Outlays INDEMNITY PROGRAM ACCOUNT¿—Continued (in millions of dollars) (INCLUDING TRANSFER OF FUNDS)—Continued operating expenses’’. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Unavailable Collections (in millions of dollars) Identification code 36–0138–0–1–704 1996 actual Balance, start of year: Balance, start of year .................................................... 263 Receipts: 02.01 Guaranteed loan downward subsidy reestimate ........... ................... 02.02 Direct loan downward subsidy reestimate .................... ................... 01.99 02.99 Total receipts ............................................................. ................... 03.00 04.00 1997 est. 169 1998 est. 918 789 ................... 157 ................... 946 ................... Offsetting Collections .................................................... Total: Balances and collections .................................... Appropriation: 05.01 Veterans housing benefit fund ...................................... –263 –197 –192 05.99 07.99 –263 169 –197 918 –192 726 Subtotal appropriation ................................................... Total balance, end of year ............................................ 169 ................... ................... 432 1,115 918 Program and Financing (in millions of dollars) Identification code 36–0138–0–1–704 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 1996 actual 1997 est. 1998 est. 30 447 63 13 238 49 50 148 142 73 ................... 12 ................... 74 ................... 11 118 9 ................... 139 160 920 504 1996 actual 1997 est. Enacted/requested: Budget Authority ..................................................................... 212 504 Outlays .................................................................................... 212 504 Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... .................... .................... Outlays .................................................................................... .................... .................... Total: Budget Authority ..................................................................... Outlays .................................................................................... 212 212 504 504 1998 est. 352 352 –29 –29 323 323 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 36–0138–0–1–704 1996 actual 1997 est. 1998 est. Direct loan levels supportable by subsidy budget authority: 1150 Direct loan levels ........................................................... 1,336 1,887 2,144 1159 1,336 1,887 2,144 1.76 2.61 2.36 1329 1.76 2.61 2.36 29 49 50 Total direct loan levels ............................................. Direct loan subsidy (in percent): 1320 Subsidy rate ................................................................... Weighted average subsidy rate ................................. Direct loan subsidy budget authority: 1330 Subsidy budget authority ............................................... 1339 Total subsidy budget authority ................................. Direct loan subsidy outlays: 1340 Subsidy outlays .............................................................. 29 49 50 105 134 50 1349 Total subsidy outlays ................................................ 105 134 50 Guaranteed loan levels supportable by subsidy budget authority: 2150 Loan guarantee levels ................................................... 28,676 30,230 28,945 2159 28,676 30,230 28,945 Total loan guarantee levels ...................................... Guaranteed loan subsidy (in percent): 2320 Subsidy rate ................................................................... Total obligations ........................................................ 352 0.42 0.49 0.49 Weighted average subsidy rate ................................. Guaranteed loan subsidy budget authority: 2330 Subsidy budget authority ............................................... 0.42 0.49 0.49 697 231 142 2339 10.00 2329 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ 23.95 New obligations ............................................................. 920 –920 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 118 40.25 Appropriation (special fund, indefinite) .................... ................... 43.00 60.05 68.00 68.26 68.45 68.90 504 –504 352 –352 Total subsidy budget authority ................................. Guaranteed loan subsidy outlays: 2340 Subsidy outlays .............................................................. 139 197 160 192 Appropriation (total) ............................................. 118 336 352 Permanent: Appropriation (indefinite) .......................................... ................... 168 ................... Spending authority from offsetting collections: Offsetting collections (cash) Total downward reestimate ............................................................ 708 ................... ................... Offsetting collections (unavailable balances) ...... 263 ................... ................... Portion not available for obligation (limitation on obligations) ................................................. –169 ................... ................... Spending authority from offsetting collections (total) ........................................................... 802 ................... ................... 70.00 Total new budget authority (gross) .......................... 920 504 352 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total outlays (gross) ...................................................... 920 –920 504 –504 352 –352 86.90 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from new permanent authority ......................... 118 802 336 352 168 ................... 87.00 Total outlays (gross) ................................................. 920 504 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 352 –708 ................... ................... 212 211 504 504 352 352 697 231 142 120 148 142 2349 Total subsidy outlays ................................................ 120 148 142 3510 3590 Administrative expense data: Budget authority ............................................................ Outlays ........................................................................... 118 118 139 139 160 160 The Administration is proposing to consolidate all information on Loan Guaranty, Guaranty and Indemnity, and Direct Loan housing programs into a single housing fund called the Veterans Housing Benefit Program Fund (VHBPF). All current year and prior year data are presented on a comparable basis to the budget year in the single account. A legislative proposal is being submitted with this budget that supports this budget presentation. Beginning October 1, 1997, all appropriations and income received from Loan Guaranty, Guaranty and Indemnity, and Direct Loan housing accounts would be deposited in this new fund (except the portion specifically designated for the Native American Pilot Program). No program changes result as an effect of this presentation. 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 following Federal guaranty protects lenders against losses: (a) for loans of $45,000, or less, 50 percent of the VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 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 the Omnibus Budget Reconciliation Act of 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 36–0138–0–1–704 25.3 1996 actual 1997 est. 41.0 139 365 160 192 99.9 Total obligations ........................................................ 920 504 352 Program and Financing (in millions of dollars) (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) 1997 est. 00.01 00.02 00.04 00.05 00.06 00.07 00.08 Obligations by program activity: Direct loans .................................................................... 1,336 Interest on Treasury borrowing ...................................... 238 Property sales expense .................................................. 1 Property improvement expense ...................................... ................... Property management/other expense ............................. 3 Payment of downward reestimate to program account 113 Payment of excess interest earned to program account 12 1998 est. Obligations by program activity: 00.01 Direct loan subsidy ........................................................ ................... ................... –29 10.00 Total obligations (object class 41.0) ........................ ................... ................... –29 Budgetary resources available for obligation: 22.00 New budget authority (gross) ........................................ ................... ................... 23.95 New obligations ............................................................. ................... ................... –29 29 New budget authority (gross), detail: 40.05 Appropriation (indefinite) ............................................... ................... ................... –29 Change in unpaid obligations: 73.10 New obligations ............................................................. ................... ................... 73.20 Total outlays (gross) ...................................................... ................... ................... –29 29 86.90 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... –29 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... Outlays ........................................................................... ................... ................... –29 –29 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) 1996 actual 1997 est. 1998 est. Direct loan levels supportable by subsidy budget authority: 1159 Total direct loan levels .................................................. ................... ................... ................... Direct loan subsidy (in percent): 1320 Subsidy rate ................................................................... ................... ................... –1.36 1329 Weighted average subsidy rate ................................. ................... ................... Direct loan subsidy budget authority: 1330 Subsidy budget authority ............................................... ................... ................... 1339 1997 est. 1998 est. 1,887 2,144 87 121 1 2 1 1 2 ................... 120 ................... 37 ................... 10.00 Total obligations ........................................................ 1,703 2,135 2,268 Budgetary resources available for obligation: New financing authority (gross) .................................... New obligations ............................................................. 1,703 –1,703 2,135 –2,135 2,268 –2,268 1,356 1,911 2,093 1,512 –1,165 1,449 –1,225 1,860 –1,685 Spending authority from offsetting collections (total) ................................................................ 347 224 175 Total new financing authority (gross) ...................... 1,703 2,135 2,268 7 1,703 –1,705 5 2,135 –2,134 6 2,268 –2,268 5 1,705 6 2,134 6 2,268 –105 –134 –51 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 Identification code 36–0138–4–1–704 1996 actual 22.00 23.95 VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT 1996 actual VETERANS HOUSING BENEFIT PROGRAM FUND DIRECT LOAN FINANCING ACCOUNT 1998 est. 118 802 Identification code 36–0138–4–1–704 Legislation will also be introduced to permanently extend loan asset sales enhancement authority. This allows VA to guarantee the certificates which securitize VA vendee loan sales. VA can then obtain the best pricing for these loans and receive a greater cash yield without any additional risk over previous loan sale procedures. Identification code 36–4256–0–3–704 Purchases of goods and services from Government accounts .................................................................... Grants, subsidies, and contributions ............................ 909 –1.36 68.90 70.00 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Obligated balance ..................................................... 73.10 New obligations ............................................................. 73.20 Total financing disbursements (gross) ......................... 74.90 Unpaid obligations, end of year: Obligated balance: Obligated balance ..................................................... 87.00 Total financing disbursements (gross) ......................... 72.90 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.00 Federal sources: Payments from program account ................................................................. Non-Federal sources: 88.40 Repayments of principal .................................. 88.40 Interest received on loans ................................ 88.40 Fees .................................................................. 88.40 Interest from Treasury ...................................... 88.40 Loan sale proceeds, net ................................... 88.40 Cash sale of properties .................................... 88.40 Other revenue ................................................... –17 –28 –37 –48 –88 –115 –11 –17 –20 –126 ................... ................... –1,196 –1,110 –1,548 –2 –18 –27 –7 –54 –62 88.90 Total, offsetting collections (cash) .................. –1,512 –1,449 –1,860 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 191 193 686 685 408 408 –29 Status of Direct Loans (in millions of dollars) Total subsidy budget authority ................................. ................... ................... Direct loan subsidy outlays: 1340 Subsidy outlays .............................................................. ................... ................... –29 –29 Identification code 36–4256–0–3–704 1349 –29 Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ............................................. ................... ................... ................... 1131 Direct loan obligations exempt from limitation ............ 1,336 1,887 2,144 Total subsidy outlays ................................................ ................... ................... Legislation will be proposed to increase the funding fees in the vendee loan program to 2.25 percent, matching the FHA fee structure. This program offers financing of VA real estate obtained as a result of property foreclosures and is available to both veteran and non-veteran purchasers. 1996 actual 1997 est. 1998 est. 1150 Total direct loan obligations ..................................... 1,336 1,887 2,144 1210 Cumulative balance of direct loans outstanding: Outstanding, start of year ............................................. 722 723 1,398 910 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 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 ............................. ................... ................... Credit accounts—Continued 67.15 VETERANS HOUSING BENEFIT PROGRAM FUND DIRECT LOAN FINANCING ACCOUNT—Continued Status of Direct Loans (in millions of dollars)—Continued 68.90 1996 actual Identification code 36–4256–0–3–704 1231 1263 1264 Disbursements: Direct loan disbursements ................... Repayments: Repayments and prepayments .................................. Proceeds from loan asset sales to the public with recourse ................................................................. Adjustments: Discount on loan asset sales to the public or discounted ................................................. Write-offs for default: Direct loans ............................................................... Other adjustments, net ............................................. 1290 Outstanding, end of year .......................................... 1251 1253 1262 1997 est. 1,887 2,144 –62 –27 –1,111 –1,549 –38 –65 –92 –9 –9 –17 –90 ................... ................... 723 1,398 1,847 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. 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 ............................. 1995 actual 70.00 Total new financing authority (gross) ...................... ................... ................... 125 73.10 73.20 87.00 Change in unpaid obligations: New obligations ............................................................. ................... ................... Total financing disbursements (gross) ......................... ................... ................... Total financing disbursements (gross) ......................... ................... ................... 125 –125 125 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: Federal sources: 88.00 Federal sources: Payments from program account ............................................................ 88.00 Repayment from liquidating account for debt collection ...................................................... Non-Federal sources: 88.40 Fees .................................................................. 88.40 Loan sale proceeds, net ................................... 1996 actual 1997 est. ................... ................... –29 ................... ................... 43 ................... ................... ................... ................... 25 3 88.90 Total, offsetting collections (cash) .................. ................... ................... 42 89.00 90.00 Balance Sheet (in millions of dollars) Identification code 36–4256–0–3–704 –31 –37 –1,196 –42 11 Spending authority from offsetting collections (total) ................................................................ ................... ................... 1998 est. 1,396 156 Net financing authority and financing disbursements: Financing authority ........................................................ ................... ................... Financing disbursements ............................................... ................... ................... 167 167 1998 est. 1101 1,018 18 954 29 .................. .................. .................. .................. 540 6 723 58 1,398 .................. 1,847 .................. 546 781 1,398 1,847 .................. 15 28 38 Total assets ........................................ LIABILITIES: Federal liabilities: 2102 Interest payable .................................. 2104 Resources payable to Treasury ........... Non-Federal liabilities: 2201 Accounts payable ................................ 2204 Liabilities for loan guarantees ........... 1,582 1,779 1,426 1,885 7 1,575 5 1,768 .................. 1,413 .................. 1,868 7 –7 7 –1 13 .................. 17 .................. 2999 Total liabilities .................................... 1,582 1,779 1,426 1,885 4999 Total liabilities and net position ............ 1,582 1,779 1,426 This schedule shows the effects of the Administration’s proposal to repeal restrictions on collection of loan guaranty debts by Federal salary offset or Federal income tax refund offset. Legislation will be proposed to increase the funding fees in the vendee loan program to 2.25 percent, matching the FHA fee structure. This program offers financing of VA real estate obtained as a result of property foreclosures and is available to both veteran and non-veteran purchasers. Legislation will also be proposed to permanently extend loan asset sales enhancement authority. This allows VA to guarantee the certificates which securitize VA vendee loan sales. VA can then obtain the best pricing for these loans and receive a greater cash yield without any additional risk over previous loan sale procedures. 1,885 1499 1603 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: Allowance for estimated uncollectible loans and interest (– ) ........................................................... 1999 VETERANS HOUSING BENEFIT PROGRAM FUND GUARANTEED LOAN FINANCING ACCOUNT Program and Financing (in millions of dollars) Identification code 36–4257–0–3–704 (Legislative proposal, subject to PAYGO) Program and Financing (in millions of dollars) 1996 actual 1997 est. 1998 est. 00.02 00.06 Obligations by program activity: Interest on Treasury borrowing ...................................... ................... ................... Payment to liquidating account for debt collection ................... ................... –1 126 10.00 Total obligations ........................................................ ................... ................... 125 Budgetary resources available for obligation: 22.00 New financing authority (gross) .................................... ................... ................... 23.95 New obligations ............................................................. ................... ................... 1997 est. 1998 est. 00.01 00.02 00.03 00.04 00.05 00.06 00.07 00.08 VETERANS HOUSING BENEFIT PROGRAM FUND DIRECT LOAN FINANCING ACCOUNT Identification code 36–4256–4–3–704 1996 actual 125 –125 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 .......... 737 215 31 19 16 84 462 121 10.00 Total obligations ........................................................ 1,685 2,725 2,326 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New financing authority (gross) .................................... 3,428 2,001 3,744 2,151 3,170 2,400 5,429 –1,685 5,895 –2,725 5,570 –2,326 3,744 3,170 3,244 1,412 1,682 309 385 75 102 27 36 27 33 86 88 684 ................... 105 ................... 21.90 23.90 23.95 24.90 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 68.00 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: Obligated balance ..................................................... 73.10 New obligations ............................................................. 73.20 Total financing disbursements (gross) ......................... 74.90 Unpaid obligations, end of year: Obligated balance: Obligated balance ..................................................... 87.00 Total financing disbursements (gross) ......................... 911 Balance Sheet (in millions of dollars) 2,001 2,151 2,400 72.90 18 1,685 –1,663 40 2,725 –2,700 65 2,326 –2,336 40 1,663 65 2,700 56 2,336 Identification code 36–4257–0–3–704 ASSETS: 1101 Federal assets: Fund balances with Treasury ............................................... 1206 Non-Federal assets: Receivables, net ..... Net value of assets related to post– 1991 direct loans receivable: 1403 Accounts receivable from foreclosed property ........................................... 1499 1995 actual 1996 actual 1997 est. 1998 est. 4,004 38 3,785 61 3,235 52 3,300 53 14 .................. .................. .................. 88.90 Total, offsetting collections (cash) .................. Net present value of assets related to direct loans ........................... Net value of assets related to post– 1991 acquired defaulted guaranteed loans receivable: Foreclosed property ............................. 14 .................. .................. .................. 194 415 445 472 Net present value of assets related to defaulted guaranteed loans 194 415 445 472 Total assets ........................................ LIABILITIES: 2101 Federal liabilities: Accounts payable ...... 2204 Non-Federal liabilities: Liabilities for loan guarantees .................................. 4,250 4,261 3,732 3,825 33 .................. .................. .................. 4,217 4,261 3,732 3,825 2999 Total liabilities .................................... 4,250 4,261 3,732 3,825 4999 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 ............................................... Total liabilities and net position ............ 4,250 4,261 3,732 3,825 1504 –697 –231 –142 –453 –238 –958 –173 –1,264 –159 –516 –74 –23 –572 –205 –12 –550 –271 –14 –2,001 –2,151 –2,400 1599 1999 Net financing authority and financing disbursements: 89.00 Financing authority ........................................................ ................... ................... ................... 90.00 Financing disbursements ............................................... –338 549 –64 VETERANS HOUSING BENEFIT PROGRAM FUND LIQUIDATING ACCOUNT Status of Guaranteed Loans (in millions of dollars) Identification code 36–4257–0–3–704 1996 actual 1997 est. Position with respect to appropriations act limitation on commitments: 2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ................... 2131 Guaranteed loan commitments exempt from limitation 28,676 30,230 28,948 2150 Total guaranteed loan commitments ........................ Cumulative balance of guaranteed loans outstanding: Outstanding, start of year ............................................. Disbursements of new guaranteed loans ...................... Guarantees of loans sold to the public with recourse Repayments and prepayments ...................................... Adjustments: 2261 Terminations for default that result in loans receivable ....................................................................... 2262 Terminations for default that result in acquisition of property ............................................................. 2263 Terminations for default that result in claim payments .................................................................... 2264 Other adjustments, net ............................................. 2210 2231 2232 2251 2290 Outstanding, end of year .......................................... 28,676 30,230 28,948 121,310 28,676 1,234 –20,239 130,031 30,230 820 –21,694 138,044 28,948 1,074 –23,031 –84 309 385 –737 –1,412 –109 –214 –240 –269 85 ................... ................... 130,031 138,044 Program and Financing (in millions of dollars) 1998 est. 145,042 Identification code 36–4258–0–3–704 1996 actual 1997 est. 1998 est. Obligations by program activity: Capital investment: 00.01 Acquisition of homes ................................................. 00.02 Property improvements .............................................. 00.04 Cash advances .......................................................... 00.05 Acquisition of defaulted guaranteed loans .............. 608 24 12 66 675 26 9 64 565 21 7 62 00.91 710 774 655 01.01 01.02 01.03 01.04 Total capital investment ....................................... Operating expenses: Property management expense ................................. Sales expense ............................................................ Claims-Individual homes .......................................... Other expenses .......................................................... 39 52 216 33 39 54 203 32 36 50 170 31 01.91 Total operating expenses ...................................... 340 328 287 02.93 Claims-Individual homes .......................................... 1,050 1,102 942 10.00 Total obligations (object class 33.0) ........................ 1,050 1,102 942 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 ................................... 842 1,204 –804 192 ................... 1,174 1,078 –264 –136 21.90 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ Addendum: Cumulative balance of defaulted guaranteed loans that result in loans receivable: 2310 Outstanding, start of year ........................................ 2331 Disbursements for guaranteed loan claims ............. 2351 Repayments of loans receivable ............................... 2361 Write-offs of loans receivable ................................... 2390 Outstanding, end of year ...................................... 42,289 53,415 56,335 23.90 23.95 24.90 37 237 –5 –208 61 309 –8 –280 82 385 –11 –353 61 82 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Fund balance ...................................................................... 1,242 –1,050 1,102 –1,102 942 –942 192 ................... ................... 103 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. 68.00 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 ............................................................. 1,204 1,174 1,078 76 1,050 –1,058 67 1,102 –1,099 71 942 –952 67 71 60 1,050 1,096 942 72.90 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... 912 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 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 ................................... VETERANS HOUSING BENEFIT PROGRAM FUND LIQUIDATING ACCOUNT—Continued Program and Financing (in millions of dollars)—Continued 1996 actual Identification code 36–4258–0–3–704 1997 est. 1,518 258 –87 –339 1,350 220 –36 –328 1,206 187 –27 –141 2390 Credit accounts—Continued 1,350 1,206 1,225 1998 est. 86.98 Outlays from permanent balances ................................ 8 3 87.00 Total outlays (gross) ................................................. 1,058 1,099 952 Outstanding, end of year ...................................... 10 Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: 88.00 Federal Sources: Payments from Direct Loan Financing Account ............................................... Non-Federal sources: 88.40 Loan and other repayments ............................. 88.40 Loan sale proceeds, net ................................... 88.40 Sale of homes, cash ........................................ 88.40 Interest on loans .............................................. 88.40 Collection of claims (veteran indebtedness) 88.40 Other revenue ................................................... 88.90 Total, offsetting collections (cash) .................. Statement of Operations (in millions of dollars) Identification code 36–4258–0–3–704 –873 –929 –870 –64 –51 –41 –31 ................... ................... –121 –104 –97 –63 –51 –41 –48 –36 –27 –4 –3 –2 –1,204 –1,174 –1,078 Summary of Budget Authority and Outlays (in millions of dollars) 869 –441 695 –353 556 –282 0109 Net income or loss (–) ............................ 117 428 342 274 Balance Sheet (in millions of dollars) Identification code 36–4258–0–3–704 ASSETS: Federal assets: Fund balances with Treasury ............................................... 1207 Non-Federal assets: Advances and prepayments ............................................. Net value of assets related to post– 1991 direct loans receivable: 1402 Interest receivable .............................. 1403 Accounts receivable from foreclosed property ........................................... 1803 1901 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 .................... Other Federal assets: Property, plant and equipment, net Other assets ........................................ 1999 Total assets ........................................ LIABILITIES: 2101 Federal liabilities: Accounts payable ...... 2207 Non-Federal liabilities: Other .................. Status of Direct Loans (in millions of dollars) 1996 actual 1997 est. 1996 actual 1997 est. 1998 est. 914 238 264 137 .................. 1 .................. .................. .................. 7 51 41 890 463 203 170 890 470 254 211 40 .................. .................. .................. 444 –84 643 .................. 655 .................. 530 .................. 2,204 1,352 1,173 878 93 747 293 76 249 66 211 50 1998 est. 2999 449 840 369 315 261 1,284 827 –747 1,106 169 –292 941 –83 .................. 799 –183 .................. Total net position ................................ 1,364 983 858 616 4999 Total liabilities and net position ............ 2,204 1,352 1,173 877 –2 –2 –2 –66 ................... ................... 1290 Total liabilities .................................... NET POSITION: 3200 Invested capital ....................................... 3300 Cumulative results of operations ............ 3500 Future funding requirements .................. 3999 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 ................................................................. Adjustments: 1261 Capitalized interest ................................................... 1262 Discount on loan asset sales to the public or discounted ............................................................. Write-offs for default: 1263 Direct loans ............................................................... 1264 Other adjustments, net ............................................. 555 38 449 31 413 28 –49 –40 –36 –30 –24 –22 5 ................... ................... –2 –1 413 –1 VETERANS HOUSING BENEFIT PROGRAM FUND LIQUIDATING ACCOUNT 380 (Legislative proposals, subject to PAYGO) Program and Financing (in millions of dollars) Status of Guaranteed Loans (in millions of dollars) 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 .................................................................... 2264 Other adjustments, net ............................................. 1995 actual 1101 Total: Budget Authority ..................................................................... .................... .................... .................... Outlays .................................................................................... –146 –75 –253 2210 2251 1998 est. 563 –446 1499 Identification code 36–4258–0–3–704 1997 est. Revenue ................................................... Expense .................................................... 1996 actual 1997 est. 1998 est. Enacted/requested: Budget Authority ..................................................................... .................... .................... .................... Outlays .................................................................................... –146 –75 –126 Legislative proposal, subject to PAYGO: Budget Authority ..................................................................... .................... .................... .................... Outlays .................................................................................... .................... .................... –127 Outstanding, end of year .......................................... 1996 actual 0101 0102 Net budget authority and outlays: 89.00 Budget authority ............................................................ ................... ................... ................... 90.00 Outlays ........................................................................... –146 –75 –126 Identification code 36–4258–0–3–704 1995 actual 1996 actual 1997 est. 1998 est. 32,345 –6,793 24,731 –5,194 18,659 –3,919 –608 –675 –565 –216 –203 –170 3 ................... ................... 2290 Outstanding, end of year .......................................... 24,731 18,659 14,005 2299 Memorandum: Guaranteed amount of guaranteed loans outstanding, end of year ................................................................ 13,886 10,476 7,864 Identification code 36–4258–4–3–704 1996 actual 1997 est. 1998 est. Obligations by program activity: Capital investment: 00.04 Payment to DLFA due to debt collection .................. ................... ................... 43 02.93 Claims-Individual Homes .......................................... ................... ................... 43 10.00 Total obligations (object class 33.0) ........................ ................... ................... 43 22.00 22.40 Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... ................... Capital transfer to general fund ................................... ................... ................... 170 –126 23.90 23.95 Total budgetary resources available for obligation ................... ................... New obligations ............................................................. ................... ................... 44 –43 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS 68.00 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 ............................................................. øVOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT¿ 87.00 ................... ................... ................... ................... ................... 43 ................... ................... –43 ................... ................... 2 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... ................... 43 Outlays from permanent balances ................................ ................... ................... ................... Total outlays (gross) ................................................. ................... ................... ø(INCLUDING 170 72.90 86.97 86.98 913 43 TRANSFER OF FUNDS)¿ For the cost of direct loans, ø$49,000¿ $44,000, 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 ø$2,822,000¿ $2,278,000. In addition, for administrative expenses necessary to carry out the direct loan program, ø$377,000¿ $388,000, which may be transferred to and merged with the appropriation for ‘‘General operating expenses’’. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) øEDUCATION LOAN FUND PROGRAM ACCOUNT¿ Offsets: Against gross budget authority and outlays: Offsetting collections (cash) from: Non-Federal sources: 88.40 Payment from DLFA due to debt collection ................... ................... 88.40 Collection of claims (veteran indebtedness) ................... ................... –127 –43 88.90 –170 89.00 90.00 Total, offsetting collections (cash) .................. ................... ................... ø(INCLUDING Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... ................... –127 This schedule shows the effects of the Administration’s proposal to repeal restrictions on collection of loan guaranty debts. VA would be permitted to collect all loan guaranty debts by Federal salary offset or Federal income tax refund offset. TRANSFER OF FUNDS)¿ 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, ø$195,000¿ $200,000; which may be transferred to and merged with the appropriation for ‘‘General operating expenses’’. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 36–0140–0–3–702 1996 actual 1997 est. 1998 est. øLOAN GUARANTY PROGRAM ACCOUNT¿ ø(INCLUDING TRANSFER OF FUNDS)¿ øFor 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.¿ øIn 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’’.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) øLOAN GUARANTY DIRECT LOAN FINANCING ACCOUNT¿ 00.01 00.09 Obligations by program activity: Direct loan subsidy ........................................................ Administrative expenses ................................................ 1 1 1 1 1 1 10.00 Total obligations ........................................................ 2 2 2 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 4 1 3 1 2 1 5 –2 4 –2 3 –2 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 3 2 ................... øDIRECT LOAN PROGRAM ACCOUNT¿ ø(INCLUDING TRANSFER OF FUNDS)¿ øFor 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.¿ øIn 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’’.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) MISCELLANEOUS VETERANS PROGRAMS LOAN FUND PROGRAM ACCOUNT øNATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT¿ (INCLUDING TRANSFER OF FUNDS) For administrative expenses to carry out the direct loan program authorized by 38 U.S.C. chapter 37, subchapter V, as amended, ø$205,000¿ $515,000, which may be transferred to and merged with the appropriation for ‘‘General operating expenses’’. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 40.00 New budget authority (gross), detail: Appropriation .................................................................. 1 1 1 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. Total outlays (gross) ...................................................... 2 –2 2 –2 2 –2 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 1 1 1 1 1 1 87.00 Total outlays (gross) ................................................. 2 2 2 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1 1 1 2 1 2 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars) Identification code 36–0140–0–3–702 1996 actual 1997 est. 1998 est. Direct loan levels supportable by subsidy budget authority: 1150 Direct loan levels, Vocational Rehabiliation ................. 1150 Direct loan levels, Native American Housing ................ 2 6 3 12 3 14 1159 8 15 17 2.78 2.03 1.94 Total direct loan levels ............................................. Direct loan subsidy (in percent): 1320 Voc. Rehab. Loan Subsidy rate ..................................... 914 VETERANS BENEFITS ADMINISTRATION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Credit accounts—Continued MISCELLANEOUS VETERANS PROGRAMS LOAN FUND DIRECT LOAN FINANCING ACCOUNT øEDUCATION LOAN FUND PROGRAM ACCOUNT¿—Continued Program and Financing (in millions of dollars) ø(INCLUDING TRANSFER OF FUNDS)¿—Continued Identification code 36–4259–0–3–702 Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)—Continued Identification code 36–0140–0–3–702 1320 1320 1996 actual 1997 est. 1998 est. 0.00 7.72 42.94 7.72 34.11 7.72 Weighted average subsidy rate ................................. Direct loan subsidy budget authority: 1330 Subsidy budget authority, Native American .................. 6.62 6.78 6.99 1 1 1 Total subsidy budget authority ................................. Direct loan subsidy outlays: 1340 Subsidy outlays, Native American ................................. 1 1 1 1 1 1 1349 Total subsidy outlays ................................................ 1 1 3510 3590 Administrative expense data: Budget authority ............................................................ Outlays ........................................................................... 1 1 1 1 1 1 All information from the Native American Veterans Home Loan Fund, Vocational Rehabilitation Loan Program and Education Loan Fund is consolidated in a single housing fund called the Miscellaneous Veterans Programs Loan Fund. The Native American Veterans Housing Loan program provides direct loans to veterans living on trust lands under 38 U.S.C. chapter 37, section 3761. These loans are available to purchase, construct or improve homes to be occupied as the veteran’s residence. The principal amount of a loan under this authority is generally limited to $80,000, except in areas where housing costs are significantly higher than average costs nationwide. The Native American Veterans Housing Loan Program is a five-year pilot program beginning in 1993. This submission assumes the enactment of the proposal to extend the Native American Program for two additional years through 1999. The Vocational Rehabilitation Loan Fund provides loans of up to $815 (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. 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 these programs, the subsidy costs associated with the direct loans obligated in 1992 and beyond, as well as the administrative expenses of these programs. The subsidy amounts are estimated on a present value basis; the administrative expenses are estimated on a cash basis. 8 2 15 1 17 1 10.00 Total obligations ........................................................ 10 16 18 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New financing authority (gross) .................................... 1 11 2 ................... 16 19 1996 actual 21.40 23.90 23.95 24.40 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 12 –10 18 –16 19 –18 2 ................... ................... 8 14 16 5 –2 6 –4 6 –4 Spending authority from offsetting collections (total) ................................................................ 3 2 2 Total new financing authority (gross) ...................... 11 16 18 1 10 –10 1 16 –16 1 18 –19 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 ............................................................. 87.00 Total financing disbursements (gross) ......................... 72.40 1 10 1 ................... 16 19 Offsets: Against gross financing authority and financing disbursements: Offsetting collections (cash) from: 88.00 Federal sources ..................................................... Non-Federal sources: 88.40 Non-Federal sources ......................................... 88.40 Interest on loans .............................................. 88.40 Interest on uninvested funds ........................... –1 –1 88.90 Total, offsetting collections (cash) .................. –5 –6 –6 89.00 90.00 Net financing authority and financing disbursements: Financing authority ........................................................ Financing disbursements ............................................... 6 5 10 10 13 13 –1 –2 –3 –2 –1 –2 –3 –1 ................... ................... Status of Direct Loans (in millions of dollars) Identification code 36–4259–0–3–702 1996 actual 1997 est. 1998 est. 1997 est. Position with respect to appropriations act limitation on obligations: 1111 Limitation on direct loans ............................................. 8 15 17 Total direct loan obligations ..................................... 8 15 17 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 ............. 7 8 –3 1 13 26 15 17 –3 –2 1 ................... Outstanding, end of year .......................................... 13 26 1998 est. 41.0 Purchases of goods and services from Government accounts .................................................................... Grants, subsidies, and contributions ............................ 1 1 1 1 1 1 1210 1231 1251 1264 99.9 Total obligations ........................................................ 2 2 2 1290 25.3 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 1150 Object Classification (in millions of dollars) Identification code 36–0140–0–3–702 1998 est. Obligations by program activity: Direct loans .................................................................... Interest on Treasury borrowing ...................................... 1 1339 1997 est. 00.01 00.02 Education Loan Subsidy rate ......................................... Native American Subsidy rate ....................................... 1329 1996 actual 41 VETERANS BENEFITS ADMINISTRATION—Continued Trust Funds DEPARTMENT OF VETERANS AFFAIRS Balance Sheet (in millions of dollars) Identification code 36–4259–0–3–702 ASSETS: 1101 Federal assets: Fund balances with Treasury ............................................... Net value of assets related to post– 1991 direct loans receivable: 1401 Direct loans receivable, gross ............ 1499 Net present value of assets related to direct loans ........................... 1999 Total assets ........................................ LIABILITIES: Federal liabilities: 2101 Accounts payable ................................ 2103 Debt ..................................................... 2104 Resources payable to Treasury ........... 2203 Non-Federal liabilities: Debt ................... 2999 1995 actual 1996 actual 1997 est. 1998 est. 4 3 1 1 1 13 26 915 As required by the Federal Credit Reform Act of 1990, this account records 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 acounts. 41 WORKLOAD, AMOUNT LOANED AND REPAID 1996 actual Number of loans outstanding ..................................................... Average amount per loan outstanding ....................................... 1 13 26 16 27 42 1997 est. 1998 est. 2,700 $849 2,340 $855 41 5 3,142 $831 .................. 2 .................. 1 .................. 3 .................. 13 .................. 2 10 .................. .................. 2 23 .................. Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ 3 16 12 25 .................. .................. 14 17 3999 Total net position ................................ .................. .................. 14 17 4999 Total liabilities and net position ............ 3 16 26 42 This account contains all information on the Native American Veterans Home Loan Fund, Vocational Rehabilitation Loan Program Education Loan Fund, and Transitional Housing 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. Trust Funds POST-VIETNAM ERA VETERANS EDUCATION ACCOUNT Unavailable Collections (in millions of dollars) Identification code 36–8133–0–7–702 Balance, start of year: 01.99 Balance, start of year .................................................... Receipts: 02.01 Deductions from military pay ........................................ 02.02 Contributions .................................................................. 1996 actual 1997 est. 1998 est. 64 64 4 12 4 ................... 15 11 Total receipts ............................................................. 16 19 11 Total: Balances and collections .................................... Appropriation: 05.01 Post-Vietnam era veterans education account ............. 80 83 75 –16 –19 –11 05.99 07.99 –16 64 –19 64 –11 64 02.99 04.00 Subtotal appropriation ................................................... Total balance, end of year ............................................ 64 Program and Financing (in millions of dollars) Identification code 36–8133–0–7–702 1996 actual 1997 est. 1998 est. MISCELLANEOUS VETERANS PROGRAMS LOAN FUND LIQUIDATING ACCOUNT 00.01 00.02 00.03 Obligations by program activity: Payment to post-Vietnam era trainees ......................... Payment to section 901 trainees .................................. Participant disenrollments ............................................. 28 1 24 Status of Direct Loans (in millions of dollars) 10.00 Total obligations ........................................................ 53 100 42 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 226 16 189 19 108 11 242 –53 208 –100 108 –42 189 108 77 1996 actual Identification code 36–4260–0–3–702 1997 est. 1998 est. 21.40 Cumulative balance of direct loans outstanding: 1210 Outstanding, start of year ............................................. 3 3 2 1290 3 2 2 Outstanding, end of year .......................................... Balance Sheet (in millions of dollars) Identification code 36–4260–0–3–702 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 .................................................. 1995 actual 1996 actual 1997 est. Value of assets related to direct loans .......................................... 23.90 23.95 24.40 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 1998 est. 60.27 60.45 1 .................. 20 –4 23 11 –4 ................... Appropriation (total) .................................................. 16 19 11 70.00 .................. New budget authority (gross), detail: Appropriation (trust fund, indefinite) ............................ Portion precluded from obligation ................................. 63.00 1101 1699 18 14 1 ................... 81 28 Total new budget authority (gross) .......................... 16 19 11 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 53 –43 4 100 –99 5 42 –44 4 5 3 .................. 3 3 2 2 –2 –2 –1 .................. 1 1 1 2 1 1 1 2 1 2 1 2 72.40 Total assets ........................................ NET POSITION: 3100 Appropriated capital ................................ 3300 Cumulative results of operations ............ 8 –7 1 1 .................. 1 .................. 2 3999 Total net position ................................ 1 1 1 Total liabilities and net position ............ 1 2 1 2 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 16 27 19 80 11 33 Total outlays (gross) ................................................. 43 99 44 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 16 43 19 99 11 44 .................. 4999 86.97 86.98 87.00 1999 This account contains all information on the Vocational Rehabilitation Loan Program and Education Loan Fund on loans prior to 1992. This account consists of voluntary contributions by eligible servicepersons and matching contributions provided by the 916 VETERANS BENEFITS ADMINISTRATION—Continued Trust Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 Disability claims ........................................................ Matured endowments ................................................ Cash surrenders ........................................................ Dividends ................................................................... Interest paid on dividend credits and deposits ....... Payment to general operating expenses ................... 9 11 11 240 25 9 9 9 7 218 24 8 8 6 8 202 24 9 03.91 Total reimbursable ................................................ 550 528 511 10.00 Total obligations ........................................................ 1,906 1,888 1,892 Budgetary resources available for obligation: Unobligated balance available, start of year: U.S. Securities: Par value ................................................. 22.00 New budget authority (gross) ........................................ 10,854 1,877 10,824 1,794 10,729 1,727 12,731 –1,906 12,618 –1,888 12,456 –1,892 10,824 10,729 10,564 1,288 1,230 1,182 589 564 545 Total new budget authority (gross) .......................... 1,877 1,794 1,727 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.40 Appropriation ......................................................... 72.41 U.S. Securities: Par value ..................................... 10 1,101 5 1,183 5 1,185 1,111 1,906 –1,829 1,188 1,888 –1,887 1,190 1,892 –1,849 74.40 74.41 Total unpaid obligations, start of year ................ New obligations ............................................................. Total outlays (gross) ...................................................... Unpaid obligations, end of year: Obligated balance: Appropriation ......................................................... U.S. Securities: Par value ..................................... 5 1,183 5 1,185 5 1,228 Total unpaid obligations, end of year .................. 1,188 1,190 1,233 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 589 1,240 564 1,323 545 1,304 87.00 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: 03.02 03.03 03.04 03.05 03.06 03.07 74.99 POST-VIETNAM ERA VETERANS EDUCATION ACCOUNT—Continued Total outlays (gross) ................................................. 1,829 1,887 1,849 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 ...................... –126 –7 –456 –120 –6 –438 –122 –5 –418 88.90 Total, offsetting collections (cash) .................. –589 –564 –545 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 1,288 1,240 1,230 1,323 1,182 1,304 21.91 CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES [In millions of dollars] 1996 actual 1997 est. 1998 est. Total budget authority ................................................................. $15 $19 $11 Servicepersons ........................................................................ $4 $4 .................... Transferred from Department of Defense (bonus) ................. .................... 7 5 Transferred from Department of Defense (matching) ............ 10 8 6 Transferred from Department of Defense (Section 901) ........ 1 1 .................... Transferred from Department of Defense (Section 903) ........ .................... .................... .................... Total participants (end of year) .................................................. 341,439 223,442 164,342 Total contributors (end of year) .................................................. 3,611 4,300 .................... Average contribution per contributor (actual dollars) ................ $1,028 $1,028 .................... Number of disenrollments ........................................................... 14,150 117,997 59,100 Total refunds ............................................................................... $24 $81 $28 Total trainees .............................................................................. 14,002 9,154 6,778 Total trainee cost ........................................................................ $28 $18 $14 Average cost per trainee (actual dollars) ................................... $1,994 $1,994 $1,994 Section 901 trainees ................................................................... 183 144 113 Section 901 trainee cost ............................................................. $1 $1 .................... Object Classification (in millions of dollars) Identification code 36–8133–0–7–702 1996 actual 1997 est. 1998 est. 41.0 44.0 Grants, subsidies, and contributions ............................ Refunds .......................................................................... 29 24 19 81 14 28 99.9 Total obligations ........................................................ 53 100 23.90 23.95 24.91 60.27 68.00 70.00 72.99 73.10 73.20 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: U.S. Securities: Par value ..................................................... New budget authority (gross), detail: Appropriation (trust fund, indefinite) ............................ Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 42 NATIONAL SERVICE LIFE INSURANCE FUND Unavailable Collections (in millions of dollars) Identification code 36–8132–0–7–701 1996 actual 1997 est. Balance, start of year: 01.99 Balance, start of year .................................................... ................... ................... Receipts: 02.01 Premium and other receipts .......................................... 236 256 02.02 Interest ........................................................................... 1,050 1,002 02.03 Payments from general and special funds ................... 2 2 02.99 Total receipts ............................................................. 1998 est. 30 216 965 2 1,288 1,260 1,183 Total: Balances and collections .................................... 1,288 Appropriation: 05.01 National Service Life Insurance fund ............................ –1,288 07.99 Total balance, end of year ............................................ ................... 1,260 1,213 04.00 –1,230 30 –1,182 31 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. Program and Financing (in millions of dollars) Identification code 36–8132–0–7–701 Obligations by program activity: Direct: Operating expenses: 00.01 Death claims ......................................................... 00.02 Disability claims ................................................... 00.03 Matured endowments ............................................ 00.04 Cash surrenders .................................................... 00.05 Dividends .............................................................. 00.06 Interest paid on dividend credits and deposits 00.07 Payment to general operating expenses .............. 00.91 02.01 02.93 03.01 1996 actual 1997 est. 1998 est. 546 20 25 24 535 55 19 591 20 20 15 509 57 20 622 21 13 20 493 59 22 Total operating expenses ................................. Capital investment: Policy loans ............................................................... 1,224 1,232 1,250 132 128 131 Total direct obligations ............................................. Reimbursable program: Death claims ............................................................. 1,356 1,360 1,381 245 253 254 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 ...................................................... 2,120,348 $19,365 1996 est. 2,019,328 $18,851 1997 est. 1,913,028 $18,299 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 VETERANS BENEFITS ADMINISTRATION—Continued Trust Funds—Continued DEPARTMENT OF VETERANS AFFAIRS expected to decrease from $12,947 million as of September 30, 1997 to $12,823 million as of September 30, 1998. The actuarial estimate of policy obligations as of September 30, 1998, total $12,730 million, leaving a balance of $93 million for contingency reserves. The status of the fund, excluding noncash transactions, is as follows (in millions of dollars): Budgetary resources available for obligation: Unobligated balance available, start of year: U.S. Securities: Par value ................................................. 22.00 New budget authority (gross) ........................................ 21.91 23.90 23.95 24.91 Status of Funds (in millions of dollars) Identification code 36–8132–0–7–701 0100 0101 Unexpended balance, start of year: Uninvested balance [unavailable collections] ............... U.S. Securities: Par value .............................................. 0199 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 ................................................ 1996 actual 1997 est. 917 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: U.S. Securities: Par value ..................................................... 87 9 79 8 72 7 96 –16 87 –14 79 –12 79 72 66 7 7 6 60.27 68.00 1998 est. 10 11,954 5 12,007 35 11,914 11,964 12,012 11,949 New budget authority (gross), detail: Appropriation (trust fund, indefinite) ............................ Spending authority from offsetting collections: Offsetting collections (cash) .............................................. 2 1 1 70.00 Total new budget authority (gross) .......................... 9 8 7 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) ...................................................... 74.41 Unpaid obligations, end of year: Obligated balance: U.S. Securities: Par value ......................................... 19 16 –17 20 14 –15 19 12 –14 20 19 19 72.41 236 256 216 1,050 1,002 965 2 2 2 589 564 545 Total cash income ..................................................... 1,877 Cash outgo during year: 0500 National Service Life Insurance fund ............................ –1,829 Unexpended balance, end of year: Uninvested balance: 0700 Uninvested balance ................................................... 5 0700 Unavailable Collections ............................................. ................... 0701 U.S. Securities: Par value .............................................. 12,007 1,824 1,728 –1,887 –1,849 5 30 11,914 5 31 11,792 11,949 11,828 0299 0799 Total balance, end of year ........................................ 12,012 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 2 15 1 14 1 13 87.00 Total outlays (gross) ................................................. 17 15 14 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Repayments of loans ..................................................................... –2 –1 –1 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 7 15 7 14 6 12 89.00 90.00 Object Classification (in millions of dollars) Identification code 36–8132–0–7–701 1996 actual 1997 est. 1998 est. 33.0 42.0 43.0 Direct obligations: Investments and loans .............................................. Insurance claims and indemnities ........................... Interest and dividends .............................................. 91 616 610 90 648 586 93 677 577 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 1,317 589 1,324 564 1,347 545 99.9 Total obligations ........................................................ 1,906 1,888 1,892 UNITED STATES GOVERNMENT LIFE INSURANCE FUND Unavailable Collections (in millions of dollars) Identification code 36–8150–0–7–701 1996 actual 1997 est. 1998 est. Balance, start of year: 01.99 Balance, start of year .................................................... ................... ................... ................... Receipts: 02.01 Interest and profits on investments in public debt securities ................................................................... 7 7 6 Appropriation: 05.01 United States government life insurance fund ............. –7 –7 –6 07.99 Total balance, end of year ............................................ ................... ................... ................... Program and Financing (in millions of dollars) Identification code 36–8150–0–7–701 Obligations by program activity: Operating expenses: 00.01 Death claims ............................................................. 00.03 Matured endowments ................................................ 00.05 Dividends ................................................................... 00.06 Interest paid on dividend credits and deposits ....... 1996 actual 1997 est. 1998 est. 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): 1996 actual Number of policies ...................................................................... Insurance in force ....................................................................... 7 7 1 ................... 5 4 1 1 00.91 Total operating expenses ...................................... 16 14 12 10.00 Total obligations ........................................................ 16 14 12 1997 est. 1998 est. 21,424 $71 19,838 $65 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 $98 million as of September 30, 1997, to $91 million as of September 30, 1998, as an increasing number of policies mature through death or disability. The actuarial evaluation of policy obligations as of September 30, 1998, totals $89 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): Status of Funds (in millions of dollars) Identification code 36–8150–0–7–701 8 1 6 1 23,130 $77 Unexpended balance, start of year: 0101 U.S. Securities: Par value .............................................. 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 actual 1997 est. 1998 est. 106 99 92 7 7 6 2 1 1 918 VETERANS BENEFITS ADMINISTRATION—Continued Trust Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 UNITED STATES GOVERNMENT LIFE INSURANCE FUND—Continued 88.40 Repayments of loans ........................................ –15 –17 –18 Status of Funds (in millions of dollars)—Continued 88.90 Total, offsetting collections (cash) .................. –244 –243 –241 Identification code 36–8150–0–7–701 0299 Total cash income ..................................................... Cash outgo during year: 0500 United States government life insurance fund ............. Unexpended balance, end of year: 0701 U.S. Securities: Par value .............................................. 1996 actual 1997 est. 1998 est. 9 8 7 –17 –15 –14 99 92 85 Object Classification (in millions of dollars) Identification code 36–8150–0–7–701 1996 actual 1997 est. 1998 est. 42.0 43.0 Insurance claims and indemnities ................................ Interest and dividends ................................................... 10 6 9 5 8 4 99.9 Total obligations ........................................................ 16 14 12 VETERANS SPECIAL LIFE INSURANCE FUND Program and Financing (in millions of dollars) Identification code 36–8455–0–8–701 1996 actual 1997 est. 1998 est. Obligations by program activity: Operating expenses: 00.01 Death claims ............................................................. 00.02 Cash surrenders ........................................................ 00.03 Dividends ................................................................... 00.04 All other ..................................................................... 00.05 Payment to general operating expenses account 43 5 105 48 4 49 5 99 58 4 53 4 98 61 5 00.91 01.01 Total operating expenses ...................................... Capital investment ........................................................ 205 24 215 25 221 25 10.00 Total obligations ........................................................ 229 240 246 Budgetary resources available for obligation: 21.91 Unobligated balance available, start of year: U.S. Securities: Par value ................................................. 22.00 New budget authority (gross) ........................................ 1,397 244 1,412 243 1,415 241 1,641 –229 1,655 –240 1,656 –246 1,412 1,415 1,410 23.90 23.95 24.91 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: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: 72.90 Fund balance ........................................................ 72.91 U.S. Securities: Par value ..................................... 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –34 –14 –8 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. 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): 1996 actual Number of policies .................................................................. Insurance in force ................................................................... 1997 est. 256,330 $2,825 1998 est. 249,600 $2,789 242,870 $2,760 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) 244 243 241 Identification code 36–8455–0–8–701 1995 actual 1996 actual 1997 est. 1998 est. 0101 0102 1 150 1 168 1 179 151 229 –210 169 240 –229 180 246 –233 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 ..................................... 1 168 1 179 1 192 74.99 Total unpaid obligations, end of year .................. 169 180 193 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 75 135 68 161 40 193 87.00 Total outlays (gross) ................................................. 210 229 233 –147 –145 –144 –5 –75 –2 –6 –73 –2 –6 –71 –2 Revenue ................................................... Expense .................................................... 228 –226 231 –223 229 –229 225 –225 0109 Net income or loss (–) ............................ 2 8 .................. .................. 1997 est. 1998 est. Balance Sheet (in millions of dollars) 72.99 73.10 73.20 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 ........................................ 1995 actual 1996 actual 1 1 1 1 1,546 94 .................. 1,580 37 .................. 1,594 37 3 1,602 36 3 37 102 109 117 Total assets ........................................ LIABILITIES: Non-Federal liabilities: 2201 Accounts payable ................................ 2206 Pension and other actuarial liabilities 2207 Other ................................................... 1,678 1,720 1,744 1,759 168 1,465 20 187 1,481 19 201 1,491 19 214 1,493 18 2999 1,652 1,687 1,711 1,725 1,397 1,412 1,415 1,410 Identification code 36–8455–0–8–701 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 .................... 1999 Total liabilities .................................... NET POSITION: 3100 Appropriated capital ................................ CONSTRUCTION Federal Funds DEPARTMENT OF VETERANS AFFAIRS 3200 Invested capital ....................................... –1,370 –1,378 –1,382 –1,378 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.21 Unobligated balance transferred to other accounts 919 21.40 3999 Total net position ................................ 27 34 33 32 4999 Total liabilities and net position ............ 1,680 1,721 1,744 1,757 Object Classification (in millions of dollars) 1996 actual Identification code 36–8455–0–8–701 1997 est. 1998 est. 33.0 42.0 43.0 Investments and loans .................................................. Insurance claims and indemnities ................................ Interest and dividends ................................................... 24 85 120 25 100 115 25 105 116 99.9 Total obligations ........................................................ 229 240 246 23.90 23.95 24.40 897 –302 814 –349 577 –215 595 465 362 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. 136 219 Permanent: 65.00 Advance appropriation (definite) .............................. ................... ................... 80 70.00 CONSTRUCTION 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 ø$3,000,000¿ $5,000,000 or more or where funds for a project were made available in a previous major project appropriation, ø$250,858,000, of which $32,100,000 shall be for the replacement hospital at Travis Air Force Base, Fairfield, California, and shall not be released for obligation prior to January 1, 1998, unless action is taken by the Congress specifically making such funds available, and all funds appropriated under the above heading are¿ $79,500,000, 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 funds provided in this appropriation for fiscal year ø1997¿ 1998, for each approved project shall be obligated (1) by the awarding of a construction documents contract by September 30, ø1997¿ 1998, and (2) by the awarding of a construction contract by September 30, ø1998¿ 1999: Provided further, That the Secretary shall promptly report in writing to the Comptroller General and to the Committees on Appropriations any approved major construction project in which obligations are not incurred within the time limitations established above; and the Comptroller General shall review the report in accordance with the procedures established by section 1015 of the Impoundment Control Act of 1974 (title X of Public Law 93–344): 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. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) 00.01 00.02 00.04 00.05 00.06 00.07 00.08 136 219 112 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 ............................................................. 826 302 –478 650 349 –318 681 215 –238 650 681 656 1996 actual 1997 est. 1998 est. Obligations by program activity: Replacement and modernization ................................... 102 39 61 Nursing home care ........................................................ 1 1 ................... Research and education ................................................ ................... 28 1 Outpatient improvements .............................................. 123 96 49 Other improvements ....................................................... 72 135 88 National cemeteries ....................................................... 3 50 16 Replacement or renovation of regional offices ............. 1 ................... ................... 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 2 476 10 308 3 235 87.00 Total outlays (gross) ................................................. 478 318 238 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 136 478 219 318 112 238 The major construction request improves access to VA health care for thousands of veterans and expands VA’s national cemetery system. Funds are requested for one seismic project at Memphis, TN. One new cemetery will be constructed at Cleveland, OH, with two existing cemeteries (Fort Sam Houston, TX, and the National Memorial Cemetery of Arizona) expanding their gravesites. Additional funds are provided to remove asbestos from Department-owned buildings, and to support advanced planning and design activities. Budget Authority by Program Activity [In millions of dollars] 1996 actual Total obligations ........................................................ 302 349 215 1997 est. 1998 est. Replacement and modernization ................................................. 33 .................... 35 Research and Education ............................................................. .................... 16 .................... Outpatient and improvements .................................................... 33 64 .................... Safety deficiencies ...................................................................... 18 11 6 Patient environment .................................................................... 20 38 .................... General ........................................................................................ 28 44 11 Other departments ...................................................................... 9 49 31 Advance appropriation provided under P.L. 104–208 ................ .................... .................... 32 Design fund offset ...................................................................... –5 –3 –3 Total budget authority ................................................... 136 219 112 Object Classification (in millions of dollars) 1996 actual Identification code 36–0110–0–1–703 11.3 1997 est. 1998 est. 25.2 26.0 31.0 32.0 Personnel compensation: Other than full-time permanent ........................................................................... Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... Land and structures ...................................................... 1 23 2 3 273 2 25 2 4 316 1 14 2 3 195 99.9 Total obligations ........................................................ 302 349 215 Personnel Summary Identification code 36–0110–0–1–703 1001 10.00 32 Total new budget authority (gross) .......................... 72.40 Federal Funds Identification code 36–0110–0–1–703 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 768 595 465 136 219 112 –7 ................... ................... Total compensable workyears: Full-time equivalent employment ............................................................... 1996 actual 25 1997 est. 50 1998 est. 50 920 CONSTRUCTION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 General and special funds—Continued Object Classification (in millions of dollars) CONSTRUCTION, MINOR PROJECTS Program and Financing (in millions of dollars) Identification code 36–0111–0–1–703 1996 actual 1996 actual Identification code 36–0111–0–1–703 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 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 ø$3,000,000; $175,000,000¿ $5,000,000; $166,300,000, 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 ø$3,000,000¿ $5,000,000: 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, øand¿ (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. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 1997 est. 1998 est. 11.3 1997 est. 1998 est. 25.2 26.0 31.0 32.0 Personnel compensation: Other than full-time permanent ........................................................................... Other services ................................................................ Supplies and materials ................................................. Equipment ...................................................................... Land and structures ...................................................... 5 32 2 2 119 5 40 3 5 144 5 37 2 4 125 99.9 Total obligations ........................................................ 160 197 173 Personnel Summary 1996 actual Identification code 36–0111–0–1–703 1001 Total compensable workyears: Full-time equivalent employment ............................................................... GRANTS FOR CONSTRUCTION OF 85 1997 est. 80 1998 est. 80 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, ø$47,397,000¿ $41,000,000, to remain available until expended. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Obligations by program activity: 00.01 Nursing home care ........................................................ 00.02 Research and education ................................................ 00.04 Other improvements ....................................................... 00.06 National cemeteries ....................................................... 00.07 Computer centers, additions and alterations ............... 00.08 Replacement or renovation of regional offices ............. 14 4 123 12 4 3 4 1 152 19 7 14 12 4 128 14 5 10 10.00 160 197 173 Total obligations ........................................................ Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 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: 40.00 Appropriation .................................................................. 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 ............................................................. 1996 actual Identification code 36–0181–0–1–703 1997 est. 1998 est. 59 175 234 –197 203 –173 59 37 30 47 47 41 10.00 Total obligations (object class 41.0) ........................ 47 47 41 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 47 –47 47 –47 41 –41 40.00 New budget authority (gross), detail: Appropriation .................................................................. 47 47 41 134 47 –57 124 47 –44 127 41 –47 124 127 121 37 166 220 –160 Obligations by program activity: Grants to States ............................................................ 22.00 23.95 30 190 00.01 190 175 166 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 ............................................................. 72.40 157 160 –147 171 197 –173 195 173 –175 86.93 Outlays (gross), detail: Outlays from current balances ...................................... 57 44 47 171 195 193 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 47 57 47 44 41 47 In 1997, the Department plans to obligate $47.4 million to assist seven 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. 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 33 114 46 127 43 132 87.00 Total outlays (gross) ................................................. 147 173 175 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 190 147 175 173 166 175 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 $5 million. GRANTS FOR THE 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, ø$1,000,000¿ $10,000,000, to remain available until expended. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) CONSTRUCTION—Continued Federal Funds—Continued DEPARTMENT OF VETERANS AFFAIRS Program and Financing (in millions of dollars) Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 24 73.10 New obligations ............................................................. ................... 73.20 Total outlays (gross) ...................................................... –16 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 8 921 72.40 Identification code 36–0183–0–1–705 1996 actual 1997 est. 1998 est. 00.01 Obligations by program activity: Grants to States ............................................................ 8 5 10 10.00 Total obligations (object class 41.0) ........................ 8 5 8 16 –15 9 2 –12 10 Budgetary resources available for obligation: 21.40 Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 23.90 23.95 24.40 40.00 10 1 Total budgetary resources available for obligation New obligations ............................................................. Unobligated balance available, end of year: Uninvested balance ................................................... 11 –8 5 –5 10 –10 4 ................... ................... New budget authority (gross), detail: Appropriation .................................................................. 1 1 87.00 Outlays (gross), detail: Outlays from new current authority .............................. ................... ................... ................... Outlays from current balances ...................................... 14 12 9 Outlays from new permanent authority ......................... 2 3 3 Outlays from permanent balances ................................ ................... ................... ................... Total outlays (gross) ................................................. 16 15 12 Offsets: Against gross budget authority and outlays: 88.40 Offsetting collections (cash) from: Non-Federal sources .................................................................. –2 –3 –3 10 89.00 90.00 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 ............................................................. 86.93 4 ................... 1 10 86.90 86.93 86.97 86.98 9 ................... 9 8 –2 14 5 –3 16 10 –2 14 16 24 2 3 Net budget authority and outlays: Budget authority ............................................................ ................... Outlays ........................................................................... 14 12 ................... 12 9 2 The Parking Revolving Fund provides funding for the construction and lease of parking facilities at various medical centers. Income from fees collected will be used for leases. Object Classification (in millions of dollars) Outlays (gross), detail: Outlays from current balances ...................................... Identification code 36–4538–0–3–703 Net budget authority and outlays: 89.00 Budget authority ............................................................ 90.00 Outlays ........................................................................... 1 2 1 3 10 2 This program enables the Department to assist States in establishing, expanding, or improving State-operated veterans cemeteries. 1996 actual 23.2 32.0 99.0 Rental payments to others ............................................ ................... Land and structures ...................................................... ................... Subtotal, reimbursable obligations ............................... ................... 99.9 Total obligations ........................................................ ................... 1997 est. 1998 est. 2 2 14 ................... 16 2 16 2 PERSHING HALL REVOLVING FUND Program and Financing (in millions of dollars) Public enterprise funds: PARKING REVOLVING FUND Identification code 36–4018–0–3–705 For the parking revolving fund as authorized by 38 U.S.C. 8109, ø$12,300,000 together with¿ 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’’. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Identification code 36–4538–0–3–703 1996 actual 1997 est. 1998 est. 2 2 14 ................... 10.00 16 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.22 Unobligated balance transferred from other accounts 2 21.40 23.90 23.95 24.40 26 35 34 2 15 3 7 ................... ................... Total budgetary resources available for obligation 35 New obligations ............................................................. ................... Unobligated balance available, end of year: Uninvested balance ................................................... 35 New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. ................... Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 2 70.00 Total new budget authority (gross) .......................... 2 1998 est. Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 1 1 1 23.95 New obligations ............................................................. ................... ................... ................... 24.40 Unobligated balance available, end of year: Uninvested balance ................................................... 1 1 1 72.40 Obligations by program activity: 00.01 Operating expenses: Parking leases .............................. ................... 01.01 Capital investment: parking construction program ...... ................... Total obligations ........................................................ ................... 1997 est. 21.40 Change in unpaid obligations: Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 74.40 Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. Program and Financing (in millions of dollars) 1996 actual 50 –16 37 –2 34 35 12 ................... 3 3 15 3 89.00 90.00 1 1 1 1 1 1 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... ................... ................... ................... 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 922 CONSTRUCTION—Continued Federal Funds—Continued THE BUDGET FOR FISCAL YEAR 1998 73.40 74.40 Public enterprise funds—Continued PERSHING HALL REVOLVING FUND—Continued suspension of U.S. veteran admission to the VMMC, the continuing appropriation of U.S. funds to maintain and upgrade the physical plant at this facility was discontinued. DEPARTMENTAL ADMINISTRATION 87.00 GENERAL OPERATING EXPENSES For necessary operating expenses of the Department of Veterans Affairs, not otherwise provided for, 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; ø$827,584,000: Provided, That during fiscal year 1997, notwithstanding any other provision of law, the number of individuals employed by the Department of Veterans Affairs (1) in other than ‘‘career appointee’’ positions in the Senior Executive Service shall not exceed 6, and (2) in schedule C positions shall not exceed 11:¿ $846,385,000: Provided øfurther¿, That funds under this heading shall be available to administer the Service Members Occupational Conversion and Training Act: Provided further, That funds under this heading shall be available for the conduct of medical examinations requested by the Veterans Benefits Administration in connection with claims for benefits under title 38, United States Code. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 36–0151–0–1–705 Obligations by program activity: Direct program: Veterans benefits: 00.02 Veterans assistance .............................................. 00.04 Compensation and Pensions ................................ 00.05 Education .............................................................. 00.06 Vocational rehabilitation and counseling ............. 00.07 Support services ................................................... 00.08 Information Resources Management .................... 00.09 Insurance1 ............................................................. 00.11 General administration ......................................... 1996 actual 1997 est. 86.90 86.93 86.97 86.98 1998 est. 56 ................... ................... 193 233 521 25 43 69 39 47 69 227 199 ................... 117 103 ................... 1 2 3 210 201 186 868 828 848 01.01 01.02 01.03 Subtotal, direct program2 ..................................... Reimbursable program: Administration of housing programs ........................ Administration of insurance programs1 ................... Other .......................................................................... 80 32 130 134 32 105 160 36 116 01.91 Subtotal, reimbursable program ........................... 242 271 Total obligations ........................................................ 1,110 1,099 1,160 00.91 Budgetary resources available for obligation: Unobligated balance available, start of year: Uninvested balance ................................................... 22.00 New budget authority (gross) ........................................ 22.30 Unobligated balance expiring3 ...................................... 21.40 23.90 23.95 24.40 Total budgetary resources available for obligation 1,110 1,099 1,160 New obligations ............................................................. –1,110 –1,099 –1,160 Unobligated balance available, end of year: Uninvested balance ................................................... ................... ................... ................... New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash)4 ................................... 70.00 26 ................... ................... 1,091 1,099 1,160 –7 ................... ................... 847 828 271 128 83 85 Total outlays (gross) ................................................. 1,105 1,144 1,158 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –244 –271 –313 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 847 861 828 873 847 845 89.00 90.00 1 The total cost of administering veterans insurance programs is funded through direct appropriations and reimbursements from the insurance trust fund. 2 The program activity distribution beginning in 1996 reflects the first phase of an initiative to shift all VBA administrative and support costs to the five business lines (Compensation and Pensions, Education, Loan Guaranty, Vocational Rehabilitation and Insurance). The complete initiative is reflected in the 1998 budget numbers. 3 After VA closed and reported its financial data for Fiscal Year 1996, it was determined that reimbursements to the General Operating Expenses account were overstated by $5.4 million in Fiscal Year 1996. As a result, the $6.7 million end of year unobligated balance reported as expiring is overstated. The true lapse of budgetary resources is approximately $1.3 million. This accounting error will be corrected in Fiscal Year 1997. 4 Due to the $5.4 million in overstated reimbursements explained in footnote 2, $2.7 million was recorded above the actual spending authority from collections in FY 1996. This was recorded as over-collected and unavailable for obligation on the VA’s year end financial reports. 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. Veterans benefits.—Determines eligibility and adjudicates all claims for compensation, pensions, educational assistance, housing loan assistance, and insurance awards. 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 and accuracy. 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. PERFORMANCE MEASURES 1994 actual Compensation and Pension Summary: Average days to complete claim: Original compensation .................... Original pension .............................. Original death pension ................... Original survivor compensation ...... Accuracy rate for: Original claims ............................... Reopened from disallowance and new compensation claims .......... Appeals and hearings ..................... Original and reopened/new pension claims ......................................... 1995 actual 1996 actual 1997 projected 1998 projected 213 123 65 111 161 98 50 92 144 85 45 75 118 71 24 66 106 71 20 73 N/A N/A 90% 91% 92% N/A N/A N/A N/A 93% 97% 94% 97% 95% 97% N/A N/A 92% 93% 94% WORKLOAD 847 244 –2 ................... ................... Outlays (gross), detail: Outlays from new current authority .............................. 736 745 762 Outlays from current balances ...................................... 125 128 83 Outlays from new permanent authority ......................... 244 271 313 Outlays from permanent balances ................................ ................... ................... ................... 312 10.00 Adjustments in expired accounts .................................. Unpaid obligations, end of year: Obligated balance: Appropriation ............................................................. 313 [in thousands] Total new budget authority (gross) .......................... 1,091 1,099 1,160 Change in unpaid obligations: 72.40 Unpaid obligations, start of year: Obligated balance: Appropriation ............................................................. 73.10 New obligations ............................................................. 73.20 Total outlays (gross) ...................................................... 125 1,110 –1,105 128 1,099 –1,144 83 1,160 –1,158 1994 actual Compensation and Pension: Original and reopened compensation Original and reopened pension ........... 438 253 1995 actual 518 196 1996 actual 497 172 1997 projected 481 167 1998 projected 473 171 Education.—Provides timely and efficient processing of claims for veterans and dependents relating to education benefits under the various laws enacted by Congress. DEPARTMENTAL ADMINISTRATION—Continued DEPARTMENT OF VETERANS AFFAIRS PERFORMANCE MEASURES 1994 actual Education Summary: Montgomery GI Bill usage rate * ........ Payment accuracy ............................... Service accuracy .................................. Average days to complete ................... 34.1% 93.3% 82.7% 14 1995 actual 1996 actual 34.7% 92.8% 79.7% 15 36.7% 94.0% 82.0% 20 1997 projected 37.3% 94.0% 82.0% 24 1998 projected 41.9% 94.0% 82.5% 33 * Veterans have 10 years to use education benefits. The low usage rate may reflect a delay in beginning the program. WORKLOAD [In thousands] Education: Original claims ....................................................................... Adjustments/supplemental claims ......................................... 1996 actual 152 1,061 1997 est. 154 1,086 1998 est. 161 1,132 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. 1994 actual 1995 actual 1996 actual 10,973 602,244 9,319 263,125 8,624 320,776 12,866 300,000 13,644 280,000 93% 83% 94% 87% 96% 85% 93% 87% 92% 85% N/A 68% 67% 69% 37.3 $147 42.8 $108 1997 projected 39.0 $248 1998 projected 37.0 $289 OTHER WORKLOAD [In thousands] Loan guaranty: Construction and valuation .................................................... Loan processing ...................................................................... Loan service and claims ........................................................ Property management ............................................................. 1996 actual 387 847 438 48 1997 est. 359 787 462 53 334 732 530 58 PERFORMANCE MEASURES Vocational Rehabilitation and Counseling Summary: Percent not participating in or completing an evaluation ..................... Rehabilitation effectiveness rate ........ 1995 actual 1996 actual 35% 85% 1997 projected 1998 projected 29% 87% 31% 87% 4.2 99.3% 99.1% 99.0% 98.8% 98.8% 1996 actual Insurance: Policy service actions ............................................................. Collections ............................................................................... Disability claims ..................................................................... Insurance awards ................................................................... 1,532 3,893 45 538 1997 est. 1,486 3,716 42 631 1998 est. 1,429 3,542 39 637 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) 1996 actual Identification code 36–0151–0–1–705 11.1 11.5 Direct obligations: Personnel compensation: Full-time permanent ............................................. Other personnel compensation ............................. 1997 est. 1998 est. 482 10 466 7 492 101 1 473 457 102 95 15 ................... 24.0 25.2 26.0 31.0 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 ................................................................. 99.9 11.9 12.1 13.0 21.0 21.0 22.0 23.1 23.2 23.3 [In thousands] 1996 actual 54 52 9 17 16 1997 est. 53 51 9 17 16 444 13 7 2 2 80 8 9 2 2 82 6 8 2 2 77 7 36 4 72 18 45 38 5 73 8 13 34 5 149 8 3 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 868 242 828 271 847 313 Total obligations ........................................................ 1,110 1,099 1,160 Personnel Summary 1998 est. 51 47 9 18 14 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. 1996 actual Identification code 36–0151–0–1–705 Direct: Total compensable workyears: 1001 Full-time equivalent employment 1005 Full-time equivalent of overtime Reimbursable: Total compensable workyears: 1 2001 Full-time equivalent employment 2005 Full-time equivalent of overtime 34% 86% WORKLOAD Vocational rehabilitation and counseling: Evaluation and planning ........................................................ Rehabilitation services ........................................................... Employment services status ................................................... Interrupted status ................................................................... Vocational/educational counseling ......................................... 4.2 [In thousands] 1 Reflects 40% 78% 4.2 1998 est. 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. 1994 actual 4.1 WORKLOAD 68% 33.1 N/A 4.4 99.0 99.0 PERFORMANCE MEASURES Loan Guaranty Summary: Property inventory level ....................... Loan guaranties issued ....................... Service to veterans: Customer satisfaction ......................... Loan processing expectations ............. Service to lenders: Lender satisfaction .............................. Foreclosure avoidance through servicing (FATS) ratio .......................................... Cost per loan guaranty issued ................ Insurance Summary: Average days to pay disbursements Percentage of disbursements paid accurately ........................................... 923 1997 est. 1998 est. .............................. and holiday hours 11,797 143 11,088 37 10,207 61 .............................. and holiday hours 3,547 142 3,245 43 3,488 36 FTE treated as reimbursements in all years and the effects of Credit Reform, per P.L. 101–508. OFFICE OF INSPECTOR GENERAL For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, ø$30,900,000¿ $31,013,000. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 36–0170–0–1–705 1996 actual 1997 est. 1998 est. 00.10 01.01 Obligations by program activity: Direct program ............................................................... Reimbursable program .................................................. 31 1 31 1 31 1 10.00 Total obligations ........................................................ 32 32 32 22.00 Budgetary resources available for obligation: New budget authority (gross) ........................................ 32 32 32 PERFORMANCE MEASURES 1994 actual 1995 actual 1996 actual 1997 projected 1998 projected 924 DEPARTMENTAL ADMINISTRATION—Continued OFFICE OF THE BUDGET FOR FISCAL YEAR 1998 INSPECTOR GENERAL—Continued NATIONAL CEMETERY SYSTEM Program and Financing (in millions of dollars)—Continued 1996 actual Identification code 36–0170–0–1–705 23.95 New obligations ............................................................. New budget authority (gross), detail: Current: 40.00 Appropriation ............................................................. Permanent: 68.00 Spending authority from offsetting collections: Offsetting collections (cash) ..................................... 70.00 Total new budget authority (gross) .......................... 1997 est. 1998 est. –32 –32 –32 31 31 For necessary expenses for the maintenance and operation of the National Cemetery System, not otherwise provided for, including uniforms or allowances therefor; cemeterial expenses as authorized by law; purchase of øtwo¿ three passenger motor vehicles for use in cemeterial operations; and hire of passenger motor vehicles, ø$76,864,000¿ $84,183,000. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) 31 Program and Financing (in millions of dollars) 1 1 1 32 32 32 1996 actual Identification code 36–0129–0–1–705 1997 est. 1998 est. 00.10 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 ............................................................. 5 32 –35 3 32 –32 5 3 3 73 77 84 10.00 3 32 –30 Obligations by program activity: Direct obligations ........................................................... Total obligations ........................................................ 73 77 84 22.00 23.95 Budgetary resources available for obligation: New budget authority (gross) ........................................ New obligations ............................................................. 73 –73 77 –77 84 –84 40.00 New budget authority (gross), detail: Appropriation .................................................................. 73 77 84 10 73 –71 12 77 –76 13 84 –84 12 13 14 86.90 86.93 86.97 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... Outlays from new permanent authority ......................... 26 3 1 29 5 1 29 2 1 87.00 Total outlays (gross) ................................................. 30 35 32 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources –1 –1 –1 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 ............................................................. Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 31 29 31 34 31 31 86.90 86.93 Outlays (gross), detail: Outlays from new current authority .............................. Outlays from current balances ...................................... 63 8 69 7 76 8 87.00 Total outlays (gross) ................................................. 71 76 84 89.00 90.00 Net budget authority and outlays: Budget authority ............................................................ Outlays ........................................................................... 73 71 77 76 84 84 1996 actual 1997 projected 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. Object Classification (in millions of dollars) 1996 actual Identification code 36–0170–0–1–705 1997 est. 1998 est. 11.1 12.1 21.0 23.1 25.2 Direct obligations: Personnel compensation: Full-time permanent ........ Civilian personnel benefits ....................................... Travel and transportation of persons ....................... Rental payments to GSA ........................................... Other services ............................................................ 22 4 2 2 1 22 5 1 2 1 22 4 2 2 1 99.0 99.0 Subtotal, direct obligations .................................. Reimbursable obligations .............................................. 31 1 31 1 31 1 99.9 Total obligations ........................................................ 32 32 32 Personnel Summary Identification code 36–0170–0–1–705 Direct: Total compensable workyears: Full-time equivalent employment ............................................................... Reimbursable: 2001 Total compensable workyears: Full-time equivalent employment ............................................................... 1996 actual 1997 est. 72.40 PERFORMANCE MEASURES 1994 actual National Cemetery System Summary: Veteran population served by the existence of a burial option within a reasonable distance of place of residence ......................................... Percentage of survey respondents who rate the quality of service provided by the national cemeteries as excellent ............................................. Percentage of survey respondents who rate cemetery appearance as excellent .................................................. Interments performed: ............................. Full-casket ........................................... In-ground cremain ............................... Columbaria niches .............................. Requests for interment taken by hub cemeteries on weekends ..................... Requests for interment taken on weekends that result in final arrangements in the ensuing week ................ Headstone/marker applications processed ................................................... New headstones/markers ordered ............ Occupied graves maintained: .................. In-ground ............................................. Columbaria niches .............................. Developed acres maintained ................... 1995 actual 1998 projected 65.2 65.2 65.4 66.8 69.2 N/A N/A 81 84 87 N/A 68,636 50,354 16,782 1,500 N/A 70,557 50,758 16,703 3,096 73 71,786 51,552 16,720 3,514 75 73,600 51,700 18,400 3,500 80 76,900 53,100 20,000 3,800 5,528 5,755 5,239 5,650 5,700 90.0% 90.0% 92.5% 90.0% 90.0% 315,383 300,754 2,039,379 2,020,946 18,433 5,355 301,657 284,786 2,091,683 2,070,673 21,010 5,410 327,284 319,758 2,147,739 2,123,573 24,166 5,630 345,000 326,000 2,199,100 2,173,100 26,000 5,819 351,000 332,000 2,255,400 2,226,600 28,800 6,064 1998 est. 1001 348 332 318 17 17 17 The vision of the National Cemetery System is to provide a lasting tribute to our Nation’s veterans. Its mission is to serve the Nation’s veterans by meeting their final needs with compassion and dignity. There are four related programs managed by the National Cemetery System including: to bury eligible veterans and family members in national cemeteries DEPARTMENTAL ADMINISTRATION—Continued DEPARTMENT OF VETERANS AFFAIRS Object Classification (in millions of dollars) 1996 actual Identification code 36–0129–0–1–705 1997 est. 1998 est. 11.1 11.3 Personnel compensation: Full-time permanent .................................................. Other than full-time permanent ............................... 36 6 38 6 40 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 4 6 5 3 44 12 1 1 4 7 5 3 47 13 1 1 4 8 6 4 99.9 Total obligations ........................................................ 73 77 84 Personnel Summary 1996 actual Identification code 36–0129–0–1–705 1001 Total compensable workyears: Full-time equivalent employment ............................................................... 1,287 1997 est. 1998 est. 1,323 1,375 Intragovernmental funds: SUPPLY FUND Program and Financing (in millions of dollars) Identification code 36–4537–0–4–705 1996 actual 1997 est. 1998 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 ..................................................................... 418 36 530 41 553 44 5 5 8 1 9 2 00.91 Total operating expenses ...................................... Capital investment: Procurement, distribution, and services program: Purchase of equipment ......................................... 464 580 3 517 583 610 583 607 Total new budget authority (gross) .......................... 513 583 607 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 57 204 57 204 219 517 –474 261 583 –583 261 610 –610 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 ...................... 57 204 57 204 59 201 74.99 Total unpaid obligations, end of year .................. 261 261 260 86.97 86.98 Outlays (gross), detail: Outlays from new permanent authority ......................... Outlays from permanent balances ................................ 513 583 –39 ................... 607 3 Total outlays (gross) ................................................. 474 583 610 –488 –583 –25 ................... –610 3 70.00 72.99 73.10 73.20 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 01.01 10.00 Budgetary resources available for obligation: Unobligated balance available, start of year: Fund balance ...................................................................... 22.00 New budget authority (gross) ........................................ 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 Object Classification (in millions of dollars) Identification code 36–4537–0–4–705 21.90 23.90 23.95 24.90 Net budget authority and outlays: Budget authority ............................................................ ................... ................... ................... Outlays ........................................................................... –14 ................... ................... 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 1998, Supply Fund sales are estimated to reach $560.0 million. Average inventory needed to support those sales will be $35.0 million. Operating results.—The Fund operated at a profit of $16.0 million in 1996. The new total of retained earnings is $50.0 million, which has been used to finance inventory growth. Operating expense as related to sales was 11.2 percent. 2 Total obligations ........................................................ 513 608 53 Spending authority from offsetting collections (total) ................................................................ 87.00 and maintain the graves and their environs as national shrines; to provide aid to States in establishing, expanding, or improving State veteran cemeteries; to provide headstones and markers for the graves of eligible persons in national, State, and private cemeteries; and to provide certificates to family and friends of deceased veterans, recognizing the veteran’s contribution and service to the Nation. 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. 68.90 925 62 513 58 583 58 607 575 –517 641 –583 665 –610 58 58 55 488 583 25 ................... 610 –3 1996 actual 1997 est. 1998 est. 11.1 11.5 Personnel compensation: Full-time permanent .................................................. Other personnel compensation .................................. 18 1 11.9 12.1 21.0 22.0 23.1 23.3 24.0 25.1 26.0 31.0 99.0 99.5 Total personnel compensation .............................. Civilian personnel benefits ............................................ Travel and transportation of persons ............................ Transportation of things ................................................ Rental payments to GSA ................................................ Communications, utilities, and miscellaneous charges Printing and reproduction .............................................. Advisory and assistance services .................................. Supplies and materials ................................................. Equipment ...................................................................... Subtotal, reimbursable obligations ............................... Below reporting threshold .............................................. 19 3 2 2 2 1 5 7 257 218 516 1 21 21 4 4 2 2 2 2 1 1 2 2 8 9 7 9 295 309 240 251 582 610 1 ................... 99.9 Total obligations ........................................................ 517 583 20 1 20 1 610 926 DEPARTMENTAL ADMINISTRATION—Continued THE BUDGET FOR FISCAL YEAR 1998 Intragovernmental funds—Continued SUPPLY FUND—Continued Personnel Summary 1996 actual Identification code 36–4537–0–4–705 Total compensable workyears: 2001 Full-time equivalent employment .................................. 2005 Full-time equivalent of overtime and holiday hours 378 5 1997 est. 406 5 1998 est. 399 5 of 1994. Established in FY 1997, administrative services included in the Franchise Fund are financed on a fee-for-service 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 net billings of about $63.5 million and employ 659 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. FRANCHISE FUND Object Classification (in millions of dollars) (INCLUDING TRANSFER OF FUNDS) øThere 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 expenses and equipment necessary for the maintenance and operation of such administrative services as the Secretary determines may be performed more advantageously as central services: 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 hereafter for the purpose of providing capital, shall be used to capitalize the franchise fund: Provided further, That the franchise fund 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 accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That the franchise fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of Departmental financial management, ADP, and other support systems: 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.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) Program and Financing (in millions of dollars) Identification code 36–4539–0–4–705 10.00 1996 actual Obligations by program activity: Total obligations ............................................................ ................... 1996 actual 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 ............................... 50 1998 est. 21 3 2 2 18 3 1 50 27 4 3 3 22 4 1 64 Total obligations ........................................................ ................... 50 64 Personnel Summary 1996 actual Identification code 36–4539–0–4–705 2001 Total compensable workyears: Full-time equivalent employment ............................................................... ................... 1997 est. 453 1998 est. 659 GENERAL FUND RECEIPT ACCOUNTS (in millions of dollars) 1996 actual 1997 est. Offsetting receipts from the public: 36–243100 Fees and other charges for medical services, VA ....................................................................................... 465 437 Legislative proposal, not subject to PAYGO ...................... ................... ................... Legislative proposal, subject to PAYGO ............................. ................... ................... 36–247300 Contributions from military personnel, Veteran’s Educational Assistance Act of 1984 ......................... 148 326 General Fund Offsetting receipts from the public ..................... 1997 est. 1997 est. ................... ................... ................... ................... ................... ................... ................... ................... 613 763 1998 est. 415 415 –415 247 662 1998 est. 64 ADMINISTRATIVE PROVISIONS (INCLUDING TRANSFER OF FUNDS) Budgetary resources available for obligation: New budget authority (gross) ........................................ ................... New obligations ............................................................. ................... 50 –50 64 –64 New budget authority (gross), detail: Spending authority from offsetting collections (gross): Offsetting collections (cash) ..................................... ................... 50 64 73.10 73.20 Change in unpaid obligations: New obligations ............................................................. ................... Total outlays (gross) ...................................................... ................... 50 –50 64 –64 86.97 Outlays (gross), detail: Outlays from new permanent authority ......................... ................... 50 64 Offsets: Against gross budget authority and outlays: 88.00 Offsetting collections (cash) from: Federal sources ................... –50 –64 22.00 23.95 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 SEC. 101. Any appropriation for ø1997¿ 1998 for ‘‘Compensation and pensions’’, ‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’ may be transferred to any other of the mentioned appropriations. SEC. 102. Appropriations available to the Department of Veterans Affairs for ø1997¿ 1998 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 ø1997¿ 1998 for ø‘‘Compensation and pensions’’,¿ ‘‘Compensation,’’ ‘‘Pensions,’’ ‘‘Burial Benefits and Miscellaneous Assistance,’’ ‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’ shall be available for payment of prior year accrued DEPARTMENT OF VETERANS AFFAIRS obligations required to be recorded by law against the corresponding prior year accounts within the last quarter of fiscal year ø1996¿ 1997. SEC. 106. Appropriations accounts available to the Department of Veterans Affairs for fiscal year ø1997¿ 1998 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 ø1997¿ 1998, 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 ø1997¿ 1998, 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 ø1997¿ 1998, 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. øSEC. 108. (a) The Secretary of Veterans Affairs may convey, without consideration, to the City of Tuscaloosa, Alabama (in this section referred to as the ‘‘City’’), all right, title, and interest of the United States in and to a parcel of real property, including any improvements thereon, in the northwest quarter of section 28, township 21 south, range 9 west, of Tuscaloosa County, Alabama, comprising a portion of the grounds of the Department of Veterans Affairs medical center, Tuscaloosa, Alabama, and consisting of approximately 9.42 acres, more or less. (b) The conveyance under subsection (a) shall be subject to the condition that the City use the real property conveyed under that subsection in perpetuity solely for public park or recreational purposes. (c) The exact acreage and legal description of the real property to be conveyed pursuant to this section shall be determined by a survey satisfactory to the Secretary of Veterans Affairs. The cost of such survey shall be borne by the City. (d) The Secretary of Veterans Affairs may require such additional terms and conditions in connection with the conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.) TITLE IV—GENERAL PROVISIONS SEC. 401. Where appropriations in titles I, II, and III of this Act are expendable for travel expenses and no specific limitation has been placed thereon, the expenditures for such travel expenses may not exceed the amounts set forth therefore in the budget estimates submitted for the appropriations: Provided, That this provision does not apply to accounts that do not contain an object classification for travel: Provided further, That this section shall not apply to travel performed by uncompensated officials of local boards and appeal boards of the Selective Service System; to travel performed directly in connection with care and treatment of medical beneficiaries of the Department of Veterans Affairs; to travel performed in connection with major disasters or emergencies declared or determined by the President under the provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; to travel performed by the Offices of Inspector General in connection with audits and investigations; or to payments to interagency motor pools where separately set forth in the budget schedules: Provided further, That if appropriations in titles I, II, and III exceed the amounts set forth in budget estimates initially submitted for such appropriations, the expenditures for travel may correspondingly exceed the amounts therefore set forth in the estimates in the same proportion. TITLE IV—GENERAL PROVISIONS 927 SEC. 402. 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. 403. 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, 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. 404. 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. 405. No funds appropriated by this Act may be expended— (1) pursuant to a certification of an officer or employee of the United States unless— (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. 406. 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. 407. 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. 408. 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. 409. 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. 410. 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. SEC. 411. 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 928 TITLE IV—GENERAL PROVISIONS—Continued 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. 412. Except as otherwise provided in section 406, 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. 413. 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. 414. 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. 415. (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. 416. 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. SEC. 417. Such sums as may be necessary for fiscal year ø1997¿ 1998 pay raises for programs funded by this Act shall be absorbed within the levels appropriated in this Act. SEC. 418. None of the funds made available in this Act may be used for any program, project, or activity, when it is made known to the Federal entity or official to which the funds are made available that the program, project, or activity is not in compliance with any Federal law relating to risk assessment, the protection of private property rights, or unfunded mandates. øSEC. 419. Such funds as may be necessary to carry out the orderly termination of the Office of Consumer Affairs shall be made available from funds appropriated to the Department of Health and Human Services for fiscal year 1997.¿ SEC. ø420¿ 419. Corporations and agencies of the Department of Housing and Urban Development which are subject to the Government Corporation Control Act, as amended, are hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Act as may be necessary in carrying out the programs set forth in the budget for ø1997¿ 1998 for such corporation or agency except as hereinafter provided: Provided, That collections of these corporations and agencies may be used for new loan or mortgage purchase commitments only to the extent expressly provided for in this Act (unless such loans are in support of other forms of assistance provided for in this or prior appropriations Acts), except that this proviso shall not apply to the mortgage insurance or guaranty operations of these corporations, or where loans or mortgage purchases are necessary to protect the financial interest of the United States Government. øSEC. 421. (a) The purpose of this section is to provide for the special needs of certain children of Vietnam veterans who were born with the birth defect spina bifida, possibly as the result of the exposure of one or both parents to herbicides during active service in the Republic of Vietnam during the Vietnam era, through the provision of health care and monetary benefits. (b)(1) Part II of title 38, United States Code, is amended by inserting after chapter 17 the following new chapter: ‘‘CHAPTER 18—BENEFITS FOR CHILDREN OF VIETNAM VETERANS WHO ARE BORN WITH SPINA BIFIDA ‘‘SEC. ‘‘1801. DEFINITIONS. ‘‘1802. SPINA BIFIDA CONDITIONS COVERED. ‘‘1803. HEALTH CARE. ‘‘1804. VOCATIONAL TRAINING AND REHABILITATION. THE BUDGET FOR FISCAL YEAR 1998 ‘‘1805. MONETARY ALLOWANCE. ‘‘1806. EFFECTIVE DATE OF AWARDS. ‘‘SEC. 1801. DEFINITIONS ‘‘For the purposes of this chapter— ‘‘(1) The term ‘child’, with respect to a Vietnam veteran, means a natural child of the Vietnam veteran, regardless of age or marital status, who was conceived after the date on which the veteran first entered the Republic of Vietnam during the Vietnam era. ‘‘(2) The term ‘Vietnam veteran’ means a veteran who performed active military, naval, or air service in the Republic of Vietnam during the Vietnam era. ‘‘SEC. 1802. SPINA BIFIDA CONDITIONS COVERED ‘‘This chapter applies with respect to all forms and manifestations of spina bifida except spina bifida occulta. ‘‘SEC. 1803. HEALTH CARE ‘‘(a) In accordance with regulations which the Secretary shall prescribe, the Secretary shall provide a child of a Vietnam veteran who is suffering from spina bifida with such health care as the Secretary determines is needed by the child for the spina bifida or any disability that is associated with such condition. ‘‘(b) The Secretary may provide health care under this section directly or by contract or other arrangement with any health care provider. ‘‘(c) For the purposes of this section— ‘‘(1) The term ‘health care’— ‘‘(A) means home care, hospital care, nursing home care, outpatient care, preventive care, habilitative and rehabilitative care, case management, and respite care; and ‘‘(B) includes— ‘‘(i) the training of appropriate members of a child’s family or household in the care of the child; and ‘‘(ii) the provision of such pharmaceuticals, supplies, equipment, devices, appliances, assistive technology, direct transportation costs to and from approved sources of health care, and other materials as the Secretary determines necessary. ‘‘(2) The term ‘health care provider’ includes specialized spina bifida clinics, health care plans, insurers, organizations, institutions, and any other entity or individual who furnishes health care that the Secretary determines authorized under this section. ‘‘(3) The term ‘home care’ means outpatient care, habilitative and rehabilitative care, preventive health services, and healthrelated services furnished to an individual in the individual’s home or other place of residence. ‘‘(4) The term ‘hospital care’ means care and treatment for a disability furnished to an individual who has been admitted to a hospital as a patient. ‘‘(5) The term ‘nursing home care’ means care and treatment for a disability furnished to an individual who has been admitted to a nursing home as a resident. ‘‘(6) The term ‘outpatient care’ means care and treatment of a disability, and preventive health services, furnished to an individual other than hospital care or nursing home care. ‘‘(7) The term ‘preventive care’ means care and treatment furnished to prevent disability or illness, including periodic examinations, immunizations, patient health education, and such other services as the Secretary determines necessary to provide effective and economical preventive health care. ‘‘(8) The term ‘habilitative and rehabilitative care’ means such professional, counseling, and guidance services and treatment programs (other than vocational training under section 1804 of this title) as are necessary to develop, maintain, or restore, to the maximum extent practicable, the functioning of a disabled person. ‘‘(9) The term ‘respite care’ means care furnished on an intermittent basis for a limited period to an individual who resides primarily in a private residence when such care will help the individual to continue residing in such private residence. ‘‘SEC. 1804. VOCATIONAL TRAINING AND REHABILITATION ‘‘(a) Pursuant to such regulations as the Secretary may prescribe, the Secretary may provide vocational training under this section to a child of a Vietnam veteran who is suffering from spina bifida if the Secretary determines that the achievement of a vocational goal by such child is reasonably feasible. ‘‘(b) Any program of vocational training for a child under this section shall be designed in consultation with the child in order to meet the child’s individual needs and shall be set forth in an individualized written plan of vocational rehabilitation. TITLE IV—GENERAL PROVISIONS—Continued DEPARTMENT OF VETERANS AFFAIRS ‘‘(c)(1) A vocational training program for a child under this section— ‘‘(A) shall consist of such vocationally oriented services and assistance, including such placement and post-placement services and personal and work adjustment training, as the Secretary determines are necessary to enable the child to prepare for and participate in vocational training or employment; and ‘‘(B) may include a program of education at an institution of higher education if the Secretary determines that the program of education is predominantly vocational in content. ‘‘(2) A vocational training program under this subsection may not include the provision of any loan or subsistence allowance or any automobile adaptive equipment. ‘‘(d)(1) Except as provided in paragraph (2) and subject to subsection (e)(2), a vocational training program under this section may not exceed 24 months. ‘‘(2) The Secretary may grant an extension of a vocational training program for a child under this section for up to 24 additional months if the Secretary determines that the extension is necessary in order for the child to achieve a vocational goal identified (before the end of the first 24 months of such program) in the written plan of vocational rehabilitation formulated for the child pursuant to subsection (b). ‘‘(e)(1) A child who is pursuing a program of vocational training under this section and is also eligible for assistance under a program under chapter 35 of this title may not receive assistance under both such programs concurrently. The child shall elect (in such form and manner as the Secretary may prescribe) the program under which the child is to receive assistance. ‘‘(2) The aggregate period for which a child may receive assistance under this section and chapter 35 of this title may not exceed 48 months (or the part-time equivalent thereof). ‘‘SEC. 1805. MONETARY ALLOWANCE ‘‘(a) The Secretary shall pay a monthly allowance under this chapter to any child of a Vietnam veteran for any disability resulting from spina bifida suffered by such child. ‘‘(b)(1) The amount of the allowance paid to a child under this section shall be based on the degree of disability suffered by the child, as determined in accordance with such schedule for rating disabilities resulting from spina bifida as the Secretary may prescribe. ‘‘(2) The Secretary shall, in prescribing the rating schedule for the purposes of this section, establish three levels of disability upon which the amount of the allowance provided by this section shall be based. ‘‘(3) The amounts of the allowance shall be $200 per month for the lowest level of disability prescribed, $700 per month for the intermediate level of disability prescribed, and $1,200 per month for the highest level of disability prescribed. Such amounts are subject to adjustment under section 5312 of this title. ‘‘(c) Notwithstanding any other provision of law, receipt by a child of an allowance under this section shall not impair, infringe, or otherwise affect the right of the child to receive any other benefit to which the child may otherwise be entitled under any law administered by the Secretary, nor shall receipt of such an allowance impair, infringe, or otherwise affect the right of any individual to receive any benefit to which the individual is entitled under any law administered by the Secretary that is based on the child’s relationship to the individual. ‘‘(d) Notwithstanding any other provision of law, the allowance paid to a child under this section shall not be considered income or resources in determining eligibility for or the amount of benefits under any Federal or federally assisted program. ‘‘SEC. 1806. EFFECTIVE DATE OF AWARDS ‘‘The effective date for an award of benefits under this chapter shall be fixed in accordance with the facts found, but shall not be earlier than the date of receipt of application for the benefits.’’. (2) The tables of chapters before part I and at the beginning of part II of such title are each amended by inserting after the item referring to chapter 17 the following new item: ‘‘18. Benefits for Children of Vietnam Veterans Who Are Born With Spina Bifida ........................................................ 1801’’. (c) Section 5312 of title 38, United States Code, is amended— (1) in subsection (a)— 929 (A) by striking out ‘‘and the rate of increased pension’’ and inserting in lieu thereof ‘‘, the rate of increased pension’’; and (B) by inserting after ‘‘on account of children,’’ the following: ‘‘and each rate of monthly allowance paid under section 1805 of this title,’’; and (2) in subsection (c)(1), by striking out ‘‘and 1542’’ and inserting in lieu thereof ‘‘1542, and 1805’’. (d) This section and the amendments made by this section shall take effect on January 1, 1997.¿ øSEC. 422. (a) Section 1151 of title 38, United States Code, is amended— (1) by striking out the first sentence and inserting in lieu thereof the following: ‘‘(a) Compensation under this chapter and dependency and indemnity compensation under chapter 13 of this title shall be awarded for a qualifying additional disability or a qualifying death of a veteran in the same manner as if such additional disability or death were service-connected. For purposes of this section, a disability or death is a qualifying additional disability or qualifying death if the disability or death was not the result of the veteran’s willful misconduct and— ‘‘(1) the disability or death was caused by hospital care, medical or surgical treatment, or examination furnished the veteran under any law administered by the Secretary, either by a Department employee or in a Department facility as defined in section 1701(3)(A) of this title, and the proximate cause of the disability or death was— ‘‘(A) carelessness, negligence, lack of proper skill, error in judgment, or similar instance of fault on the part of the Department in furnishing the hospital care, medical or surgical treatment, or examination; or ‘‘(B) an event not reasonably foreseeable; or ‘‘(2) the disability or death was proximately caused by the provision of training and rehabilitation services by the Secretary (including by a service-provider used by the Secretary for such purpose under section 3115 of this title) as part of an approved rehabilitation program under chapter 31 of this title.’’; and (2) in the second sentence— (A) by redesignating that sentence as subsection (b); (B) by striking out ‘‘, aggravation,’’ both places it appears; and (C) by striking out ‘‘sentence’’ and substituting in lieu thereof ‘‘subsection’’. (b)(1) The amendments made by subsection (a) shall take effect on October 1, 1996. (2) Section 1151 of title 38, United States Code (as amended by subsection (a)), shall govern all administrative and judicial determinations of eligibility for benefits under such section that are made with respect to claims filed on or after the effective date set forth in paragraph (1), including those based on original applications and applications seeking to reopen, revise, reconsider, or otherwise readjudicate on any basis claims for benefits under such section 1151 or any provision of law that is a predecessor of such section. (c) Nothwithstanding subsection (b)(1), section 421(d), or any other provision of this Act, section 421 and this section shall not take effect until October 1, 1997, unless legislation other than this Act is enacted to provide for an earlier effective date.¿ øSEC. 423. The amount provided in title I for ‘‘Veterans Health Administration—Medical Care’’ is hereby increased by $5,000,000.¿ øSEC. 424. FHA MORTGAGE INSURANCE PREMIUMS.—Section 203(c)(2)(A) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended by inserting after the first sentence the following new sentence: ‘‘In the case of a mortgage for which the mortgagor is a first-time homebuyer who completes a program of counseling with respect to the responsibilities and financial management involved in homeownership that is approved by the Secretary, the premium payment under this subparagraph shall not exceed 2.0 percent of the amount of the original insured principal obligation of the mortgage.’’.¿ øSEC. 425. (a) AUTHORITY TO USE AMOUNTS BORROWED FROM FAMILY MEMBERS FOR DOWNPAYMENTS ON FHA-INSURED LOANS.—Section 203(b)(9) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended by inserting before the period at the end the following: ‘‘: Provided further, That for purposes of this paragraph, the Secretary shall consider as cash or its equivalent any amounts borrowed from a family member (as such term is defined in section 201), subject only to the requirements that, in any case in which the repayment of 930 TITLE IV—GENERAL PROVISIONS—Continued such borrowed amounts is secured by a lien against the property, such lien shall be subordinate to the mortgage and the sum of the principal obligation of the mortgage and the obligation secured by such lien may not exceed 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection, and other fees in connection with the mortgage’’. ¿ ø(b) DEFINITION OF FAMILY MEMBER.—Section 201 of the National Housing Act (12 U.S.C. 1707) is amended by adding at the end the following new subsections: ‘‘(e) The term ‘family member’ means, with respect to a mortgagor under such section, a child, parent, or grandparent of the mortgagor (or the mortgagor’s spouse). In determining whether any of the relationships referred to in the preceding sentence exist, a legally adopted son or daughter of an individual (and a child who is a member of an individual’s household, if placed with such individual by an authorized placement agency for legal adoption by such individual), and a foster child of an individual, shall be treated as a child of such individual by blood. ‘‘(f) The term ‘child’ means, with respect to a mortgagor under such section, a son, stepson, daughter, or stepdaughter of such mortgagor.’’.¿ øSEC. 426. CALCULATION OF DOWNPAYMENT.—Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is amended by adding at the end the following new paragraph: ‘‘(10) ALASKA AND HAWAII.— ‘‘(A) IN GENERAL.—Notwithstanding any other provision of this subsection, with respect to a mortgage originated in the State of Alaska or the State of Hawaii and endorsed for insurance in fiscal year 1997, involving a principal obligation not in excess of the sum of— ‘‘(i) the amount of the mortgage insurance premium paid at the time the mortgage is insured; and ‘‘(ii)(I) in the case of a mortgage for a property with an appraised value equal to or less than $50,000, 98.75 percent of the appraised value of the property; ‘‘(II) in the case of a mortgage for a property with an appraised value in excess of $50,000 but not in excess of $125,000, 97.65 percent of the appraised value of the property; ‘‘(III) in the case of a mortgage for a property with an appraised value in excess of $125,000, 97.15 percent of the appraised value of the property; or ‘‘(IV) notwithstanding subclauses (II) and (III), in the case of a mortgage for a property with an appraised value in excess of $50,000 that is located in an area of the State for which the average closing cost exceeds 2.10 percent of the average, for the State, of the sale price of properties located in the State for which mortgages have been executed, 97.75 percent of the appraised value of the property. ‘‘(B) AVERAGE CLOSING COST.—For purposes of this paragraph, the term ‘average closing cost’ means, with respect to a State, the average, for mortgages executed for properties that are located within the State, of the total amounts (as determined by the Secretary) of initial service charges, appraisal, inspection, and other fees (as the Secretary shall approve) that are paid in connection with such mortgages.’’.¿ øSEC. 427. DELEGATION OF SINGLE FAMILY MORTGAGE INSURING AUTHORITY TO DIRECT ENDORSEMENT MORTGAGEES.—Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is amended by adding at the end the following new section: ‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT ENDORSEMENT MORTGAGEES ‘‘SEC. 256.(a) AUTHORITY.—The Secretary may delegate, to one or more mortgagees approved by the Secretary under the direct endorsement program, the authority of the Secretary under this Act to insure mortgages involving property upon which there is located a dwelling designed principally for occupancy by 1 to 4 families. ‘‘(b) CONSIDERATIONS.—In determining whether to delegate authority to a mortgagee under this section, the Secretary shall consider the experience and performance of the mortgagee compared to the default rate of all insured mortgages in comparable markets, and such other factors as the Secretary determines appropriate to minimize risk of loss to the insurance funds under this Act. ‘‘(c) ENFORCEMENT OF INSURANCE REQUIREMENTS.— ‘‘(1) IN GENERAL.—If the Secretary determines that a mortgage insured by a mortgagee pursuant to delegation of authority under this section was not originated in accordance with the requirements established by the Secretary, and the Secretary pays an insurance claim with respect to the mortgage within a reasonable period THE BUDGET FOR FISCAL YEAR 1998 specified by the Secretary, the Secretary may require the mortgagee approved under this section to indemnify the Secretary for the loss. ‘‘(2) FRAUD OR MISREPRESENTATION.—If fraud or misrepresentation was involved in connection with the origination, the Secretary may require the mortgagee approved under this section to indemnify the Secretary for the loss regardless of when an insurance claim is paid. ‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—If a mortgagee to which the Secretary has made a delegation under this section violates the requirements and procedures established by the Secretary or the Secretary determines that other good cause exists, the Secretary may cancel a delegation of authority under this section to the mortgagee by giving notice to the mortgagee. Such a cancellation shall be effective upon receipt of the notice by the mortgagee or at a later date specified by the Secretary. A decision by the Secretary to cancel a delegation shall be final and conclusive and shall not be subject to judicial review. ‘‘(e) REQUIREMENTS AND PROCEDURES.—Before approving a delegation under this section, the Secretary shall issue regulations establishing appropriate requirements and procedures, including requirements and procedures governing the indemnification of the Secretary by the mortgagee.’’.¿ SEC. ø428¿ 420. IMPLEMENTATION OF COMPREHENSIVE CONSERVATION AND MANAGEMENT PLANS.—Notwithstanding section 320(g) of the Federal Water Pollution Control Act (33 U.S.C. 1330(g)), funds made available pursuant to authorization under such section for fiscal year ø1997¿ 1998 and prior fiscal years may be used for implementing comprehensive conservation and management plans. øSEC. 429. (a) PLAN.—(1) The Secretary of Veterans Affairs shall develop a plan for the allocation of health care resources (including personnel and funds) of the Department of Veterans Affairs among the health care Networks of the Department so as to ensure that veterans who have similar economic status and eligibility priority and who are eligible for medical care have similar access to such care regardless of the region of the United States in which such veterans reside. (2) The plan shall— (A) reflect, to the maximum extent possible, the Veterans Integrated Service Network developed by the Department to account for forecasts in expected workload and to ensure fairness to facilities that provide cost-efficient health care; and (B) include— (i) procedures to identify reasons for variations in operating costs among similar facilities where Network allocations are based on similar unit costs for similar services and workload; (ii) ways to improve the allocation of resources so as to promote efficient use of resources and provision of quality health care; (iii) adjustments to unit costs in subsection (a) to reflect factors which directly influence the cost of health care delivery within each Network and where such factors are not under the control of Network or Department management; and (iv) include forecasts in expected workload and consideration of the demand for Veterans Administration health care that may not be reflected in current workload projections. (3) The Secretary shall prepare the plan in consultation with the Under Secretary of Health of the Department of Veterans Affairs. (b) PLAN ELEMENTS.—The plan under subsection (a) shall set forth— (1) milestones for achieving the goal referred to in paragraph (1) of that subsection; and (2) a means of evaluating the success of the Secretary in meeting the goal. (c) SUBMITTAL TO CONGRESS.—The Secretary shall submit to Congress the plan developed under subsection (a) not later than 180 days after the date of the enactment of this Act. (d) IMPLEMENTATION.—The Secretary shall implement the plan developed under subsection (a) not later than 60 days after submitting the plan to Congress under subsection (c), unless within that time the Secretary notifies Congress that the plan will not be implemented in that time and includes with the notification an explanation why the plan will not be implemented in that time.¿ øSEC. 430. GAO AUDIT ON STAFFING AND CONTRACTING.—The Comptroller General shall audit the operations of the Office of Federal Housing Enterprise Oversight concerning staff organization, expertise, capacity, and contracting authority to ensure that the office resources and contract authority are adequate and that they are being used appropriately to ensure that the Federal National Mort- DEPARTMENT OF VETERANS AFFAIRS gage Association and the Federal Home Loan Mortgage Corporation are adequately capitalized and operating safely.¿ øSEC. 431. None of the funds appropriated or otherwise made available to the National Aeronautics and Space Administration by this Act, or any other Act enacted before the date of enactment of this Act, may be used by the Administrator of the National Aeronautics and Space Administration to relocate aircraft of the National Aeronautics and Space Administration based east of the Mississippi River to the Dryden Flight Research Center in California for the purpose of the consolidation of such aircraft.¿ øSEC. 432. TO PROMOTE AND SUPPORT MANAGEMENT REORGANIZATION OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION.— (a) SHORT TITLE.—This section may be cited as the ‘‘National Aeronautics and Space Administration Federal Employment Reduction Assistance Act of 1996.’’. (b) DEFINITIONS.—For the purpose of this section— (1) the term ‘‘Administrator’’ means the Administrator of the National Aeronautics and Space Administration; and (2) the term ‘‘employee’’ means an employee of the National Aeronautics and Space Administration serving under an appointment without time limitation, who has been currently employed with NASA for a continuous period of at least twelve months, except that such term does not include— (A) a reemployed annuitant under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, or another retirement system for employees of the Government; (B) an employee who is in receipt of a specific notice of involuntary separation for misconduct or unacceptable performance; (C) an employee who, upon completing an additional period of service as referred to in section 3(b)(2)(B)(ii) of the Federal Workforce Restructuring Act of 1994 (Public Law 103–226; 108 Stat. 111), would qualify for a voluntary separation incentive payment under section 3 of such Act; or (D) an employee who has previously received any voluntary separation incentive payment by the Federal Government under this Act or any other authority and has not repaid such payment. (c) INCENTIVE PAYMENT PROGRAM.—In order to avoid or minimize the need for involuntary separations due to a reduction in force, installation closure, reorganization, transfer of function, or other similar action affecting the National Aeronautics and Space Administration, the Administrator shall establish a program under which separation pay, subject to the availability of appropriated funds, may be offered to encourage eligible employees to separate from service voluntarily (whether by retirement or resignation). (d) INCENTIVE PAYMENTS.—In order to receive a voluntary separation incentive payment, an employee must separate voluntarily (whether by retirement or resignation) during the period of time for which the payment of incentives has been authorized for the employee under the agency plan. Such separation payments— (1) shall be paid in a lump sum after the employee’s separation, and (2) shall be equal to the lesser of— (A) an amount equal to the amount the employee would be entitled to receive under section 5595(c) of title 5, United States Code, if the employee were entitled to payment under such section; or (B) an amount that shall not exceed $25,000; (3) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit; (4) shall not be taken into account for purposes of determining the amount of any severance pay to which an individual may be entitled under section 5595 of title 5, United States Code, based on any other separation; (5) shall be considered payment for a voluntary separation; and (6) shall be paid from the appropriations or funds available for payment of the basic pay of the employee. (e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.— (1) An individual who has received a voluntary separation incentive payment under this section and accepts any employment with the Government of the United States within five years after the date of the separation on which the payment is based shall be required to repay, prior to the individual’s first day of employment, the entire amount of the incentive payment to NASA. (2) If the employment under paragraph (1) above is with an executive agency (as defined by section 105 of title 5, United States Code), the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, TITLE IV—GENERAL PROVISIONS—Continued 931 at the request of the head of the agency, waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (3) If the employment under paragraph (1) above is with an entity in the legislative branch, the head of the entity or the appointing official may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (4) If the employment under paragraph (1) above is with the judicial branch, the Director of the Administrative Office of the United States Courts may waive the repayment if the individual involved possesses unique abilities and is the only qualified applicant available for the position. (5) For the purpose of this section, the term ‘‘employment’’— (A) includes employment of any length or under any type of appointment, but does not include employment that is without compensation; and (B) includes employment under a personal services contract. (f) EFFECT OF SUBSEQUENT DISABILITY RETIREMENT.—An employee who has received an incentive payment is ineligible to receive an annuity for reasons of disability under applicable regulations, unless the incentive payment is repaid. (g) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT FUND.— (1) In addition to any other payments which it is required to make under subchapter III of chapter 83 or chapter 84 of title 5, United States Code, NASA shall remit to the Office of Personnel Management for deposit in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund an amount equal to 15 percent of the final basic pay of each employee who is covered under subchapter III of chapter 83 or chapter 84 of title 5 to whom a voluntary separation incentive has been paid under this Act. (2) For the purpose of this section, the term ‘‘final basic pay’’, with respect to an employee, means the total amount of basic pay which would be payable for a year of service by such employee, computed using the employee’s final rate of basic pay, and, if last serving on other than a full-time basis, with appropriate adjustment therefor. (h) REDUCTION OF AGENCY EMPLOYMENT LEVELS.— (1) Total full-time-equivalent employment in NASA shall be reduced by one for each separation of an employee who receives a voluntary separation incentive payment under this Act. The reduction will be calculated by comparing the agency’s full-timeequivalent employment for the fiscal year in which the voluntary separation payments are made with the authorized full-time-equivalent employment for the prior fiscal year. (2) The Office of Management and Budget shall monitor and take appropriate action necessary to ensure that the requirements of this section are met. (3) The President shall take appropriate action to ensure that functions involving more than 10 full time equivalent employees are not converted to contracts by reason of the enactment of this section, except in cases in which a cost comparison demonstrates such contracts would be to the advantage of the Government. (4) The provisions of subsections (1) and (3) of this section may be waived upon a determination by the President that— (A) the existence of a state of war or other national emergency so requires; or (B) the existence of an extraordinary emergency which threatens life, health, safety, property, or the environment so requires. (i) REPORTS.—No later than March 31 of each fiscal year, NASA shall submit to the Office of Personnel Management, who will subsequently report to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives a report which, with respect to the preceding fiscal year, shall include— (1) the number of employees who received voluntary separation incentives; (2) the average amount of such incentives; and (3) the average grade or pay level of the employees who received incentives. (j) EFFECTIVE DATE.— (1) The provisions of this section shall take effect on the date of enactment of this Act. (2) No voluntary separation incentive under this section may be paid based on the separation of an employee after September 30, 2000.¿ 932 TITLE IV—GENERAL PROVISIONS—Continued øSEC. 433. (a) Subject to the concurrence of the Administrator of the General Services Administration (GSA) and notwithstanding section 707 of Public Law 103–433, the Administrator of the National Aeronautics and Space Administration may convey to the city of Downey, California, all right, title, and interest of the United States in and to a parcel of real property, including improvements thereon, consisting of approximately 60 acres and known as Parcels III, IV, V, and VI of the NASA Industrial Plant, Downey, California. (b)(1) DELAY IN PAYMENT OF CONSIDERATION.—After the end of the 20-year period beginning on the date on which the conveyance under subsection (a) is completed, the City of Downey shall pay to the United States an amount equal to fair market value of the conveyed property as of the date of the Federal conveyance. (2) EFFECT OF RECONVEYANCE BY THE CITY.—If the City of Downey reconveys all or any part of the conveyed property during such 20year period, the City shall pay to the United States an amount equal to the fair market value of the reconveyed property as of the time of the reconveyance, excluding the value of any improvements made to the property by the City. (3) DETERMINATION OF FAIR MARKET VALUE.—The Administrator of GSA shall determine fair market value in accordance with Federal appraisal standards and procedures. (4) TREATMENT OF LEASES.—The Administrator of GSA may treat a lease of the property within such 20-year period as a reconveyance THE BUDGET FOR FISCAL YEAR 1998 if the Administrator determines that the lease is being used to avoid application of paragraph (b)(2). (5) DEPOSIT OF PROCEEDS.—The Administrator of GSA shall deposit any proceeds received under this subsection in the special account established pursuant to section 204(h)(2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)). (c) The exact acreage and legal description of the real property to be conveyed under subsection (a) shall be determined by a survey satisfactory to the Administrator of GSA. The cost of the survey shall be borne by the City of Downey, California. (d) The Administrator of GSA may require such additional terms and conditions in connection with the conveyance under subsection (a) as the Administrator of GSA considers appropriate to protect the interests of the United States. (e) If the City at any time after the conveyance of the property under subsection (a) notifies the Administrator of GSA that the City no longer wishes to retain the property, it may convey the property under the terms of subsection (b), or, it may revert all right, title, and interest in and to the property (including any facilities, equipment, or fixtures conveyed, but excluding the value of any improvements made to the property by the City) to the United States, and the United States shall have the right of immediate entry onto the property.¿ (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997.)
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