2006 Budget of the United States Government - Budget Amendment 7

1 109th Congress, 1st Session – – – – – – – – – – – – – House Document 109–39 REQUEST FOR FY 2005 BUDGET AMENDMENTS COMMUNICATION FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING A REQUEST FOR FY 2005 SUPPLEMENTAL APPROPRIATIONS FOR THE DEPARTMENT OF VETERANS AFFAIRS JUNE 30, 2005.—Referred to the Committee on Appropriations and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 39–012 WASHINGTON : 2005 VerDate Aug 04 2004 21:20 Jul 02, 2005 Jkt 039012 PO 00000 Frm 00001 Fmt 4012 Sfmt 4012 E:\HR\OC\HD039.XXX HD039 E:\Seals\Congress.#13 VerDate Aug 04 2004 21:20 Jul 02, 2005 Jkt 039012 PO 00000 Frm 00002 Fmt 4012 Sfmt 4012 E:\HR\OC\HD039.XXX HD039 THE WHITE HOUSE, Washington, DC, June 30, 2005. Hon. J. DENNIS HASTERT, Speaker of the House of Representatives, Washington, DC. DEAR MR. SPEAKER: I ask the Congress to consider expeditiously the enclosed request in the amount of $975 million for a supplemental appropriation for the Department of Veterans Affairs (VA). I am requesting these resources to cover the increased costs in FY 2005 that the VA is experiencing in its medical care system. As Secretary Nicholson informed the Congress on June 28th, additional needs in the VA medical care system have also been identified for FY 2006. Details on specific FY 2006 requirements are under review and will be transmitted separately. My Administration is committed to ensuring that our Nation’s veterans continue to receive timely and high-quality health care. The details of the FY 2005 request are set forth in the enclosed letter from the Director of the Office of Management and Budget. Sincerely, GEORGE W. BUSH. (1) VerDate Aug 04 2004 21:20 Jul 02, 2005 Jkt 039012 PO 00000 Frm 00003 Fmt 6633 Sfmt 6633 E:\HR\OC\HD039.XXX HD039 VerDate Aug 04 2004 21:20 Jul 02, 2005 Jkt 039012 PO 00000 Frm 00004 Fmt 6633 Sfmt 6633 E:\HR\OC\HD039.XXX HD039 [Estimate No. 7, 109th Congr., 1st Sess.] EXECUTIVE OFFICE OF THE PRESIDENT, OFFICE OF MANAGEMENT AND BUDGET, Washington, DC, June 30, 2005. The PRESIDENT, The White House. Submitted for your consideration is a request for an FY 2005 supplemental appropriation in the amount of $975 million to fund the Medical Services account within the Department of Veterans Affairs (VA) Medical Care budget. This request is in addition to the $28.0 billion already appropriated for FY 2005 medical care costs. As Secretary Nicholson testified on June 28, 2005, the actuarial model used by the Administration forecasted 2.3 percent annual growth in health care demand in FY 2005. The Administration recently discovered that growth had accelerated through April 2005 to 5.2 percent above FY 2004, which is almost 3 percent above the Administration’s annual projection. A significant, but not the predominant component of this growth, is the increase in the number of veterans, including an increased number of reservists, who are entitled to receive medical care from the VA as a result of their combat service in the Global War on Terror. While VA’s estimate of those returning from Iraq and Afghanistan in FY 2005 has increased from its initial projection, these individuals are generally in good health and most do not need intensive health care. Many of them are being treated for dental care only—an area in which VA has seen considerable cost growth. A relatively small percentage of these veterans treated by VA in 2005 who have returned from the current combat theatres are traumatically disabled. The majority of the increased cost is due to higher utilization of services by veterans from prior combat eras. The Department had been planning to defer $600 million from anticipated capital items (equipment and non-emergency, non-recurring maintenance) as well as to expend $375 million in planned carryover into FY 2006, on VA medical care costs. This supplemental will ensure VA has the funds it needs to continue scheduled maintenance and capital improvements, as well as to replenish the $375 million projected carryover into FY 2006. I have carefully reviewed this proposal and am satisfied that it is necessary at this time. Therefore, I join the Secretary of Veterans Affairs in recommending you transmit the proposal to the Congress. Details on specific FY 2006 requirements are under review and will be transmitted separately. Your Administration remains com(3) VerDate Aug 04 2004 21:20 Jul 02, 2005 Jkt 039012 PO 00000 Frm 00005 Fmt 6601 Sfmt 6601 E:\HR\OC\HD039.XXX HD039 4 mitted to ensuring that our Nation’s veterans continue to receive timely and high-quality health care. Sincerely, JOSHUA B. BOLTEN, Director. Enclosure. DEPARTMENT OF VETERANS AFFAIRS VETERANS HEALTH ADMINISTRATION MEDICAL SERVICES For an additional amount for ‘‘Medical Services,’’ $975,000,000 to remain available until—expended. At the beginning of FY 2005, the VA medical care system was expecting an increase in patients over FY 2004 of 2.3 percent, but is now estimating an increase of 5.2 percent resulting in an increased need of $975 million. Æ VerDate jul 14 2003 00:01 Jul 03, 2005 Jkt 021312 PO 00000 Frm 00006 Fmt 6601 Sfmt 6611 E:\HR\OC\HD039.XXX HD039