VA Budget 2007, not good news for all veterans

Secretary of Veterans Affairs James Nicholson announced that President Bush will seek a record $80.6 billion in the fiscal year 2007 budget for the Department of Veterans Affairs (VA). The overwhelming majority of the resources are targeted for health care and disability compensation. The FY 2007 proposal represents an increase of $8.8 billion, or 12.2%, above the budget for 2006.

But the news is not good for all veterans……

The FY '07 budget proposal calls for $38.5 billion in discretionary funding, mostly for health care. For health care alone, the President's request is an increase of $3.5 billion (or more than 11%) over the FY 2006 level. The budget proposal also would provide $42.1 billion in mandatory funding, mostly for compensation, pension, and other benefit programs. 

The budget request still relies on $1.1 billion in cost-saving efficiencies. It appears to table long-needed construction dollars, particularly in the area of grants for state veterans homes and leaves CARES (Capital Asset Realignment for Enhanced Services) under-funded.

It also takes a $13 million bite out of VA research and fails to provide sufficient funds for staffing and training in the Veterans Benefits Administration to address a claims backlog fast approaching one million claims, causing veterans who file claims to wait as long as a year to receive the final recommendation from the VA.
The budget proposal also recycles a provision from last year, that the VA is again asking many veterans to pay a $250 annual enrollment fee and higher pharmacy co-payments, from $8 to $15. Congress shot that down.

A chart in the president's budget request anticipates reducing the number of vets who can use VA healthcare services by approximately 1.2 million in 2007 through implementation of enrollment fees and higher co-payments. 

Bob Hogan, Director

Veterans Services

Updated:  02/16/06