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DEPARTMENT OF VETERANS AFFAIRS
The 1999 Budget provides $18,895 million in discretionary
budget authority for veterans’ health, benefits, and other services.
DEPARTMENT OF VETERANS AFFAIRS’ IMPLEMENTATION OF THE GOVERNMENT PERFORMANCE AND
RESULTS ACT

Fiscal Year 1999 will mark the first year of full implementation of the Government Performance and Results Act
(GPRA). In preparing to meet this time line, in Fiscal Year
1997 the Department of Veterans Affairs (VA) completed a
strategic plan covering Fiscal Years 1998 through 2003. The
efforts required to prepare this plan helped strengthen VA’s
planning process. The Department’s strategic plan was submitted to the Congress in September, 1997. In addition to
providing general goals for each of VA’s major programs, the
plan looks across all VA programs to articulate departmentwide cross-cutting goals. The strategic plan provides a comprehensive picture of what VA is striving to achieve and
how progress will be measured.
The 1999 Budget contains VA’s initial annual performance
plan, as required by GPRA. Performance information that
was previously contained in the budget appendix is now contained in the VA performance plan. The performance plan
contains specific performance goals within each program that
support the broader general goals in the strategic plan. VA
has integrated the annual performance plan requirements
into its budget request to begin to draw a closer relationship
between resources and performance. Resources to accomplish
performance goals for a particular program may be provided
through more than one appropriation account.

VETERANS HEALTH ADMINISTRATION
Federal Funds
General and special funds:
MEDICAL CARE
(INCLUDING TRANSFER OF FUNDS)

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; administrative and legal expenses of the Department for collecting and recovering amounts owed the Department
as authorized under 38 U.S.C. chapter 17, and the Federal Medical
Care Recovery Act, 42 U.S.C. 2651 et seq.; and not to exceed
$8,000,000 to fund cost comparison studies as referred to in 38 U.S.C.
8110(a)(5); ø$17,057,396,000¿ $17,027,975,000, plus reimbursements:
Provided, That of the funds made available under this heading,
ø$570,000,000¿ $635,000,000 is for the equipment and land and
structures object classifications only, which amount shall not become
available for obligation until August 1, ø1998¿ 1999, and shall remain

available until September 30, ø1999¿ 2000: Provided further, That
øof the amount made available under this heading, not to exceed
$5,000,000 shall be for a study on the cost-effectiveness of contracting
with local hospitals in east central Florida for the provision of nonemergent inpatient health care needs of veterans¿ not to exceed 8.3
percent of the funds available under this heading shall remain available until September 30, 2000.
In addition, in conformance with Public Law 105–33 establishing
the Department of Veterans Affairs Medical Care Collections Fund,
such sums as may be deposited to such Fund pursuant to 38 U.S.C.
1729A may be transferred to this account, to remain available until
expended for the purposes of this account. (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Unavailable Collections (in millions of dollars)
Identification code 36–0160–0–1–703

1997 actual

Balance, start of year:
01.99 Balance, start of year .................................................... ...................
Receipts:
02.01 Medical care collections ................................................ ...................

1998 est.

1999 est.

1

1

688

677

03.00
04.00

Offsetting collections .....................................................
1 ................... ...................
Total: Balances and collections ....................................
1
689
678
Appropriation:
05.01 Medical care .................................................................. ...................
–688
–677
07.99 Total balance, end of year ............................................
1
1
1

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 ...........................................
00.05
Subacute care ..................................................
00.06
Residential care ...............................................
00.07
Outpatient care ................................................
00.08
Miscellaneous benefits and services ...............
00.09
CHAMPVA ...............................................................

1997 actual

1998 est.

1999 est.

5,038
375
1,384
1,659
470
265
5,851
707
94

4,820
325
1,294
1,780
413
280
6,807
714
97

4,458
298
1,200
1,869
382
290
7,600
725
100

15,843

16,530

16,922

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

418
30
106
84
43
26
481
40
3

412
29
104
82
42
26
472
39
3

298
21
75
60
31
19
341
28
2

01.91

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

1,231

1,209

875

01.92
09.01

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

17,074
75

17,739
104

17,797
147

10.00

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

17,149

17,843

17,944

731
17,088

664
17,849

673
17,852

00.91

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
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

Total budgetary resources available for obligation

1
3
3
–8 ................... ...................
17,812

18,516

813

18,528

814

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
MEDICAL CARE—Continued
(INCLUDING TRANSFER OF FUNDS)—Continued

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

23.95
24.40

1998 est.

1999 est.

–17,149

–17,843

–17,944

664

673

583

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
17,013
40.25
Appropriation (special fund, indefinite) .................... ...................

17,057
688

17,028
677

43.00

17,745

17,705

68.00
68.45
68.90
70.00

New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................

1997 actual

forts. The 1999 budget includes a legislative proposal which
will permanently extend current legal provisions due to expire
in FY 2003. 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, copayments, and income verification provisions.

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

17,013

76

104

147

–1 ................... ...................

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

75

104

147

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

17,088

17,849

WORKLOAD

Provision of Veterans Health Care—
Acute hospital care.—Costs for 1999 are estimated to decrease by $464 million for operating medical, neurological,
surgical, contract and State home hospital beds, reflecting
the shift to increased use of ambulatory care.
Estimated operating levels are:
1997 actual

Patients treated ......................................................................
Average daily census ..............................................................
Average employment ...............................................................

2,764

2,681

14,455
2,147
75

15,472
2,347
104

15,369
2,306
147

87.00

16,677

17,923

17,822

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

–40
–36

–53
–51

–75
–72

88.90

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

–76

–104

–147

89.00
90.00

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

17,012
16,602

17,745
17,819

17,705
17,675

18,224
1,423
5,293

1997 actual

Patients treated ......................................................................
Average daily census ..............................................................
Average employment ...............................................................

147,117
7,919
21,064

1999 est.

399,409
6,964
50,858

1998 est.

16,142
1,154
4,653

1999 est.

14,563
933
4,068

I997 est.

13,312
6,424
18,907

1999 est.

117,564
5,192
16,852

Nursing home care.—In 1999, an increase of $70 million
is estimated for the care of residents in VA nursing homes,
contract nursing homes and State nursing homes.
Estimated operating levels are:
1997 actual

In accordance with the Government Performance and Results Act, VA Medical Care measures its performance through
associated domains of value including: cost; access; technical
quality; customer satisfaction; and functional status. Detailed
performance goals can be found in the annual performance
plan in VA’s Budget Submission.
Public Law 105–33, the Balanced Budget Act of 1997, established the Department of Veterans Affairs Medical Care Collection Fund (MCCF) and allowed VA to retain all collections
from third party insurance companies, other copayments and
related medical fees. The ability for VA to retain these nonappropriated funds is critical to VA’s success in providing
care to veterans. As the collections are earned and deposited
in the fund, they are transferred to this account, as provided
for by the appropriation, and used to enhance medical care
provided to veterans. For 1999, VA estimates that over $677
million will be collected through this effort with revenues
growing to over $993 million by 2003. To accomplish this
growth, VA will begin to bill usual and customary charges
for inpatient and outpatient procedures, identify more patients having insurance, and improve its debt collection ef-

440,985
8,523
55,913

Psychiatric care.—A decrease of $121 million is estimated
in 1999 for the inpatient care of veterans with problems
related to mental illness, including alcohol and drug problems.

2,800

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
86.93 Outlays from current balances ......................................
86.97 Outlays from new permanent authority .........................
Total outlays (gross) .................................................

1997 actual

Patients treated ......................................................................
Average daily census ..............................................................
Average employment ...............................................................
2,394
2,764
2,681
17,149
17,843
17,944
–16,677
–17,923
–17,822
–102 ................... ...................
–1
–3
–3

1998 est.

Rehabilitative care.—A decrease of $34 million in 1999
is estimated for the provision of rehabilitative care, including spinal cord injury care.
Estimated operating levels are:

17,852

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

497,547
10,461
61,756

Patients treated ......................................................................
Average daily census ..............................................................
Average employment ...............................................................

88,657
33,805
19,708

1998 est.

92,370
34,088
19,636

1999 est.

93,935
34,611
19,911

Subacute care.—A decrease of $41 million is estimated
in 1999 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.
1997 actual

Patients treated ...........................................................................
Average daily census ..................................................................
Average employment ...................................................................

36,651
3,844
7,736

1998 est.

32,464
3,118
6,705

1999 est.

29,288
2,520
5,690

Residential care.—An increase of $3 million is estimated
in 1999 for the care of veterans in locations other than
their own homes, such as residential rehabilitation and
domiciliary care programs.
1997 actual

Patients treated ...........................................................................
Average daily census ..................................................................
Average employment ...................................................................

38,650
9,901
3,766

1998 est.

40,282
10,139
3,853

1999 est.

40,282
10,139
3,808

Outpatient care.—An increase of $686 million is estimated
in 1999 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):
Staff visits ..............................................................................
Fee visits .................................................................................
Readjustment counseling .......................................................

1997 actual

30,436
1,483
729

32,761
1,550
767

34,703
1,550
774

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

32,648

35,078

37,027

1998 est.

1999 est.

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
Dental:
Staff:
Examinations ..................................................................
Treatments .....................................................................

270,743
152,955

275,000
155,000

275,000
155,000

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

423,698

430,000

430,000

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

17,577

18,000

18,000

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

60,059

66,692

815

72,694

Personnel Summary

Miscellaneous benefits and services.—This activity includes items of nondirect medical care and treatment such
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. No funding change is estimated for
1999.

1997 actual

Identification code 36–0160–0–1–703

Direct:
Total compensable workyears: Full-time equivalent
employment ...............................................................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1998 est.

1999 est.

1001

185,260

181,791

178,744

875

1,209

1,667

OTHER MEDICAL, SMOKING CESSATION
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
1997 actual

Identification code 36–0166–2–1–703

1998 est.

1999 est.

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

6,607

1998 est.

6,495

1997 actual

154
838
146

1998 est.

150
840
146

87

22.00
23.95

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

87
–87

40.00

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

87

73.10
73.20

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

87
–87

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

87

89.00
90.00

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

87
87

1999 est.

6,384

Civilian health and medical program of the Department
of Veterans Affairs (CHAMPVA).—An increase of $2 million
is estimated in 1999 for private hospital and outpatient
care for dependents and survivors of certain veterans.
Average daily hospital census ................................................
Outpatient (in thousands) ......................................................
Average employment ...............................................................

Obligations by program activity:
Total obligations (object class 25.2) ............................ ................... ...................

86.90

1997 actual

10.00

1999 est.

150
840
146

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

11.1
11.3
11.5
11.9
12.1
13.0

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

1997 actual

1998 est.

1999 est.

6,434
832
791

6,614
704
805

6,723
717
810

8,057
1,894
140

8,123
1,958
106

8,250
2,006
18

41
108
13
31
23
12
59

55
112
14
31
23
13
64

56
116
14
32
24
20
67

469
9
1,301

509
10
1,508

528
10
1,591

12
285
284
145

13
297
296
151

14
309
318
157

90

93

95

2,551
84
876
355

2,817
87
861
348

2,929
89
605
270

230
4
1

241
7
2

271
7
1

This legislative proposal would authorize a new smokingcessation program for any honorably discharged veteran who
began smoking in the military. The program would be delivered by private providers on a per capita basis. Any veteran
who began smoking in the military would be eligible for this
new program to the extent that resources are available.
A legislative proposal to authorize this program will be
transmitted with the FY 1999 budget. Once this program
is authorized, the Administration will submit a budget
amendment requesting an appropriation of $87 million for
this new activity.

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

99.0
99.0

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

17,074
75

17,739
104

17,797
147

01.01
01.02
01.03

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

99.9

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

17,149

17,843

17,944

01.91

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

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

MEDICAL

AND

PROSTHETIC RESEARCH

For necessary expenses in carrying out programs of medical and
prosthetic research and development as authorized by 38 U.S.C. chapter 73, to remain available until September 30, ø1999, $272,000,000¿
2000, $300,000,000, plus reimbursements. (Departments of Veterans
Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 36–0161–0–1–703

1997 actual

1998 est.

1999 est.

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

193
24
26

230
29
30

229
29
31

00.91

243

289

289

7
1
2

7
1
2

8
1
2

10

10

11

816

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
MEDICAL

AND

PROSTHETIC RESEARCH—Continued

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

1997 actual

1998 est.

1999 est.

01.92
09.01

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

253
46

299
46

300
46

10.00

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

299

345

346

20
309

28
318

1
346

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
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 .................................................................

1 ................... ...................
–2 ................... ...................
328
–299

346
–345

347
–346

28

1

theses 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 following table summarizes all budgetary
resources for the Medical and Prosthetic Research account.
Specific performance goals relating to Medical and Prosthetic
Research are contained in VA’s annual performance plan.

1

SUMMARY OF BUDGETARY RESOURCES
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:
72.40 Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

[In millions of dollars]

262

272

300

1997 actual

46

46

318

346

79
94
124
299
345
346
–282
–315
–338
–1 ................... ...................
94

124

272
332
234
162
15

300
366
258
179
0*

979

1,015

1,103

*DoD reimbursements for FY 1999 are unknown.

Object Classification (in millions of dollars)

183
52
47

200
69
46

220
72
46

87.00

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

282

315

338

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

–47

–46

–46

262
235

272
269

300
292

Funding for Medical and Prosthetic Research is proposed
as part of the Research Fund for America. This proposal
highlights the Administration’s priority of providing needed
and sustained investments in important Federal research programs on a deficit neutral basis. A discussion of the Research
Fund for America, and two other funds for the environment
and transportation, can be found in Section II of the Budget.
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 pros-

1997 actual

Identification code 36–0161–0–1–703

132

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

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

1999 est.

262
320
226
156
15

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

47
309

86.90
86.93
86.97

89.00
90.00

1998 est.

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

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

1998 est.

1999 est.

34
67
4

36
67
4

39
75
4

105
26
1
2

107
26
1
2

118
29
1
2

24.0
25.5
26.0
31.0

Total personnel compensation .........................
Civilian personnel benefits .......................................
Benefits for former personnel ...................................
Employee travel .........................................................
Communications, utilities, and miscellaneous
charges .................................................................
Printing and reproduction .........................................
Research and development contracts .......................
Supplies and materials .............................................
Equipment .................................................................

1
1
86
21
10

1
1
115
34
12

1
1
106
31
11

99.0
99.0

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

253
46

299
46

300
46

99.9

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

299

345

346

11.9
12.1
13.0
21.0
23.3

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

Direct:
Total compensable workyears: Full-time equivalent
employment ...............................................................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1997 actual

1998 est.

1999 est.

1001

2,430

2,428

2,580

527

570

579

MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING
EXPENSES
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

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
of Veterans Affairs, including site acquisition; engineering and architectural activities not charged to project cost; and research and development in building construction technology; ø$59,860,000¿
$60,000,000, plus reimbursements. (Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

817

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:
Uninvested .................................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

1997 actual

1998 est.

1999 est.

72.40

Program and Financing (in millions of dollars)
1997 actual

Identification code 36–0152–0–1–703

1998 est.

1999 est.

4
–2

2 ...................
–2 ...................

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

Obligations by program activity:
00.01 Operating expenses: Integrated health care system
administration ...........................................................

61

60

60

10.00

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

61

60

60

22.00
23.95

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

61
–61

60
–60

60
–60

40.00

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

61

60

60

13
61
–63

10
60
–60

10
60
–60

MEDICAL CARE COST RECOVERY FUND

10

10

10

Unavailable Collections (in millions of dollars)

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

86.93

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

89.00
90.00

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

87.00

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

53
10
63

55
5
60

55
5
60

Balance, start of year:
Balance, start of year ....................................................
Receipts:
02.01 Medical cost recovery ....................................................
01.99

04.00

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

61
63

60
60

60
60

Supervision and administration of VA’s comprehensive and
integrated healthcare system.—Central office staff elements
provide executive direction for all Departmental medical and
construction programs through program development, implementation, and the administration of policies, plans, and
objectives.
Object Classification (in millions of dollars)
1997 actual

Identification code 36–0152–0–1–703

1998 est.

1999 est.

11.1
11.3
11.5

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

35
2
2

11.9
12.1
13.0
21.0
23.1
23.3
25.2
26.0
31.0

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

39
42
42
8
6
7
2 ................... ...................
1
1
1
5
5
5
1
1 ...................
3
3
3
1
1
1
1
1
1

99.9

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

61

37
3
2

60

37
3
2

60

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

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 1998
and none is requested for FY 1999.

Identification code 36–5014–0–2–703

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

2

Total: Balances and collections ....................................
Appropriation:
05.01 Medical care cost recovery fund ...................................
07.99 Total balance, end of year ............................................

1997 actual

1998 est.

1999 est.

528

486 ...................

65

–486 ...................

593 ................... ...................
–107 ................... ...................
486 ................... ...................

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

1997 actual

1998 est.

1999 est.

00.09
00.10

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

111 ................... ...................
2 ................... ...................

10.00

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

113 ................... ...................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
14
9 ...................
22.00 New budget authority (gross) ........................................
107 ................... ...................
22.40 Capital transfer to general fund ................................... ...................
–9 ...................
21.40

23.90
23.95
24.40

60.25

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................
New budget authority (gross), detail:
Appropriation (special fund, indefinite) ........................

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

121 ................... ...................
–113 ................... ...................
9 ................... ...................

107 ................... ...................

72.40

23
13 ...................
113 ................... ...................
–123 ................... ...................
–1
–13 ...................
13 ................... ...................

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

1001

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

1997 actual

569

1998 est.

556

1999 est.

540

86.93
86.97

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

16 ................... ...................
107 ................... ...................

87.00

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

123 ................... ...................

818

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued

Public enterprise funds:

MEDICAL CARE COST RECOVERY FUND—Continued

MEDICAL FACILITIES REVOLVING FUND

Program and Financing (in millions of dollars)—Continued
1997 actual

Identification code 36–5014–0–2–703

89.00
90.00

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

1998 est.

Program and Financing (in millions of dollars)
1999 est.

107 ................... ...................
123 ................... ...................

The Medical Care Cost Recovery (MCCR) Fund was established by the Omnibus Budget Reconciliation Act of 1990,
P.L. 100–508. This Fund served as a depository for all thirdparty insurance collections. Of these funds, a portion was
utilized to provide for FTE and other administrative costs
associated with medical care cost recovery efforts. After providing the estimated cost of operations for the ensuing year,
remaining funds were transferred to the Department of Treasury before January of the next year. Public Law 105–33,
the Balanced Budget Act of 1997, established the Medical
Care Collections Fund (MCCF) and terminated MCCR and
required that amounts collected or recovered after June 30,
1997 be deposited in the new fund. The amounts collected
will be available only for: (1) furnishing VA medical care
and services during any fiscal year, and (2) for VA expenses
for identification, billing, auditing and collections of amounts
owed the government.
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.
1997 actual

1998 est.

Third-party recoveries ..................................................................
Copayments and other collections ..............................................

450 ................... ...................
70 ................... ...................

Total collections .............................................................
Total program costs .......................................................
Ratio of costs to collections (in percent) ...................................

520 ................... ...................
113 ................... ...................
21.7 ................... ...................

Object Classification (in millions of dollars)
1998 est.

1999 est.

11.1
11.5

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

57 ................... ...................
15 ................... ...................

11.9
12.1
21.0
23.3
25.2
26.0
31.0

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

72
17
3
3
8
8
2

99.9

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

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

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

113 ................... ...................

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

1011

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

1997 actual

1998 est.

1998 est.

1999 est.

Obligations by program activity:
Reimbursable operating costs .......................................
Reimbursable capital expenses .....................................

1
1

2
2

1
2

09.09

Total reimbursable program ......................................

2

4

3

10.00

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

2

4

3

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
22.00 New budget authority (gross) ........................................
21.40

23.90
23.95
24.40

68.00

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

6
6
3
2 ................... ...................
8
–2

6
–4

6

3
–3

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

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

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ................... ...................
73.10 New obligations .............................................................
2
4
73.20 Total outlays (gross) ......................................................
–2
–2
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested ................................................................. ...................
2
72.40

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

2

2
3
–2
3

2

2

1999 est.

Program activity

1997 actual

1997 actual

09.01
09.02

86.98

[In millions of dollars]

Identification code 36–5014–0–2–703

Identification code 36–4138–0–3–703

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

This account provides funds for the operating expenses of
VA medical facilities furnishing nursing home care to certain
veterans in receipt of pensions. Title 38 provides that a veteran with no spouse or child will only receive $90 per month
in pension beginning the third full month following the month
of admission to VA furnished nursing home care. The difference between the $90 the veteran receives and the amount
otherwise authorized is transferred to this fund to assist in
covering expenses at the facility furnishing the nursing care.
Legislation authorizing the transfer of pension funds in excess of $90 per month from the Compensation and Pension
(C&P) account, in accordance with the provisions of Title 38
U.S.C., Section 5503(a)(1)(B), expired on September 30, 1997.
Veterans’ pensions will continue to be reduced in accordance
with the law and those funds will remain in the C&P account.
Funds cannot be transferred to the Medical Facilities Revolving Fund until Congress reauthorizes an extension.
Object Classification (in millions of dollars)

1999 est.

2,239 ................... ...................

–2 ................... ...................

Identification code 36–4138–0–3–703

1997 actual

1998 est.

1999 est.

26.0
31.0

Supplies and materials .................................................
Equipment ......................................................................

1
1

2
2

1
2

99.9

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

2

4

3

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
CANTEEN SERVICE REVOLVING FUND
1102
1106
1107
1206

Program and Financing (in millions of dollars)
1997 actual

Identification code 36–4014–0–3–705

09.01
09.02

Obligations by program activity:
Reimbursable operating expenses .................................
Reimbursable direct operations .....................................

1998 est.

1999 est.

1802
1803

Investments in US securities:
Treasury securities, par ..................
Receivables, net .............................
Advances and prepayments ...........
Non-Federal assets: Receivables, net .....
Other Federal assets:
Inventories and related properties .....
Property, plant and equipment, net

819

40
1
2
..................

38
1
2
2

39
2
1
1

40
2
1
1

24
28

25
28

26
28

27
30

95

97

102

105

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

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

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

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

9
8

9
7

8
7

9
7

121
81

132
88

133
88

Total reimbursable program ......................................
Reimbursable capital investment: Sales program: Purchase of equipment and leasehold ..........................

202

220

221

6

6

6

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

208

226

227

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
21.41
U.S. Securities: Par value .........................................

18

17

18

–22
38

–21
39

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

18

–14
42

42
35

47
32

48
37

48
39

21.99
22.00

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

28
195

16
228

18
229

3999

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

77

79

85

87

23.90
23.95

223
–208

244
–226

247
–227

4999

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

95

97

102

105

24.40
24.41

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

–22
38

–21
39

–20
40

24.99

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

16

18

20

09.09
09.10
10.00

New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

1999

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

Object Classification (in millions of dollars)
1997 actual

Identification code 36–4014–0–3–705

1998 est.

1999 est.

11.1
11.3
195

228

229

14
208
–198

23
226
–226

23
227
–226

23

23

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

40
15

43
16

42
19

11.9
12.1
21.0
25.2
26.0
31.0

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

55
14
1
3
128
7

59
17
1
6
136
7

61
14
1
7
137
7

99.9

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

208

226

227

24

72.40

Personnel Summary
Outlays (gross), detail:
86.97 Outlays from new permanent authority .........................
86.98 Outlays from permanent balances ................................

195
3

225
1

225
1

87.00

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

198

226

226

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

–2
–193

–2
–226

–2
–227

88.90

–195

–228

–229

2011

89.00
90.00

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

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.
Statement of Operations (in millions of dollars)
1996 actual

1997 actual

0101
0102

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

209
–206

195
–193

226
–222

225
–223

0109

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

3

2

4

1998 est.

AND

1999 est.

3,000

3,020

REHABILITATION ACTIVITIES FUND

Identification code 36–4048–0–3–703

1997 actual

1998 est.

1999 est.

09.01
09.02
09.03

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

23
1
12

25
2
13

26
2
13

10.00

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

36

40

41

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

8
37

9
40

9
41

45
–36

49
–40

50
–41

9

9

9

37

40

41

1
36
–35

2
40
–38

4
41
–39

2

4

6

21.40

23.90
23.95
24.40

1999 est.

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................
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:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

Balance Sheet (in millions of dollars)

2,979

1998 est.

Program and Financing (in millions of dollars)

2

Identification code 36–4014–0–3–705

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

SPECIAL THERAPEUTIC

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
3
–2
–3

1997 actual

Identification code 36–4014–0–3–705

72.40

Identification code 36–4014–0–3–705

1996 actual

1997 actual

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............

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

1

1998 est.

1999 est.

5

4

820

VETERANS HEALTH ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Public enterprise funds—Continued
SPECIAL THERAPEUTIC

MEDICAL CENTER RESEARCH ORGANIZATIONS

REHABILITATION ACTIVITIES FUND—
Continued

AND

Program and Financing (in millions of dollars)

1997 actual

Identification code 36–4048–0–3–703

Outlays (gross), detail:
86.97 Outlays from new permanent authority .........................
Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

89.00
90.00

1998 est.

35

38

39

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

26
3

26
3

27
3

10.00

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

29

29

30

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

–37

–40

–41

18
29

18
29

18
30

47
–29

47
–29

48
–30

18

18

18

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

29

29

30

73.10
73.20

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

29
–29

29
–29

30
–30

86.97

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

29

29

30

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

–1
–28

–1
–28

–1
–29

88.90

–29

–29

–30

23.90
23.95
24.40

68.00

Statement of Operations (in millions of dollars)
1996 actual

1997 actual

1998 est.

89.00
90.00

1999 est.

0101
0102

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

32
–27

38
–36

40
–40

41
–41

0109

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

5

2

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

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

1998 est.

1999 est.

Balance Sheet (in millions of dollars)

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

1999 est.

21.40

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.

Identification code 36–4048–0–3–703

1998 est.

09.01
09.02

1999 est.

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

Identification code 36–4048–0–3–703

1997 actual

Identification code 36–4026–0–3–703

Program and Financing (in millions of dollars)—Continued

1996 actual

1997 actual

10

11

14

1
2

1
2

1
2

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

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

16

1
1

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

Object Classification (in millions of dollars)
1997 actual

Identification code 36–4026–0–3–703

1

1

1

1

13

15

18

20

1

1

1

1998 est.

1999 est.

25.2
26.0
31.0

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

18
8
3

18
8
3

19
8
3

99.9

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

29

29

30

1

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

1

1

1

1

1
11

1
13

1
16

1
18

3999

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

12

14

17

19

4999

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

13

15

18

20

Trust Funds
GENERAL POST FUND, NATIONAL HOMES
(INCLUDING TRANSFER OF FUNDS)

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

1997 actual

1998 est.

1999 est.

25.2
26.0
31.0

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

32
3
1

36
3
1

37
3
1

99.9

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

36

40

41

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, 1998.)

VETERANS BENEFITS ADMINISTRATION
Federal Funds

DEPARTMENT OF VETERANS AFFAIRS
Unavailable Collections (in millions of dollars)

821

2

2

2

27

28

29

3

3

3

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.

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

30

31

32

Object Classification (in millions of dollars)

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

32

33

34

–30
2

–31
2

–32
2

Identification code 36–8180–0–7–705

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 .........................................................................
02.99
04.00

1997 actual

1998 est.

1999 est.

1997 actual

1998 est.

1999 est.

00.01
00.02
00.03

Obligations by program activity:
Religious, recreational, and entertainment activities
Research activities ........................................................
Therapeutic residence maintenance ..............................

21
3
1

21
4
1

22
4
1

10.00

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

25

26

27

1999 est.

Travel and transportation of persons ............................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Land and structures ......................................................

1
10
10
3
1

1
11
10
3
1

1
11
11
3
1

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

25

26

27

VETERANS BENEFITS ADMINISTRATION
Federal Funds
General and special funds:

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested .................................................................
21.41
U.S. Securities: Par value .........................................

–3
40

4
37

3
42

21.99
22.00

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

37
30

41
31

45
32

23.90
23.95

67
–25

72
–26

77
–27

24.40
24.41

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

4
37

3
42

2
48

24.99

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

41

45

50

60.27

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

30

31

32

5
25
–27

4
26
–26

4
27
–26

4

4

4

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

1998 est.

21.0
25.2
26.0
31.0
32.0
99.9

Program and Financing (in millions of dollars)
Identification code 36–8180–0–7–705

1997 actual

Identification code 36–8180–0–7–705

72.40

86.97
86.98

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

24
3

23
3

24
2

87.00

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

27

26

26

89.00
90.00

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

30
27

31
26

32
26

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

øCOMPENSATION

AND

PENSIONS¿

øFor the payment of compensation benefits to or on behalf of veterans and a pilot program for disability examinations as authorized
by law (38 U.S.C. 107, chapters 11, 13, 18, 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);
$19,932,997,000, to remain available until expended: Provided, That
not to exceed $26,380,000 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).¿ (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998.)

Activities formerly included in this account are proposed
to be financed by three separate appropriation accounts in
1999 and are presented below in the ‘‘Compensation’’, ‘‘Pensions’’, and ‘‘Burial benefits and miscellaneous assistance’’ accounts. Amounts for 1997, 1998, and 1999 are shown on a
comparable basis. The following table shows the distribution
of the amounts (dollars in millions) appropriated in 1997 and
1998 and requested in 1999.
Distribution of budget authority by account:
Compensation .........................................................................
Pensions ..................................................................................
Burial benefits ........................................................................
Distribution of outlays by account:
Compensation .........................................................................
Pensions ..................................................................................
Burial benefits ........................................................................

1997 actual

1998 est.

1999 est.

16,418
3,066
115

16,724
3,075
133

18,663
3,070
123

16,218
3,055
116

16,912
3,087
133

18,649
3,073
123

COMPENSATION
For the payment of compensation benefits to or on behalf of veterans
and a pilot program for disability examinations as authorized by
law, $18,663,401,000, to remain available until expended, of which
not to exceed $1,472,000 shall be reimbursed to ‘‘General operating

822

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued

Summary of Budget Authority and Outlays

COMPENSATION—Continued

(in millions of dollars)

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,
38 U.S.C.)
Program and Financing (in millions of dollars)
Identification code 36–0153–0–1–701

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

1997 actual

1998 est.

1999 est.

2
3,290
1,192
5,481
2,797
798

1
3,389
1,258
6,333
3,295
994

13,004

13,560

15,270

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

55
1,288
393
991
454
54

48
1,275
391
1,010
449
67

42
1,286
396
1,045
469
75

01.91
02.01

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

3,235
38

3,240
39

3,313
40

Total compensation ...............................................
16,277
Children:
Vietnam era ............................................................... ...................
Ch. 18 vocational rehabilitation ............................... ...................

16,839

18,623

19
3

19
3

Total children ........................................................ ...................
Other expenses:
Payment to general operating expense .....................
2
Medical exam pilot program ..................................... ...................

22

22

1
8

1
17

02.93
03.02
03.03
03.91
07.01
07.02
07.91

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

2

9

18

10.00

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

16,279

16,870

18,663

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

8
16,418

146 ...................
16,724
18,663

21.40

23.90
23.95
24.40

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

16,426
–16,279

16,870
–16,870

18,663
–18,663

146 ................... ...................

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

16,598
16,724
18,663
–180 ................... ...................

43.00

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

16,418

16,724

18,663

70.00

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

16,418

16,724

18,663

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

1997 actual

16,418
16,218

1,232
16,279
–16,218

1,293
16,870
–16,912

1,251
18,663
–18,649

1,293

1,251

1,265

86.90
86.93

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

14,986
1,232

15,619
1,293

17,398
1,251

87.00

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

16,218

16,912

1998 est.

16,724
16,912

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

1999 est.

18,663
18,649

550 ....................
550 ....................

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

287
259

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

–736
–736

Total:
Budget Authority .....................................................................
Outlays ....................................................................................
2
3,356
1,190
5,148
2,672
636

00.91

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

16,418
16,218

17,274
17,462

18,214
18,172

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. Total compensation costs are
current law baseline amounts and include the effect of paying
compensation benefits based solely on tobacco use during 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 .................................................

1997 actual

1998 est.

1999 est.

10
296
632,890
184,279
718,912
534,080
185,378

9
208
610,400
180,159
729,680
546,921
216,384

7
150
600,856
180,441
758,465
579,199
242,744

2,255,845
$5,765
$13,004

2,283,761
$6,153
$14,052

2,361,862
$6,465
$15,269

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

2,000
$10,500
$21

2,000
$9,500
$19

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

860
$3,095
$3

870
$3,448
$3

1
17
2
5,260
121,924
36,963
92,887
43,726
4,404

1
17
2
4,570
120,144
36,565
94,752
43,194
5,439

1
17
1
3,971
118,470
36,198
96,582
44,239
5,960

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

305,184
$10,600
$3,235

304,684
$10,824
$3,298

305,439
$10,847
$3,313

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

73,571
$518
$38

74,384
$528
$39

75,252
$532
$40

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

18,649

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

16,418
16,218

16,724
16,912

18,663
18,649

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
COMPENSATION
89.00
90.00

(Legislative proposal, not subject to PAYGO)

823

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

–736
–736

Program and Financing (in millions of dollars)
1997 actual

Identification code 36–0153–2–1–701

1998 est.

1999 est.

00.01
00.02
00.03
00.04
00.05

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

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

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

52
18
96
49
15

00.91
01.04
01.05
01.06
01.07
01.08
01.09

Total veterans ............................................................
World War 1 ...................................................................
World War II ...................................................................
Korean conflict ...............................................................
Vietnam era ...................................................................
Peacetime service ..........................................................
Persian Gulf ...................................................................

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

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

230
1
21
7
18
8
1

01.91
02.01

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

56
1

10.00

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

287

22.00
23.95

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

287
–287

40.00

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

287

73.10
73.20
74.40

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

Legislation will be proposed to restrict service-connected
disability compensation benefits for tobacco-related conditions,
becoming manifest after service discharge and beyond any
applicable presumptive period, based solely on tobacco use
during military service.
Legislation will also be proposed to pay full disability compensation benefits to Filipino veterans and their survivors
residing in the U.S. and currently receiving benefits at half
the level that U.S. counterparts receive.
PENSIONS
For the payment of pension benefits to or on behalf of veterans
as authorized by law, $3,070,612,000, to remain available until expended; of which not to exceed $23,062,000 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 of such title.
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.)

287
–259
28

86.90

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

259

89.00
90.00

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

287
259

Legislation will be proposed to provided a cost-of-living adjustment (COLA) to all compensation beneficiaries, including
spouses and children. This increase, effective December 1,
1998, is expected to be 2.2 percent and cost $287 million
in fiscal year 1999.

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

1997 actual

1998 est.

1999 est.

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

2,207
2,249
2,277
67
57
49
1 ................... ...................

04.91

2,275

2,306

2,326

653
114
2

639
103
2

626
93
1

05.01
05.02
05.03

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

05.91

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

769

744

720

06.93

3,044

3,050

3,046

22

25

24

Total direct program .............................................
3,066
Reimbursable program:
Minimum income for widows program ..................... ...................

3,075

3,070

(Legislative proposal, subject to PAYGO)

07.01
07.02

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

Program and Financing (in millions of dollars)

07.91

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

COMPENSATION

Identification code 36–0153–4–1–701

1997 actual

1998 est.

1999 est.

08.00
09.01

00.01
00.02

Obligations by program activity:
Restrict tobacco-related compensation ......................... ................... ...................
Extend full benefits to certain Filipino veterans .......... ................... ...................

–741
5

02.93

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

–736

10.00

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

–736

22.00
23.95

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

–736
736

40.00

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

–736

2 ................... ...................
20
25
24

3

6

10.00

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

3,066

3,078

3,076

22.00
23.95

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

3,066
–3,066

3,078
–3,078

3,076
–3,076

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
42.00
Transferred from other accounts ..............................
43.00
68.00

2,885
3,075
3,070
181 ................... ...................

Appropriation (total) .............................................
3,066
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) ..................................... ...................

3,075

3,070

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

3

6

–736
736

70.00

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

3,066

3,078

3,076

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

–736

72.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................

254

265

254

86.90

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

824

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued

Object Classification (in millions of dollars)

PENSIONS—Continued

Identification code 36–0154–0–1–701

73.10
73.20
74.40

1997 actual

42.0
99.0

1998 est.

1999 est.

3,066
–3,055

3,078
–3,087

3,076
–3,073

265

254

Outlays (gross), detail:
Outlays from new current authority ..............................
2,801
Outlays from current balances ......................................
254
Outlays from new permanent authority ......................... ...................

2,819
265
3

2,813
254
6

3,055

3,087

3,073

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

–3

–6

3,075
3,084

3,070
3,067

99.9

Direct obligations: Insurance claims and indemnities
3,066
Reimbursable obligations: Subtotal, reimbursable obligations ....................................................................... ...................
Total obligations ........................................................

3,066

1998 est.

1999 est.

3,075

3,070

3

6

3,078

3,076

257

86.90
86.93
86.97

New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

1997 actual

Identification code 36–0154–0–1–701

Program and Financing (in millions of dollars)—Continued

87.00

89.00
90.00

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

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

BURIAL BENEFITS

AVERAGE NUMBER OF PENSION CASES AND PAYMENTS
1997 actual

367,586
41,433
526

1998 est.

363,231
35,126
445

1999 est.

359,875
29,809
379

Total ...............................................................................
Average payment per case, per year (in dollars) ..................

409,545
$5,556

398,802
$5,783

390,063
$5,964

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

$2,275

$2,306

$2,326

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

202,153
114,024
3,085

195,475
101,988
2,566

189,460
91,388
2,136

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

319,262
$2,408

300,029
$2,479

282,984
$2,546

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

$769

$744

$720

Minimum Income for Widows Program:
Widows .................................................................................... ....................
Average benefit per case, per year ............................................. ....................

397
$7,083

782
$7,248

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

$3

$6

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

86
$2,453

85 ....................
$2,753 ....................

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

round to less than $1 million.

MISCELLANEOUS ASSISTANCE

Program and Financing (in millions of dollars)
3,066
3,055

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, 1999, is expected
to be 2.2 percent.

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

AND

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, $123,045,000,
to remain available until expended. (38 U.S.C. 107, 1312, 1977, and
2106, chapters 23, 51, 53, 55, and 61, 38 U.S.C.; 50 U.S.C. App.
540–548; 43 Stat. 122, 123; 45 Stat. 735; Stat. 76 Stat. 1198.)

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

1997 actual

1998 est.

1999 est.

37
12
13
16
29
7

35
11
13
17
32
23

34
11
12
18
33
13

07.91
08.03
08.04

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

114
1
1

131
1
1

121
1
1

08.91

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

2

2

2

10.00

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

116

133

123

22.00
23.95

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

116
–116

133
–133

123
–123

40.00
41.00

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

43.00

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

116

133

123

70.00

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

116

133

123

73.10
73.20

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

116
–116

133
–133

123
–123

86.90

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

116

133

123

89.00
90.00

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

116
116

133
133

123
123

117
133
123
–1 ................... ...................

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.

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
NUMBER OF BURIAL BENEFITS
1997 actual

Burial allowance ..........................................................................
Burial plot ...................................................................................
Service-connected death .............................................................
Burial flags .................................................................................
Headstone markers ......................................................................
Headstone allowance ...................................................................
Outer burial receptacles ..............................................................

1998 est.

1999 est.

88,023
87,500
83,200
77,971
75,300
72,700
9,724
9,800
9,200
457,809
457,200
465,000
331,832
332,000
336,540
7 .................... ....................
47,263
95,184
71,009

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.
MISCELLANEOUS ASSISTANCE CASELOAD
1997 actual

Retired Officers ...........................................................................
Special allowance dependents ....................................................
Equal Access to Justice payments ..............................................

3
138
357

2
138
357

2
138
357

Program and Financing (in millions of dollars)

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

1,366

1,175

174

175

181

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

1,551

1,541

1,356

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

60
1,456
–1,462
–1

70.00

72.40

86.90
86.93
86.97
86.98

1998 est.

53

53
27
1,495
1,514
–1,520
–1,511
–1 ...................
27

30

Outlays (gross), detail:
Outlays from new current authority ..............................
1,251
1,345
1,175
Outlays from current balances ...................................... ................... ...................
155
Outlays from new permanent authority .........................
174
175
181
Outlays from permanent balances ................................
37 ................... ...................
Total outlays (gross) .................................................

1,462

1,520

1,511

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

–174

–175

–181

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

1,377
1,288

1,366
1,345

1,175
1,330

1999 est.

For the payment of readjustment and rehabilitation benefits to
or on behalf of veterans as authorized by 38 U.S.C. chapters 21,
30, 31, 34, 35, 36, 39, 51, 53, 55, and 61, ø$1,366,000,000¿
$1,175,000,000, 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, 1998.)

1997 actual

1,377

87.00
1998 est.

READJUSTMENT BENEFITS

Identification code 36–0137–0–1–702

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

825

1999 est.

94
11

95
11

97
12

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

105

106

109

401
15

403
15

403
15

28

27

26

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

444
30
13
690

445
32
13
724

444
31
13
736

02.91

All-volunteer assistance and other ......................

733

769

780

02.93
09.01
09.01
09.01

Total direct program .............................................
Veterans’ basic benefits ................................................
Veterans’ supplementary benefits .................................
Reservists benefits ........................................................

1,282
12
79
83

1,320
10
74
91

1,333
7
73
101

10.00

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

1,456

1,495

89.00
90.00

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

Enacted/requested:
1997 actual
1998 est.
Budget Authority .....................................................................
1,377
1,366
Outlays ....................................................................................
1,288
1,345
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

1,377
1,288

1,366
1,345

1999 est.

1,175
1,330
291
291
1,466
1,621

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 1999 will consist
of appropriated funds of $1,175 million and available funds
from 1998 of $157 million.
The following table provides a comparison of trainees and
costs for the Dependents Educational Assistance program.

1,514

00.91
01.01
01.02
01.03

NUMBER OF TRAINEES AND COST

23.90
23.95
24.40

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

27
1,551
1
–12
1,567
–1,456
112

112
1,541

157
1,356

1 ...................
–2 ...................
1,652
–1,495

1,513
–1,514

157 ...................

1997 actual

36,216
$2,593

36,769
$2,591

37,295
$2,591

Total cost (in millions) ..................................................
Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested .................................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................
22.30 Unobligated balance expiring ........................................

Sons and daughters:
Number of trainees .................................................................
Average cost per trainee (in dollars) .....................................

$94

$95

$97

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

5,232
$,2066

5,484
$2,070

5,748
$2,070

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

$11

$11

$12

1998 est.

1999 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.

826

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued

The following table shows a caseload and cost comparison
for these beneficiaries under existing legislation.

READJUSTMENT BENEFITS—Continued

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 caseload for this program. Specific performance goals are contained in VA’s annual performance plan.
CASELOAD AND AVERAGE COST DATA
1997 actual

1998 est.

CASELOAD AND AVERAGE COST DATA
Veterans:
Number of trainees .................................................................
Average cost per trainee ........................................................

1997 actual

297,030
$2,629

308,000
$2,623

309,900
$2,636

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

$781 1

$808 2

$817 3

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

78,000
$1,059

76,800
$1,188

76,400
$1,319

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

$83

$91

$101

1 Includes $690 million of basic
million of supplemental benefits (DOD
2 Includes $724 million of basic
million of supplemental benefits (DOD
3 Includes $737 million of basic
million of supplemental benefits (DOD

1999 est.

Total number of trainees ...............................................
Average cost per trainee ........................................................

54,352
$7,386

53,269
$7,561

52,190
$7,720

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

$401

$403

$403

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

458
$32,147

458
$32,147

$15

$15

855
$5,450

855
$5,450

benefits (VA funded), $12 million of basic benefits (DOD funded), and $79
funded).
benefits (VA funded), $10 million of basic benefits, (DOD funded) and $74
funded).
benefits (VA funded), $7 million of basic benefits (DOD funded) and $73
funded).

Identification code 36–0137–0–1–702

41.0

855
$5,450

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

1997 actual

1998 est.

1999 est.

1,282

1,320

1,333

174

175

181

1,456

1,495

1,514

$15

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

1999 est.

Object Classification (in millions of dollars)

458
$32,147

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

1998 est.

99.0
99.9

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

$5

$5

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

READJUSTMENT BENEFITS
(Legislative Proposal, subject to PAYGO)

$5

Program and Financing (in millions of dollars)

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

6,435
3,551

6,100
3,623

5,800
3,707

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

$23

$22

$22

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 per semester, receiving the Federal ($5.15 on 9/1/97) or State minimum wage
rate, whichever is higher.

Identification code 36–0137–4–1–702

1997 actual

1998 est.

Obligations by program activity:
Direct program:
Education and training:
00.01
Education rate increase ........................................ ................... ...................
00.02
Payment to Department of Labor: Veterans training programs .................................................... ................... ...................

1999 est.

191
100

1998 est.

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

291

10.00

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

291

22.00
23.95

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

291
–291

40.00

1997 actual

02.93

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

291

73.10
73.20

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

291
–291

86.90

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

291

89.00
90.00

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

291
291

1999 est.

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

36,357

35,700

34,700

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

$30

$32

$31

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, except for certain Post-Vietnam Era Veterans
Education participants who transferred to the Montgomery
GI Bill program. Supplementary educational assistance and
the basic benefit allowance for peacetime veterans, Post-Vietnam Era Veterans Education converters, and reservists are
financed by payments from the Department of Defense and
the Department of Transportation.

Legislation will be proposed to provide a 20 percent rate
increase for Montgomery GI Bill Education programs (Chapters 30 and 1606), as well as for Survivors’ and Dependents’
Education programs (Chapter 35). This legislation will also
propose additional funds in the amount of $100 million to
be used for veterans training programs administered by the
Department of Labor under Title IV–C of the Job Training
Partnership Act.

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
REINSTATED ENTITLEMENT PROGRAM FOR SURVIVORS UNDER PUBLIC
LAW 97–377

Program and Financing (in millions of dollars)
1997 actual

Identification code 36–0120–0–1–701

Program and Financing (in millions of dollars)

827

1998 est.

1999 est.

1998 est.

1999 est.

09.00
09.00

Obligations by program activity:
Reimbursable program ..................................................
Reimbursable program ..................................................

17
1

18
1

17
1

10.00

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

18

19

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

2

2

2

30
8

44
9

38
9

10.00

1997 actual

Identification code 36–0200–0–1–701

40

55

49

18

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

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ...................
22.00 New budget authority (gross) ........................................
41
21.40

18
–18

19
–19

18
–18

23.90
23.95
24.40

New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................
Change in unpaid obligations:
72.40 Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

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

18

19

18

12
18
–14

16
19
–19

16
18
–18

16

16

16

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

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

41
–40

2 ...................
53
48
55
–55

48
–49

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

39

51

46

2

2

2

10
4

11
8

10
8

87.00

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

14

19

18

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

–18

–19

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

41

53

48

73.10
73.20

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

40
–41

55
–53

49
–48

86.90
86.97

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

39
1

51
2

46
2

87.00

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

70.00

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

41

53

48

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

39
38

51
53

46
46

–18

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
–4 ................... ...................

In accordance with Public Law 97–377, this program restores social security benefits to certain surviving spouses
or children of veterans who died of service-connected causes.
Financing is provided in the form of offsetting collections from
the Department of Defense.
CASELOAD AND AVERAGE COST DATA
1997 actual

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

1998 est.

390
$10,925
$4
1,537
$8,707
$13

350
$11,167
$4
1,400
$9,986
$14

1999 est.

310
$11,628
$4
1,270
$10,360
$13

1997 actual

99.0
99.9

1998 est.

1999 est.

Reimbursable obligations: Subtotal, reimbursable obligations .......................................................................

18

19

18

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

18

19

18

VETERANS INSURANCE

AND

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

1997 actual
1998 est.
Enacted/requested:
Budget Authority .....................................................................
39
51
Outlays ....................................................................................
38
51
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................

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

39
38

51
51

1999 est.

46
46
5
5
51
51

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.

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

89.00
90.00

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$51,360,000¿ $46,450,000, to remain
available until expended. (Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

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.

828

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
VETERANS INSURANCE

AND

Public enterprise funds:
SERVICE-DISABLED VETERANS INSURANCE FUND

INDEMNITIES—Continued

Veterans mortgage life insurance (VMLI).—Payments are
made to mortgage holders under this program which provides
mortgage protection life insurance to veterans who have received a grant for specially adapted housing due to severe
disabilities.
The general decline in the number of policies and the
amount of insurance in force is expected to continue in 1999
as indicated in the following table.

1997 actual

1998 est.

1999 est.

1,370
$7

1,230
$6

1,098
$5

3,747
$203

3,616
$203

3,468
$203

Object Classification (in millions of dollars)
1997 actual

41.0
42.0

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

1997 actual

1998 est.

1999 est.

09.01
09.01
09.01

Obligations by program activity:
Capital investment ........................................................
Death claims ..................................................................
All other .........................................................................

13
41
12

14
48
13

13
49
13

10.00

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

66

75

75

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

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.

Identification code 36–0120–0–1–701

Identification code 36–4012–0–3–701

6
66

6
78

8
72

72
–66

84
–75

80
–75

6

8

5

66

78

72

5
66
–66

6
75
–77

4
75
–75

6

4

4

21.40

POLICIES AND INSURANCE IN FORCE
National service life insurance policies:
Number of policies ..................................................................
Amount of insurance (dollars in millions) .............................
VMLI policies:
Number of policies ..................................................................
Amount of insurance (dollars in millions) .............................

Program and Financing (in millions of dollars)

1998 est.

31
9

46
9

1999 est.

23.90
23.95
24.40

68.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................
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:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
72.40

39
10

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

VETERANS INSURANCE

AND

40

55

49

61
5

71
6

72
3

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

66

77

75

–30

–44

–39

–3
–23
–10

–3
–22
–9

–3
–21
–9

–66

–78

–72

INDEMNITIES
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
Repayments of loans ........................................

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 36–0120–4–1–701

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

87.00

99.9

86.97
86.98

1997 actual

1998 est.

1999 est.

00.04

Obligations by program activity:
Payment to national service life insurance fund .......... ................... ...................

5

10.00

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

5

88.90

89.00
90.00

22.00
23.95

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

5
–5

40.00

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

5

73.10
73.20

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

5
–5

86.90

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

5

89.00
90.00

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

5
5

Legislation will be proposed to establish a reserve, from
appropriated funds, to fully fund the ‘‘H’’ program and allow
for the payments of future dividends. This legislation will
require an initial transfer to the National Service Life Insurance fund of $4.5 million in 1999. The $4.5 million estimated
cost will be offset to the extent that annual appropriations
to the VI&I fund to cover the costs associated with the ‘‘H’’
program will no longer be necessary.

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

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ........................................................................... ...................
–1
3

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.
POLICIES AND INSURANCE IN FORCE
1997 actual

Number of policies ......................................................................
Insurance in force (dollars in millions) ......................................

159,941
$1,473

1998 est.

156,471
$1,448

1999 est.

152,771
$1,420

Financing.—Operations are financed from premiums and
other receipts. Additional funds are received by transfer from

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS

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 $379 million by
September 30, 1999.
Statement of Operations (in millions of dollars)
Identification code 36–4012–0–3–701

1996 actual

1997 actual

1998 est.

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

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
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 .........................................

68

67

63

33
77
–71

38
84
–82

40
84
–81

38

40

43

72.41

1999 est.

0101
0102

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

72
–67

67
17

81
–83

74
–77

0109

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

5

84

–2

–3

Balance Sheet (in millions of dollars)
Identification code 36–4012–0–3–701

68.00

829

86.97
86.98

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

36
35

44
38

41
40

87.00

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

71

82

81

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

55

1999

1997 actual

1998 est.

1999 est.

1101

11
1

12
1

13
3

9
3

58

63

67

71

79

79

4
520
1

5
439
1

5
449
1

5
452
1

2999

–44

–43

–39

–2
–16
–6

–2
–16
–6

–2
–16
–6

–68

–67

–63

67

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

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 ........................................
88.90

1996 actual

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

525

445

455

458

6
–463

6
–379

8
–384

5
–383

3999

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

–457

–373

–376

–378

4999

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

68

72

79

80

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

1997 actual

1998 est.

1999 est.

33.0
42.0

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

13
53

14
61

13
62

99.9

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

66

75

75

VETERANS REOPENED INSURANCE FUND
Program and Financing (in millions of dollars)
Identification code 36–4010–0–3–701

1997 actual

1998 est.

1999 est.

09.01
09.01
09.01
09.01

Obligations by program activity:
Death claims ..................................................................
Dividends .......................................................................
All other .........................................................................
Capital investment: policy loans ...................................

33
28
9
7

39
29
9
7

42
27
8
7

10.00

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

77

84

89.00
90.00

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

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
3
15
18

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 insurance availing disabled World War II and Korean conflict veterans an opportunity to acquire life insurance coverage who
were no longer eligible for other Government insurance.
Budget program—
Death claims.—Represents payments to designated beneficiaries.
Dividends.—Policyholders participate in the distribution
of annual dividends.
All other.—This represents payments to the General operating expenses account 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:

84

POLICIES AND INSURANCE IN FORCE
1997 actual

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Uninvested ................................................................. ...................
21.41
U.S. Securities: Par value .........................................
493

1
483

1
465

21.99
22.00

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

493
68

484
67

466
63

23.90
23.95

561
–77

551
–84

529
–84

24.40
24.41

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

1
483

1
465

1
445

Identification code 36–4010–0–3–701

24.99

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

484

466

446

0101
0102

Number of policies ..................................................................
Insurance in force (dollars in millions) .................................

1998 est.

92,582
$727

87,392
$705

1999 est.

81,962
$680

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

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

1996 actual

1997 actual

68
–62

63
–64

1998 est.

61
–62

1999 est.

58
–59

830

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

86.97
86.98

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

473
5

449
4

445
4

87.00

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

478

453

449

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

–473

–453

–449

Public enterprise funds—Continued
VETERANS REOPENED INSURANCE FUND—Continued
Statement of Operations (in millions of dollars)—Continued
Identification code 36–4010–0–3–701

0109

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

1996 actual

1997 actual

6

–1

1998 est.

1999 est.

–1

–1

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

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 assets ........................................
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable ................................
2206
Pension and other actuarial liabilities
2207
Other ...................................................
2999

1996 actual

1997 actual

1998 est.

1999 est.

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

1

1

525
12
..................

521
10
..................

506
9
1

488
9
1

28

28

29

30

565

560

546

529

41
508
2

46
499
2

49
483
2

51
464
2

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
5 ................... ...................

1

89.00
90.00

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

551

547

534

492
–478

484
–470

466
–453

446
–433

3999

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

14

14

13

12

4999

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

565

561

547

Statement of Operations (in millions of dollars)
Identification code 36–4009–0–3–701

1996 actual

1997 actual

1998 est.

1999 est.

0101
0102

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

467
–475

473
–479

493
–493

493
–493

0109

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

–8

–6

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

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

517

3100
3200

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.

530

Object Classification (in millions of dollars)
Identification code 36–4010–0–3–701

1997 actual

1998 est.

1999 est.

33.0
42.0
43.0

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

7
38
32

7
44
33

7
47
30

99.9

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

77

84

84

SERVICEMEMBERS’ GROUP LIFE INSURANCE FUND
Program and Financing (in millions of dollars)
Identification code 36–4009–0–3–701

1997 actual

1998 est.

1999 est.

09.01
09.01

Obligations by program activity:
Premium payments ........................................................
Payment to GOE account ...............................................

478
1

452
1

448
1

10.00

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

479

453

449

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

7
473

1
453

1
449

480
–479

454
–453

450
–449

1

1

1

473

453

449

Credit accounts:
VETERANS HOUSING BENEFIT PROGRAM FUND 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 ø1998¿ 1999, within the resources available,
not to exceed $300,000 in gross obligations for direct loans are authorized for specially adapted housing loans: Provided further, That during ø1998¿ 1999 any moneys that would be otherwise deposited into
or paid from the Loan Guaranty Revolving Fund, the Guaranty and
Indemnity Fund, or the Direct Loan Revolving Fund shall be deposited into or paid from the Veterans Housing Benefit Program Fund:
Provided further, That any balances in the Loan Guaranty Revolving
Fund, the Guaranty and Indemnity Fund, or the Direct Loan Revolving Fund on the effective date of this Act may be transferred to
and merged with the Veterans Housing Benefit Program Fund.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, ø$160,437,000¿ $159,121,000, 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, 1998.)
Unavailable Collections (in millions of dollars)

21.41

23.90
23.95
24.41

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:
72.40 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 .................................................

Identification code 36–1119–0–1–704

1997 actual

1998 est.

Balance, start of year:
Balance, start of year ....................................................
170
867
907
Receipts:
02.01 Downward reestimate of subsidies, GIF direct loans
838 ................... ...................
02.02 Downward reestimate of subsidies, guaranteed loans ...................
206 ...................
02.03 Downward reestimate of subsidies, loan guaranty direct loans ..................................................................
109 ................... ...................
01.99

02.99

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

947

206 ...................

04.00
3
479
–478

4
453
–453

5
449
–449

4

5

5

1999 est.

Total: Balances and collections ....................................
1,117
1,073
Appropriation:
05.01 Veterans Housing Benefit Program ...............................
–250
–166
05.02 Legislative proposal subject to PAYGO ......................... ................... ...................

–264
2

05.99
07.99

–262
645

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

–250
867

–166
907

907

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
2159

Program and Financing (in millions of dollars)
1997 actual

Identification code 36–1119–0–1–704

1998 est.

1999 est.

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ...................................................................

25
224
73
12
74

44
156
122
108
376 ...................
89 ...................
212 ...................

9
139

32 ...................
160
159

10.00

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

556

1,035

423

22.00
23.95

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

556
–556

1,035
–1,035

24,287

24,844

23,440

0.36

0.49

0.46

Weighted average subsidy rate .................................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ...............................................

0.36

0.49

0.46

307

365

108

2339

2329

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 guaranteed loan subsidy ......................
Interest on reestimates of the guaranteed loan subsidy ............................................................................
00.09 Administrative expenses ................................................

831

423
–423

00.01
00.02
00.05
00.06
00.07
00.08

New budget authority (gross), detail:
Current:
40.00
Appropriation (definite) .............................................
40.25
Appropriation (special fund, indefinite) ....................

139
250

160
166

159
264

43.00

423

389

326

60.05

Appropriation (total) .............................................
Permanent:
Appropriation (indefinite) ..........................................

167

709 ...................

70.00

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

556

1,035

423

73.10
73.20

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

556
–556

1,035
–1,035

423
–423

86.90
86.97

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

389
167

87.00

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

556

1,035

423

89.00
90.00

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

556
556

1,035
1,035

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays ..............................................................

307

365

108

307

122

108

2349

Total subsidy outlays ................................................

307

122

108

3510
3590

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

139
139

160
160

159
159

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 Federal guaranty for this program protects lenders
against the following types of losses: (a) for loans of $45,000,
or less, 50 percent of the loan is guaranteed; (b) for loans
greater than $45,000, but not more than $56,250, $22,500;
(c) for loans more than $56,250 but less than $144,000, the
lesser of $36,000 or 40 percent of the loan; or (d) for loans
greater than $144,000, the lesser of $50,750 or 25 percent
of the loan.
The Administration is proposing legislation to eliminate disbursements of vendee loans. VA will sell all foreclosed properties on a cash basis.

423
423

326
423
709 ...................

Identification code 36–1119–0–1–704

Summary of Budget Authority and Outlays

25.3

(in millions of dollars)

Enacted/requested:
1997 actual
1998 est.
Budget Authority .....................................................................
556
1,035
Outlays ....................................................................................
556
1,035
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

Object Classification (in millions of dollars)

1999 est.

423
423

1997 actual

1998 est.

1999 est.

41.0

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

139
417

161
874

159
264

99.9

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

556

1,035

423

–2
–2

VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT
556
556

1,035
1,035

421
421

(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)

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

Identification code 36–1119–4–1–704

1998 est.

1999 est.

1,280

1,891

2,020

1159

1,280

1,891

2,020

1.97

2.36

7.71

1.97

2.36

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ...............................................
1339

Obligations by program activity:
Direct loan subsidy ........................................................ ................... ...................
Guaranteed loan subsidy ............................................... ................... ...................

–100
98

10.00

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

–2

22.00
23.95

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

–2
2

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

–2
–2

73.10
73.20

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

–2
2

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

–2

89.00

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

–2

40.25
25

44

156

25

44

156

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Subsidy outlays ..............................................................

110

561

156

1349

110

561

156

Total subsidy outlays ................................................

Guaranteed loan levels supportable by subsidy budget
authority:
2150 Loan guarantee levels ...................................................

1999 est.

00.01
00.02

7.71

1329

1998 est.

86.90

1997 actual

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ...........................................................
Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Subsidy rate ...................................................................

1997 actual

24,287

24,844

23,440

832

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Credit accounts—Continued
VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT—
Continued
Program and Financing (in millions of dollars)—Continued
Identification code 36–1119–4–1–704

90.00

1997 actual

1998 est.

1999 est.

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

–2

1997 actual

1998 est.

–77
2,066
–2,083

–93
2,204
–2,210

–77
1,791

–93
2,083

–100
2,210

–110

–510

–156

11.84

–25
–36
–38
–62
–106
–122
–9
–38
–41
–126 ................... ...................
–1,010
–1,359
–1,607
–4
–35
–40
–12
–52
–56

11.84

88.90

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

–1,358

–2,136

–2,060

89.00
90.00

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

355
433

–69
–53

144
150

1999 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels ........................................................... ................... ...................

–1,817

1159

–1,817

Total direct loan levels ............................................. ................... ...................
Direct loan subsidy (in percent):
1320 Subsidy rate ................................................................... ................... ...................

1
1,713
–1,791

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources:Payments from program account
Non-Federal sources:
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 ...............................................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 36–1119–4–1–704

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
87.00 Total financing disbursements (gross) .........................
72.40

1329

Weighted average subsidy rate ................................. ................... ...................
Direct loan subsidy budget authority:
1330 Subsidy budget authority ............................................... ................... ...................

–100

1339

Total subsidy budget authority ................................. ................... ...................
Direct loan subsidy outlays:
1340 Subsidy outlays .............................................................. ................... ...................

–100
–100

1349

–100

Status of Direct Loans (in millions of dollars)
Total subsidy outlays ................................................ ................... ...................
Guaranteed loan subsidy (in percent):
2320 Subsidy rate ................................................................... ................... ...................

0.42

1998 est.

1999 est.

98

Weighted average subsidy rate ................................. ................... ...................
Guaranteed loan subsidy budget authority:
2330 Subsidy budget authority ............................................... ................... ...................

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
1,280
1,891
2,020

98

2329

1150

0.42

2339

Total subsidy budget authority ................................. ................... ...................
Guaranteed loan subsidy outlays:
2340 Subsidy outlays .............................................................. ................... ...................
2349

1997 actual

Identification code 36–4127–0–3–704

98

Total subsidy outlays ................................................ ................... ...................

98

The Administration is proposing legislation to eliminate disbursements of vendee loans. VA will sell all foreclosed properties on a cash basis.
VETERANS HOUSING BENEFIT PROGRAM FUND DIRECT LOAN
FINANCING ACCOUNT

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

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments:
1251
Repayments and prepayments ..................................
1253
Proceeds from loan asset sales to the public with
recourse .................................................................
1262 Adjustments: Discount on loan asset sales to the
public or discounted .................................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................

1210
1231

1290

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

1,280

1,891

2,020

723
1,280

992
1,891

1,405
2,020

–69

–32

–38

–1,010

–1,359

–1,607

64

–77

–90

–8
–10
–15
12 ................... ...................
992

1,405

1,675

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

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................
Property sales expense ..................................................
Property management/other expense .............................
Property improvement expense ......................................
Reserve for losses on loan sales ..................................
Payment of downward reestimate to receipt account
Payment of excess interest earned to receipt account

10.00

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

22.00
23.95

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

1999 est.

1,280
1,891
2,020
256
98
102
1
2
2
4
5
4
1
1
1
14
69
75
120 ................... ...................
37 ................... ...................
1,713

2,066

2,204

2,067
–2,066

2,204
–2,204

1,328

1,382

1,865

1,358
–973

2,136
–1,451

2,060
–1,721

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

385

685

339

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

1,713

2,067

2,204

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.47
Portion applied to debt reduction .............................

70.00

1998 est.

1,713
–1,713

67.15

68.90

1997 actual

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

ASSETS:
1101 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, net ................
1403
Accounts receivable from foreclosed
property ...........................................
1404
Foreclosed property .............................
Net present value of assets related
to direct loans:
1499

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

1996 actual

1997 actual

1998 est.

1999 est.

954
29

2,463
160

3,489
..................

4,160
..................

723

992

1,405

1,675

..................
58

106
9

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

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

781

1,107

1,405

1,675

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
1499
1504

1603

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

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

Status of Direct Loans (in millions of dollars)
..................

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

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

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

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

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

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

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

1998 est.

1999 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1150

15

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

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

3,730

4,894

5,835

5
1,768

5
1,768

..................
4,891

7
–1

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

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

1210
1231

Cumulative balance of direct loans outstanding:
Outstanding, start of year ............................................. ................... ................... ...................
Disbursements: Direct loan disbursements ................... ................... ...................
–1,911

..................
5,832

7
–1

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

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

1,779

1290

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

–1,911

Balance Sheet (in millions of dollars)

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

1,779

1,779

4,894

5,835

4999

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

1,779

1,779

4,894

5,835

Identification code 36–4127–4–3–704

1996 actual

1997 actual

1998 est.

ASSETS:
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1499

VETERANS HOUSING BENEFIT PROGRAM FUND DIRECT LOAN
FINANCING ACCOUNT

1999

Program and Financing (in millions of dollars)
Identification code 36–4127–4–3–704

1997 actual

1998 est.

Obligations by program activity:
Direct loans .................................................................... ................... ...................
Interest on Treasury borrowing ...................................... ................... ...................

–1,817
–11

10.00

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

–1,828

22.00
23.95

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

–1,828
1,828

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

–1,448
1,336
–112

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

–1,828

Change in unpaid obligations:
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
87.00 Total financing disbursements (gross) .........................
Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources:Payments from program account
Non-Federal sources:
Non-Federal sources:
88.40
Repayments of principal ..............................
88.40
Interest received on loans ...........................
88.40
Fees ..............................................................
88.40
Loan sale proceeds, net ..............................
88.40
Other revenue ...............................................

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

–1,828
1,911

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

–1,911

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

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

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

–1,911

Total assets ........................................

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

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

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

–1,911

Program and Financing (in millions of dollars)
Identification code 36–4129–0–3–704

1997 actual

1998 est.

1999 est.

00.01
00.02
00.03
00.04
00.05
00.06
00.07
00.08

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 ..........

1,078
292
46
29
29
124
684
105

1,727
1,955
394
435
99
121
35
42
34
38
134
145
172 ...................
34 ...................

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

2,387

2,629

2,736

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

3,744
1,959

3,316
2,557

3,244
2,601

5,703
–2,387

5,873
–2,629

5,845
–2,736

3,316

3,244

3,110

1,959

2,557

2,601

40
2,387
–2,592

–165
2,629
–2,645

–182
2,736
–2,743

–165
2,592

–182
2,645

–189
2,743

–308
–243

–365
–157

–108
–152

21.40

23.90
23.95
24.40

68.00

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

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

VETERANS HOUSING BENEFIT PROGRAM FUND GUARANTEED LOAN
FINANCING ACCOUNT

83
–1,911

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

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

10.00

–1,716

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

73.10
73.20
74.40

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

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

1999 est.

00.01
00.02

67.15

1999 est.

This schedule shows the off-budget financing effects of the
Administration’s proposal to eliminate disbursements of vendee loans. VA will sell all foreclosed properties on a cash basis.

(Legislative proposal, subject to PAYGO)

70.00

1997 actual

Identification code 36–4127–4–3–704

2999

68.90

833

100

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

7
18
41
1,226
56

88.90

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

1,448

89.00
90.00

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

–380
–463

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................
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:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
87.00 Total financing disbursements (gross) .........................
72.40

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from program account .....................
88.25
Interest on uninvested funds ...............................

834

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

2204

LIABILITIES:
Non-Federal liabilities: Liabilities for
loan guarantees ..................................

4,261

4,215

4,242

4,174

2999

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

4,261

4,215

4,242

4,174

4999

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

4,261

4,215

4,242

4,174

Credit accounts—Continued
VETERANS HOUSING BENEFIT PROGRAM FUND GUARANTEED LOAN
FINANCING ACCOUNT—Continued
Program and Financing (in millions of dollars)—Continued
1997 actual

Identification code 36–4129–0–3–704

1998 est.

1999 est.

VETERANS HOUSING BENEFIT PROGRAM FUND GUARANTEED LOAN
FINANCING ACCOUNT

88.40
88.40
88.40
88.40

Non-Federal sources:
Non-Federal sources:
Funding fees ................................................
Cash sale of properties ...............................
Other collections ..........................................
Recoveries from loans .................................

–455
–177
–13
–763

–472
–262
–14
–1,287

–446
–317
–16
–1,562

88.90

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

–1,959

–2,557

–2,601

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................ ................... ................... ...................
90.00 Financing disbursements ...............................................
633
88
142

Status of Guaranteed Loans (in millions of dollars)
1997 actual

Identification code 36–4129–0–3–704

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

24,287

Program and Financing (in millions of dollars)
Identification code 36–4129–4–3–704

22.00
24.40

1998 est.

24,844

2290

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

23,440

130,031
24,287
979
–7,352

146,574
24,844
820
–8,287

161,502
23,440
1,074
–9,131

–124

–395

–435

–1,079

–1,727

–1,955

161,502

1999 est.

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
Unobligated balance available, end of year:
Uninvested ................................................................. ................... ...................

101
101

101

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from Program Account ..................... ................... ...................
88.25
Interest on uninvested funds ............................... ................... ...................

–98
–3

89.00
90.00

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

–101

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ................... ...................
–101

This schedule shows the off-budget financing effects of the
Administration’s proposal to eliminate disbursements of vendee loans. VA will sell all foreclosed properties on a cash basis.

–292
–327
–366
124 ................... ...................
146,574

1998 est.

1999 est.

88.90
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2231 Disbursements of new guaranteed loans ......................
2232 Guarantees of loans sold to the public with recourse
2251 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 .............................................

1997 actual

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

68.00

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
24,287
24,844
23,440
2150

(Legislative proposal, subject to PAYGO)

VETERANS HOUSING BENEFIT PROGRAM FUND LIQUIDATING
ACCOUNT

174,129

Program and Financing (in millions of dollars)
Memorandum:
2299 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 ......................................

65,081

62,353

67,417

61
339
–6
–291

103
395
–11
–360

127
435
–13
–406

103

127

143

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.

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Other Federal assets:
1801
Cash and other monetary assets .......
1803
Property, plant and equipment, net

1996 actual

1997 actual

1998 est.

1999 est.

3,785
61

3,151
244

3,063
237

2,921
226

..................
415

102
718

133
809

136
891

4,261

4,215

4,242

4,174

1101

1999

Total assets ........................................

1997 actual

1998 est.

1999 est.

Obligations by program activity:
Capital investments:
00.01
Acquisition of homes .................................................
00.02
Property improvements ..............................................
00.03
Cash advances ..........................................................
00.04
Acquisition of defaulted guaranteed loans ..............

415
21
23
62

404
19
18
60

339
16
13
59

00.91

Total capital investments .....................................

521

501

427

01.00

Total capital investments .........................................
Operating expenses:
Property management expense .................................
Sales expense ............................................................
Claims processed ......................................................
Other expenses ..........................................................

521

501

427

29
36
192
18

28
43
131
17

21
31
110
15

01.91

Total operating expenses ......................................

275

219

177

10.00

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

796

720

604

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested .................................................................
22.00 New budget authority (gross) ........................................
22.40 Capital transfer to general fund ...................................

192
873
–212

57 ...................
840
638
–177
–34

853
–796

720
–720

01.02
01.03
01.04
01.05

21.40

Balance Sheet (in millions of dollars)
Identification code 36–4129–0–3–704

Identification code 36–4025–0–3–704

23.90
23.95
24.40

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

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

604
–604

57 ................... ...................

100 ................... ...................

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS

68.00
70.00

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

2390
773

840

638

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

873

840

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

638

67
796
–822

42
720
–724

38
604
–610

42

38

773
49

720
4

604
6

87.00

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

822

724

610

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from direct loan financing account ...............................................
Non-Federal sources:
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 ...............................................

–50
–40
–32
–1 ................... ...................
–119
–117
–86
–67
–53
–43
–51
–38
–29
14
12
10

88.90

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

–773

89.00
90.00

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

–499

–604

–458

–638

Identification code 36–4025–0–3–704

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments:
1251
Repayments and prepayments ..................................
1253
Proceeds from loan asset sales to the public with
recourse .................................................................
1261 Adjustments: Capitalized interest .................................
Write-offs for default:
1263
Direct loans ...............................................................
1264
Other adjustments, net .............................................

1210
1231

1290

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

1997 actual

1998 est.

1999 est.

449
56

420
52

432
54

–40

–37

–38

–1
–1
–1
19 ................... ...................
–1
–62

–1
–1

–1
–1

420

432

445

Status of Guaranteed Loans (in millions of dollars)
Identification code 36–4025–0–3–704

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2251 Repayments and prepayments ......................................
Adjustments:
2262
Terminations for default that result in acquisition
of property .............................................................
2263
Terminations for default that result in claim payments ....................................................................
2264
Other adjustments, net .............................................
2290

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

1997 actual

1998 est.

1999 est.

24,731
–313

23,896
–303

23,058
–292

–415

–404

–339

–192
–131
–110
85 ................... ...................
23,896

23,058

22,317

1999 est.

457
–411

366
–329

0109

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

428

57

46

37

Balance Sheet (in millions of dollars)

ASSETS:
1101 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
Credit program receivables and related forclosed property, net ..............

1706

1803
1901

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

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

Status of Direct Loans (in millions of dollars)

1998 est.

571
–514

1999
100 ................... ...................
49
–116
–28

1997 actual

869
–441

1499

–840

1996 actual

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

Identification code 36–4025–0–3–704

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

610

0101
0102

32

86.97
86.98

633

Statement of Operations (in millions of dollars)
Identification code 36–4025–0–3–704

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

665

835

Total liabilities ....................................
NET POSITION:
3200 Invested capital .......................................
3300 Cumulative results of operations ............
3500 Future funding requirements ..................

1996 actual

1997 actual

1998 est.

1999 est.

238

99

177

34

1

12

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

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

7

4

53

42

463

377

132

110

470

381

185

152

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

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

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

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

643
..................

539
..................

348
..................

290
..................

1,352

1,031

710

476

293
76

73
115

50
98

34
83

369

188

148

117

1,106
169
–292

917
–74
..................

779
–217
..................

662
–303
..................

3999

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

983

843

562

359

4999

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

1,352

1,031

710

476

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 the corresponding program and financing accounts.
MISCELLANEOUS VETERANS PROGRAMS LOAN FUND PROGRAM
ACCOUNT
NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)

For administrative expenses to carry out the direct loan program
authorized by 38 U.S.C. chapter 37, subchapter V, as amended,
$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, 1998.)
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)

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

12,505

12,066

11,678

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

1,350
228
–84
–829

665
194
–38
–188

633
165
–29
–159

For the cost of direct loans, ø$44,000¿ $55,000, 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$2,278,000¿
$2,401,000.
In addition, for administrative expenses necessary to carry out
the direct loan program, ø$388,000¿ $400,000, which may be transferred to and merged with the appropriation for ‘‘General operating

836

VETERANS BENEFITS ADMINISTRATION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

Credit accounts—Continued

1340

Subsidy outlays, Native American ................................. ................... ...................

1

VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT—Continued

1349

Total subsidy outlays ................................................ ................... ...................

1

(INCLUDING TRANSFER OF FUNDS)—Continued

expenses’’. (Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1998.)

3510
3590

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

1
1

1
1

1
1

EDUCATION LOAN FUND PROGRAM ACCOUNT
(INCLUDING 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$200,000¿ $206,000; 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, 1998.)
Program and Financing (in millions of dollars)
Identification code 36–0140–0–3–702

00.01
00.09
10.00

1997 actual

1998 est.

1999 est.

Obligations by program activity:
Direct loan subsidy ........................................................ ................... ...................
Administrative expenses ................................................
1
1

1
1

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

1

1

2

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

4
1

3
1

3
1

5
–1

4
–1

4
–2

3

3

2

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

1

1

1

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

1
–1

1
–1

2
–2

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 pilot program that began in 1993 and
is authorized through December 31, 2001.
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.

21.40

23.90
23.95
24.40

40.00

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

Object Classification (in millions of dollars)
Identification code 36–0140–0–3–702

25.3
41.0

Outlays (gross), detail:
86.90 Outlays from new current authority ..............................
1
1
86.93 Outlays from current balances ...................................... ................... ...................

1
1

87.00

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

1

1

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

1
1

1
1

1
2

1998 est.

1999 est.

1
1

2

89.00
90.00

1997 actual

Purchases of goods and services from Government
accounts ....................................................................
1
1
Grants, subsidies, and contributions ............................ ................... ...................

99.9

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

1

1

2

MISCELLANEOUS VETERANS PROGRAMS LOAN FUND DIRECT LOAN
FINANCING ACCOUNT
Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 36–0140–0–3–702

1997 actual

1998 est.

Identification code 36–4259–0–3–702

1999 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct loan levels, vocational rehabiliation ...................
2
2
2
1150 Direct loan levels, education ......................................... ................... ................... ...................
1150 Direct loan levels, Native American housing ................
2
5
9
1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Voc. Rehab. Loan subsidy rate ......................................
1320 Education Loan subsidy rate .........................................
1320 Native American subsidy rate .......................................

4

7

11

1.74
0.00
7.72

1.94
34.11
7.72

2.27
32.75
7.72

Weighted average subsidy rate .................................
4.52
5.97
Direct loan subsidy budget authority:
1330 Subsidy budget authority, vocational rehabilitation ..... ................... ...................

6.73

1329

1339

1

Total subsidy budget authority ................................. ................... ...................
1
Direct loan subsidy outlays:
1340 Subsidy outlays, vocational rehabilitation .................... ................... ................... ...................
1340 Subsidy outlays, education ............................................ ................... ................... ...................

1997 actual

1998 est.

1999 est.

00.01
00.02

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................

5
2

7
1

11
1

10.00

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

7

8

12

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

2 ................... ...................
7
9
12
–3 ................... ...................

23.90
23.95

6
–7

9
–8

12
–12

5

7

10

5
–3

5
–3

5
–3

21.40

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

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.47
Portion applied to debt reduction .............................
67.15

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds

DEPARTMENT OF VETERANS AFFAIRS
68.90
70.00

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

2

2

2

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

7

9

12

1
7
–7

1
8
–8

1
12
–13

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
87.00 Total financing disbursements (gross) .........................
72.40

1
7

88.90

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

–5

–5

–5

2
3

4
3

7
8

Status of Direct Loans (in millions of dollars)
1997 actual

1998 est.

1999 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
5
7
11
1150

MISCELLANEOUS VETERANS PROGRAMS LOAN FUND LIQUIDATING
ACCOUNT
Status of Direct Loans (in millions of dollars)
1997 actual

Identification code 36–4260–0–3–702

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1263 Write-offs for default: Direct loans ...............................
1290

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

5

7

15

19

28

Balance Sheet (in millions of dollars)
Identification code 36–4259–0–3–702

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

3
1
–2 ...................

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

1

1996 actual

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 ..................................................
1699

Value of assets related to direct
loans ..........................................

1999

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

1999 est.

1
–1

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

Balance Sheet (in millions of dollars)

11

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
13
15
19
1231 Disbursements: Direct loan disbursements ...................
5
7
11
1251 Repayments: Repayments and prepayments .................
–3
–3
–2
1264 Write-offs for default: Other adjustments, net ............. ................... ................... ...................
1290

1998 est.

1997 actual

1998 est.

1999 est.

1

1

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

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

3

1

2

2

–2

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

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

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

1

1

2

2

1

1

2

2

2

2

2

2

1
1

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

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

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

1101

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

Identification code 36–4259–0–3–702

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.

1 ...................
8
13

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources ..................................................... ................... ...................
–1
88.25
Interest on uninvested funds ...............................
–1 ................... ...................
Non-Federal sources:
88.40
Non-Federal sources .........................................
–3
–3
–2
88.40
Interest on loans ..............................................
–1
–2
–2
88.40
Interest on uninvested funds ........................... ................... ................... ...................

837

1996 actual

1997 actual

1998 est.

1999 est.

3

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

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

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

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

10

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

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

13

15

19

15

19

28

16

25

19

..................
24
..................
..................

..................
..................
4
..................

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

2

1

2

2

4999

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

2

1

2

2

This account contains all information on the Vocational Rehabilitation Loan Program and Education Loan Fund on loans
prior to 1992.
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.

28

..................
3
..................
13

3999

28

13

Total assets ........................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

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

WORKLOAD, AMOUNT LOANED AND REPAID
1997 actual

Number of loans outstanding .....................................................
Average amount per loan outstanding .......................................

991
$772

1998 est.

1999 est.

870
$675

680
$679

Trust Funds
POST-VIETNAM ERA VETERANS EDUCATION ACCOUNT
Unavailable Collections (in millions of dollars)

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

16

24

4

11

Identification code 36–8133–0–7–702

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

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

15

17

64

64

64

3999

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

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

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

15

17

4999

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

16

24

19

28

Balance, start of year:
01.99 Balance, start of year ....................................................
Receipts:
02.01 Deductions from military pay ........................................
02.02 Contributions ..................................................................

3
14

3
9

2
6

02.99

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

17

12

8

Total: Balances and collections ....................................
Appropriation:
05.01 Post-Vietnam era veterans education account .............

81

76

72

–17

–12

–9

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.

04.00

1997 actual

1998 est.

1999 est.

838

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
Total trainees ..............................................................................
Total trainee cost ........................................................................
Average cost per trainee (actual dollars) ...................................
Section 901 trainees ...................................................................
Section 901 trainee cost .............................................................

POST-VIETNAM ERA VETERANS EDUCATION ACCOUNT—Continued
Unavailable Collections (in millions of dollars)—Continued
1997 actual

Identification code 36–8133–0–7–702

05.99
07.99

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

–17
64

1998 est.

1999 est.

–12
64

–9
63

1997 actual

00.01
00.02
00.03

Obligations by program activity:
Payment to post-Vietnam era trainees .........................
Payment to section 901 trainees ..................................
Participant disenrollments .............................................

10.00

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

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

1998 est.

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

Identification code 36–8133–0–7–702

45

12
33

9
46

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

87

45

55

NATIONAL SERVICE LIFE INSURANCE FUND
Unavailable Collections (in millions of dollars)
Identification code 36–8132–0–7–701

189
17

119
12

86
9

206
–87

131
–45

95
–55

119

86

40

New budget authority (gross), detail:
Appropriation (trust fund, indefinite) ............................
Portion precluded from obligation .................................

20
–3

15
–3

11
–2

63.00

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

17

12

9

70.00

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

17

12

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

4
87
–86

5
45
–46

4
55
–55

5

4

4

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

17
69

12
34

9
46

87.00

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

86

46

55

89.00
90.00

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

17
86

12
46

9
55

This account consists of voluntary contributions by eligible
servicepersons and matching contributions provided by the
Department of Defense. The fund provides educational assistance payments to participants who entered the service after
December 31, 1976, and are pursuing training under chapter
32, title 38, U.S.C. Section 901 is a non-contributory program
with educational assistance provided by the Department of
Defense. Public Law 99–576, enacted October 28, 1986, closed
the program permanently for new enrollments effective March
31, 1987. The estimated activity in the fund follows:
CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES
[In millions of dollars]

$17
$3
$8
$5
$1
$4
284,676
2,995
$1,138
60,751
$70

1998 est.

$12
$3
$4
$5
0
0
259,660
2,484
$1,140
27,500
$33

1999 est.

$9
$2
$3
$4
0
0
222,969
1,709
$1,140
38,400
$46

1998 est.

1999 est.

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Premium and other receipts ..........................................
231
224
210
02.02 Interest ...........................................................................
1,015
977
922
02.03 Payments from general and special funds ...................
2
2
2
02.04 Payments from general and special funds, legislative
proposal subject to PAYGO ....................................... ................... ...................
5
02.99

Total receipts .............................................................
1,248
1,203
Appropriation:
05.01 National Service Life Insurance fund ............................
–1,248
–1,203
07.99 Total balance, end of year ............................................ ................... ...................

1,139
–1,134
5

Program and Financing (in millions of dollars)
Identification code 36–8132–0–7–701

86.97
86.98

1997 actual

01.99

9

1997 actual

1999 est.

17
70

55

60.27
60.45

Total budget authority .................................................................
Servicepersons ........................................................................
Transferred from Department of Defense (bonus) .................
Transferred from Department of Defense (matching) ............
Transferred from Department of Defense (Section 901) ........
Transferred from Department of Defense (Section 903) ........
Total participants (end of year) ..................................................
Total contributors (end of year) ..................................................
Average contribution per contributor (actual dollars) ................
Number of disenrollments ...........................................................
Total refunds ...............................................................................

1998 est.

Grants, subsidies, and contributions ............................
Refunds ..........................................................................

16
12
9
1 ................... ...................
70
33
46
87

1997 actual

99.9

1999 est.

21.40

23.90
23.95
24.40

Object Classification (in millions of dollars)

41.0
44.0

Program and Financing (in millions of dollars)
Identification code 36–8133–0–7–702

9,653
6,700
4,700
$16
$12
$9
$1,639
$1,745
$1,746
215
180
151
$1 .................... ....................

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

1997 actual

1998 est.

1999 est.

560
18
7
30
523
56
21

608
19
13
30
512
62
22

631
19
15
31
478
57
25

00.91
02.01

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

1,215
127

1,266
127

1,256
126

02.93
09.01
09.01
09.01
09.01
09.01
09.01
09.01

Total direct obligations .............................................
Death claims ..................................................................
Disability claims ............................................................
Matured endowments .....................................................
Cash surrenders .............................................................
Dividends .......................................................................
Interest paid on dividend credits and deposits ............
Payment to general operating expenses .......................

1,342
253
9
9
7
218
24
8

1,393
254
8
6
8
202
24
9

1,382
254
8
6
8
202
24
9

09.09

Reimbursable program—subtotal line .....................

528

511

511

10.00

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

1,870

1,904

1,893

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

10,824
1,829

10,783
1,771

10,650
1,678

12,653
–1,870

12,554
–1,904

12,328
–1,893

10,783

10,650

10,436

1,248

1,203

1,134

581

568

544

1,829

1,771

1,678

21.41

23.90
23.95
24.41

60.27
68.00
70.00

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

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Uninvested ............................................................
72.41
U.S. Securities: Par value .....................................

0242
4
1,184

10
1,240

5
1,285

1,188
1,870
–1,808

1,250
1,904
–1,864

1,290
1,893
–1,854

74.40
74.41

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance:
Uninvested ............................................................
U.S. Securities: Par value .....................................

10
1,240

5
1,285

5
1,323

74.99

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

1,250

1,290

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

581
1,227

568
1,296

544
1,310

Intragovernmental transactions ................................ ................... ...................
Offsetting collections:
Offsetting collections ................................................
581
568
Income under present law .............................................
1,829
1,771
Income under proposed legislation ............................... ................... ...................

5
544
1,678
5

1,328

86.97
86.98

0289
0297
0298

839

72.99
73.10
73.20

0299

Total cash income .....................................................
Cash outgo during year:
0500 National service life insurance fund .............................
Unexpended balance, end of year:
0700 Uninvested balance .......................................................
0701 U.S. Securities: Par value ..............................................
0799

87.00

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

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

1,829

1,771

1,683

–1,808

–1,864

–1,854

10
12,023

5
11,935

5
11,764

12,033

11,940

11,769

Object Classification (in millions of dollars)

1,808

1,864

1,854

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

–130
–5
–446

–130
–5
–433

–130
–4
–410

88.90

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

–581

–568

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

1,248
1,227

1,203
1,296

1997 actual

1998 est.

1999 est.

33.0
42.0
43.0

Direct obligations:
Investments and loans ..............................................
Insurance claims and indemnities ...........................
Interest and dividends ..............................................

88
654
600

89
706
598

88
731
563

99.0
99.0

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

1,342
528

1,393
511

1,382
511

99.9

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

1,870

1,904

1,893

–544

89.00
90.00

Identification code 36–8132–0–7–701

1,134
1,310

UNITED STATES GOVERNMENT LIFE INSURANCE FUND

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

This fund was established in 1940 for the World War II
servicemen’s and veterans’ insurance program. Over 22 million policies have been issued under this program. Activity
of the fund reflects a rising claim workload. The trend in
the number and amount of policies in force is shown as follows:

Unavailable Collections (in millions of dollars)
Identification code 36–8150–0–7–701

Balance, start of year:
Balance, start of year .................................................... ................... ................... ...................
Receipts:
02.01 Interest and profits on investments in public debt
securities ...................................................................
6
6
6
Appropriation:
05.01 United States government life insurance fund .............
–6
–6
–6
07.99 Total balance, end of year ............................................ ................... ................... ...................

Identification code 36–8150–0–7–701

1996 est.

1997 est.

2,013,221
$18,826

1,901,641
$18,212

1,785,131
$17,557

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
interest-bearing Treasury securities and in policy loans, are
expected to decrease from $12,946 million as of September
30, 1998 to $12,754 million as of September 30, 1999. The
actuarial estimate of policy obligations as of September 30,
1999, total $12,669 million, leaving a balance of $84 million
for contingency reserves.
The status of the fund, excluding noncash transactions, is
as follows:

Obligations by program activity:
Operating expenses:
00.01
Death claims .............................................................
00.02
Cash surrenders ........................................................
00.05
Dividends ...................................................................
00.06
Interest paid on dividend credits and deposits .......

0199

Unexpended balance, start of year:
Uninvested balance [unavailable collections] ...............
U.S. Securities: Par value ..............................................

Total balance, start of year ......................................
Cash income during the year:
Proprietary receipts:
0220
NSLI fund, premium and other receipts ...................
Intragovernmental transactions:
0240
NSLI fund,interest ......................................................
0241
NSLI fund, payments from general and special
funds .....................................................................

1997 actual

1998 est.

5
12,007

10
12,023

5
11,935

12,012

12,033

11,940

1998 est.

1999 est.

7
1
5
1

7
1
4
1

7
1
4
1

Total operating expenses ......................................

14

13

13

10.00

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

14

13

13

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

79
8

72
7

66
7

87
–14

79
–13

73
–13

72

66

60

6

6

6

1

1

1

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

7

7

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

20
14
–13

20
13
–15

19
13
–13

20

19

19

21.41

23.90
23.95
24.41

60.27
68.00

1999 est.

1997 actual

00.91

Status of Funds (in millions of dollars)

0100
0101

1999 est.

Program and Financing (in millions of dollars)

1995 actual

Identification code 36–8132–0–7–701

1998 est.

01.99

POLICIES AND INSURANCE IN FORCE
Number of policies ......................................................................
Insurance in force (dollars in millions) ......................................

1997 actual

70.00

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

72.41

231

224

210

1,015

977

922

2

2

2

840

VETERANS BENEFITS ADMINISTRATION—Continued
Trust Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
VETERANS SPECIAL LIFE INSURANCE FUND

UNITED STATES GOVERNMENT LIFE INSURANCE FUND—Continued

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)—Continued
Identification code 36–8455–0–8–701
Identification code 36–8150–0–7–701

1997 actual

1998 est.

1
14

1
12

87.00

13

15

13

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

–1

8
13

–1

7
15

–1

7
13

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:
POLICIES AND INSURANCE IN FORCE
1997 actual

Number of policies ......................................................................
Insurance in force (dollars in millions) ......................................

21,343
$71

1998 est.

1999 est.

19,625
$65

18,017
$59

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 $91 million as of September 30, 1998, to $84 million
as of September 30, 1999, as an increasing number of policies
mature through death or disability. The actuarial evaluation
of policy obligations as of September 30, 1999, totals $82
million, leaving a balance of $2 million for contingency reserves.
The status of the fund, excluding noncash transactions, is
as follows:
Status of Funds (in millions of dollars)
Identification code 36–8150–0–7–701

Unexpended balance, start of year:
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 ................................................
0101

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

1997 actual

99

1998 est.

09.01
09.01
09.01
09.01
09.01
09.02

Obligations by program activity:
Death claims ..................................................................
Cash surrenders .............................................................
Dividends .......................................................................
All other .........................................................................
Payment to general operating expenses account .........
Capital investment ........................................................

45
6
104
50
4
23

54
7
104
65
5
25

57
7
101
55
5
25

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

232

260

250

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

1,412
246

1,425
244

1,409
240

1,658
–232

1,669
–260

1,649
–250

1,425

1,409

1,399

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

246

244

240

Change in unpaid obligations:
Unpaid obligations, start of year:
Obligated balance:
72.40
Uninvested ............................................................
72.41
U.S. Securities: Par value .....................................

1
168

2
185

2
196

169
232
–216

187
260
–249

198
250
–239

74.40
74.41

Total unpaid obligations, start of year ................
New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year:
Obligated balance:
Uninvested ............................................................
U.S. Securities: Par value .....................................

2
185

2
196

2
207

74.99

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

187

198

209

86.97
86.98

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

47
169

62
187

41
198

87.00

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

216

249

239

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Interest on loans ..............................................
88.40
Insurance premiums earned ............................
88.40
Optional settlements ........................................
88.40
Repayments of loans ........................................
88.45
Offsetting governmental collections .....................

–6
–74
–2
–17
–147

–7
–72
–2
–18
–145

–7
–70
–3
–19
–141

–246

–244

–240

21.41

23.90
23.95
24.41

68.00

72.99
73.10
73.20

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

1999 est.

92

84
89.00
90.00

6

6

1

1

1

7

7

7

–13

–15

–13

92

84

78

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

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–30
5
–1

6

Object Classification (in millions of dollars)
Identification code 36–8150–0–7–701

1999 est.

88.90

1
12

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Repayments of
loans .....................................................................

1998 est.

10.00

Outlays (gross), detail:
86.97 Outlays from new permanent authority .........................
86.98 Outlays from permanent balances ................................
Total outlays (gross) .................................................

1997 actual

1999 est.

1997 actual

1998 est.

1999 est.

42.0
43.0

Insurance claims and indemnities ................................
Interest and dividends ...................................................

8
6

8
5

7
6

99.9

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

14

13

13

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.

CONSTRUCTION
Federal Funds

DEPARTMENT OF VETERANS AFFAIRS

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:
POLICIES AND INSURANCE IN FORCE
1997 actual

Number of policies ......................................................................
Insurance in force (dollars in millions) ......................................

1998 est.

248,997
$3

1999 est.

240,777
$3

233,347
$3

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)
1996 actual

1997 actual

0101
0102

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

231
–223

231
–225

229
–233

224
–226

0109

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

8

6

–4

–2

Identification code 36–8455–0–8–701

1998 est.

1999 est.

Balance Sheet (in millions of dollars)
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 ....................

1996 actual

1997 actual

1998 est.

1999 est.

1

2

2

2

1,580
37
..................

1,610
36
..................

1,605
36
4

1,606
35
4

108

115

121

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

1,720

1,756

1,762

1,768

187
1,481
19

204
1,494
19

219
1,488
18

230
1,487
17

2999

1,687

1,717

1,725

1,734

1,412
–1,378

1,425
–1,385

1,409
–1,373

1,399
–1,365

1999

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

CONSTRUCTION
Federal Funds
General and special funds:
CONSTRUCTION, MAJOR PROJECTS
For constructing, altering, extending and improving any of the facilities under the jurisdiction or for the use of the Department of
Veterans Affairs, or for any of the purposes set forth in sections
316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of
øtitle¿ 38, øUnited States Code¿ U.S.C., 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 $4,000,000 or more or where funds for a project
were made available in a previous major project appropriation,
ø$177,900,000¿ $97,000,000, to remain available until expended: Provided, øThat the $32,100,000 provided under this heading in Public
Law 104–204 for the replacement hospital at Travis Air Force Base,
Fairfield, California, shall not be obligated for that purpose but shall
be available for any project approved by the Congress in the budgetary process: Provided further,≈ 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 ø1998¿ 1999,
for each approved project shall be obligated: (1) by the awarding
of a construction documents contract by September 30, ø1998¿ 1999;
and (2) by the awarding of a construction contract by September
30, ø1999¿ 2000: Provided further, That the Secretary shall promptly
report in writing to the Committees on Appropriations any approved
major construction project in which obligations are not incurred within the time limitations established above: 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, 1998.)
Program and Financing (in millions of dollars)
Identification code 36–0110–0–1–703

102

3999

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

34

40

36

34

4999

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

1,721

1,757

1,761

1,768

Object Classification (in millions of dollars)
Identification code 36–8455–0–8–701

1997 actual

1998 est.

1999 est.

841

1997 actual

1998 est.

1999 est.

00.01
00.02
00.06
00.07
00.08

Obligations by program activity:
Replacement and modernization ...................................
Nursing home care ........................................................
Other improvements .......................................................
National cemeteries .......................................................
Replacement or renovation of regional offices .............

36
1
183
4
1

19
48
1
1
213
157
78
19
1 ...................

10.00

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

225

312

225

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

595
219

588
209

485
97

814
–225

797
–312

582
–225

588

485

357

21.40

23.90
23.95
24.40

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

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
219
40.79
Line item veto cancellation ....................................... ...................

178
97
–1 ...................
177

33.0
42.0
43.0

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

23
89
120

25
112
123

25
105
120

43.00

99.9

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

232

260

250

70.00

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

219

209

97

72.40

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................

650

479

547

65.00

Appropriation (total) .............................................
219
Permanent:
Advance appropriation (definite) .............................. ...................

97

32 ...................

842

CONSTRUCTION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999

General and special funds—Continued
CONSTRUCTION, MAJOR PROJECTS—Continued
Program and Financing (in millions of dollars)—Continued
1997 actual

Identification code 36–0110–0–1–703

73.10
73.20
74.40

86.90
86.93
86.98
87.00

New obligations .............................................................
Total outlays (gross) ......................................................
Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

1998 est.

1999 est.

225
–396

312
–244

225
–206

479

547

566

Outlays (gross), detail:
Outlays from new current authority ..............................
10
8
Outlays from current balances ......................................
386
236
Outlays from permanent balances ................................ ................... ...................

4
193
9

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

396

244

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 $4,000,000: 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; and (2) temporary measures necessary to prevent or to minimize further loss by such causes. (Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
1997 actual

Identification code 36–0111–0–1–703

206

1998 est.

1999 est.

219
396

209
244

97
206

Funds are requested for columbarium units at the Ft. Rosecrans and Florida National Cemeteries, seismic corrections
project at San Juan, PR, and a clinical consolidation/seismic
corrections project at Long beach, CA.
Additional funds are provided to remove asbestos from Department-owned buildings and to support advanced planning
and design activities.

Obligations by program activity:
Medical programs ..........................................................
National cemeteries .......................................................
Computer centers, additions and alterations ...............
Replacement or renovation of regional offices .............

144
15
3
5

156
20
9
9

136
15
3
6

10.00

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

00.01
00.06
00.07
00.08

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

167

194

160

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

59
175

67
175

48
141

234
–167

242
–194

189
–160

67

48

29

175

175

141

171
167
–149

189
194
–177

206
160
–167

189

206

199

21.40

23.90
23.95
24.40

Budget Authority by Program Activity

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

[In millions of dollars]

1997 actual

1998 est.

1999 est.

Replacement and modernization ................................................. ....................
35 ....................
Research and Education .............................................................
16 .................... ....................
Outpatient and improvements ....................................................
85
47 ....................
Seismic corrections ..................................................................... .................... ....................
73
Patient environment ....................................................................
40
46 ....................
General ........................................................................................
32
14 ....................
Other departments ......................................................................
49
36
26
Advance appropriation provided under P.L. 104–204 ................ ....................
32 ....................
Design fund offset ......................................................................
(3)
(1)
(2)
Total budget authority ...................................................

219

209

40.00

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

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

97
86.90
86.93

1997 actual

Identification code 36–0110–0–1–703

11.3

1998 est.

25.2
26.0
31.0
32.0

1
24
2
2
196

1
25
2
3
281

1
25
2
3
194

99.9

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

225

312

225

Personnel Summary

1001

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

1997 actual

1998 est.

46
131

37
130

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

149

177

167

89.00
90.00

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

175
149

175
177

141
167

1999 est.

Personnel compensation: Other than full-time permanent ...........................................................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Land and structures ......................................................

Identification code 36–0110–0–1–703

18
131

87.00

Object Classification (in millions of dollars)

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

The Construction, Minor Projects appropriation, which
funds construction projects costing less than $4 million, is
used to reduce risks to patient life and safety, correct code
deficiencies, improve ambulatory care settings, and improve
national cemeteries.

1999 est.

Object Classification (in millions of dollars)
25

50

50

11.3

CONSTRUCTION, MINOR PROJECTS
For constructing, altering, extending, and improving any of the
facilities under the jurisdiction or for the use of the Department
of Veterans Affairs, including planning, architectural and engineering
services, maintenance or guarantee period services costs associated
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 øtitle¿ 38, øUnited States Code¿ U.S.C., where the estimated
cost of a project is less than $4,000,000; ø$175,000,000¿ $141,000,000,

1997 actual

Identification code 36–0111–0–1–703

1998 est.

1999 est.

25.2
26.0
32.0

Personnel compensation: Other than full-time permanent ...........................................................................
Other services ................................................................
Supplies and materials .................................................
Land and structures ......................................................

3
32
1
131

4
37
1
152

3
26
1
130

99.9

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

167

194

160

Personnel Summary
Identification code 36–0111–0–1–703

1001

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

1997 actual

50

1998 est.

80

1999 est.

80

CONSTRUCTION—Continued
Federal Funds—Continued

DEPARTMENT OF VETERANS AFFAIRS
GRANTS

FOR

CONSTRUCTION

OF

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$80,000,000¿ $37,000,000, to remain available until expended.
(Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

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

843

72.40

14
5
–6

13
10
–2

21
10
–5

13

21

27

86.93

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

6

2

5

89.00
90.00

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

1
6

10
2

10
5

Program and Financing (in millions of dollars)
1997 actual

Identification code 36–0181–0–1–703

1998 est.

1999 est.

00.01

Obligations by program activity:
Grants to States ............................................................

37

90

37

10.00

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

37

90

37

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested ................................................................. ...................
22.00 New budget authority (gross) ........................................
47

This program enables the Department to assist States in
establishing, expanding, or improving State-operated veterans
cemeteries.

21.40

23.90
23.95
24.40

40.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested .................................................................
New budget authority (gross), detail:
Appropriation ..................................................................

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

47
–37

10 ...................
80
37
90
–90

37
–37

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

Public enterprise funds:
PARKING REVOLVING FUND
For the parking revolving fund as authorized by 38 U.S.C. 8109,
income from fees collected, to remain available until expended, which
shall be available for all authorized expenses except operations and
maintenance costs, which will be funded from ‘‘Medical care’’. (Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1998.)

47

80

37

124
37
–41

120
90
–47

163
37
–52

120

163

148

00.01
09.01

Obligations by program activity:
Operating expenses: parking leases ..............................
Capital Investment: parking construction program ......

1
19

1
11

1
9

Program and Financing (in millions of dollars)

72.40

Identification code 36–4538–0–3–703

1997 actual

1998 est.

1999 est.

86.93

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

41

47

52

10.00

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

20

12

10

89.00
90.00

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

47
41

80
47

37
52

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

35
15

30
3

21
3

50
–20

33
–12

24
–10

30

21

14

In 1998, the Department plans to obligate $80 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.
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,
$10,000,000, to remain available until expended. (Departments of Veterans Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
Identification code 36–0183–0–1–705

1997 actual

1998 est.

1999 est.

00.01

Obligations by program activity:
Grants to States ............................................................

5

10

10

10.00

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

5

10

10

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

21.40

23.90
23.95
24.40

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

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

12 ................... ...................

3

3

3

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

15

3

3

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

8
20
–8

20
12
–11

21
10
–10

20

21

21

70.00

72.40

86.93
86.97

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

5
3

8
3

7
3

87.00

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

8

11

10

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

–3

–3

–3

21.40

23.90
23.95

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

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

4 ................... ...................
1
10
10
5
–5

1

10
–10

10

10
–10

10

89.00
90.00

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

12 ................... ...................
5
8
7

844

CONSTRUCTION—Continued
Federal Funds—Continued

THE BUDGET FOR FISCAL YEAR 1999
Department of Veterans Affairs Regional Office in Atlanta, Georgia¿.
(Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

Public enterprise funds—Continued
PARKING REVOLVING FUND—Continued

The Parking Revolving Fund provides funding for the construction and lease of parking facilities at various medical
centers. Existing resources will be used to construct a parking
garage at the Denver VA Medical Center.

Program and Financing (in millions of dollars)
Identification code 36–0151–0–1–705

1997 actual

1998 est.

1999 est.

1998 est.

1999 est.

Direct obligations: Rental payments to others .............
Reimbursable obligations: Land and structures ...........

1
19

1
11

1
9

99.9

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

20

12

10

456
68
69
3
190
161
1
36
136

504
71
73
3
199
160
1
39
174

Total reimbursable program ......................................

251

334

374

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

1,078

1,120

1,224

22.00
22.30

1997 actual

23.2
32.0

476
71
77
2
201
139
1
34
77

10.00

Identification code 36–4538–0–3–703

Obligations by program activity:
Direct program:
Veterans benefits:
00.04
Compensation and pensions ................................
00.05
Education ..............................................................
00.06
Vocational rehabilitation and counseling .............
00.09
Insurance1 .............................................................
00.11
General administration .........................................
09.01 Administration of housing credit programs ..................
09.02 Administration of other credit programs .......................
09.03 Administration of insurance programs ..........................
09.04 Other reimbursable programs ........................................
09.99

Object Classification (in millions of dollars)

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

23.90
23.95

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

PERSHING HALL REVOLVING FUND
Program and Financing (in millions of dollars)
Identification code 36–4018–0–3–705

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested .................................................................
24.40 Unobligated balance available, end of year:
Uninvested .................................................................
Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested .................................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................

1997 actual

1998 est.

1999 est.

1

1

1

1

1

1

1,079
1,120
1,224
–1 ................... ...................

72.40

1

1

1

1

1

1

Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 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
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
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$786,135,000¿ $849,661,000: Provided, That funds under this
heading shall be available to administer the Service Members Occupational Conversion and Training Actø: Provided further, That none
of the funds made available under this heading may be used for
the relocation of the loan guaranty divisions of the Department of
Veterans Affairs Regional Office in St. Petersburg, Florida to the

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

1,078
–1,078

1,120
–1,120

1,224
–1,224

828

786

850

251

334

374

1,079

1,120

1,224

72.40

128
138
79
1,078
1,120
1,224
–1,067
–1,179
–1,217
–2 ................... ...................
138

79

85

86.90
86.93
86.97

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

715
101
251

707
138
334

765
79
374

87.00

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

1,067

1,179

1,217

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

–251

–334

–374

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

828
816

786
845

850
843

89.00
90.00

1 The total cost of administering veterans insurance programs is funded through direct appropriations to this
account, and through reimbursements from the insurance trust fund.

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. Administrative resources are based on the Presidential policy of not
paying compensation benefits for tobacco-related claims based
solely on tobacco use during military service. A summary
of VBA’s program objectives and anticipated workload is included in the following paragraphs. Workload data for this
program is shown below. Specific performance goals relating

DEPARTMENTAL ADMINISTRATION—Continued

DEPARTMENT OF VETERANS AFFAIRS

Object Classification (in millions of dollars)

to the processing of veterans benefits are contained in VA’s
annual performance plan.
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.

11.1
11.5

WORKLOAD

11.9
12.1
13.0

Compensation and Pension:
Original and reopened compensation claims .........................
Original and reopened pension claims ..................................

510
166

1998
projected

571
170

1999
projected

600
176

Education.—Provides timely and efficient processing of
claims for veterans and dependents relating to education benefits under the various laws enacted by Congress.
WORKLOAD
[In thousands]

Education:
Original claims .......................................................................
Adjustments/supplemental claims .........................................

1997 actual

146
1,045

1998 est.

144
1,002

1999 est.

144
1,003

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.
WORKLOAD

1997 actual

Identification code 36–0151–0–1–705

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

1998 est.

1999 est.

472
11

460
8

468
19

483
100
12

468
100
10

487
104
1

8
2
1
75
6

7
2
2
69
7

8
2
2
72
7

24.0
25.1
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 .........................................
Advisory and assistance services .............................
Other services ............................................................
Supplies and materials .............................................
Equipment .................................................................

32
2
2
74
12
18

28
47
2
2
1 ...................
77
97
8
10
5
11

99.0
99.0

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

827
251

786
334

850
374

99.9

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

1,078

1,120

1,224

[Claims completed in thousands]

1997 actual

845

21.0
21.0
22.0
23.1
23.2
23.3

Personnel Summary
1997 actual

Identification code 36–0151–0–1–705

Direct:
Total compensable workyears: Full-time equivalent
employment1 ..............................................................
Reimbursable:
2001 Total compensable workyears: Full-time equivalent
employment ...............................................................

1998 est.

1999 est.

1001

1 Reflects

10,931

10,326

10,283

3,228

3,250

3,515

FTE treated as reimbursements in all years and the effects of Credit Reform, per P.L. 101–508.

[In thousands]

Loan guaranty:
Construction and valuation ....................................................
Loan processing ......................................................................
Loan service and claims ........................................................
Property management .............................................................

1997 actual

342
725
365
50

1998 est.

340
720
370
55

1999 est.

316
670
375
58

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.

OFFICE

Identification code 36–0170–0–1–705

1997 actual

1998 est.

1999 est.

00.10
01.01

[In thousands]

1997 actual

51
48
10
15

1998 est.

Obligations by program activity:
Direct program ...............................................................
Reimbursable program ..................................................

31
1

31
2

33
2

50
53
9
14

10.00

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

32

33

35

22.00
23.95

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

33
–32

33
–33

35
–35

31

31

33

2

2

2

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

33

33

35

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

5
32
–32

5
33
–31

7
35
–33

5

7

9

27

29

31

1999 est.

50
53
9
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.
WORKLOAD
[In thousands]

1997 actual

Insurance:
Policy service actions .............................................................
Collections ...............................................................................
Disability claims .....................................................................
Insurance awards ...................................................................

INSPECTOR GENERAL

Program and Financing (in millions of dollars)

WORKLOAD
Vocational rehabilitation and counseling:
Evaluation and planning ........................................................
Rehabilitation services ...........................................................
Employment services status ...................................................
Vocational/educational counseling .........................................

OF

For necessary expenses of the Office of Inspector General in carrying out the Inspector General Act of 1978, as amended, ø$31,013,000¿
$32,702,000. (Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
1998.)

1,413
3,694
40
573

1998 est.

1,721
3,471
12
608

1999 est.

1,798
3,263
10
1,260

General administration.—Includes Departmental executive
direction and supporting offices, the General Counsel, the
Board of Veterans Appeals, and the Board of Contract
Appeals.

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

72.40

86.90

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

846

DEPARTMENTAL ADMINISTRATION—Continued

OFFICE

OF

THE BUDGET FOR FISCAL YEAR 1999

INSPECTOR GENERAL—Continued

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)—Continued
1997 actual

Identification code 36–0170–0–1–705

Identification code 36–0129–0–1–705

1998 est.

1999 est.

1997 actual

1998 est.

1999 est.

00.10
86.93
86.97
86.98
87.00

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

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources
Net budget authority and outlays:
89.00 Budget authority ............................................................
90.00 Outlays ...........................................................................

3
2
2
2
2
2
2 ................... ...................
32

–2

31

–2

33

31
31

1997 actual

11.1
12.1
21.0
23.1
25.2
31.0

Direct obligations:
Personnel compensation: Full-time permanent ........
Civilian personnel benefits .......................................
Travel and transportation of persons .......................
Rental payments to GSA ...........................................
Other services ............................................................
Equipment .................................................................

99.0
99.0

Subtotal, direct obligations ..................................
32
Reimbursable obligations .............................................. ...................
Total obligations ........................................................

31
29

33
31

1998 est.

1999 est.

22
22
24
4
5
5
2
2
2
2
1
1
1
1
1
1 ................... ...................

32

31
2

33
2

33

35

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

92

10.00

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

77

84

92

22.00
23.95

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

77
–77

84
–84

92
–92

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

77

84

92

12
77
–78

10
84
–83

11
92
–91

10

11

12

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

Object Classification (in millions of dollars)

99.9

84

–2

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.

Identification code 36–0170–0–1–705

77

40.00

Outlays from current balances ......................................
Outlays from new permanent authority .........................
Outlays from permanent balances ................................

Obligations by program activity:
Direct obligations ...........................................................

1997 actual

1998 est.

1999 est.

1001

322

323

317

17

20

23

86.90
86.93

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

69
9

76
7

83
8

87.00

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

78

83

91

89.00
90.00

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

77
77

84
83

92
91

Specific performance goals relating to the National Cemetery System are contained in VA’s annual performance plan.
The mission of the National Cemetary System is to honor
the military service of our Nation’s veterans. The National
Cemetery System provides a dignified burial and lasting memorial for veterans and their eligible family members and
it maintains all veterans’ cemeteries as national shrines. The
National Cemetery System’s vision is to provide a lasting
tribute to our national veterans by being mission-driven, results-oriented, and customer-focused. There are four related
programs managed by the National Cemetery System including: (1) burying eligible veterans and family members in national cemeteries and maintaining the graves and their environs as national shrines; (2) providing aid to States in establishing, expanding, or improving State veteran cemeteries;
(3) providing headstones and markers for the graves of eligible persons in national, State, and private cemeteries; and
(4) providing presidential memorial 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.
Object Classification (in millions of dollars)
Identification code 36–0129–0–1–705

NATIONAL CEMETERY SYSTEM
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 øthree¿ six passenger motor vehicles for use in
cemeterial operations; and hire of passenger motor vehicles,
ø$84,183,000¿ $92,006,000. (Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies Appropriations Act, 1998.)

1997 actual

1998 est.

1999 est.

11.1
11.3

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

38
5

40
6

42
6

11.9
12.1
21.0
23.1
23.3
25.2
26.0

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

43
12
1
1
4
7
6

46
13
1
1
4
9
6

48
14
1
1
5
11
7

DEPARTMENTAL ADMINISTRATION—Continued

DEPARTMENT OF VETERANS AFFAIRS

847

31.0

Equipment ......................................................................

3

4

5

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

99.9

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

77

84

92

Total:
Budget Authority ..................................................................... .................... .................... ....................
Outlays ....................................................................................
–1 .................... ....................

Personnel Summary
1997 actual

Identification code 36–0129–0–1–705

1001

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

1,283

1998 est.

1999 est.

1,348

1,369

Intragovernmental funds:
SUPPLY FUND
Program and Financing (in millions of dollars)
1997 actual

Identification code 36–4537–0–4–705

09.01
09.01
09.02
09.02
09.03

Obligations by program activity:
Cost of goods sold .........................................................
Other ..............................................................................
Cost of goods sold .........................................................
Other ..............................................................................
Procurement, distribution, and services program: Purchase of equipment ..................................................

1998 est.

1999 est.

443
40
10
1

554
47
10
1

578
47
10
1

11

3

3

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

505

615

639

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

58
530

83
615

83
639

588
–505

698
–615

722
–639

83

83

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 service and reclamation program; (5) a national prosthetics distribution center; and (6)
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 accounts.
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 1999, Supply Fund sales are estimated to
reach $618 million. Average inventory needed to support
those sales will be $39 million.
Operating results.—The Fund operated at a profit of $9
million in 1997. The new total of retained earnings is $61
million, which has been used to finance inventory growth.
Operating expense as related to sales was 11 percent.

83

10.00

21.40

23.90
23.95
24.40

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

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in orders on hand from Federal sources
68.90

Object Classification (in millions of dollars)
1997 actual

Identification code 36–4537–0–4–705

1998 est.

1999 est.

11.1
11.5
501
615
639
29 ................... ...................

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

530

615

639

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

530

615

639

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

57
203

33
232

33
232

260
505
–500

265
615
–615

33
232

33
232

33
232

74.99

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

265

265

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

500

615

19
1

21
1

11.9
12.1
21.0
22.0
23.1
23.3
24.0
25.1
26.0
31.0

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

18
3
2
1
1
1
10
14
235
220

20
4
4
1
1
2
10
13
308
252

22
4
4
1
1
2
10
13
322
260

99.9

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

505

615

639

265

86.97

17
1

265
639
–639

74.40
74.95

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

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

639

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

Personnel Summary
1997 actual

Identification code 36–4537–0–4–705

2001

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

1998 est.

350

375

1999 est.

399

SUPPLY FUND
(Legislative proposal, subject to PAYGO)

–501
–615
–639
–29 ................... ...................

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–1 ................... ...................

Program and Financing (in millions of dollars)
Identification code 36–4537–4–4–705

1999 est.

5

10.00

Total obligations (object class 31.0) ........................ ................... ...................

5

22.00
23.95

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

5
–5

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

1998 est.

Obligations by program activity:
Procurement, distribution, and services program: Purchase of equipment .................................................. ................... ...................

09.03

Enacted/requested:
1997 actual
1998 est.
1999 est.
Budget Authority ..................................................................... .................... .................... ....................
Outlays ....................................................................................
–1 .................... ....................
Legislative proposal, subject to PAYGO:
Budget Authority ..................................................................... .................... .................... ....................

1997 actual

848

DEPARTMENTAL ADMINISTRATION—Continued

THE BUDGET FOR FISCAL YEAR 1999
Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

Intragovernmental funds—Continued
SUPPLY FUND—Continued
Program and Financing (in millions of dollars)—Continued
1997 actual

Identification code 36–4537–4–4–705

1998 est.

89.00
90.00

1999 est.

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

5

73.10
73.20

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

5
–5

86.97

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

5

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

–5

68.00

89.00
90.00

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

–74

VA was chosen as a pilot Franchise Fund agency under
the Government Management and Reform Act, P.L. 103–356,
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. 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 $73.8 million and employ 749 people, who
were transferred from their parent organizations.
The Franchise Fund concept is intended to increase competition for government administrative services resulting in
lower costs and higher quality.
Object Classification (in millions of dollars)
1997 actual

11.1
12.1
21.0
23.1
23.3
25.2
26.0
31.0

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 .................................................
Equipment ......................................................................

99.9

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

1998 est.

1999 est.

21
30
30
4
7
8
1
1
1
2
2
2
19
23
23
6
4
8
1
1
2
2 ................... ...................
56

68

74

Personnel Summary
1997 actual

Identification code 36–4539–0–4–705

2001

FRANCHISE FUND

–68

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–11
–4
–1

Identification code 36–4539–0–4–705

In 1999, the budget proposes that VA be given the authority
to charge lenders a fee of $25 for each VA loan that is guaranteed. VA will charge this fee for 3 years, and all fees collected
would be earmarked for use in developing, maintaining, and
enhancing a VA Loan Information System (VALIS) that would
interact with the information systems used by lenders to
make VA guaranteed loans. Collections would be deposited
into the Supply Fund and be available solely for the VALIS
system. VA may spend up to $15 million of its collections
on this information system. After September 30, 2003, any
unobligated collections would be transferred as miscellaneous
receipts to the Treasury.

–59

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

422

1998 est.

1999 est.

664

742

Program and Financing (in millions of dollars)
Identification code 36–4539–0–4–705

1997 actual

1998 est.

GENERAL FUND RECEIPT ACCOUNTS

1999 est.

(in millions of dollars)

09.01

Obligations by program activity:
Reimbursable program ..................................................

56

68

74

10.00

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

56

68

74

Budgetary resources available for obligation:
21.40 Unobligated balance available, start of year:
Uninvested ................................................................. ...................
22.00 New budget authority (gross) ........................................
59

3
68

3
74

1997 actual

1998 est.

1999 est.

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

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

59
–56

71
–68
3

3

68

74

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Uninvested ................................................................. ...................
73.10 New obligations .............................................................
56
73.20 Total outlays (gross) ......................................................
–47
74.40 Unpaid obligations, end of year: Obligated balance:
Uninvested .................................................................
8

8
68
–64

12
74
–73

12

13

56
8

61
12

64

73

72.40

87.00

Outlays (gross), detail:
Outlays from new permanent authority .........................
47
Outlays from permanent balances ................................ ...................
Total outlays (gross) .................................................

249

257

249

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

ADMINISTRATIVE PROVISIONS
(INCLUDING TRANSFER OF FUNDS)

59

86.97
86.98

248

640

455

77
–74

3

185

General Fund Offsetting receipts from the public .....................
23.90
23.95
24.40

Offsetting receipts from the public:
36–243100 Fees and other charges for medical services,
VA .......................................................................................
36–247300 Contributions from military personnel, Veteran’s Educational Assistance Act of 1984 .........................

47

SEC. 101. Any appropriation for fiscal year ø1998¿ 1999 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 fiscal year ø1998¿ 1999 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

DEPARTMENT OF VETERANS AFFAIRS
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 ø1998¿ 1999 for ‘‘Compensation and pensions’’,
‘‘Readjustment benefits’’, and ‘‘Veterans insurance and indemnities’’
shall be available for payment of prior year accrued obligations required to be recorded by law against the corresponding prior year
accounts within the last quarter of fiscal year ø1997¿ 1998.
SEC. 106. Appropriations accounts available to the Department of
Veterans Affairs for fiscal year ø1998¿ 1999 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 ø1998¿ 1999, 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 ø1998¿ 1999,
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 ø1998¿ 1999, 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. Section 214(l)(1)(D) of the Immigration and Nationality
Act (8 U.S.C. 1184(l)(1)(D)) (as added by section 220 of the Immigration and Nationality Technical Corrections Act of 1994 and redesignated as subsection (l) by section 671(a)(3)(A) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996) is amended
by inserting before the period at the end the following: ‘‘, except
that, in the case of a request by the Department of Veterans Affairs,
the alien shall not be required to practice medicine in a geographic
area designated by the Secretary’’.¿
øSEC. 109. In accordance with section 1557 of title 31, United
States Code, the following obligated balance shall be exempt from
subchapter IV of chapter 15 of such title and shall remain available
for expenditure without fiscal year limitation: Funds obligated by
the Department of Veterans Affairs for lease number 757–084B–001–
91 from funds made available in the Departments of Veterans Affairs
and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1993 (Public Law 102–389) under the heading
‘‘Medical care’’.¿
Sec. 108. In accordance with section 1557 of title 31, United States
Code, the following obligated balances shall be exempt from subchapter IV of chapter 15 of such title and shall remain available
for expenditure without fiscal year limitation: (1) funds obligated by
the Department of Veterans Affairs for lease numbers 084B–05–94,
084B–07–94, and 084B–027–94 from funds made available in the
Department of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1994 (Public Law 103–
124) under the heading ‘‘Medical care’’; and (2) funds obligated by
the Department of Veterans Affairs for lease number 084B–002–96
from funds made available in the Department of Veterans Affairs
and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995 (Public Law 103–327) under the heading ‘‘Medical care’’.
Sec. 109. Beginning in fiscal year 1999, and thereafter, funds available in any Department of Veterans Affairs appropriation or fund
for salaries and other administrative expenses shall also be available
to reimburse the Office of Resolution Management and the Office
of Employment Discrimination Complaint Adjudication for all services
provided at rates which will recover actual costs. Payments may be
made in advance for services to be furnished based on estimated
costs. Amounts received shall be credited to the General Operating
Expenses account for use by the office that provided the service. (De-

TITLE IV—GENERAL PROVISIONS

849

partments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1998.)

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.
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.

850

TITLE IV—GENERAL PROVISIONS—Continued

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 24 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
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) 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.

THE BUDGET FOR FISCAL YEAR 1999
(b) 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 ø1998¿
1999 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.
SEC. 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 ø1998¿ 1999 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.
SEC. 420. 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 ø1998¿ 1999 and
prior fiscal years may be used for implementing comprehensive conservation and management plans.
øSEC. 421. 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 1998.¿
SEC. ø422¿ 421. Notwithstanding any other provision of law, the
term ‘‘qualified student loan’’ with respect to national service education awards shall mean any loan made directly to a student by
the Alaska Commission on Postsecondary Education, in addition to
other meanings under section 148(b)(7) of the National and Community Service Act. (Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act,
1998.)


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