TheWeekInCongress.com
Week Ending May 27, 2005
HR 2528 Making appropriations for military quality of life functions of the Department of Defense, military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2006, and for other purposes.
{Please Note: The following information describes the House version of the bill passed in May 2005. The Senate version differs little. Information on programs and SENATE recommendations can be read by following this link: SENATE Committee Report.
BRIEF
As the bill title explains, this legislation appropriates funds to operate the Department of Veterans Affairs and related agencies and spends for construction of military and military related projects worldwide.
This relatively undisputed bill is explained by the Committee this way: (Dissenting views are reported in the “MORE INFORMATION” section) “This bill marks the introduction of the first Military Quality of Life and Veterans Affairs, and Related Agencies Appropriations bill. The Committee has formed this bill for the purpose of moving towards taking a more comprehensive look at the quality of life for U.S. servicemen and women, from recruitment through retirement. Since the advent of the All Volunteer Force in 1973, quality of life has come to play an increasingly prominent role in preserving the unmatched professionalism and capability of the U.S. armed forces. All of the military witnesses who have testified before the Committee in preparation for this bill have spoken in full support of the new structure of the bill highlighting the importance of maintaining a suitable quality of life for soldiers, sailors, airmen and marines. This quality of life necessarily involves the construction and maintenance of military facilities and housing, the basic allowance for housing, the Defense Health Program, and environmental restoration. Several witnesses affirmed the saying, `you recruit the soldier and you retain the family,' and all of these elements contribute to that purpose, while maintaining a high level of readiness.
“Quality of life should also be a guiding concept upon a service member's retirement, making veterans affairs another primary component in achieving the purpose of this bill. The Committee heard repeatedly during hearings of gaps and flaws in the transition from active duty to retirement, particularly in the switch from active duty health care to veterans health care. Unacceptable in peacetime, this situation becomes intolerable in a time of war. Advances in battlefield medicine have resulted in dramatic increases over previous conflicts in the percentage of service personnel who survive their wounds. The other side of this salutary change is an increase in certain medical cases, such as amputee and trauma cases. The Committee is deeply concerned that wounded veterans receive the treatment they require and deserve. The Committee will thus continue in the future to examine opportunities for improving quality of life for active and reserve personnel, veterans, and those making the transition from active to veteran status.
“The programs funded in the bill for the Department of Defense (DOD) include: military construction, including housing; operation and maintenance of family housing; the family housing improvement fund; the basic allowance for housing payment; facilities sustainment, restoration and modernization; environmental restoration; the Defense Health Program; the U.S. share of the North Atlantic Treaty Organization Security Investment Program; funds to execute projects identified by the base realignment and closure authorities; the chemical demilitarization construction program; and the foreign currency fluctuation account. The bill also funds the Department of Veterans Affairs (VA). Finally, the bill funds four related agencies, including the American Battle Monuments Commission, Cemetery Expenses, Army, the U.S. Court of Appeals for Veterans Claims, and the Armed Forces Retirement Home.”
Sponsor: Representative James T. Walsh (R-NY-25th)
Vote: Passed House 425 to 1 (RC 226) May 26, 2005). A Motion to Recommit the bill with Instructions failed 189 to 223 (RC 227) (May 26, 2005). Passed Senate 98 to 0 (RV) September 22, 2005. (Senate report here)
Cost to the taxpayers: The Senate proposes spending $82.9 billion. From those funds $68.1 billion would go to the VA and $53.5 billion would be spent on construction projects. The bill now moves to a conference between the House and Senate to iron out any differences. Both versions of the bill are similar.
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MORE INFORMATION
ITEMS OF INTEREST (Post Traumatic Stress Disorder; |
Seamless Transition from Active Duty to Veterans Affairs; Information Sharing; |
Facilities Sustainment, Restoration and Modernization; Backlog of Facilities |
Restoration and Modernization. |
MILITARY CONSTRUCTION PROJECTS LISTING |
ARMY; NAVY AND MARINES; AIR FORCE; DEFENSE-WIDE; |
CHEMICAL DEMILITARIZATION CONSTRUCTION
|
BASE REALIGNMENT AND CLOSURE (BRAC) |
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FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION (All Branches) |
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ENVIRONMENTAL RESTORATION (All Branches) |
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DEFENSE HEALTH |
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DEFENSE HEALTH PROCUREMENT AND RESEARCH AND DEVELOPMENT (By Disease and facility location) |
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DEPARTMENT OF VETERANS AFFAIRS |
RELATED AGENCIES
AMERICAN BATTLE MONUMENT COMMISSION
FOREIGN CURRENCY FLUCTUATION ACCOUNT
US COURT OF APPEALS FOR VETERAN’S CLAIMS
COMPARISON WITH BUDGET RESOLUTION
AMENDMENTS
1. H.AMDT.216 An amendment to reduce the account for BRAC (Base
Realignment and Closure) 2005 by $169,000,000 and to increase the funding for
Veterans' Affairs by $53,000,000.
Sponsor: Rep Melancon, Charlie [D-LA-3rd] (introduced 5/26/2005) Cosponsors
(None)
Latest Major Action: 5/26/2005 House amendment not agreed to. Status: On
agreeing to the Melancon amendment (A001) Failed by recorded vote: 213 - 214 (RC.
224).
2. H.AMDT.217 An amendment numbered 2 printed in the Congressional Record
to increase the funding for the BRAC 1990 account by $351,000,000 from
$377,827,000 to $732,827,000. The account for BRAC 2005 would be reduced by
$351,000,000 as an offset.
Sponsor: Rep Blumenauer, Earl [D-OR-3rd] (introduced 5/26/2005) Cosponsors
(None)
Latest Major Action: 5/26/2005 House amendment not agreed to. Status: On
agreeing to the Blumenauer amendment (A002) Failed by recorded vote: 171 - 254 (RC
225).
3. H.AMDT.219 An amendment numbered 3 printed in the Congressional
Record. to increase the funding for the BRAC 1990 account by $55,000,000. The
account for BRAC 2005 would be reduced by $55,000,000 as an offset.
Sponsor: Rep Blumenauer, Earl [OR-3rd] (introduced 5/26/2005) Cosponsors
(None)
Latest Major Action: 5/26/2005 By unanimous consent, the Blumenauer
amendment was withdrawn.
4. H.AMDT.220 An amendment to reduce tax cuts for taxpayers with an
adjusted gross income in excess of $1 million for taxable year 2006 by 8.125
percent and to use the resulting savings to increase funding for Veterans'
Health Care benefits.
Sponsor: Rep Obey, David R. [D-WI-7th] (introduced 5/26/2005) Cosponsors
(None)
Latest Major Action: 5/26/2005 Mr. Walsh raised a point of order against
the Obey amendment (A004). Mr. Walsh stated that the provisions of the Obey
amendment seek to change existing law and constitute legislation in an
appropriations bill. The Chair sustained the point of order.
5. H.AMDT.221 An amendment to prohibit use of funds to implement the
results of the 2005 round of BRAC until the completion of all environmental
remediation associated with the closure of military installations approved for
closure in the 1995 round of BRAC.
Sponsor: Rep Jones, Stephanie Tubbs [D-OH-11th] (introduced 5/26/2005)
Cosponsors (None)
Latest Major Action: 5/26/2005 By unanimous consent, the Jones (OH)
amendment was withdrawn.
6. H.AMDT.222 An amendment to prohibit use of funds to close or realign
any military installation approved for closure or realignment in 2005 before the
Secretary of Defense makes the information available upon which the Secretary's
closure and realignment recommendations were based, as required by existing law.
Sponsor: Rep Jones, Stephanie Tubbs [D-OH-11th] (introduced 5/26/2005)
Cosponsors (None)
Latest Major Action: 5/26/2005 House amendment agreed to. Status: On
agreeing to the Jones (OH) amendment (A006) Agreed to by voice vote.
7. H.AMDT.223 An amendment to prohibit use of funds in the bill for
promulgation of regulations without consideration of the effect of such
regulations on the competitiveness of American businesses.
Sponsor: Rep Tiahrt, Todd [R-KS-4th] (introduced 5/26/2005) Cosponsors
(None)
Latest Major Action: 5/26/2005 By unanimous consent, the Tiahrt amendment
was withdrawn.
Post Traumatic Stress Disorder.--There has been a great deal of concern that current military operations in Iraq and Afghanistan will result in a large number of service members returning with psychological problems and that there is a lack of care available. The Committee believes that hardships resulting from U.S. troop deployments to Iraq and Afghanistan make it imperative for the VA and DOD to offer thorough and wide-ranging mental health services for active duty and reserve members deployed to combat theaters as well as for their families. The Committee is concerned that sufficient mental health services are lacking to treat combat and mental illnesses that affect our soldiers and veterans. Additionally, there is a concern that the stresses of deployment are having an adverse effect on the families of deployed service members and that mental health services will not be available to them.
According to the Department of Defense, across all programs, mental health support is available to individual service members before, during and after deployment. Post Traumatic Stress Disorder (PTSD) was added to the manual of mental health diagnoses primarily as a result of the long-term experience of veterans of the Vietnam War. Treatment for PTSD involves a combination of medication, psychotherapy, and group therapy.
Military personnel returning from Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF) are given education on depression and PTSD prior to redeployment and are screened during redeployment, using the Post-Deployment Health Assessment process. The Department of Defense is making use of the Internet to provide improved access to information and mental health care in order to reduce the stigma with seeking mental health services.
The Committee directs the Department of Veterans Affairs and Department of Defense to jointly study mental healthcare, the onset and nature of PTSD, panic disorder, and bipolar disorder. Also, to improve mental health testing, tracking of returning combat duty servicemen, to include the Reserve Component for a period of not less than 10 years. In addition, the Departments of Defense and Veterans Affairs are encouraged to establish a classification for psychiatric nurses, and increase hires of individuals with those capabilities.
The Committee notes that more than 20 years ago, the Congress established a Department of Veterans Affairs Special Committee on Post Traumatic Stress Disorder to determine the Department's capacity to provide assessment and treatment for PTSD and to guide the Department's educational, research, and benefits activities with regard to PTSD. The Special Committee has provided the Department of Veterans Affairs and the Congress with annual reports that contain recommendations for improving PTSD programs and some progress has been made. But it is also clear from the most recent report, dated October, 2004, that much more needs to be done so that this issue is given its proper attention.
First and foremost, the VA must prepare to meet the needs of a new generation of combat veterans, many of whom are still in uniform. This requires, according to the report, a prospective approach including the earliest possible identification and treatment of post traumatic readjustment problems and the prevention of chronic PTSD. Since many post combat individuals remain on active duty, the Departments of Defense and Veterans Affairs must work together to identify at-risk individuals early on and coordinate treatment options and benefits at the on-set to minimize long-term consequences. During demobilization, every returning service member completes the Post Deployment Evaluation Screen (Form 2796). Although Post Deployment Evaluation Screen results include essential information about stressors and about signs of post traumatic responses, they are not currently being made available for VA planners or clinicians. The Special Committee believes this must change in order for the VA to have important information should an individual present to the VA for treatment. The Committee directs the DOD and VA to report on the obstacles to providing such information to the VA and possible remedies.
For those individuals who serve in Guard and Reserve components, who return to civilian life after deployment and thus don't have a `support community' at hand, special efforts must be made to identify potential problems once individuals have settled in to their former lives. This is the most vexing challenge for the VA, but it is not insurmountable. As the report of the Special Committee notes, Guard and Reserve troops have 90 days of leave before they report again for weekend duty following deployment. After these 90 days, according to the report, would be an ideal time to adopt as the standard period after which the post deployment mental health intervention would be made, using mental health professionals leading small group discussions of the experiences the troops faced. The Committee believes this recommendation deserves serious consideration and directs the DOD and VA to report on their plans for establishing such a procedure.
With regard to VA capabilities, the Special Committee has had a long-running recommendation that every VA Medical Center have a PTSD Clinical Team (PCT), yet two decades after the recommendation was first put forth, only 86 of 163 VA medical centers have PCTs. Coupled with this fact is the VA's growing reliance on Community Based Outpatient Clinics and the lack of PTSD service at those locations. The Committee notes that the Department estimates it will spend at least $2,200,000,000 on specialty mental health programs in fiscal year 2006, and the entirety of health care supporting veterans with mental illness will approach $10,000,000,000. By way of illustration, during fiscal year 2002, a total of 202,862 veterans had a clinical visit in which PTSD was a focus of treatment, but only 29 percent of these veterans received treatment in a specialized PTSD program. VA's primary care program is a de facto mental health system for the majority of those seeking VA care. But the VA must ensure that PTSD services are provided in Primary Care settings by design, not by default. To provide the true continuum of care necessary to treat PTSD effectively, the Primary Care services need to be fully integrated with general mental health and specialty PTSD services. The VA has a long road to travel before this becomes the actual practice, but effective PCTs at the VA Medical Centers will provide the basis to travel down that road. The Committee is very concerned about this lack of responsiveness to the Special Committee recommendation in this regard and directs the VA to develop a plan for implementation of effective PCTs at each VA Medical Center and identify any resource shortfalls which would impede implementation.
Seamless Transition from Active Duty to Veterans Affairs.--Healthcare is a great concern for our active duty and reserve components, their dependents as well as our retirees. Placing the military health care system and the veterans health care system in one bill has allowed the committee to explore coordinated efforts and efficiencies within the two systems. The Committee believes this will enable a comprehensive health care system to meet the needs of our soldiers and their dependents as well as retirees.
An over arching concern of this Committee as well as for Congress, is the seamless transition from active duty to veteran and what medical services are available for soldiers and their families. Today the age of the retiree is much more prevalent as parents are talking on behalf of their children as they transition to retiree status. The VA established an Office of Seamless Transition in 2003. This office is to improve coordination between the Veterans Health Administration, the Veterans Benefits Administration, and the Department of Defense to ensure that appropriate veterans affairs policies and procedures are in place to enhance the continuity of care as the soldiers' transition to the various health care and disability services available within both Departments. The Committee understands that DOD is coordinating with this office on many programs, but believes more could be done.
Also established in 2003 was a joint DOD/VA Seamless Transition Program at Walter Reed Army Medical Center (WRAMC) to provide case management for combat veterans. This program has expanded to the National Naval Medical Center and to the Brooke, Eisenhower, Fort Hood, Madigan and Evans Army Medical Centers.
To further improve the transition, in April 2004 the Army and the VA announced the Disabled Soldier Support System (DS3) designed to assist severely disabled soldiers and their families during transition from military service to civilian life. The DS3 provides personal outreach to disabled soldiers to ensure accessibility and responsiveness of DOD, VA and civilian services, including medical care, family services, and other support services. Soldiers will be followed for five years after retirement to ensure they receive the TRICARE and VA benefits for which they are eligible.
In February 2005, DOD announced the Military Severely Injured Joint Support Operations Center, designed to ensure that service members with severe injuries have accessibility to all available resources. The Center will act as a core resource for injured service members and their families and as a supplement to service-specific programs. It ties together DOD and other government programs such as those run by the VA and the Department of Labor. The Center is intended to coordinate several existing programs such as DS3 and Marine for Life, but not replace them.
Additional programs for all service members and their families include Military One Source, DOD Deployment Health Clinical Center, Cooperative Separation Physical Examination Process for DOD and VA with 51 locations in the United States and the Family Assistant Centers at 419 locations in the United States established by the National Guard.
Since late 2003, DOD has provided updated rosters, on a recurring basis to the VA of those who served in OIF and OEF and then separated from active duty. VA has used these lists to determine the rates of VA health care utilization by OIF and OEF veterans, including the most frequent diagnoses made during hospitalizations and clinic visits. VA uses these lists to send out mass mailings about the availability of VA health care and benefits. To date, the VA has provided medical care to 49,000 veterans of OIF and OEF and has received claims for disability compensation from 38,000 veterans.
The DOD/VA Deployment Health Working Group, which was established under the DOD/VA Health Executive Council, provides leadership on issues related to deployed service members. This Working Group has served as a forum to inform the VA about disease and injury data from combat theaters, about DOD data on environmental surveillance in theater, and clinical research issues related to mental health.
Information Sharing- An additional concern of the Committee is the integration of IT systems and records sharing. There are seven initiatives fostering interoperability between DOD and VA health information systems. They include the Federal Health Information Exchange (FHIE) which enables the transfer of protected electronic health information from DOD to VA at the time of a service member's separation; the Bidirectional Health Information Exchange (BHIE) which enables near real-time sharing of allergy, outpatient prescription and demographic data between DOD and VA for patients treated in both; Consolidated Health Informatics (CHI) which DOD serves as a leading partner with the Department of Veterans Affairs and with the managing partner, the Department of Health and Human Services to advance the nation in the adoption of a portfolio of existing health information interoperability standards; a Centralized Credentials Quality Assurance System/VetPro where the VA and DOD have developed a prototype interface to support data sharing between their systems; a Laboratory Data Sharing Interoperability (LDSI) that facilitates the electronic sharing of laboratory order entry and results retrieval among DOD, VA and commercial reference laboratories; a Clinical Data Repository/Health Data Repository that establishes interoperability between DOD's Clinical Data Repository and the VA's Health Data Repository; and lastly the Federal Health Architecture (FHA) initiative managed by the Department of Health and Human Services that links business processes to IT solutions demonstrating improvements in health outcomes.
The Committee is encouraged by these initiatives and directs the Department of Defense and Veterans Affairs to continue to examine the synergies that exist between the two Departments that will enhance the continuity of care for our military families and retirees. The Committee directs the DOD and VA to report back to the Committee by February 1, 2006 on any internal or external obstacles that exist to prevent such a transition along with plans and recommendations.
Facilities Sustainment, Restoration and Modernization.--The Department is directed to continue describing on form 1390 the backlog of SRM requirements at installations with future construction projects. For troop housing requests, form 1391 should describe any SRM conducted in the past two years. Likewise, future requirements for unaccompanied housing at the corresponding installation should be included. Additionally, the forms should include English equivalent measurements for projects presented in metric measurement. Rules for funding repairs of facilities under the Operation and Maintenance account are described below:
Components of the facility may be repaired by replacement. Such replacement can be up to current standards or codes.
Interior arrangements and restorations may be included as repair.
Additions, new facilities, and functional conversions must be performed as military construction projects. Such projects may be done concurrently with repair projects as long as the final conjunctively funded project is a complete and usable facility.
The appropriate service secretary shall notify the appropriate committees 21 days prior to carrying out any repair project with an estimated cost in excess of $7,500,000.
Reprogramming Criteria.--Reprogramming requests are required for military construction projects when the increase equals or exceeds 25 percent of the appropriated amount or $2,000,000, whichever is less.
Backlog of Facilities Restoration and Modernization.--The Committee is concerned that the current operations tempo is increasing the backlog of restoration and modernization at installations across all services. The Committee therefore directs each service and the Department of Defense to report to the Committee on the backlog of restoration and modernization, including (1) the backlog by facility type, (2) the installations at which the backlog is most severe (including overseas installations), and (3) trends in the backlog over the past five fiscal years for which data is available. These reports are due no later than 90 days after the enactment of this Act.
Full Funding of Facilities Sustainment.--The Committee commends the Army for its 90-90 funding initiative for Sustainment, Restoration and Modernization (SRM) and Base Operations Support (BOS). This initiative is discussed in further detail under Military Construction, Army in this report. While the Committee recognizes that the services do not follow the same practices in estimating and budgeting for sustainment requirements, the Committee urges all the services and the Department to consider the implementation of initiatives that will make full funding of SRM and BOS costs a visible priority.
MILITARY CONSTRUCTION PROJECT LISTING
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Fiscal year 2005 appropriation $1,962,108,000
Fiscal year 2006 budget request 1,479,841,000
Committee recommendation in the bill 1,652,552,000
Comparison with:
Fiscal year 2005 appropriation (309,556,000)
Fiscal year 2006 budget request 172,711,000
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The Committee recommends an appropriation of $1,652,552,000 for Military Construction, Army, for fiscal year 2006. This is a decrease of $309,556,000 below the fiscal year 2005 enacted level and an increase of $172,711,000 above the budget request.
Maryland--Fort Detrick: Research Acquisition Building.--Of the amount provided for planning and design in this account, the Committee directs that not less than $540,000 be made available for the design of this facility.
Maryland--Fort Detrick: Satellite Communications Facility.--Of the amount provided for planning and design in this account, the Committee directs that not less than $1,206,000 be made available for the design of this facility.
Virginia--Fort Belvoir: National Ground Intelligence Center Facility Expansion.--Of the amount provided for planning and design in this account, the Committee directs that not less than $211,000 be made available for the design of this facility.
Overhead Cover Systems.--Within the appropriation for Military Construction, Army, the Committee recommends an additional amount of $50,000,000 for overhead cover systems for force protection in Iraq.
Fort Ord.--The Committee is aware that the Army and the re-use authority at the former Fort Ord have begun discussions to develop creative means to transfer the remaining surplus land at the base to the re-use authority prior to the completion of clean up activities at the site. The Committee encourages the Army and the re-use authority to explore the use of an environmental services cooperative agreement. Such an arrangement would allow the Army to transfer the land immediately but guarantee the re-use authority access to funds to pursue clean up through third parties. The Committee asks the Army to provide the Committee with a report no later than December 1, 2005 on the progress and status of this effort.
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Fiscal year 2005 appropriation $1,180,397,000
Fiscal year 2006 budget request 1,029,249,000
Committee recommendation in the bill 1,109,177,000
Comparison with:
Fiscal year 2005 appropriation (71,220,000)
Fiscal year 2006 budget request 79,928,000
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The Committee recommends an appropriation of $1,109,177,000 for Military Construction, Navy and Marine Corps, for fiscal year 2006. This is a decrease of $71,220,000 below the fiscal year 2005 enacted level and an increase of $79,928,000 above the budget request.
California--NAWC Weapons Division China Lake: Air Traffic Control Tower- Of the amount provided for planning and design in this account, the Committee directs that not less than $710,000 be made available for the design of this facility.
Florida--NS Mayport: Wharf Upgrades- Of the amount provided for planning and design in this account, the Committee directs that not less than $500,000 be made available for the design of this project.
North Carolina--Outlying Landing Field- The Committee is aware that the U.S. District Court for the Eastern District of North Carolina has ruled that the Navy did not fulfill its obligations under the National Environmental Policy Act when making a decision to construct an Outlying Landing Field in Washington and Beaufort Counties in North Carolina. The Committee urges the Navy to fully reconsider alternative sites in cooperation with the State of North Carolina.
Energy Conservation.--In the fiscal year 2005 House report accompanying the Military Construction Appropriations Act, 2005, the Committee encouraged the Navy to expand opportunities to use advanced photovoltaic technology such as the use of triple junction amorphous silicon photovoltaic roofing in military construction projects. The Committee understands the Navy has begun exploring this potential technology with industry. The Committee requests a report no later than January 15, 2006 on actions taken to incorporate this technology into specific project proposals.
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Fiscal year 2005 appropriation $844,531,000
Fiscal year 2006 budget request 1,069,640,000
Committee recommendation in the bill 1,171,338,000
Comparison with:
Fiscal year 2005 appropriation (326,807,000)
Fiscal year 2006 budget request 101,698,000
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The Committee recommends an appropriation of $1,171,338,000 for Military Construction, Air Force, for fiscal year 2006. This is an increase of $326,807,000 above the fiscal year 2005 enacted level and an increase of $101,698,000 above the budget request.
The Committee understands the Air Force is developing new long-range munitions and is looking at several sites for required testing. The Committee also understands the citizens of Taylor County, Florida, through a straw poll, overwhelmingly rejected a resolution to locate the testing range in that County. The Committee urges the Air Force to give full consideration to local community concerns throughout the decision process.
Arizona: Davis-Monthan Air Force Base- It is the Committee's understanding that the residents of Pima County, Arizona approved in May 2004 a bond issue to facilitate the acquisition of land around Davis-Monthan Air Force Base to prevent encroachment upon the base from urban development. It is also the Committee's understanding that the Air Force has not studied the potential problem of encroachment upon the base, and has not developed any estimate of the requirements for a land buffer. The Committee believes that the willingness of the citizens of Pima County to work with the Air Force to plan for land use around Davis-Monthan AFB in order to protect the base's mission merits consideration. The Committee therefore requests the Air Force to report to the Committee no later than January 31, 2006 on the potential for encroachment upon Davis-Monthan AFB, as well as potential land-use solutions to prevent or mitigate such encroachment.
Mississippi--Columbus AFB: Consolidated Mission Support Group Facility.--Of the amount provided for planning and design in this account, the Committee directs that not less than $900,000 be made available for the design of this facility.
Montana--Malmstrom AFB: Add/Alter Fitness Center.--Of the amount provided for planning and design in this account, the Committee directs that not less than $990,000 be made available for the design of this facility.
New Mexico--Kirtland AFB: Wyoming Boulevard.--Of the amount provided for planning and design in this account, the Committee directs that not less than $550,000 be made available for the design of this project.
Texas--Sheppard AFB: Base Operations Ramp.--Of the amount provided for planning and design in this account, the Committee directs that not less than $900,000 be made available for the design of this facility.
Utah--Hill AFB: Missile Storage Facilities Consolidation.--Of the amount provided for planning and design in this account, the Committee directs that not less than $800,000 be made available for the design of this project.
Washington--Fairchild AFB: Mission Support Complex, Air Education and Training Command.--Of the amount provided for planning and design in this account, the Committee directs that not less than $706,000 be made available for the design of this facility.
Wyoming--F.E. Warren AFB: Storm Water Drainage.--Of the amount provided for planning and design in this account, the Committee directs that not less than $900,000 be made available for the design of this project.
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Fiscal year 2005 appropriation $663,318,000
Fiscal year 2006 budget request 1,042,730,000
Committee recommendation in the bill 976,664,000
Comparison with:
Fiscal year 2005 appropriation 313,346,000
Fiscal year 2006 budget request (66,066,000)
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The Committee recommends an appropriation of $976,664,000 for Military Construction, Defense-wide, for fiscal year 2006. This is an increase of $313,346,000 above the fiscal year 2005 enacted level and a decrease of $66,066,000 below the budget request. Within this appropriation is $50,000,000 for the Energy Conservation Improvement Program, the same as the fiscal year 2005 level and $10,000,000 below the budget request. Also within this appropriation, the Committee recommends $5,000,000 for contingency construction, which is $5,000,000 below the fiscal year 2005 enacted level and $5,000,000 below the request.
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Fiscal year 2005 appropriation $446,748,000
Fiscal year 2006 budget request 327,012,000
Committee recommendation in the bill 410,624,000
Comparison with:
Fiscal year 2005 appropriation (36,124,000)
Fiscal year 2006 budget request 83,612,000
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The Committee recommends an appropriation of $410,624,000 for Military Construction, Army National Guard, for fiscal year 2006. This is a decrease of $36,124,000 below the fiscal year 2005 enacted level and an increase of $83,612,000 above the budget request.
Iowa--Iowa City: Readiness Center/Field Maintenance Shop.--Of the amount provided for planning and design in this account, the Committee directs that not less than $431,000 be made available for the design of this project.
Nebraska--Lincoln: Joint Forces Headquarters.--Of the amount provided for planning and design in this account, the Committee directs that not less than $956,000 be made available for the design of this project.
Tennessee--Kingsport: Joint Armed Forces Reserve Center.--Of the amount provided for planning and design in this account, the Committee directs that not less than $918,000 be made available for the design of this project.
Tennessee--Tullahoma: Readiness Center.--Of the amount provided for planning and design in this account, the Committee directs that not less $602,000 be made available for the design of this project.
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Fiscal year 2005 appropriation $238,043,000
Fiscal year 2006 budget request 165,256,000
Committee recommendation in the bill 225,727,000
Comparison with:
Fiscal year 2005 appropriation (12,316,000)
Fiscal year 2006 budget request 60,471,000
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The Committee recommends an appropriation of $225,727,000 for Military Construction, Air National Guard, for fiscal year 2006. This is a decrease of $12,316,000 below the fiscal year 2005 enacted level and an increase of $60,471,000 above the budget request.
California--March ARB: Replace Aircraft Maintenance Hangar and Shops.--Of the amount provided for planning and design in this account, the Committee directs that not less than $960,000 be made available for the design of this facility.
Illinois--Peoria Regional Airport: Replace Composite ASOC/ASOS Training Facility.--Of the amount provided for planning and design in this account, the Committee directs that not less than $790,000 be made available for the design of this facility.
Michigan--Selfridge ANGB: Fighter Aircraft Alert Complex.--Of the amount provided for planning and design in this account, the Committee directs that not less than $1,700,000 be made available for the design of this facility.
New York--Francis Gabreski ANGB: Pararescue Facility.--Of the amount provided for planning and design in this account, the Committee directs that not less than $920,000 be made available for the design of this facility.
New York--Griffiss Northeast Air Defense: Northeast Air Defense Sector Support Facility.--Of the amount provided for planning and design in this account, the Committee directs that not less than $850,000 be made available for the design of this facility.
Oklahoma--Will Rogers World Airport: Replace Composite Aircraft Maintenance Complex.--Of the amount provided for planning and design in this account, the Committee directs that not less than $1,172,000 be made available for the design of this facility.
Pennsylvania--Willow Grove ARS: Operations and Communications Training Complex.--Of the amount provided for planning and design in this account, the Committee directs that not less than $570,000 be made available for the design of this facility.
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Fiscal year 2005 appropriation $101,077,000
Fiscal year 2006 budget request 106,077,000
Committee recommendation in the bill 138,425,000
Comparison with:
Fiscal year 2005 appropriation 37,348,000
Fiscal year 2006 budget request 32,348,000
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The Committee recommends an appropriation of $138,425,000 for Military Construction, Army Reserve, for fiscal year 2006. This is an increase of $37,348,000 above the fiscal year 2005 enacted level and an increase of $32,348,000 above the budget request.
Massachusetts--Worcester: Reserve Center.--Of the amount provided for planning and design in this account, the Committee directs that not less than $990,000 be made available for the design of this facility.
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Fiscal year 2005 appropriation $48,596,000
Fiscal year 2006 budget request 45,226,000
Committee recommendation in the bill 45,226,000
Comparison with:
Fiscal year 2005 appropriation (3,370,000)
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $45,226,000 for Military Construction, Naval Reserve, for fiscal year 2006. This is a decrease of $3,370,000 below the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $123,977,000
Fiscal year 2006 budget request 79,260,000
Committee recommendation in the bill 110,847,000
Comparison with:
Fiscal year 2005 appropriation (13,130,000)
Fiscal year 2006 budget request 31,587,000
--------------------------------------------------
The Committee recommends an appropriation of $110,847,000 for Military Construction, Air Force Reserve, for fiscal year 2006. This is a decrease of $13,130,000 below the fiscal year 2005 enacted level and an increase of $31,587,000 above the budget request.
FAMILY HOUSING
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $4,074,603,000
Fiscal year 2006 budget request 4,242,169,000
Committee recommendation in the bill 4,201,661,000
Comparison with:
Fiscal year 2005 appropriation 127,058,000
Fiscal year 2006 budget request (40,508,000)
----------------------------------------------------
The Committee recommends a total appropriation of $4,201,661,000 for the family housing construction and operation and maintenance accounts for fiscal year 2006. This is an increase of $127,058,000 above the fiscal year 2005 enacted level and a decrease of $40,508,000 below the budget request. The operation and maintenance accounts provide funds to pay for maintenance and repair, furnishings, management, services, utilities, leasing, interest, mortgage insurance, and miscellaneous expenses.
Family Housing Privatization Progress Reports.--The Committee continues to support the efforts of the Military Housing Privatization Initiative (MHPI) to move service members and their families out of inadequate and substandard housing. The Department has set the goal of formalizing all the necessary agreements with the private sector to eliminate such housing within the United States by 2007, and overseas by 2009. The Committee is pleased with the rapid progress of the program; the Department anticipates that the number of inadequate housing units on inventory will be reduced to 36,572 by the end of fiscal year 2006--a projected reduction of nearly 80 percent from the January 2001 inventory of approximately 180,000. The Committee emphasizes that this reduction does not mean that those inadequate homes will be replaced with new homes by that time; it merely means that the necessary contracts will be in place to replace or renovate such homes. The MHPI is thus in the process of transition, as the Department begins to shift its focus from the conception and initiation of privatization agreements with developers to the implementation and monitoring of those projects already in place. In order to ensure that military families receive new, better housing on schedule and that developers keep their contractual obligations to the Federal government, it is important for the Committee to maintain oversight of the program. The Committee is aware that the Department uses a tool known as the Program Evaluation Plan (PEP) to monitor the MHPI, and that data for the PEP is collected semi-annually. The Committee therefore directs the Department to provide a report, on a no less than semi-annual basis, summarizing the results of the PEP and giving status reports on each privatization project underway.
Family Housing Management Costs.--The Committee remains concerned about requested increases in family housing management accounts, especially in the Navy and Air Force, both of which are requesting substantial increases in per unit costs. While the Committee understands that these costs are essentially overhead, and do not decline in proportion to the reduction in inventory as housing is privatized, the Committee nevertheless believes that increases in per unit costs can and should be controlled. The table below shows the increases in per unit management costs for housing in the continental United States requested by the services:
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Service Per unit costs, FY 2005 ($000) Per unit costs, FY 2006 request ($000) Requested per unit increase, FY05-06 Projected decline in housing inventory CONUS family housing management request, FY 2006 ($000) Reduction from FY06 request ($000)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Army 1,308 1,442 10.3% (43.9%) 30,304
Navy 2,198 4,046 84.1% (43.7%) 51,049 (5.000)
USMC 903 1,499 66.1% (56.8%) 10,443
USAF 1,069 2,693 151.8% (16.3%) 53,298 (11,620)
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The Committee believes that the Navy and Air Force should be able to manage family housing with more restrained per unit increases. The Committee therefore has reduced the Navy and Air Force family housing operation and maintenance requests by $5,000,000 and $11,620,000, respectively.
Foreign Currency Savings- The Committee directs that savings from foreign currency re-estimates be used to maintain existing family housing units. The Comptroller is directed to report to the Committee on how these savings are allocated by December 1, 2005. Likewise, only 10 percent of funds made available to the construction and operation and maintenance sub-accounts may be transferred between the sub-accounts. Such transfers must be reported to the Committee within 30 days of such action.
Leasing Reporting Requirement- As in prior years, the Secretary of Defense is directed to report quarterly on the details of all new or renewal domestic leases entered into during the previous quarter that exceed $15,000 per unit per year, including certification that less expensive housing was not available for lease. For foreign leases, the Department is directed to: (1) perform an economic analysis on all new leases or lease/contract agreements where more than 25 units are involved; (2) report the details of new or renewal lease agreements that exceed $20,000 per year (as adjusted for foreign currency fluctuation from October 1, 1987, but not adjusted for inflation) 21 days prior to entering into such an agreement; and (3) base leasing decisions on the economic analysis.
Reprogramming Criteria- The reprogramming criteria that apply to military construction projects (25 percent of the funded amount or $2,000,000, whichever is less) apply to new housing construction projects and improvement projects over $2,000,000 as well.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $615,099,000
Fiscal year 2006 budget request 549,636,000
Committee recommendation in the bill 549,636,000
Comparison with:
Fiscal year 2005 appropriation (65,463,000)
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $549,636,000 for Family Housing Construction, Army, for fiscal year 2006. This is a decrease of $65,463,000 below the fiscal year 2005 enacted level and the same as the budget request. The appropriation includes $231,700,000 to construct new family housing units, $300,400,000 to improve existing units, and $17,536,000 for planning and design. This funding level will provide the budget request of $138,000,000 for the privatization of family housing at 5 installations, and supports the elimination of 14,478 inadequate family housing units.
---------------------------------------------------
---------------------------------------------------
Fiscal year 2005 appropriation $927,707,000
Fiscal year 2006 budget request 812,993,000
Committee recommendation in the bill 803,993,000
Comparison with:
Fiscal year 2005 appropriation (123,714,000)
Fiscal year 2006 budget request (9,000,000)
---------------------------------------------------
The Committee recommends an appropriation of $803,993,000 for Family Housing Operation and Maintenance, Army, for fiscal year 2006. This is a decrease of $123,714,000 below the fiscal year 2005 enacted level and a decrease of $9,000,000 below the budget request. The decrease is to be taken from the Maintenance and Real Property account for general and flag officer quarters in the National Capital Region.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $126,806,000
Fiscal year 2006 budget request 218,942,000
Committee recommendation in the bill 218,942,000
Comparison with:
Fiscal year 2005 appropriation 92,136,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $218,942,000 for Family Housing Construction, Navy and Marine Corps, for fiscal year 2006. This is an increase of $92,136,000 above the fiscal year 2005 enacted level and the same as the budget request. The appropriation includes $40,298,000 to construct new family housing units and $178,644,000 to improve existing units. This funding level will provide the budget request of $112,327,000 for three family housing privatization projects, and supports the elimination of 7,103 inadequate family housing units.
---------------------------------------------------
---------------------------------------------------
Fiscal year 2005 appropriation $705,404,000
Fiscal year 2006 budget request 593,660,000
Committee recommendation in the bill 588,660,000
Comparison with:
Fiscal year 2005 appropriation (116,744,000)
Fiscal year 2006 budget request (5,000,000)
---------------------------------------------------
The Committee recommends an appropriation of $588,660,000 for Family Housing Operation and Maintenance, Navy and Marine Corps, for fiscal year 2006. This is a decrease of $116,744,000 below the fiscal year 2005 enacted level and a decrease of $5,000,000 below the budget request. The decrease is to be taken from the management account as explained in the family housing overview.
---------------------------------------------------
---------------------------------------------------
Fiscal year 2005 appropriation $801,788,000
Fiscal year 2006 budget request 1,251,108,000
Committee recommendation in the bill 1,236,220,000
Comparison with:
Fiscal year 2005 appropriation 434,432,000
Fiscal year 2006 budget request (14,888,000)
---------------------------------------------------
The Committee recommends an appropriation of $1,236,220,000 for Family Housing Construction, Air Force, for fiscal year 2006. This is an increase of $434,432,000 above the fiscal year 2005 enacted level and a decrease of $14,888,000 below the budget request. The appropriation includes $570,340,000 to construct new family housing units, $790,013,000 to improve existing units, and $37,104,000 for planning and design. The funding level will provide the budget request of $65,142,000 for three family housing privatization projects, and supports the elimination of 9,033 inadequate family housing units.
The reductions to the request are as follows: $488,000 from new construction and $11,100,000 from construction improvements for general officers quarters in the National Capital Region; and $3,300,000 from planning and design for an Air Force programming error.
---------------------------------------------------
---------------------------------------------------
Fiscal year 2005 appropriation $864,784,000
Fiscal year 2006 budget request 766,939,000
Committee recommendation in the bill 755,319,000
Comparison with:
Fiscal year 2005 appropriation (109,465,000)
Fiscal year 2006 budget request (11,620,000)
---------------------------------------------------
The Committee recommends an appropriation of $755,319,000 for Family Housing Operation and Maintenance, Air Force, for fiscal year 2006. This is a decrease of $109,465,000 below the fiscal year 2005 enacted level and a decrease of $11,620,000 below the budget request.
The decrease below the request is from the Management account as explained in the family housing overview.
----------------------------------------------
----------------------------------------------
Fiscal year 2005 appropriation $49,000
Fiscal year 2006 budget request
Committee recommendation in the bill
Comparison with:
Fiscal year 2005 appropriation (49,000)
Fiscal year 2006 budget request
----------------------------------------------
The Committee does not recommend an appropriation for Family Housing Construction, Defense-wide, for fiscal year 2006. This is a decrease of $49,000 below the fiscal year 2005 enacted level and the same as the budget request.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $49,575,000
Fiscal year 2006 budget request 46,391,000
Committee recommendation in the bill 46,391,000
Comparison with:
Fiscal year 2005 appropriation (3,184,000)
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $46,391,000 for Family Housing Operation and Maintenance, Defense-wide, for fiscal year 2006. This is a decrease of $3,184,000 below the fiscal year 2005 enacted level and the same as the budget request.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $ (16,609,000)
Fiscal year 2006 budget request 2,500,000
Committee recommendation in the bill 2,500,000
Comparison with:
Fiscal year 2005 appropriation 19,109,000
Fiscal year 2006 estimate
----------------------------------------------------
The Committee recommends an appropriation of $2,500,000 for the Department of Defense Family Housing Improvement Fund (FHIF) for fiscal year 2006. This is an increase of $19,109,000 above the fiscal year 2005 enacted level and the same as the budget request. The Military Construction Appropriations Act, 2005 (PL 108-324) appropriated $2,500,000 to the Fund while rescinding $19,109,000 for projects that were no longer required.
The FHIF is authorized by section 2883, title 10, United States Code, and provides the Department of Defense with authority to finance joint ventures with the private sector to revitalize and to manage the Department's housing inventory. The statute authorizes the Department to use limited partnerships, make direct and guaranteed loans, and convey Department-owned property to stimulate the private sector to increase the availability of affordable, quality housing for military personnel.
The FHIF is used to build or renovate family housing by mixing or matching various legal authorities, and by utilizing private capital and expertise to the maximum extent possible. The Fund is administered as a single account without fiscal year limitations and contains appropriated and transferred funds from family housing construction accounts.
DEFENSE CHEMICAL DEMILITARIZATION CONSTRUCTION
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $81,886,000
Fiscal year 2006 budget request
Committee recommendation in the bill
Comparison with:
Fiscal year 2005 appropriation (81,886,000)
Fiscal year 2006 budget request
--------------------------------------------------
The Committee does not recommend an appropriation for Chemical Demilitarization Construction, Defense-wide, for fiscal year 2006. This is a decrease of $81,886,000 below the fiscal year 2005 enacted level and the same as the budget request.
The Chemical Demilitarization Construction, Defense-wide account provides funds for the design and construction of full-scale chemical disposal facilities and associated projects to upgrade installation support facilities and infrastructures required to support the Chemical Demilitarization program.
BASE REALIGNMENT AND CLOSURE (BRAC)
BRAC 1990 ACCOUNT
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $246,166,000
Fiscal year 2006 budget request 377,827,000
Committee recommendation in the bill 377,827,000
Comparison with:
Fiscal year 2005 appropriation 131,661,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $377,827,000 for the Base Realignment and Closure Account 1990 for fiscal year 2006. This is an increase of $131,661,000 above the fiscal year 2005 enacted level and the same as the budget request.
BASE REALGINMENT AND CLOSURE 2005 ACCOUNT (All Branches)
The Committee recommends an appropriation of $377,827,000 for the Base Realignment and Closure Account 1990 for fiscal year 2006. This is an increase of $131,661,000 above the fiscal year 2005 enacted level and the same as the budget request.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation
Fiscal year 2006 budget request $1,880,466,000
Committee recommendation in the bill 1,570,466,000
Comparison with:
Fiscal year 2005 appropriation 1,570,466,000
Fiscal year 2006 budget request (310,000,000)
----------------------------------------------------
The Committee recommends an appropriation of $1,570,466,000 for the Base Realignment and Closure Account 2005 for fiscal year 2006. This is a decrease of $310,000,000 below the budget request. No funds were appropriated for this account in fiscal year 2005, as this is a new account.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $3,341,882,000
Fiscal year 2006 budget request 3,945,392,000
Committee recommendation in the bill 3,945,392,000
Comparison with:
Fiscal year 2005 appropriation 603,510,000
Fiscal year 2006 budget request
----------------------------------------------------
The Committee recommends an appropriation of $3,945,392,000 for Basic Allowance for Housing, Army for fiscal year 2006. This is an increase of $603,510,000 above the fiscal year 2005 enacted level and the same as the budget request.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $3,471,251,000
Fiscal year 2006 budget request 3,592,905,000
Committee recommendation in the bill 3,592,905,000
Comparison with:
Fiscal year 2005 appropriation 121,654,000
Fiscal year 2006 budget request
----------------------------------------------------
The Committee recommends an appropriation of $3,592,905,000 for Basic Allowance for Housing, Navy for fiscal year 2006. This is an increase of $121,654,000 above the fiscal year 2005 enacted level and the same as the budget request.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $1,053,573,000
Fiscal year 2006 budget request 1,179,071,000
Committee recommendation in the bill 1,179,071,000
Comparison with:
Fiscal year 2005 appropriation 125,498,000
Fiscal year 2006 budget request
----------------------------------------------------
The Committee recommends an appropriation of $1,179,071,000 for Basic Allowance for Housing, Marine Corps for fiscal year 2006. This is an increase of $125,498,000 above the fiscal year 2005 enacted level and the same as the budget request.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $3,010,770,000
Fiscal year 2006 budget request 3,240,113,000
Committee recommendation in the bill 3,240,113,000
Comparison with:
Fiscal year 2005 appropriation 229,343,000
Fiscal year 2006 budget request
----------------------------------------------------
The Committee recommends an appropriation of $3,240,113,000 for Basic Allowance for Housing, Air Force for fiscal year 2006. This is an increase of $229,343,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $434,073,000
Fiscal year 2006 budget request 453,690,000
Committee recommendation in the bill 453,690,000
Comparison with:
Fiscal year 2005 appropriation 19,617,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $453,690,000 for Basic Allowance for Housing, Army National Guard for fiscal year 2006. This is an increase of $19,617,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $214,151,000
Fiscal year 2006 budget request 248,317,000
Committee recommendation in the bill 248,317,000
Comparison with:
Fiscal year 2005 appropriation 34,166,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $248,317,000 for Basic Allowance for Housing, Air National Guard for fiscal year 2006. This is an increase of $34,166,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $290,117,000
Fiscal year 2006 budget request 310,566,000
Committee recommendation in the bill 310,566,000
Comparison with:
Fiscal year 2005 appropriation 20,449,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $310,566,000 for Basic Allowance for Housing, Army Reserve for fiscal year 2006. This is an increase of $20,449,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $202,282,000
Fiscal year 2006 budget request 191,338,000
Committee recommendation in the bill 191,338,000
Comparison with:
Fiscal year 2005 appropriation (10,944,000)
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $191,338,000 for Basic Allowance for Housing, Naval Reserve for fiscal year 2006. This is a decrease of $10,944,000 from the fiscal year 2005 enacted level and the same as the budget request.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $38,945,000
Fiscal year 2006 budget request 40,609,000
Committee recommendation in the bill 40,609,000
Comparison with:
Fiscal year 2005 appropriation 1,664,000
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $40,609,000 for Basic Allowance for Housing, Marine Corps Reserve for fiscal year 2006. This is an increase of $1,664,000 above the fiscal year 2005 enacted level and the same as the budget request.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $59,781,000
Fiscal year 2006 budget request 71,286,000
Committee recommendation in the bill 71,286,000
Comparison with:
Fiscal year 2005 appropriation 11,505,000
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $71,286,000 for Basic Allowance for Housing, Air Force Reserve for fiscal year 2006. This is an increase of $11,505,000 above the fiscal year 2005 enacted level and the same as the budget request.
FACILITIES SUSTAINMENT, RESTORATION AND MODERNIZATION (All Branches)
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $1,967,028,000
Fiscal year 2006 budget request 1,825,518,000
Committee recommendation in the bill 1,850,518,000
Comparison with:
Fiscal year 2005 appropriation (116,510,000)
Fiscal year 2006 budget request 25,000,000
----------------------------------------------------
The Committee recommends an appropriation of $1,850,518,000 for facilities sustainment, restoration and modernization, Army for fiscal year 2006. This is a decrease of $116,510,000 below the fiscal year 2005 enacted level and an increase of $25,000,000 above the budget request.
Army 90-90 Funding Initiative- The Army announced in March 2004 that it will institute a policy of funding both base operations support (BOS) and facilities sustainment at no less than 90 percent. The Committee approves of this initiative but laments that it was not instituted prior to the release of the fiscal year 2006 budget request. The underfunding of both BOS and sustainment accounts has been a chronic problem. In the past, funds were routinely transferred from the underfunded sustainment accounts to the even more severely underfunded BOS accounts to meet `must-pay' obligations such as utilities. The fiscal year 2006 budget request would not depart from this practice; BOS is budgeted at 72 percent of the requirement, while sustainment is budgeted at 91 percent. This practice has been of no small consequence, as the Army rates its overall facilities at C-3--meaning its facilities have significant deficiencies that prevent performance of some missions. This draining of funds from sustainment to pay for BOS or other urgent operational needs increased the rate at which facilities deteriorate and needed to be recapitalized. The end result was increased costs for military construction. Over time, such a situation has produced a less efficient use of taxpayer dollars and has led to a situation where our service men and women live and work in deteriorated and at times unsafe facilities. The Committee notes that, as sustainment is provided as a separate appropriation within this bill, neither the Army nor any other service component has the option of transferring funds out of sustainment to pay for BOS or other operational costs. This change presents an opportunity to fund facilities sustainment more sufficiently and with greater transparence. The Committee approves of the Army's 90-90 initiative, and urges the Army to go beyond this goal (as well as the Department of Defense goal of 95 percent funding for sustainment, repair and modernization) to fund sustainment at 100 percent.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $1,333,288,000
Fiscal year 2006 budget request 1,344,971,000
Committee recommendation in the bill 1,344,971,000
Comparison with:
Fiscal year 2005 appropriation 11,683,000
Fiscal year 2006 budget request
----------------------------------------------------
The Committee recommends an appropriation of $1,344,971,000 for Facilities Sustainment, Restoration and Modernization, Navy for fiscal year 2006. This is an increase of $11,683,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $523,756,000
Fiscal year 2006 budget request 553,960,000
Committee recommendation in the bill 553,960,000
Comparison with:
Fiscal year 2005 appropriation 30,204,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $553,960,000 for Facilities Sustainment, Restoration and Modernization, Marine Corps for fiscal year 2006. This is an increase of $30,204,000 above the fiscal year 2005 enacted level and the same as the budget request.
----------------------------------------------------
----------------------------------------------------
Fiscal year 2005 appropriation $1,991,710,000
Fiscal year 2006 budget request 1,815,701,000
Committee recommendation in the bill 1,845,701,000
Comparison with:
Fiscal year 2005 appropriation (146,009,000)
Fiscal year 2006 budget request 30,000,000
----------------------------------------------------
The Committee recommends an appropriation of $1,845,701,000 for Facilities Sustainment, Restoration and Modernization, Air Force for fiscal year 2006. This is a decrease of $146,009,000 below the fiscal year 2005 enacted level and an increase of $30,000,000 above the budget request. Within the amount provided, $1,500,000 is for airfield lighting improvements at Avon Park.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $95,000,000
Fiscal year 2006 budget request 115,400,000
Committee recommendation in the bill 115,400,000
Comparison with:
Fiscal year 2005 appropriation 20,400,000
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $115,400,000 for Facilities Sustainment, Restoration and Modernization, Defense-Wide for fiscal year 2006. This is an increase of $20,400,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $384,044,000
Fiscal year 2006 budget request 391,544,000
Committee recommendation in the bill 391,544,000
Comparison with:
Fiscal year 2005 appropriation 7,500,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $391,544,000 for Facilities Sustainment, Restoration and Modernization, Army National Guard for fiscal year 2006. This is an increase of $7,500,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $230,642,000
Fiscal year 2006 budget request 169,791,000
Committee recommendation in the bill 184,791,000
Comparison with:
Fiscal year 2005 appropriation (45,851,000)
Fiscal year 2006 budget request 15,000,000
--------------------------------------------------
The Committee recommends an appropriation of $184,791,000 for Facilities Sustainment, Restoration and Modernization, Air National Guard for fiscal year 2006. This is a decrease of $45,851,000 below the fiscal year 2005 enacted level and an increase of $15,000,000 above the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $201,141,000
Fiscal year 2006 budget request 204,370,000
Committee recommendation in the bill 204,370,000
Comparison with:
Fiscal year 2005 appropriation 3,229,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $204,370,000 for Facilities Sustainment, Restoration and Modernization, Army Reserve for fiscal year 2006. This is an increase of $3,229,000 above the fiscal year 2005 enacted level and the same as the budget request.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $73,410,000
Fiscal year 2006 budget request 62,788,000
Committee recommendation in the bill 67,788,000
Comparison with:
Fiscal year 2005 appropriation (5,622,000)
Fiscal year 2006 budget request 5,000,000
-------------------------------------------------
The Committee recommends an appropriation of $67,788,000 for Facilities Sustainment, Restoration and Modernization, Naval Reserve for fiscal year 2006. This is a decrease of $5,622,000 from the fiscal year 2005 enacted level and an increase of $5,000,000 above the budget request.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $12,126,000
Fiscal year 2006 budget request 10,105,000
Committee recommendation in the bill 10,105,000
Comparison with:
Fiscal year 2005 appropriation (2,021,000)
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $10,105,000 for Facilities Sustainment, Restoration and Modernization, Marine Corps Reserve for fiscal year 2006. This is a decrease of $2,021,000 from the fiscal year 2005 enacted level and the same as the budget request.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $53,056,000
Fiscal year 2006 budget request 55,764,000
Committee recommendation in the bill 55,764,000
Comparison with:
Fiscal year 2005 appropriation 2,708,000
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $55,764,000 for Facilities Sustainment, Restoration and Modernization, Air Force Reserve for fiscal year 2006. This is an increase of $2,708,000 above the fiscal year 2005 enacted level and the same as the budget request.
ENVIRONMENTAL RESTORATION (All Branches)
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $400,948,000
Fiscal year 2006 budget request 407,865,000
Committee recommendation in the bill 407,865,000
Comparison with:
Fiscal year 2005 appropriation 6,917,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $407,865,000 for Environmental Restoration, Army for fiscal year 2006. This is an increase of $6,917,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $266,820,000
Fiscal year 2006 budget request 305,275,000
Committee recommendation in the bill 305,275,000
Comparison with:
Fiscal year 2005 appropriation 38,455,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $305,275,000 for Environmental Restoration, Navy for fiscal year 2006. This is an increase of $38,455,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $397,368,000
Fiscal year 2006 budget request 406,461,000
Committee recommendation in the bill 406,461,000
Comparison with:
Fiscal year 2005 appropriation 9,093,000
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $406,461,000 for Environmental Restoration, Air Force for fiscal year 2006. This is an increase of $9,093,000 above the fiscal year 2005 enacted level and the same as the budget request.
-------------------------------------------------
-------------------------------------------------
Fiscal year 2005 appropriation $23,684,000
Fiscal year 2006 budget request 28,167,000
Committee recommendation in the bill 28,167,000
Comparison with:
Fiscal year 2005 appropriation 4,483,000
Fiscal year 2006 budget request
-------------------------------------------------
The Committee recommends an appropriation of $28,167,000 for Environmental Restoration, Defense-wide for fiscal year 2006. This is an increase of $4,483,000 above the fiscal year 2005 enacted level and the same as the budget request.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $266,516,000
Fiscal year 2006 budget request 221,921,000
Committee recommendation in the bill 221,921,000
Comparison with:
Fiscal year 2005 appropriation (44,595,000)
Fiscal year 2006 budget request
--------------------------------------------------
The Committee recommends an appropriation of $221,921,000 for Environmental Restoration, Formerly Used Defense Sites for fiscal year 2006. This is a decrease of $44,595,000 below the fiscal year 2005 enacted level and the same as the budget request
-----------------------------------------------------
-----------------------------------------------------
Fiscal year 2005 appropriation $18,171,436,000
Fiscal year 2006 budget request 19,791,612,000
Committee recommendation in the bill 19,983,912,000
Comparison with:
Fiscal year 2005 appropriation 1,812,476,000
Fiscal year 2006 budget request 192,300,000
-----------------------------------------------------
The Committee recommends a total appropriation of $19,983,912,000 for the Defense Health Program for fiscal year 2006. This is an increase of $1,812,476,000 above the fiscal year 2005 enacted level, not including supplemental funding, and an increase of $192,300,000 above the budget request.
There has been a lot of work done to improve the Defense Health Program (DHP) and in recent years the Department has made great strides toward improving the quality of DHP estimates; however, the Committee continues to be concerned about the growing stress on the program. In light of the growing cost of health care in general, the Military Health System (MHS) must provide for medical readiness and force health protection as its primary goal.
The DHP appropriation provides for worldwide medical and dental services to active forces and other eligible beneficiaries, veterinary services, medical command headquarters, specialized services for the training of medical personnel, and occupational and industrial health care. The budget request for normal peacetime funding sustains the MHS to ensure the nation has available at all times a healthy force supported by a combat ready health care system and to provide a cost effective, quality healthcare. The program provides medical care for 9.1 million beneficiaries through a worldwide network of over 500 military hospitals and health clinics, and the Department of Defense's extensive private sector health care partners.
The budget request supports increasing benefits provided to the Active Duty and Reserve Components and their dependents, as well as retirees. The Committee is aware that DHP faces many financial challenges. This year is no different. More and more demands are being placed on the system through the increased number of beneficiaries using TRICARE, increased beneficiary demand, health care inflation, and military transformation. The largest growth in the fiscal year 2006 budget request is in the operation and maintenance budget activity group for the program with an overall increase of $1.9 billion. This growth is in the principle element of the Department's health care costs in the Private Sector Care budget activity group which pays health care costs to the civilian providers.
The Committee, however, has concerns with the amount of over- and under-executed dollars in the seven operation and maintenance budget activity groups and the unobligated dollars that are annually turned back to the Treasury. The Committee believes that the MHS should be fully funded, with each budget activity group properly executing the amounts budgeted. The Committee expects the Department to be fiscally responsible in its budgeting of the Defense Health Program and make annual adjustments to budget activity groups based on prior year execution.
The Committee is pleased that the TRICARE contract transformation efforts and the cooperation by the various Military Treatment Facilities and private sector health care entities has not disrupted beneficiary health care. The Next Generation TRICARE contracts (TNEX) include incentives for efficient health care delivery that maximizes the In-House (or Direct) Care System utilization. The ongoing implementation of the Prospective Payment System that uses performance based budgeting focusing on the value of outputs rather than that of the cost of inputs for the health care services provided links the budgets and productivity together. The Committee is also encouraged by the Department's ongoing business practice improvements by empowering the Military Treatment Facility (MTF) Commanders with the authority and responsibility for the PRIME enrollee care provided both at the MTF and in the private sector.
The Committee continues to expect the Department to provide ongoing outreach programs regarding the full array of TRICARE programs to all categories of beneficiaries, beneficiary representative groups and health care providers.
The Composite Health Care System, the military electronic medical record, is robustly funded in the fiscal year 2006 budget request. The Committee is hopeful that this funding increase will enhance the continuation of streamlining financial operations, improve business practices and most importantly, improve customer service. The electronic medical record ensures continuity of health information and patient-centered health care delivery.
Reprogramming Procedures.--The Committee remains concerned with the transfer of funds from Direct (or In-house) Care to pay for contractor-provided medical care. To continue oversight within the operation and maintenance account, the Committee includes language in the bill similar to last year to limit the funds available for Private Sector Care under the TRICARE program and make transfers above this limit subject to prior approval reprogramming procedures. This language should not be interpreted by the Department as limiting the amount of funds that may be transferred to the direct care system from other budget activities within the Defense Health Program. In addition, the Committee directs the Department to provide budget execution data for all the DHP accounts on a quarterly basis through the DD-COMP(M) 1002 accounting form.
Special Items of Interest.--Programs or activities for which additional funds have been provided above the budget request are to be considered as congressional interest items for the purpose of the Base for Reprogramming Form (DD 1414). Therefore, each of these items must be submitted to the Committee on the DD 1414 at the stated amount. These items remain special interest items whether or not they are repeated in a subsequent conference report.
Health Care Benefits for Reservists and Their Families.--Since September 2001, more than 340,000 National Guard and Reserve personnel have been called to active duty and have served for a year or more. It is clear their use in military operations is expected to remain high for the foreseeable future. Congress has made many improvements and enhancements to compensation and benefits programs for the reservists. Additional changes are being proposed, including a proposal to expand TRICARE to all reservists and their families when the member is not on active duty. The Department estimates the cost to implement the current proposal would be $7.7 billion over the next five years. Therefore, the Committee directs the Department to report back no later than March 1, 2006 on the need and ramifications of additional health care for reservists and their families. The report should include, but not be limited to the total estimated costs--delineated among the Budget Activity Groups in the Defense Health Program; long-term costs and implications of the proposal; a demographic trend and rising health care costs comparison on how current benefits compare to national healthcare
TRICARE Reimbursement Rates for Physicians.--The establishment of the Military Quality of Life and Veterans Affairs subcommittee provides the Committee with opportunities to look at areas of concern that it may not otherwise have had the opportunity to review. The Committee directs the Assistant Secretary of Defense for Health Affairs to report on the process for establishing reimbursement rates and the adequacy of current reimbursement rates for physicians in all three TRICARE Regions by March 1, 2006.
Prevention and Treatment of Noise-Induced Hearing Loss.--Noise-induced hearing loss is one of the most common injuries associated with military service that has an affect on medical readiness and combat effectiveness. The Committee understands that as a result of ongoing combat operations, one in three post-deploying soldiers report acute acoustic trauma and one in four report hearing loss and/or hearing complaints. While the Department has instituted hearing conservation initiatives for over 30 years, the Committee feels that efforts and effectiveness of these measures could be improved. Therefore, the Committee recommends the Department enhance its hearing conservation programs by ensuring that properly trained personnel are available to provide and manage effective and robust hearing conservation programs and to develop and test protective devices that address combat-associated noise.
DEFENSE HEALTH OPERATIONS AND MAINTENANCE
-----------------------------------------------------
-----------------------------------------------------
Fiscal year 2005 appropriation $17,297,419,000
Fiscal year 2006 budget request 19,247,137,000
Committee recommendation in the bill 19,184,537,000
Comparison with:
Fiscal year 2005 appropriation 1,887,118,000
Fiscal year 2006 budget request (62,600,000)
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The Committee recommends an appropriation of $19,184,537,000 for operation and maintenance for fiscal year 2006. This is an increase of $1,887,118,000 above the fiscal year 2005 enacted level, not including supplemental funding, and a decrease of $62,600,000 below the budget request. The Committee's recommendations are as follows:
EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------
Budget request Committee recommended
--------------------------------------------------------------------------------------------------------------------
Operation and Maintenance 19,247,137 19,184,537
In-House Care 5,210,340 5,141,740
Interactive Internet @ WRAMC 2,000
Walter Reed Amputee Care Center 5,500
Unobligated Balances (No-year $: Army $9.8m, Navy $8.7m, TMA $2m & AF $5.6m) (26,100)
Pharmacy Reduction (CONUS) (50,000)
Private Sector Care 10,212,427 10,212,427
Consolidated Health Care Support 1,162,589 1,162,589
Information Management 841,554 847,554
Maternal Fetal Informatics and Outreach Program 1,000
Medical Data Conversion at WRAMC 1,000
Trauma Registry and Research Database 4,000
Management Activities 229,382 229,382
Education and Training 443,462 443,462
Base Operations/Communications 1,147,383 1,147,383
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Pharmacy Reduction in Direct Care.--The current execution rate for pharmaceuticals, In-House Care (CONUS) is 10.1 percent. The increase in the budget request for pharmaceuticals, In-House Care (CONUS) is based on a 13 percent execution rate. The justification for this increase is lacking, therefore the Committee reduces the amount provided for In-House Care (CONUS) pharmaceuticals by $50,000,000. The Committee notes the National execution rate for pharmaceuticals is 7.8 percent. The Committee expects the Department to take the necessary steps to reduce its execution rate to be more inline with the national rate.
Unobligated Balances.--The Committee has adjusted the amounts available for operation and maintenance in fiscal year 2006 to account for no-year funding left unobligated at the end of prior fiscal years and the effect of such under-obligations on estimated future requirements.
TRlCARE Mail Order Pharmacy.--The Committee believes the TRICARE Mail Order Pharmacy (TMOP) is an economical option for long-term prescription drug needs. The Committee, however, is concerned that beneficiary use of this program remains stagnant with only an increase of 20 percent in new users for 2005-2006. The Committee directs the Department of Defense to educate the TRICARE beneficiary population on the benefits and the value of this program and report back on their findings no later than March 1, 2006.
Private Sector Care.--During the fiscal year 2006 budget briefs the documentation presented to the Committee was wrought with errors making it extremely difficult to follow specifics regarding the total program requirement. Therefore, the Committee directs the Department to notify the Committee on the movement of dollars within the private sector care budget activity group on a quarterly basis beginning in the first quarter of fiscal year 2006.
TRlCARE Enterprise-Wide Referral and Authorization Process.--The Committee is concerned that the current referral management process is extremely complex, and at times can be unresponsive and burdensome to the patient, providers, and healthcare administrators in both the direct and purchased care systems. The result has been growing patient dissatisfaction with access to care and increased administrative workload. The Committee understands that the Services' Deputy Surgeons General identified the need for a streamlined referral management process to facilitate clinical and administrative communication across the enterprise. As such, the Committee directs the Secretary of Defense to report back to the Committee with an update on the TRICARE Enterprise-Wide Referral and Authorization Process, as recommended by the Services' Deputy Surgeons General by March 1, 2006.
Medical Readiness of Reserve Components.--The Committee is concerned about the medical readiness of our Reserve Components. At the height of the medical hold over (MHO), the majority of soldiers in MHO status were reservists who were not medically ready to serve, many due to poor dental hygiene. Reserve Components are required to be medically and physically fit, yet at the same time there is not an emphasis on dental readiness. The Committee directs the Department to do a study on incorporating dental examinations into the routine reserve medical readiness examinations on an annual basis. The report should include, but not be limited to cost estimates, services requirements to incorporate dental examinations into medical readiness, availability of physicians and dentists to handle the increase in workload in the reservists home station and a feasible date in which dental exams will be incorporated. The report should be submitted no later than March 1, 2006.
Smoking Cessation.--The Committee commends the Department on initiatives that help soldiers and their families make healthier decisions especially in the area of tobacco use and encourages the Department to continue this work. Currently, TRICARE does not cover the cost of smoking cessation products, even though smoking cessation programs are available at Military Treatment Facilities. The Committee is aware of the `Healthy Choices for Life' demonstration program that will be offered to those individuals who are enrolled in TRICARE Prime. This program will cover the costs of medications if needed during participation in this program. The Committee directs the Department to report back on the successes and lessons learned from this initiative including an analysis of the costs associated with covering the medications needed for all TRICARE beneficiaries no later than March 1, 2006.
Great Lakes--VA/DOD Health Care Resource Sharing.--The Committee is pleased that the Department of the Navy and the Department of Veterans Affairs recently finalized their agreement to construct and operate a joint federal health care center in North Chicago, Illinois. This unique arrangement will allow our military community and veterans to enjoy the expertise and combined services of naval and VA medical professionals in a brand new, state-of-the-art facility. The Committee directs the Department of the Navy and the Department of Veterans Affairs to complete the work on governance of the joint institution by March 1, 2006. The Committee also directs the Navy to report on the architecture of the new joint hospital by October 31, 2005.
Walter Reed Army Medical Center Amputee Patient Care Center.--At the request of the Department, the Committee approved a military construction reprogramming request to construct the Amputee Patient Care Center at Walter Reed and provided initial operating costs through DHP to get the Center going with the understanding that the Center's full operating costs would be built into the fiscal year 2006 budget. The Committee commends the Army and those associated with this vital effort; however, the Committee is extremely disappointed that no operating funds are included in the budget request. The Committee is further frustrated to learn that the Amputee Center did not make the POM 07-12 process for the fiscal year 2007 budget as well.
The Center provides state-of-the-art treatment and rehabilitation of military amputee patients during the surge in combat injuries involving amputations of major limbs. When the Global War on Terrorism ends, this vital program will continue to serve and assist amputees and their families throughout their lives and requires proper annual budgeting that goes beyond the guidelines for Global War on Terrorism funding requirements. The Committee provides $5,500,000 above the budget request for operating costs associated with the center, including but not limited to personnel, equipment, patient travel and prosthetic device costs and directs the Secretary of Defense and the Surgeon General of the Army to secure full funding for all costs associated with this invaluable center in fiscal year 2007 and beyond. The Department should not rely on Congress to fund the annual operating cost of this Center.
Interactive Internet at Walter Reed Army Medical Center.--The Committee provides $2,000,000 above the budget request to the Army to provide interactive internet at Walter Reed Army Medical Center to approximately 265 rooms in the in-patient wards, including the ICU. This will enable the soldiers to communicate with their families and have access to the various soldier support services.
Department of Defense Trauma Registry and Research Database.--The Committee provides an additional $4,000,000 for the DOD Trauma Registry and Research Database. The project will be conducted through the Army Institute of Surgical Research to enhance the Army's ability to track wounded soldiers and target research initiatives that would enhance medical care for the soldier.
DEFENSE HEALTH PROCUREMENT AND RESEARCH AND DEVELOPMENT (By disease and facility)
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--------------------------------------------------
Fiscal year 2005 appropriation $367,035,000
Fiscal year 2006 budget request 375,319,000
Committee recommendation in the bill 355,119,000
Comparison with:
Fiscal year 2005 appropriation (11,916,000)
Fiscal year 2006 budget request (20,200,000)
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The Committee recommends an appropriation of $355,119,000 for procurement for fiscal year 2006. This is a decrease of $11,916,000 below the fiscal year 2005 enacted level, not including supplemental funding, and a decrease of $20,200,000 below the budget request. The Committee's recommendation is as follows:
EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
[In thousands of dollars]
-------------------------------------------------------------------------------
Budget request Committee recommended
-------------------------------------------------------------------------------
Procurement 375,319 355,119
Protected Health Information Initiative 3,000
Unobligated Balances (03-05) (23,200)
-------------------------------------------------------------------------------
Unobligated Balances.--The Committee has adjusted the amounts available for procurement in fiscal year 2006 to account for funding left unobligated at the end of prior fiscal years and the effect of such under-obligations on estimated future requirements.
--------------------------------------------------
--------------------------------------------------
Fiscal year 2005 appropriation $506,982,000
Fiscal year 2006 budget request 169,156,000
Committee recommendation in the bill 444,256,000
Comparison with:
Fiscal year 2005 appropriation (62,726,000)
Fiscal year 2006 budget request 275,100,000
--------------------------------------------------
The Committee recommends an appropriation of $444,256,000 for research and development for fiscal year 2006. This is a decrease of $62,726,000 below the fiscal year 2005 enacted level, not including supplemental funding, and an increase of $275,100,000 above the budget request. The Committee's recommendation is as follows:
EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------
Budget request Committee recommended
--------------------------------------------------------------------------------------------------------------------------------
Research, Development, Test and Evaluation 169,156 444,256
Air Force Surgeon General Server Consolidation Initiative 3,500
Amyotrophic Lateral Sclerosis (ALS) 3,000
Bethesda Hospitals Emergency Preparedness Partnership 5,000
Bio-Molecular Material Composites Research Program 1,000
Chronic Epilepsy in Severe Head Injuries 1,500
Computer Assisted Medical Diagnostics 1,500
Copper Antimicrobial Research Program 2,000
Directed Mission Upgrades of the Defense Medical Logistics Standard Support System (DMLSS) 5,000
Downed Pilot Forward Osmosis Water Filtration System 4,100
Early Diagnosis, Treatment and Care of Cancer Patients 2,500
Global HIV/AIDS Prevention Program 7,500
Healthcare Informatics Testbed 2,500
Leukemia Research (CMLRP) 5,000
Metabolic Defense Research Program 2,500
Microencapsulation and Vaccine Delivery Research 3,000
Muscle Research Consortium 3,500
Peer Reviewed Breast Cancer Program 115,000
Peer Reviewed Prostate Cancer Program 80,000
Peer Reviewed Ovarian Cancer Program 15,000
Periscopic Surgery Research 2,500
Stress Disorders Research Initiative @ Ft. Hood 3,000
Tuberous Sclerosis Complex (TSC) 5,000
United States Military Cancer Care Institute @ WRAMC 2,500
Unobligated Balances (04-05) (2,100)
Unobligated Balances-TMA (04-05) (5,900)
USAF Environmental and Occupational Factors in Women's Health Program 2,000
USAF Military Burn Victim Treatment and Care 2,000
Water-Related Viral Disease Countermeasures for the Air Force 3,000
--------------------------------------------------------------------------------------------------------------------------------
Unobligated Balances.--The Committee has adjusted the amounts available for research and development in fiscal year 2006 to account for funding left unobligated at the end of prior fiscal years and the effect of such under-obligations on estimated future requirements.
Peer Reviewed Cancer Research.--The Committee has provided $210,000,000 for Peer Reviewed Cancer Research. These additional dollars are complementary to research funding that is currently provided by the National Institutes of Health (NIH) for cancer research. In fiscal year 2006 breast, ovarian, and prostate cancer research will receive $1,210,000,000 from the NIH.
Directed Mission Upgrades of the Defense Medical Logistics Standard Support System (DMLSS).--The Department has mandated that its suppliers use Radio Frequency Identification (RFID) on all pallets and cases in the supply chain by 2008. For this to happen, RFID technology must be integrated into the Defense Medical Logistics Standard Support System (DMLSS) by January 1, 2007. The Committee is concerned that the Office of the Secretary of Defense (OSD) mandated this policy initiative while at the same time allowing the TRICARE Management Activity to cut the budget for this program in fiscal year 2006. The budget request reduces the DMLSS development budget for new capabilities to the current application and defers development for this mandate to fiscal year 2009, completing development in fiscal year 2010 and deployment in fiscal year 2011, three years beyond the established OSD mandate. The Committee has provided $5,000,000 to prevent this program from slipping further and directs the Department to fully fund this initiative in the fiscal year 2007 budget and beyond to reach the Department's own established goal of January 1, 2007 for DMLSS and 2008 for the supply chain.
Air Force Surgeon General Server Consolidation Initiative.--The Composite Occupational Health and Operational Risk Tracking (COHORT) system addresses the Air Force Surgeon General's need by providing real-time surveillance of the medical care and treatment of specified groups of military personnel across multiple medical health facilities throughout the world. However, the Committee is concerned that the Air Force Surgeon General does not have a viable integrated medical surveillance system to adequately execute the mission. Therefore, the Committee provides $3,500,000 for the Air Force Surgeon General's Server Consolidation Initiative to begin to deploy basic infrastructure to Military Treatment Facilities to enable better medical care in a more efficient manner and alleviate the need to query multiple databases to retrieve patient information.
Water-Related Viral Disease Countermeasures.--The Committee provides $3,000,000 for Water-Related Viral Disease Countermeasures for the U.S. Air Force. The Committee believes that this vital research will enable the Air Force to protect its warfighters using therapeutics and vaccines.
Copper Antimicrobial Research Program.--The Committee provides $2,000,000 for a Copper Antimicrobial Research program to validate the effectiveness of copper in deactivating dangerous microbes to reduce the incidence of infection in medical facilities.
U.S. Air Force Military Burn Treatment.--The Committee provides $2,000,000 to the U.S. Air Force Surgeon General to enhance efforts at the mid-Atlantic specialized burn victim treatment center.
Microencapsulation and Vaccine Delivery Research.--The Committee provides an additional $3,000,000 for research into one-time delivery of vaccines, drugs and antidotes to be used during deployment or training, when necessary.
Bethesda Hospitals Emergency Preparedness Partnership (BHEPP)- The Committee provides an additional $5,000,000 for the BHEPP to enhance an emergency preparedness partnership between National Naval Medical Center, the Clinical Center at the national Institutes of Health and Suburban Hospital Healthcare System in order to use their complementary strengths to provide emergency preparedness that is beneficial to the National Capital Region.
The Administration proposed eliminating several administrative provisions enacted as general provisions in the Military Construction Appropriations and Emergency Hurricane Supplemental Appropriations Act, 2005 (P.L. 108-324), including sections 111, 113, 118, 121, 122, 126, 127, 128, 130, and 131.
The Administration proposed eliminating two general provisions enacted as general provisions in the Department of Defense Appropriations Act, 2005 (P.L. 108-287), including sections 8018 and 8070.
The Administration proposed two new administrative provisions. The first one allows for the transfer of expired funds to the `Foreign Currency Fluctuations, Construction, Defense' account. The second one amends section 8070 of the Department of Defense Appropriations Act, 2005 to allow the obligation of administrative costs for all military construction funded through operation and maintenance accounts. Administrative Provisions included in the bill are as follows:
Section 101 limits DOD from spending funds appropriated in this title for payments under a cost-plus-a-fixed-fee contract for construction where cost estimates exceed $25,000. An exception for Alaska is provided.
Section 102 permits the hire of passenger motor vehicles.
Section 103 permits funds to be expended on the construction of defense access roads under certain circumstances.
Section 104 prohibits construction of new bases in the United States without a specific appropriation.
Section 105 limits the use of funds for the purchase of land or land easements that exceed 100 percent of value.
Section 106 prohibits the use of funds to acquire land, prepare sites, or install utilities for family housing except housing for which funds have been appropriated.
Section 107 limits the use of minor construction funds to be transferred or relocated from one installation to another.
Section 108 prohibits the procurement of steel unless American producers, fabricators, and manufacturers have been allowed to compete.
Section 109 limits appropriations from being used to pay real property taxes in foreign nations.
Section 110 prohibits the use of funds to initiate a new installation overseas without prior notification.
Section 111 establishes a preference for American architectural and engineering services where the services are in Japan, NATO member countries, and the Arabian Gulf.
Section 112 establishes a preference for American contractors for military construction in the United States territories and possessions in the Pacific and on Kwajalein Atoll, or in the Arabian Gulf, except bids by Marshallese contractors for military construction on Kwajalein Atoll.
Section 113 requires the Secretary of Defense to give prior notice to Congress of military exercises where construction costs exceed $100,000.
Section 114 limits obligations to no more than 20 percent during the last two months of the fiscal year.
Section 115 permits DOD to make available funds appropriated in prior years for new projects authorized during the current session of Congress.
Section 116 permits the use of expired or lapsed funds to pay the cost of supervision for any project being completed with lapsed funds.
Section 117 provides that funds for military construction projects are available until the end of the fourth fiscal year following the fiscal year in which funds are appropriated, subject to certain conditions.
Section 118 requires the Secretary of Defense to report annually on actions taken during the current fiscal year to encourage other member nations of the NATO, Japan, Korea, and United States allies in the Arabian Gulf to assume a greater share of defense costs.
Section 119 authorizes the transfer of proceeds from `Base Realignment and Closure Account, Part I' to the continuing Base Realignment and Closure accounts.
Section 120 permits the transfer of funds from Family Housing, Construction accounts to the DOD Family Housing Improvement Fund.
Section 121 limits the obligation of funds for Partnership for Peace Programs.
Section 122 requires the Secretary of Defense to notify Congressional Committees sixty days prior to issuing a solicitation for a contract with the private sector for military family housing.
Section 123 provides transfer authority to the Homeowners Assistance Program.
Section 124 requires that appropriations from this title be the sole source of all operation and maintenance for flag and general officer quarter houses and limits the repair on these quarters to $35,000 per year without notification.
Section 125 prohibits funds appropriated for the NATO Security Investment Program from being obligated or expended for the purpose of missile defense studies.
Section 126 requires the Secretary of Defense or any other official of the Department of Defense to respond in writing to a question or inquiry submitted by the chairman or another member of the subcommittee within 21 days.
Section 127 makes funds in the Ford Island Improvement Fund available until expended.
Section 128 allows the transfer of expired funds to the `Foreign Currency Fluctuations, Construction, Defense' account.
Section 129 prohibits the reimbursement of any health care provider for inpatient mental health service for care received when a patient is referred to a provider of inpatient mental health care or residential treatment care by a medical or health care professional having an economic interest in the facility to which the patient is referred.
Section 130 allows the distribution of surplus medical and dental equipment, at no cost to DOD, to Indian Health Service facilities and to federally qualified health centers.
Section 131 prohibits the Secretary of Defense from spending funds provided for projects at installations identified for closure or realignment in BRAC 2005 without Congressional consent.
Section 132 prohibits the use of funds for the operation, maintenance and repair of general and flag officers quarters in the National Capital Region until the Department of Defense submits a report required by law.
DEPARTMENT OF VETERAN AFFAIRS
--------------------------------------------------------
--------------------------------------------------------
Fiscal year 2005 appropriation 1 $65,838,832,000
Fiscal year 2006 budget request 67,477,300,000
Committee recommendation in the bill 68,112,300,000
Comparison with:
Fiscal year 2005 appropriation 2,273,468,000
Fiscal year 2006 budget request 635,000,000
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The Department of Veterans Affairs is one of the largest Federal agencies in terms of employment with an average employment of approximately 218,077. It administers benefits for more than 24,800,000 veterans, and 38,363,200 family members of living veterans and survivors of deceased veterans. Thus, close to 63,000,000 people, comprising about 21 percent of the total population of the United States, are potential recipients of veterans benefits provided by the Federal government.
The Committee recommends a total of $68,112,300,000 in new budget authority for programs in fiscal year 2006. This is an increase of $2,273,468,000 above the fiscal year 2005 enacted level and an increase of $635,000,000 above the budget request.
The funds recommended provide compensation payments to 3,023,329 veterans and survivors of deceased veterans with service-connected disabilities; pension payment to 532,414 non-service-connected disabled veterans, widows and children in need of financial assistance; education training, tuition assistance, and vocational assistance to 575,421 veterans, servicepersons, and reservists, and 80,094 eligible dependents of deceased veterans or seriously disabled veterans; housing credit assistance in the form of 300,000 guaranteed loans to veterans and servicepersons; administration or supervision of life insurance programs with 7,385,456 policies for veterans and active duty servicepersons providing coverage of $756,138,000,000; inpatient care and treatment of beneficiaries in 157 hospitals, 42 VA domiciliary residential rehabilitation treatment programs (formerly called `domiciliaries'), 134 nursing homes, and 944 outpatient clinics which includes independent, satellite, community-based, and rural outreach clinics involving 61,555,000 visits; and administration of the National Cemetery Administration for burial of eligible veterans, servicepersons and their survivors.
The VA submitted the 2006 budget request in an alternative appropriations structure for the year. The Committee once again rejects this new structure because it does not address the needs of the Congress in its role of reviewing and allocating federal budgetary resources. The Committee directs the Secretary to submit the fiscal year 2007 budget justifications based on the fiscal year 2006 appropriation structure.
-----------------------------------------------------
-----------------------------------------------------
Fiscal year 2005 appropriation $32,607,688,000
Fiscal year 2006 budget request 33,412,879,000
Committee recommendation in the bill 33,412,879,000
Comparison with:
Fiscal year 2005 appropriation 805,191,000
Fiscal year 2006 budget request
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This appropriation provides funds for service-connected compensation payments to an estimated 3,023,329 beneficiaries and pension payments to another 532,413 beneficiaries with non-service-connected disabilities. The average cost per compensation case in 2006 is estimated at $10,081, and pension payments are projected at a unit cost of $6,475.
The Committee recommends an appropriation of $33,412,879,000 for compensation, pension and burial benefits for fiscal year 2006. This is an increase of $805,191,000 above the fiscal year 2005 enacted level and the same as the budget request.
The appropriation includes funding not to exceed $23,491,000 in payments to the general operating expenses account of which $9,740,000 is for the medical administration account and $13,751,000 is for administrative expenses of implementing cost saving provisions required by the Omnibus Budget Reconciliation Act of 1990, Public Law 101-508, the Veterans' Benefits Act of 1992, Public Law 102-568, and the Veterans' Benefits Improvements Act of 1994, Public Law 103-446. These cost savings provisions include verifying pension income against Internal Revenue Service and Social Security Administration (SSA) data; establishing a match with the SSA to obtain verification of Social Security numbers; and the $90 monthly VA pension cap for Medicaid-eligible single veterans and surviving spouses alone in Medicaid-covered nursing homes. The bill includes requested language permitting this appropriation to reimburse such sums as may be earned to the medical care collections fund to help defray the operating expenses of individual medical facilities for nursing home care provided to pensioners.
The Administration has proposed to provide a cost-of-living adjustment, based on the change in the Consumer Price Index, to all compensation beneficiaries, including dependency and indemnity compensation for spouses and children. It is currently estimated at 2.3 percent. This is the same as the COLA that will be provided, under current law, to veterans pension and Social Security recipients. The increase, effective December 1, 2005, has an estimated cost of $478,294,000 during fiscal year 2006 and is reflected in the Compensation and Pensions budget request, pending authorization approval.
The Administration has proposed language that would provide indefinite 2006 supplemental appropriations for compensation and pension payments. The Committee believes current procedures are adequate and has not included the requested language in the bill.
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Fiscal year 2005 appropriation $2,556,232,000
Fiscal year 2006 budget request 3,214,246,000
Committee recommendation in the bill 3,214,246,000
Comparison with:
Fiscal year 2005 appropriation 658,014,000
Fiscal year 2006 budget request
----------------------------------------------------
This appropriation finances the education and training of veterans and servicepersons whose initial entry on active duty took place on or after July 1, 1985. These benefits are included in the All-Volunteer Force Educational Assistance Program. Eligibility to receive this assistance began in 1987. Basic benefits are funded through appropriations made to the readjustment benefits appropriation and transfers from the Department of Defense. Supplemental benefits are also provided to certain veterans through education assistance to certain members of the Selected Reserve and are funded through transfers from the Departments of Defense and Homeland Security. In addition, certain disabled veterans are provided with vocational rehabilitation, specially adapted housing grants, and automobile grants with approved adaptive equipment.
This account also finances educational assistance allowances for eligible dependents of those veterans who died from service-connected causes or have a total and permanent service-connected disability as well as dependents of servicepersons who were captured or missing-in-action.
The Committee recommends an appropriation of $3,214,246,000 for readjustment benefits in fiscal year 2006. This is an increase of $658,014,000 above the fiscal year 2005 enacted level and the same as the budget request. The increase is primarily due to expanded benefits for Reserve personnel ordered to active service and changes in the Montgomery GI Bill education program. The fiscal year 2005 funding cited does not reflect a transfer from Compensation and Pensions to Readjustment Benefits necessary to execute program changes enacted for fiscal year 2005, which would have the effect of lowering this year-to-year increase by about $185,000,000.
Task Force on VRE Benefits- The Committee is aware that the Department's Task Force on the Vocational Rehabilitation and Employment benefits program made extensive recommendations for changes that have not yet been fully implemented. The Committee believes this area of Veterans Benefits deserves focused attention and directs the Department to report to the Committee by July 1, 2005 on its efforts to implement the Task Force recommendations. The Committee will use this information as we move forward with this bill to ensure that the proper resources are put into the program to ensure its success.
-------------------------------------------------
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Fiscal year 2005 appropriation $44,380,000
Fiscal year 2006 budget request 45,907,000
Committee recommendation in the bill 45,907,000
Comparison with:
Fiscal year 2005 appropriation 1,527,000
Fiscal year 2006 budget request
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The veterans insurance and indemnities appropriation is made up of the former appropriations for military and naval insurance, applicable to World War I veterans; national service life insurance (NSLI), applicable to certain World War II veterans; servicemen's indemnities, applicable to Korean conflict veterans; and the veterans mortgage life insurance, applicable to individuals who have received a grant for specially adapted housing.
The Committee recommends an appropriation of $45,907,000 for veterans insurance and indemnities in fiscal year 2006. This is an increase of $1,527,000 above the fiscal year 2005 enacted level and the same as the budget request. The amount provided will enable VA to transfer funding to the service-disabled veterans insurance fund and transfer additional amounts for payments for the 2,470 policies under the veterans mortgage life insurance program. These policies are identified under the veterans' insurance and indemnity appropriation since they provide insurance to service-disabled veterans unable to qualify under basic NSLI.
The Administration has proposed language that would provide indefinite 2006 supplemental appropriations for the insurance program. The Committee believes current procedures are adequate and has not included the requested language in the bill.
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Program account Limitation on direct loans for specially adapted housing loans Administrative expenses
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Fiscal year 2005 appropriation 1 $43,784,000 $500,000 $152,842,000
Fiscal year 2006 budget request 64,586,000 500,000 153,575,000
Committee recommendation in the bill 64,586,000 500,000 153,575,000
Comparison with:
Fiscal year 2005 appropriation (20,802,000) 733,000
Fiscal year 2006 budget request
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The purpose of the VA home loan guaranty program is to facilitate the extension of mortgage credit on favorable terms by private lenders to eligible veterans. This appropriation provides for all costs, with the exception of the native American veterans housing loan program, of the Department's direct and guaranteed loans programs. The Federal Credit Reform Act of 1990 requires budgetary resources to be available prior to incurring a direct loan obligation or a loan guaranty commitment. In addition, the bill requires all administrative expenses of a direct or guaranteed loan program to be funded through a program account. VA loan guaranties are made to service members, veterans, reservists, and single surviving spouses for the purchase of homes, condominiums, and manufactured homes and for refinancing loans. The Department guarantees part of the total loan, permitting the purchaser to obtain a mortgage with a competitive interest rate, even without a down payment if the lender agrees. The Department requires that a down payment be made for a manufactured home. With a Department guaranty, the lender is protected against loss up to the amount of the guaranty if the borrower fails to repay the loan.
The Committee recommends such sums as may be necessary (currently estimated to total $64,586,000) for funding subsidy payments, $500,000 for the limitation on direct loans for specially adapted housing loans, and $153,575,000 for administrative expenses. The appropriation for administrative expenses may be transferred to and merged with the General Operating Expenses account.
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Program account Limitation on direct loans Administrative expenses
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Fiscal year 2005 appropriation $47,000 $4,108,000 $309,000
Fiscal year 2006 budget request 53,000 4,242,000 305,000
Committee recommendation in the bill 53,000 4,242,000 305,000
Comparison with:
Fiscal year 2005 appropriation 6,000 134,000 (4,000)
Fiscal year 2006 budget request
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This appropriation covers the funding subsidy cost of direct loans for vocational rehabilitation of eligible veterans and, in addition, it includes administrative expenses necessary to carry out the direct loan program. Loans of up to $948.54 (based on indexed chapter 31 subsistence allowance rate) are available to service-connected disabled veterans enrolled in vocational rehabilitation programs when the veteran is temporarily in need of additional assistance. Repayment is made in monthly installments, without interest, through deductions from future payments of compensation, pension, subsistence allowance, educational assistance allowance, or retirement pay. Most loans are repaid in full in less than one year. The Federal Credit Reform Act of 1990 requires budgetary resources to be available prior to incurring a direct loan obligation. In addition, the Act requires all administrative expenses of a direct loan program to be funded through a program account.
The Committee recommends the budget requests of $53,000 for funding subsidy program costs and $305,000 for administrative expenses. The administrative expenses may be transferred to and merged with the General Operating Expenses account.
In addition, the Committee includes language limiting program direct loans to $4,242,000, the same as the budget request. It is estimated that VA will make 4,634 loans in fiscal year 2006, with an average amount of $926.
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Administrative expenses:
Fiscal year 2005 appropriations $566,000
Fiscal year 2006 budget recommendation 580,000
Committee recommendation in the bill 580,000
Comparison with:
Fiscal year 2005 appropriation 14,000
Fiscal year 2006 budget request
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This program tests the feasibility of authorizing VA to make direct home loans to Native American veterans who live on U.S. trust land. This is a pilot program which began in 1993 and expires on December 31, 2008. The Committee recommends the budget request of $580,000 for administration expenses, which may be transferred to and merged with the General Operating Expenses account.
Public Law 105-368, the Veterans Programs Enhancement Act of 1998, established this program. All funds authorized for this program were appropriated in fiscal year 2000. Therefore, no appropriation request has been included for fiscal year 2006. Bill language is included allowing the use of funds in Medical Administration and General Operating Expenses to administer this program up to a total of $750,000.
The VA operates the largest Federal medical care delivery system in the country, with 157 hospitals, 42 VA domiciliary residential rehabilitation treatment programs (formerly called `domiciliaries'), 134 nursing homes, and 944 outpatient clinics which includes independent, satellite, community-based, and rural outreach clinics.
In 2004, Congress agreed to fund Veterans Health Administration (VHA) through a new account structure comprised of four accounts: medical services, medical administration, medical facilities, and medical and prosthetic research. This action was taken to provide better oversight and receive a more accurate accounting of funds. This four account structure will continue in 2006. Under this structure, the Administration has requested total resources of $28,203,684,000 in direct appropriations and $2,170,000,000 in Medical Care Collections Fund appropriations, to fund the various operating programs of the VHA. The budget request assumes a number of Presidential policy changes that as of this time have not been adopted by the Congress. The Committee recommendation of $28,820,684,000 in direct appropriations and $2,170,000,000 in Medical Care Collections appropriations does not prejudge action on these policy proposals.
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Fiscal year 2005 appropriation $19,355,278,000
Fiscal year 2006 budget request 19,995,141,000
Committee recommedation in the bill 20,995,141,000
Comparison with:
Fiscal year 2005 appropriation 1,639,863,000
Fiscal year 2006 budget request 1,000,000,000
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This Medical Services appropriation provides for medical services of eligible veterans and beneficiaries in VA medical centers, outpatient clinic facilities, contract hospitals, State homes, and outpatient programs on a fee basis. Hospital and outpatient care is also provided by the private sector for certain dependents and survivors of veterans under the civilian health and medical programs for the Department of Veterans Affairs.
The Committee recommends an appropriation of $20,995,141,000 for Medical Services. This is an increase of $1,000,000,000 above the budget request and an increase of $1,639,863,000 above the fiscal year 2005 enacted level. The Committee does not agree with the budget proposal to restrict payments to State Homes for long-term care and directs the Secretary to work with the National Association of State Veterans Homes and other stakeholders to develop and implement solutions that will give our veterans the best options for quality long-term care at the most reasonable cost to the taxpayer. The funding provided is sufficient to continue the policy regarding State Homes that was in effect prior to submission of the budget request.
Within the amount provided in the Medical Services appropriation, not less that $2,200,000,000 is designated for specialty mental health care. During the budget hearing earlier this year, the Department's Undersecretary for Health Administration testified that the budget supported this level of funding. The Undersecretary further testified that although there is a statutory definition for mental illness, the breadth of mental health care services will approach $3,000,000,000 and the entirety of health care supporting veterans with mental illness will approach $10,000,000,000. The Committee has taken the unusual action of fencing a portion of medical services funding for one category of treatment because the Committee recognizes the need to dedicate resources to such treatment and wishes to be assured that funding for mental health care will not be siphoned off for other purposes during the year of execution.
The bill includes requested language in the Compensation and Pension appropriation transferring $13,751,000 for administrative expenses of implementing cost saving provisions required by the Omnibus Budget Reconciliation Act of 1990, and the Veterans' Benefits Act of 1992.
The Committee has included bill language to allow the Secretary to transfer funds between the Medical Services appropriation, Medical Administration appropriation, and Medical Facilities appropriation with a limitation on transfers up to 20 percent as necessary after notifying the Committees on Appropriations. This authority is to be used solely for the purpose of perfecting the accounts as the three-account structure is implemented.
The Committee has included bill language to make available through September 30, 2007, up to $1,100,000,000 of the Medical Services appropriation. This provides flexibility to the Department as it continues to implement significant program changes.
The bill also includes requested language for the DoD/VA Health Care Sharing Incentive Fund, as authorized by section 721 of the Fiscal Year 2003 National Defense Authorization Act, Public Law 107-314, to transfer a minimum of $15,000,000, to remain available until expended, for any purpose authorized by 38 U.S.C. 8111.
Integrated Information Technology- The Committee is aware that the VA has entered into a Cooperative Research and Development Agreement (CRADA) to develop technologies that would integrate information from peripheral medical devices into a centralized monitoring system. It is understood that if successful, this technology could reduce medical errors and improve the quality of health care. The Committee directs the VA to report back on the results of the CRADA and expects the Department of Veterans Affairs to dedicate the resources necessary to complete the CRADA full trial.
Multiple Sclerosis.--The Committee is aware that the Department's process for allocating health care funding is based upon categories of care, including basic care and complex care. While in most cases the Department would classify Multiple Sclerosis patients as needing only basic care, in fact, even in its earliest phase this condition requires intensive treatment and therapy. With this in mind, the Committee urges the Department to review and provide a report to the Committee on changing the status of MS patients to that of complex care to ensure that each VISN and hospital gets the resources it needs to provide comprehensive care for these patients.
Distance Learning- The Committee recognizes the need for VAMC health professionals to master complex technologies and to build and maintain those skills. The Committee supports an initiative to demonstrate the potential effectiveness of a two-way broadband web-based tele-training system for medical training between the VAMC in Syracuse and the Upstate Medical University of the State University of New York.
Assistive Devices Technology.--Given the large number of wounded soldiers returning from Iraq and Afghanistan, our aging population, and the increase in people suffering from diabetes, assistive devices that do not cause additional harm to the patients they are designed to help are needed. Therefore, the Committee urges the Department of Veterans Affairs to institute a pilot program to develop capabilities such as portable non-invasive transfer devices, individual monitoring systems for wound healing, and innovative mechanisms for rehabilitation and physical/mental stimulation for those patients with assistive technology needs.
Data Warehouses for Medications- The Committee notes that in the past the Department has saved significant amounts of money by using generic versus patented medications and believes there is more potential in this area if the correct information is available to the Department. With this in mind, the Committee directs the Department to report on its efforts to develop and utilize an extensive data warehouse for medication comparisons, as well as the patient privacy issues associated with such an effort.
The Department of Veterans Affairs Medical Care Collections Fund (MCCF) was established by the Balanced Budget Act of 1997 (Public Law 105-33). The Department deposits first-party and pharmacy co-payments, third-party insurance payments and enhanced-use collections, long-term care co-payments, Compensated Work Therapy Program collections, Compensation and Pension Living Expenses Program collections, and Parking Program fees into the MCCF. The estimate of fees that will be collected in fiscal year 2006 is $2,170,000,000. The bill does not include any language regarding the Medical Care Collections Fund since permanent authority was included in the fiscal year 2005 appropriations bill, Public Law 108-447.
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Fiscal year 2005 appropriation $4,669,300,000
Fiscal year 2006 budget request 4,517,874,000
Committee recommendation in the bill 4,134,874,000
Comparison with:
Fiscal year 2005 appropriation (534,426,000)
Fiscal year 2006 budget request (383,000,000)
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The Medical Administration appropriation provides funds for the expenses of management and administration of the VA health care system. Included under this heading are provisions for costs associated with operation of VA medical centers, other facilities, and VHA headquarters, plus the costs of VISN offices and facility director offices, chief of staff operations, quality of care oversight, all information technology hardware and software, legal services, billing and coding activities, and procurement.
The Committee recommends $4,134,874,000 for Medical Administration, a decrease of $534,426,000 when compared to the fiscal year 2005 appropriation and a decrease of $383,000,000 from the budget request. The Committee recommendation includes a reduction of $383,000,000 from the budget request for information technology programs. The budget request for all information technology programs in fiscal year 2006 is $1,076,950,000, an increase of $385,740,000 when compared to the fiscal year 2005 program. The requested increase, most of it tied to one project, has not been adequately justified in the budget or in responses to questions asked during the budget hearing earlier this year. Therefore, the Committee recommendation does not include funding for the HealtheVet-VistA project in fiscal year 2006. The Committee recommendation also denies the increase of $40,000,000 (an increase of more than 10%) associated with the VistA Legacy project. Additional reductions are derived from the VHA portion of the CoreFLS program reduction and the VA computing infrastructure reduction addressed under the General Operating Expenses account.
The Committee has included bill language to make available through September 30, 2007, up to $250,000,000 of the Medical Administration appropriation. This provides flexibility to the Department as it continues to implement significant program changes.
The Committee has included bill language to allow the Secretary to transfer funds between the Medical Services appropriation, Medical Administration appropriation, and Medical Facilities appropriation with a limitation on transfers up to 20 percent as necessary after notifying the Committees on Appropriations.
The bill does not include language, proposed in the budget, which would allow funds to be used for cost comparison studies.
Revenue Improvement Demonstration.--The Committee recommends $10,000,000 in funding to initiate a new pilot program that will provide a comprehensive restructuring of the complete revenue improvement cycle including cash flow management and accounts receivable processes in certain VA hospital(s). The Committee envisions the implementation of this project be achieved through the execution of a performance-based contract with a vendor, who has demonstrated extensive success in substantially reducing accounts receivable, increasing cash flow, reducing operating expenses and significantly improving revenue collections. The VHA Chief Business Officer must have the concurrence of the VA Chief Information Officer on the business plan for this demonstration. The Department must initiate this demonstration by September 30, 2005 and provide quarterly progress reports to the Committees on Appropriations and Veterans' Affairs.
Contract Care Coordination.--The Committee agrees with the recommendations submitted for the second year in a row in this year's budget hearings by the Independent Budget veterans' service organizations that encourages the Department to implement by the end of this calendar year the first phase, including at least three VISN's, a program that will fully integrate in-house and community care for enrolled veterans.
The Committee directs the Department to contract with a managed care company with experience in this arena and having national experience working with the Department to implement this program in 2005. To fully take advantage of such an initiative, this program needs to include an electronic claims processing component, a standardized approach to providing non-VA care, allow VA to meet community access standards, ensure that the records of veterans being treated in the community are returned to VA and have credentialed provider networks to address timeliness, access, and cost effectiveness.
The current preferred pricing program should be incorporated into this new community care coordination program, and, as it is rolled out across the country in phase two, cost-savings will be greatly enhanced. Preferred pricing is currently saving the Department $1,700,000 per month. When fully implemented, preferred pricing alone can save the Department $40,000,000 per year. However, this community care coordination program with a preferred pricing program incorporated, is projected to save the Department $400,000,000 per year. While at the same time improving patient satisfaction, clinical results, and allowing the Department to manage its own resources, budget planning, and hiring more efficiently.
The Committee will review the progress of this program's Phase I implementation in Committee hearings held in 2006 and, assuming it is meeting the objectives outlined above, will expect that the Department will expand its scope nationwide. Thus, the Phase I contract should be structured to allow the contractor to move ahead without delay for a nationwide implementation.
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Fiscal year 2005 appropriation $3,761,949,000
Fiscal year 2006 budget request 3,297,669,000
Committee recommendation in the bill 3,297,669,000
Comparison with:
Fiscal year 2005 appropriation (464,280,000)
Fiscal year 2006 budget request
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The Medical Facilities appropriation provides funds for the operation and maintenance of the VA health care system's vast capital infrastructure. Included under this heading are provisions for costs associated with utilities, engineering, capital planning, leases, laundry and food services, groundskeeping, garbage, housekeeping, facility repair, and property disposition and acquisition.
The Committee recommends $3,297,669,000 for Medical Facilities, a decrease of $464,280,000 from the fiscal year 2005 appropriation level and the same as the budget request.
The Committee has included bill language to allow the Secretary to transfer funds between the Medical Services appropriation, Medical Administration appropriation, and Medical Facilities appropriation with a limitation on transfers up to 20 percent as necessary after notifying the Committees on Appropriations.
The Committee has included bill language to make available through September 30, 2007, up to $250,000,000 of the Medical Facilities appropriation. This provides flexibility to the Department as it continues to implement significant program changes.
Community Based Outpatient Clinics.--The Committee has received numerous requests for funding specific Community Based Outpatient Clinics (CBOCs) but has retained the practice of not earmarking funds for these facilities. However, the Committee is concerned that the promises made as a result of the final recommendations of the Capital Asset Realignment for Enhanced Services Commission may not be kept due to a variety of reasons. The Committee directs the Department to report on the status of CBOCs in Bessemer, Alabama; Richmond County (Hamlet), North Carolina; Conroe, Texas; Athens, Tennessee; and North Central Washington, including the reasons for any delay associated with their establishment. In addition, the Committee urges the Department to re-evaluate the need for CBOCs in Capitola, California; Jackson County, Florida; Levittown (Bucks County), Pennsylvania; Sunbury (Northumberland County), Pennsylvania; Bellingham, Washington; and Gladstone, Michigan.
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Fiscal year 2005 appropriation $402,348,000
Fiscal year 2006 budget request 393,000,000
Committee recommendation in the bill 393,000,000
Comparison with:
Fiscal year 2005 appropriation (9,348,000)
Fiscal year 2006 budget request
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This account includes medical, rehabilitative and health services research. Medical research is an important aspect of the Department's programs, providing complete medical and hospital services for veterans. The prosthetic research program is also essential in the development and testing of prosthetic, orthopedic and sensory aids for the purpose of improving the care and rehabilitation of eligible disabled veterans, including amputees, paraplegics and the blind. The health service research program provides unique opportunities to improve the effectiveness and efficiency of the health care delivery system. In addition, budgetary resources from a number of areas including appropriations from the medical care accounts; reimbursements from the Department of Defense; and grants from the National Institutes of Health, private proprietary sources, and voluntary agencies provide support for the Department's researchers.
The Committee recommends $393,000,000 for Medical and Prosthetic Research, the same as the budget request and a decrease of $9,348,000 when compared to the fiscal year 2005 appropriation.
Hepatitis C.--The Committee is concerned with the long-term consequences of hepatitis C infection on veterans, including the development of primary liver cancer. The Committee is also concerned about the long-term consequences of hepatitis C in those with HIV infection. Given the unique capabilities of the VA system, the Committee urges the VA to consider developing multi-center trials for management of primary liver cancer and treatment of HCV/HIV co-infection.
Mental Health Research.--In the opinion of most experts in the field, mental health issues will be the most pressing problem for the Department of Veterans Affairs in the coming years. The Committee is concerned that in fiscal year 2005 the Department of Veterans Affairs' researchers are expecting to execute mental health research projects totaling $56,000,000 out of a total of $784,000,000 in funding from various sources, including its own budget. This accounts for only 7% of the total resources available to the Department's researchers being spent on one of the most pressing issues facing the Department. The Committee believes that more effort into research will lead to earlier identification of problems and more effective treatment, thereby reducing the long-term complications and costs associated with mental health issues. As a goal for fiscal year 2006, the Committee believes the Department should dedicate at least 20% of its research budget to dealing with the issues of mental health diagnosis and treatment. The Committee directs the Department to establish this goal and work toward achieving the goal by focusing its investments in facilities with mental health specialization. Any significant deviation from this goal shall be reported to the Committee by the third quarter of fiscal year 2006 with explanations as to why the goal was not met and remedies being put in place to achieve the goal in the future.
Research Equipment and Facilities.--The Committee is concerned that equipment and facilities to support the research program of the Department may be lacking and that some mechanism is necessary to ensure the Department's research facilities remain competitive. In order to successfully compete for research grants, the Committee believes that more resources may be required to ensure that research facilities are properly maintained to support the Department's research mission. The Committee directs the Department to undertake a comprehensive review of its research facilities and report to the Congress on the deficiencies found and suggestions for correction of the identified deficiencies.
Stress Disorders Research.--The Committee recognizes the Waco VAMC as a national resource in psychiatric care for veterans and directs the VA to leverage the relationship between the Waco VA and nearby Fort Hood to further PTSD research. The Committee notes that the Stress Disorders Research Initiative is funded at Fort Hood through the Defense Health Program, and directs the Waco VAMC to work with Fort Hood on this effort.
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Fiscal year 2005 appropriation $1,314,700,000
Fiscal year 2006 budget request 1,418,827,000
Committee recommendation in the bill 1,411,827,000
Comparison with:
Fiscal year 2005 appropriation 97,127,000
Fiscal year 2006 budget request (7,000,000)
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The General Operating Expenses appropriation provides for the administration of non-medical veterans benefits through the Veterans Benefits Administration (VBA) and Departmental management and support. The Federal Credit Reform Act of 1990 changed the accounting of Federal credit programs and required that all administrative costs associated with such programs be included within the respective credit accounts. Beginning in fiscal year 1992, costs incurred by housing, education, and vocational rehabilitation programs for administration of these credit programs are reimbursed by those accounts. The bill includes the budget requests totaling $154,459,500 in other accounts for these credit programs. In addition, $9,740,000 is transferred from the compensation and pensions account for administrative costs of implementing cost saving provisions required by the Omnibus Budget Reconciliation Act of 1990 and the Veterans' Benefits Act of 1992. Section 207 of the administrative provisions provides requested language which permits excess revenues in three insurance funds to be used for administrative expenses. The VA estimates that $40,928,000 will be utilized for such purposes in fiscal year 2006. Prior to fiscal year 1996, such costs were included in the general operating expenses appropriation. In total, $2,052,093,000 is requested in fiscal year 2006 for administrative costs of non-medical benefits.
The Committee recommends $1,411,827,000 for General Operating Expenses, a decrease of $7,000,000 from the budget request and an increase of $97,127,000 when compared to the fiscal year 2005 appropriation. The Committee recommendation includes a reduction of $30,000,000 ($1,000,000 in this account and $29,000,000 in the Medical Administration account) from the budget request of $70,100,000 from the CoreFLS project and $20,000,000 ($6,000,000 in this account and $14,000,000 in the Medical Administration account) from the VA computing infrastructure program. The amount of funding remaining in both these efforts will be sufficient to carry on existing activities, particularly in the case of CoreFLS where the effort to be accomplished is not yet defined.
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Fiscal year 2005 appropriation $147,784,000
Fiscal year 2006 budget request 156,447,000
Committee recommendation in the bill 156,447,000
Comparison with:
Fiscal year 2005 appropriation 8,663,000
Fiscal year 2006 budget request
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The National Cemetery Administration was established in accordance with the National Cemeteries Act of 1973. It has a fourfold mission: to provide for the interment in any national cemetery with available grave space the remains of eligible deceased servicepersons and discharged veterans, together with their spouses and certain dependents, and to permanently maintain their graves; to mark graves of eligible persons in national and private cemeteries; to administer the grant program for aid to States in establishing, expanding, or improving State veterans' cemeteries; and to administer the Presidential Memorial Certificate Program. This appropriation provides for the operation and maintenance of 158 cemeterial installations in 39 States, the District of Columbia, and Puerto Rico.
The Committee recommends $156,447,000 for the National Cemetery Administration, an increase of $8,663,000 when compared to the fiscal year 2005 appropriation and the same as the budget request for fiscal year 2006. Funding for new cemetery construction and other associated costs are included in the Construction, Major Projects account.
Fort Ord, California- The Committee is concerned that land located at Fort Ord, California and set-aside for a cemetery is not being used for that purpose due to established policies that may not have adequately considered situations that exist at Fort Ord. The Committee directs the Secretary and the Undersecretary for Memorial Affairs to examine the unique situation at Fort Ord and report back to the Committee by September 30, 2005 on what is necessary for the Department to make use of this site.
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Fiscal year 2005 appropriation $69,153,000
Fiscal year 2006 budget request 70,174,000
Committee recommendation in the bill 70,174,000
Comparison with:
Fiscal year 2005 appropriation 1,021,000
Fiscal year 2006 budget request
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The Office of Inspector General was established by the Inspector General Act of 1978 and is responsible for the audit, investigation and inspection of all Department of Veterans Affairs programs and operations. The overall operational objective is to focus available resources on areas which would help improve services to veterans and their beneficiaries, assist managers of Department programs to operate economically in accomplishing program goals, and prevent and deter recurring and potential fraud, waste and inefficiencies.
The Committee recommends the budget request of $70,174,000 for the Office of Inspector General, an increase of $1,021,000 when compared to the fiscal year 2005 appropriation.
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Fiscal year 2005 appropriation $455,130,000
Fiscal year 2006 budget request 607,100,000
Committee recommendation in the bill 607,100,000
Comparison with:
Fiscal year 2005 appropriation 151,970,000
Fiscal year 2006 budget request
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The construction, major projects appropriation provides for constructing, altering, extending, and improving any of the facilities under the jurisdiction or for the use of the VA, including planning, architectural and engineering services, Capital Asset Realignment Enhanced Services (CARES) activities, assessments and site acquisition where the estimated cost of a project is $7,000,000 or more. Emphasis is placed on correction of life/safety code deficiencies in existing Department medical facilities.
The Committee recommends $607,100,000 for construction, major projects, the same as the budget request and $151,970,000 more than the fiscal year 2005 appropriation.
San Juan Medical Facilities- The Committee is aware of the need for major medical facility improvements in San Juan, Puerto Rico and urges the Department to move forward in an expeditious manner. While the initial efforts at contracting for construction of a new bed tower encountered problems because bids exceeded funds available, the Committee understands that a new Step 1 Request for Proposal was issued on February 25, 2005 and the current schedule has a Step 2 Request for Proposal to be issued on June 1, 2005. The goal of the Department is to award a design-build contract prior to September 30, 2005 using approximately $75,000,000 available to the Department for construction. The Committee is in complete agreement with this plan of action. In addition to this effort to provide a new bed tower, the Department is also engaged in a thorough evaluation of the seismic and safety upgrades to existing facilities in San Juan for which $15,000,000 has been appropriated. The Committee is concerned that such upgrades may prove to be rather expensive and directs the Department to evaluate the feasibility of building a replacement for the existing facility rather that merely following its current path of upgrading the facility and constructing a new administration building. The Department is to report to the Committee on the feasibility of such a plan no later than September 30, 2005.
The specific amounts recommended by the Committee are as follows:
[In thousands of dollars]
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Location and Description Available through 2005 2006 Request Committee Recommendation
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Veterans Health Administration (VHA):
Cleveland, OH Cleveland-Brecksville Consolidation, Phase 2 $15,000 $87,300 $87,300
Pittsburgh, PA Consolidation of Campuses, Phase 2 20,000 82,500 82,500
Las Vegas, NV New Medical Facility, Phase 2 60,000 199,000 199,000
Gainesville, FL Correct Patient Privacy Deficiencies, Phase 2 8,800 76,400 76,400
Anchorage, AK Outpatient Clinic and Regional Office, Phase 2 11,760 63,510 63,510
Biloxi, MS Consolidation--Mental Health 0 17,500 17,500
Fayetteville, AR Clinical Addition 0 5,800 5,800
Advance planning fund: Various stations NA 28,290 28,290
Asbestos abatement: Various stations NA 5,000 5,000
Claims Analyses: Various locations NA 3,000 3,000
Judgment Fund: Various locations NA 2,500 2,500
Hazardous Waste: Various locations NA 2,000 2,000
Facility Security Fund: Various locations NA 15,000 15,000
Total VHA construction, major projects 587,800 587,800
Less Proceeds and revenues from Lakeside, IL -48,000 -48,000
Total VHA 539,800 539,800
Veterans Benefits Administration (VBA) 0 0
National Cemetery Administration (NCA): 1
Land Acquisition: Bakersfield, Birmingham, Columbia/Greenville, Jacksonville, Sarasota County, South East Pennsylvania 41,000 41,000
Fort Rosecrans Annex at Miramar, CA Phase I Development 19,450 19,450
Subtotal, Construction (60,450) (60,450)
Design Fund: Various locations 3,850 3,850
Advance planning fund: Various locations 1,000 1,000
Subtotal, Other line-items (4,850) (4,850)
Total NCA construction, major projects 65,300 65,300
Staff Offices: Advanced Planning Activities at Various locations 2,000 2,000
Total construction, major projects $607,100 $607,100
To Top
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Fiscal year 2005 appropriation $265,276,000
Fiscal year 2006 budget request 208,937,000
Committee recommendation in the bill 208,937,000
Comparison with:
Fiscal year 2005 appropriation (56,339,000)
Fiscal year 2006 budget request
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The construction, minor projects appropriation provides for constructing, altering, extending, and improving any of the facilities under the jurisdiction or for the use of the Department, including planning, CARES activities, assessment of needs, architectural and engineering services, and site acquisition, where the estimated cost of a project is less than $7,000,000.
The Committee recommends $208,937,000 for construction, minor projects, the same as the budget request and a decrease of $56,339,000 from the fiscal year 2005 appropriation.
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Fiscal year 2005 appropriation $104,322,000
Fiscal year 2006 budget request
Committee recommendation in the bill 25,000,000
Comparison with:
Fiscal year 2005 appropriation (79,322,000)
Fiscal year 2006 budget request 25,000,000
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This program provides grants to assist States to construct State home facilities, for furnishing domiciliary or nursing home care to veterans, and to expand, remodel or alter existing buildings for furnishing domiciliary, nursing home or hospital care to veterans in State homes. A grant may not exceed 65 percent of the total cost of the project.
The Committee recommends $25,000,000 for grants for life safety improvements to existing State home facilities. The Committee directs the Secretary to undertake a rigorous and extensive analysis of long-term care needs of veterans and report to the Congress no later than March 31, 2006 on the results of that study with recommendations for future funding needed to address all known life and safety deficiencies within existing State home facilities. This study is to be done with all interested stakeholders.
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Fiscal year 2005 appropriation $31,744,000
Fiscal year 2006 budget request 32,000,000
Committee recommendation in the bill 32,000,000
Comparson with:
Fiscal year 2005 appropriation 256,000
Fiscal year 2006 budget request
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This program provides grants to assist States with the establishment, expansion, and improvement of State veterans' cemeteries which are operated and permanently maintained by the States. Grants under this program fund up to 100 percent of construction costs and the initial equipment expenses when the cemetery is established.
The states remain responsible for providing the land and for paying all costs related to the operation and maintenance of the state cemeteries, including the costs for subsequent equipment purchases. The Committee recommends the budget request of $32,000,000 for grants for construction of state veterans cemeteries, an increase of $256,000 when compared to the fiscal year 2005 appropriation.
West Hawaii Veterans Cemetery- The Committee is aware of the need for funding to complete Phase II of the West Hawaii Veterans Cemetery and encourages the Department to expeditiously evaluate any application for funding for this project.
The bill continues nineteen administrative provisions from title I, of division I of the Consolidated Appropriations Act, 2005 (Public Law 108-447), with revised dollar figures and other conforming modifications. Two new administrative provisions are included in the bill.
Section 201 allows for the transfer of funds among three mandatory appropriations.
Section 202 allows for salaries and expenses funds to be used for hire of passenger vehicles, lease of facilities or land, and purchase of uniforms.
Section 203 provides that only funding in the `Construction, major projects' and `Construction, minor projects' accounts can be used for the purchase of any site for any new hospital or home or to construct any new hospital or home.
Section 204 requires the Department to be reimbursed for medical services it provides to any person not defined as a beneficiary to ensure the Department is receiving payment for all medical services provided.
Section 205 allows for the use of funds appropriated in fiscal year 2006 for `Compensation and pensions', `Readjustment benefits', and `Veterans insurance and indemnities' for payment of accrued obligations recorded in the last quarter of fiscal year 2005.
Section 206 allows for the use of fiscal year 2006 funds to pay prior year obligations resulting from implementation of sections 3328(a), 3334, and 3712(a) of title 31, United States Code.
Section 207 enables the Department to use surplus earning from the National service life insurance, U.S. Government life insurance, and veterans special life insurance program to administer these programs. The Department estimates that $40,928,000 will be reimbursed to the `General operating expenses' account as a result of the provision.
Section 208 allows for the continuation of the Franchise Fund for the Department of Veterans Affairs during fiscal year 2006.
Section 209 allows the Department to cover the administrative expenses of structuring enhanced-use leasing proposals and provides authority to obligate these reimbursements in the year funds are received.
Section 210 limits the amount of reimbursement the Office of Resolution Management and the Office of Employment Discrimination Complaint Adjudication can charge other offices and accounts of the Department for services provided.
Section 211 requires the Secretary to submit a report to the Committees on Appropriations to approve new leases of real property more than $300,000.
Section 212 requires the Department to collect current, accurate third-party reimbursement information for the purposes of third-party insurance collections. If persons receiving care or medical services do not disclose this information, VA is allowed to bill them reasonable charges for services provided.
Section 213 prohibits the Department from using any funds for establishment of medical emergency preparedness centers as defined in Public Law 107-287 or Public Law 108-422.
Section 214 allows the Department to use enhanced-use leasing funds for construction and alterations for medical facilities to facilitate the CARES efforts as the Department restructures the delivery of healthcare to veterans.
Section 215 allows the Department to use the `Medical services' appropriation for expenses related to the broader mission of medical care to veterans.
Section 216 allows the Department to transfer Medical Care Collections to the `Medical services' appropriation to be used for veterans' medical care.
Section 217 allows the Department to transfer funding between the three medical care appropriations with a limitation on transfers of 20 percent in fiscal year 2006 to implement the three-account structure which was directed by Congress in fiscal year 2004.
Section 218 allows for the use of funds designated for the Veterans Benefit Administration to be used for a nationwide property management contract if the value of that contract exceeds $8,800,000 in any budget year.
Section 219 allows veterans who reside in Alaska to obtain medical services from medical facilities supported by the Indian Health Services or tribal organizations, and provides for reimbursement for those services from the Department of Veterans Affairs.
Section 220 allows the Department to transfer the proceeds received from the transfer of real property deposited into the Department of Veterans Affairs Capital Asset Fund (CAF) to the major and minor construction appropriations.
Section 221 prohibits the expenditure of any funds available to the Department on implementation of a national standardized contract for diabetes monitoring systems.
RELATED AGENCIES
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Fiscal year 2005 appropriation $40,771,000
Fiscal year 2006 budget request 35,250,000
Committee recommendation in the bill 35,750,000
Comparsion with:
Fiscal year 2005 appropriation (5,021,000)
Fiscal year 2006 budget request 500,000
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The American Battle Monuments Commission is responsible for the administration, operation and maintenance of cemetery and war memorials to commemorate the achievements and sacrifices of the American Armed Forces where they have served since April 6, 1917. In performing these functions, the Commission maintains twenty-four permanent American military cemetery memorials and thirty-one monuments, memorials, markers and offices in fifteen foreign countries, the Commonwealth of the Northern Mariana Islands, and the British dependency of Gibraltar. In addition, six memorials are located in the United States: the East Coast Memorial in New York; the West Coast Memorial, The Presidio in San Francisco; the Honolulu Memorial in the National Memorial Cemetery of the Pacific in Honolulu, Hawaii; and the American Expeditionary Forces Memorial and the World War II and Korean War Veterans Memorials in Washington, D.C.
The Committee recommends an appropriation of $35,750,000 for the American Battle Monuments Commission's fiscal year 2006 salaries and expenses account. This is a decrease of $5,021,000 below the fiscal year 2005 enacted level and an increase of $500,000 above the budget request. The increase in funding is to be used to have a study conducted to determine what, if any, action is warranted to preserve the stability of the site of the World War II Pointe du Hoc Ranger Monument located near the Normandy American Cemetery in France.
The recommendation includes $3,100,000 for the cost to complete construction of the Normandy Interpretive Center at the Normandy American Cemetery in France, the full amount requested. The cemetery averages nearly two million visitors per year, and the existing facilities are over 40 years old and inadequate to serve this large number of visitors. The new and expanded center will provide a fuller array of interpretive services to put the D-Day landings and the following battles in Europe in perspective as one of the greatest military achievements of all time.
While the Commission was responsible for overseeing the planning and construction of the World War II Memorial in Washington, D.C., the responsibility for operation and maintenance of the Memorial passed to the National Park Service when it was dedicated. The Commission, however, retains a fiduciary role in overseeing the remainder of funding donated by the public for construction of the Memorial. The Commission is directed to report annually to the Committee on the financial position of the fund including any expenditures during the prior year.
Language is included allowing up to $7,500 to be used for official reception and representation expenses.
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Fiscal year 2005 appropriation $11,904,000
Fiscal year 2006 budget request 15,250,000
Committee recommendation in the bill 15,250,000
Comparison with:
Fiscal year 2005 appropriation 3,346,000
Fiscal year 2006 budget request
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The Commission's foreign currency fluctuations account is authorized pursuant to 36 U.S.C. 2109 to pay the costs of salaries and expenses that exceed the amount appropriated for salaries and expenses because of fluctuations in currency exchange rates of foreign countries occurring after a budget request for the Commission is submitted to the Congress. The account may not be used for any other purpose.
The Committee recommends an appropriation of $15,250,000 to re-capitalize the Commission's Foreign Currency Fluctuations account. This is an increase of $3,346,000 above the fiscal year 2005 enacted level and the same as the budget request. Due to declining exchange rates during prior years, all available resources in the account have been depleted and necessary Commission activities have been deferred. Current estimates of exchange rates during fiscal year 2006 indicate that the Commission's budget submission will be insufficient to support Commission activities. Re-capitalization of the account ensures that funds are available to offset dollar losses during fiscal year 2006.
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Fiscal year 2005 appropriation $17,112,000
Fiscal year 2006 budget request 18,295,000
Committee recommendation in the bill 18,295,000
Comparison with:
Fiscal year 2005 appropriation 1,183,000
Fiscal year 2006 budget request
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The Veterans' Judicial Review Act established the Court of Appeals for Veterans Claims. The Court reviews appeals from Department of Veterans Affairs claimants seeking review of a benefit denial. The Court has the authority to overturn findings of fact, regulations and interpretations of law.
The Committee recommends an appropriation of $18,295,000 for the Court of Appeals for Veterans Claims for fiscal year 2006. This is an increase of $1,183,000 above the fiscal year 2005 enacted level and the same as the budget request.
The bill also identifies $1,260,000 to be used for the pro bono representation program, the same as proposed in the budget request.
The Committee is pleased that the Court has moved forward in a responsible manner to assess its facility needs and looks forward to working with the Court to ensure that the most cost-effective solution is selected.
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Fiscal year 2005 appropriation $29,363,000
Fiscal year 2006 budget request 28,050,000
Committee recommendation in the bill 29,550,000
Comparison with:
Fiscal year 2005 appropriation 187,000
Fiscal year 2006 budget request 1,500,000
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The Secretary of the Army is responsible for the administration, operation and maintenance of Arlington National Cemetery and the Soldiers' and Airmen's Home National Cemetery. In addition to its principal function as a national cemetery, Arlington is the site of approximately 3,100 non-funeral ceremonies each year and has approximately 4,000,000 visitors annually.
The Committee recommends an appropriations of $29,550,000 for operations and maintenance for fiscal year 2006. This is an increase of $187,000 above the fiscal year 2005 enacted level and an increase of $1,500,000 above the budget request.
The Committee recommends that at least $1,500,000 in fiscal year 2006 be used for the Arlington Cemetery's automation project. The Committee is concerned about the need for physical security of existing `hard copy' records and recommends that the additional funds first be used to accelerate data entry of these records into the automation system. A priority should also be placed on providing for the physical security of the records. The Committee remains supportive of the automation effort, but continues to be concerned that detailed information on the overall project plan, cost, and schedule needs to be refined to allow for responsible decision-making. The Army is directed to update the report provided to the Committee earlier this year and include more detailed cost estimates for the total project as well as costs for key components which may be procured on a stand-alone basis.
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Fiscal year 2005 appropriation $61,131,000
Fiscal year 2006 budget request 58,281,000
Committee recommendation in the bill 58,281,000
Comparison with:
Fiscal year 2005 appropriation (2,850,000)
Fiscal year 2006 budget request
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The Armed Forces Retirement Home consists of two retirement communities, one in Washington, D.C. and the other in Gulfport, Mississippi. The Washington, D.C. facility was established in 1851 as a soldiers' home for old and disabled veterans. The original home for Navy officers, sailors, and Marines was established in Philadelphia, Pennsylvania in 1811, and was relocated to Gulfport, Mississippi almost a century and a half later. The AFRH is home to 1,600 veterans and provides residential, social, and health services.
The Committee recommendation provides authority to expend $58,281,000 from the Armed Forces Retirement Home Trust Fund for operations and capital activities at the United States Soldiers' and Airmen's Home and the United States Naval Home. This is a decrease of $2,850,000 below the comparable fiscal year 2005 appropriation and the same as the budget request.
The bill provides authority to expend $57,033,000 from the Armed Forces Retirement Home Trust Fund for operations of the United States Soldiers' and Airmen's Home and the United States Naval Home as proposed in the budget request.
The bill provides authority to expend $1,248,000 from the Armed Forces Retirement Home Trust Fund for capital activities at the Soldiers' and Airmen's Home and the United States Naval Home, a decrease of $2,720,000 below the comparable fiscal year 2005 appropriation and the same as the budget request.
Section 401 prohibits the obligation of funds beyond the current fiscal year unless expressly so provided.
Section 402 limits the amount that can be paid for consultants.
Section 403 requires pay raises to be absorbed within the levels appropriated.
Section 404 prohibits the use of funds for programs, projects or activities not in compliance with Federal law relating to risk assessment, the protection of private property rights, or unfunded mandates.
Section 405 prohibits the use of funds to support or defeat legislation pending before Congress.
Section 406 encourages the expansion of E-Commerce technologies and procedures.
Section 407 limits funds from being transferred from this appropriations measure to any instrumentality of the United States Government without authority from an appropriation Act.
Section 408 specifies the congressional committees that are to receive all reports and notifications.
Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, a statement is required describing the transfer of funds provided in the accompanying bill.
Language under `Military Construction, Defense-wide', `Environmental Restoration, Army', `Environmental Restoration, Navy', `Environmental Restoration, Air Force', `Environmental Restoration, Defense-wide', Environmental Restoration, Formerly Used Defense Sites', and sections 115, 119, 120, 123, 128 of Administrative Provisions, provide certain transfer authority.
The Committee has included language transferring not to exceed $23,491,000 from Compensation and Pensions to General Operating Expenses and Medical Services. These funds are for the administrative costs of implementing cost-savings proposals required by the Omnibus Budget Reconciliation Act of 1990 and the Veterans' Benefits Act of 1992. Language is also included permitting necessary sums to be transferred to the medical facilities revolving fund to augment funding of medical centers for nursing home care provided to pensioners as authorized by the Veterans' Benefits Act of 1992.
The Committee recommends transferring the following amounts to the Department of Veterans Affairs General Operating Expenses appropriation pursuant to the Federal Credit Reform Act of 1990: the Veterans Housing Benefit Program Fund Program Account ($153,575,000), the Vocational Rehabilitation Loans Program Account ($305,000) and the Native American Veteran Housing Loan Program Account ($5,718,000). In addition, the bill provides up to $750,000 in General Operating Expenses and Medical Services for administration of the Guaranteed Transitional Housing Loans for Homeless Veterans Program Account.
The Committee has included language under the Department of Veterans Affairs that would transfer no less than $15,000,000 for the DoD/VA Health Care Sharing Incentive Fund as authorized under section 721 of Public Law 107-317.
The Committee recommends providing authority for the Department of Veterans Affairs for any funds appropriated in 2006 for Compensation and Pensions, Readjustment Benefits, and Veterans Insurance and Indemnities to be transferred between those three accounts. This will provide the Department of Veterans Affairs flexibility in administering its entitlement programs.
The Committee has included language permitting the funds from three life insurance funds to be transferred to General Operating Expenses for the costs of administering such programs.
The Committee recommends language permitting up to $32,817,000 to be transferred to General Operating Expenses from any funds appropriated in 2006 to reimburse the Office of Resolution Management and the Office of Employment Discrimination Complaint Adjudication for services provided.
The Committee has included language that would transfer certain funds derived from enhanced-use leasing activities to the Construction, Major Projects and Construction, Minor Projects Accounts.
The Committee has included languge under the Department of Veterans Affairs that would transfer funds from the Medical Care Collections Fund to Medical Services.
The Committee recommends providing authority for the Department of Veterans Affairs to transfer amounts between the Medical Services, Medical Administration and Medical Facilities accounts to the extent necessary to implement the restructuring of these accounts subject to certain notification requirements.
The Committee recommends language under the Department of Veterans Affairs that would allow the transfer of funds from the General Operating Expenses account to the Veterans Housing Benefit Program Fund Program Account for certain purposes.
The Committee recommends language under the Department of Veterans Affairs that would allow the transfer of funds from the Capital Asset Fund to the Construction, Major Projects and Construction, Minor Projects accounts.
Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives requires an explanation of compliance with section 308(a)(1)(A) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, which requires that the report accompanying a bill providing new budget authority contain a statement detailing how that authority compares with the reports submitted under section 302 of the Act for the most recently agreed to concurrent resolution on the budget for the fiscal year from the Committee's section of 302(a) allocation.
[In millions of dollars]
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302(b) allocation This bill
Budget authority Outlays Budget authority Outlays
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Discretionary 85,158 81,634 85,158 81,634
Mandatory 35,640 35,570 35,640 35,570
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In compliance with section 308(a)(1)(B) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, the following table contains five-year projections associated with the budget authority provided in the accompanying bill:
[In millions of dollars]
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Outlays:
2006 98,519
2007 14,899
2008 5,057
2009 1,715
2010 and beyond 1,035
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The bill will not affect the levels of revenues, tax expenditures, direct loan obligations, or primary loan guarantee commitments under existing law.
In accordance with section 308(a)(1)(C) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, the financial assistance to State and local governments is as follows:
[In millions of dollars]
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New budget authority 520
Fiscal year 2006 outlays resulting therefrom 403
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ADDITIONAL VIEWS
ADDITIONAL VIEWS OF THE HONORABLE DAVID OBEY
While the FY 2006 Military Quality of Life and Veterans Affairs bill is a much-needed improvement over the President's inadequate budget for veterans health care, this bill will not get the job done for the men and women who are depending on the VA to meet their health care needs.
I presented to the Majority a very simple amendment: provide veterans with an additional $2.6 billion for VA health care and pay for it by reducing the size of the tax cut for those persons who make more than a million dollars a year. Instead of receiving a tax cut of $140,000, people making over one million dollars this year would get $129,000.
This is an issue of shared sacrifice. I think it is completely appropriate for the most well off in our society to take a slightly smaller tax break so we can provide health care for the men and women who have fought, sacrificed, and risked life and limb to protect the freedoms we all enjoy.
Under the amendment, veterans would get:
$1.5 billion more for medical services to meet increased demand;
$500 million to meet rising medical administrative costs;
$300 million to keep VA medical facilities up and running;
$67 million for VA medical and prosthetic research;
$201 million to build medical clinics and long-term care facilities;
$37 million for general administrative costs so veterans receive the prompt attention.
Why are these increases needed? The number of veterans treated at VA facilities increased from 2.7 million to 4.7 million from 1995 to 2004. Medical costs are increasing at nearly double the rate of inflation. VA facilities are old and crumbling and improvements will cost at least $1 billion a year for the next ten years according to the VA itself. Unfortunately, the Committee rejected my amendment.
I have heard some on the majority side say, `enough is never enough for you guys on veteran's health care.' Enough will be enough when every veteran receives the timely and high quality health care that they were promised. I did not serve in the military, but I believe we have a moral obligation when it comes to veterans' health care. If in America we cannot provide health care to 45 million Americans who are without any coverage, we ought to at least be providing top-shelf, top-quality, no questions asked medical care to veterans who have risked more than anybody else in this society to keep it as free and open as it is today.
We also have a moral obligation to point out at every opportunity that the reason why veterans will not be receiving the health care they deserve is because of the misbegotten, ill-advised budget that the Republican Congress passed just a few short weeks ago. That budget, which only one Republican member of the Appropriations Committee opposed, is the reason that veterans will not receive the health care that they were promised and that they deserve.
PURPOSE OF THE BILL AS EXPLAINED BY THE COMMITTEE MAJORITY
The Committee on Appropriations produced this explanation of the bill: “This bill marks the introduction of the first Military Quality of Life and Veterans Affairs, and Related Agencies Appropriations bill. The Committee has formed this bill for the purpose of moving towards taking a more comprehensive look at the quality of life for U.S. servicemen and women, from recruitment through retirement. Since the advent of the All Volunteer Force in 1973, quality of life has come to play an increasingly prominent role in preserving the unmatched professionalism and capability of the U.S. armed forces. All of the military witnesses who have testified before the Committee in preparation for this bill have spoken in full support of the new structure of the bill highlighting the importance of maintaining a suitable quality of life for soldiers, sailors, airmen and marines. This quality of life necessarily involves the construction and maintenance of military facilities and housing, the basic allowance for housing, the Defense Health Program, and environmental restoration. Several witnesses affirmed the saying, `you recruit the soldier and you retain the family,' and all of these elements contribute to that purpose, while maintaining a high level of readiness.
“Quality of life should also be a guiding concept upon a service member's retirement, making veterans affairs another primary component in achieving the purpose of this bill. The Committee heard repeatedly during hearings of gaps and flaws in the transition from active duty to retirement, particularly in the switch from active duty health care to veterans health care. Unacceptable in peacetime, this situation becomes intolerable in a time of war. Advances in battlefield medicine have resulted in dramatic increases over previous conflicts in the percentage of service personnel who survive their wounds. The other side of this salutary change is an increase in certain medical cases, such as amputee and trauma cases. The Committee is deeply concerned that wounded veterans receive the treatment they require and deserve. The Committee will thus continue in the future to examine opportunities for improving quality of life for active and reserve personnel, veterans, and those making the transition from active to veteran status.
“The programs funded in the bill for the Department of Defense (DOD) include: military construction, including housing; operation and maintenance of family housing; the family housing improvement fund; the basic allowance for housing payment; facilities sustainment, restoration and modernization; environmental restoration; the Defense Health Program; the U.S. share of the North Atlantic Treaty Organization Security Investment Program; funds to execute projects identified by the base realignment and closure authorities; the chemical demilitarization construction program; and the foreign currency fluctuation account. The bill also funds the Department of Veterans Affairs (VA). Finally, the bill funds four related agencies, including the American Battle Monuments Commission, Cemetery Expenses, Army, the U.S. Court of Appeals for Veterans Claims, and the Armed Forces Retirement Home.”
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