42-753
2d Session
110-775
--MILITARY CONSTRUCTION, VETERANS AFFAIRS, AND RELATED AGENCIES APPROPRIATIONS BILL, 2009
[To accompany H.R. 6599]
The Committee on Appropriations submits the following report in explanation of the accompanying bill making appropriations for military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2009, and for other purposes.
| CONTENTS | Page | |
| Purpose of the Bill | 2 | |
| Summary of Committee Recommendation | 2 | |
| Comparative Statement of New Budget Authority | 4 | |
| Items of Interest | 13 | |
| Department of Defense: | Military Construction | |
| 16 | ||
| NATO Security Investment Program | ||
| 24 | ||
| Family Housing Construction and Operation and Maintenance | ||
| 25 | ||
| Chemical Demilitarization Construction, Defense-Wide | ||
| 30 | ||
| Department of Defense Base Closure Account 1990 | ||
| 30 | ||
| Department of Defense Base Closure Account 2005 | ||
| 31 | ||
| Administrative Provisions | ||
| 31 | ||
| Department of Veterans Affairs: | Overview | |
| 33 | ||
| Veterans Benefits Administration | ||
| 34 | ||
| Veterans Health Administration | ||
| 38 | ||
| National Cemetery Administration | ||
| 45 | ||
| Departmental Administration | ||
| 46 | ||
| Administrative Provisions | ||
| 51 | ||
| Related Agencies: | American Battle Monuments Commission | |
| 53 | ||
| U.S. Court of Appeals for Veterans Claims | ||
| 54 | ||
| Cemeterial Expenses, Army | ||
| 55 | ||
| Armed Forces Retirement Home | ||
| 55 | ||
| General Provisions | 56 | |
| Changes in Application of Existing Law | 56 | |
| Appropriations Not Authorized by Law | 59 | |
| Transfer of Funds | 60 | |
| Rescissions | 61 | |
| Constitutional Authority | 62 | |
| Comparison With the Budget Resolution | 62 | |
| Five-Year Projection of Outlays | 62 | |
| Financial Assistance to State and Local Governments | 62 | |
| Statement of General Performance Goals and Objectives | 62 | |
| Compliance with Rule XIII | 63 | |
| Earmarks | 64 | |
| State Project List | 93 | |
| Additional Views | 111 |
PURPOSE OF THE BILL
The purpose of the bill is to support our military and their families and provide the benefits and medical care that our veterans have earned for their service. This is accomplished through the programs funded in the bill. Programs that provide the facilities and infrastructure needed to house, train, and equip our military personnel to defend this nation; both in the United States and abroad; programs that provide the housing and military community infrastructure that sustains quality of life for them and their families; and programs that allow the military to efficiently and effectively maintain a right-sized base structure. The bill also funds programs to ensure that all of our veterans receive the benefits and medical care that they have earned as a result of the sacrifices they have made in their service to our country. Finally, the bill funds four related agencies that provide support to our nation's heroes; the American Battle Monuments Commission, Cemeterial Expenses, Army (Arlington Cemetery), the United States Court of Appeals for Veterans Claims, and the Armed Forces Retirement Home.
SUMMARY OF COMMITTEE RECOMMENDATION
The Committee recommends $118,726,081,000 in new budget authority for the programs and activities funded in the bill. This recommendation is an increase of $10,334,831,000 above the fiscal year 2008 enacted level and an increase of $3,382,000,000 above the President's request. Included in this amount is $45,996,925,000 in mandatory authority and $72,729,156,000 in discretionary authority.
The Committee recommendation highlights the continued commitment to our servicemembers and their families and to our veterans. The bill includes significant increases in both the military construction and the Department of Veterans Affairs budgets. The total funding level for military construction is $24,800,239,000, a 20 percent increase over the fiscal year 2008 enacted level. This level of unprecedented funding supports the servicemen and women and their families who are making the ultimate sacrifice during this time of war. The programs funded in the bill for the Department of Defense address the numerous challenges we have asked our military to accomplish simultaneously. These funds support an increase in troop strength for both the Army and Marine Corps, continue the cleanup of military bases closed during Base Realignment and Closure rounds, resource the military's global re-stationing plan, and ensure that our military personnel and their families' quality of life is preserved within these plans.
The total funding level of $93,685,057,000 for the Department of Veterans Affairs is a seven percent increase over the fiscal year 2008 enacted level. The recommendation provides funding to increase support for benefits claims in order to reduce the claims processing backlog and length of time it takes to process an initial claim. The Committee also provides increases for medical care funding for all veterans and provides additional funding in order to increase Priority 8 enrollment by 10 percent, and to improve access to medical care for veterans where Veterans Health Administration services are not available. The Committee is also concerned with the backlog in non-recurring maintenance and has provided additional resources to address this issue.
The following table compares amounts recommended in the bill to the President's request and amounts appropriated in fiscal year 2008:
ITEMS OF INTEREST
Quality of Life Initiative.--The Committee's recommendation for military construction continues the initiative, begun in fiscal year 2008, to provide additional quality of life facilities for military personnel and their families. The Committee's recommendation therefore includes $199,200,000 for five additional troop housing facilities for Army and Marine Corps recruits and trainees. While both the Army and Marine Corps have made a commitment to fund improved barracks, the Committee believes that more effort is needed on behalf of marines and soldiers who are going through basic and advanced training. The Committee also recommends building upon a prior initiative by adding $136,481,000 for medical treatment facility design and construction. This will provide $57,900,000 to renovate the hospital at Camp Lejeune, which will add 7,410 marines under the Growing the Force initiative, and $78,581,000 to accelerate planning and design for a hospital replacement at Fort Bliss, which will receive four additional brigades by 2012 under Army plans for Base Realignment and Closure and global restationing.
Report on Child Care Waiting Lists.--The Committee notes that the President has called for an increased commitment to providing child care and youth activity services to military families. The Committee fully supports this commitment and commends the Department of Defense for following the lead of Congress and increasing the number of child development and youth activity facilities from three in the fiscal year 2008 request to eleven in the fiscal year 2009 request. The Committee believes that more effort is needed, and to further this initiative, the Committee directs that the Secretaries of the Army, Navy, and Air Force each provide a report to the Committees on Appropriations of both Houses of Congress on the current waiting list for child care services at each installation no later than August 1, 2008.
BRAC, Global Restationing, Growing the Force, and Local School Impacts- The Committee remains concerned by the impact that Base Realignment and Closure (BRAC), global restationing, and the Growing the Force initiative will have on the ability of localities near growing bases to accommodate increased demands for off-base infrastructure such as schools. In order to help local communities plan and budget for such impacts, the Committee directs the Department of Defense to keep the responsible authorities fully informed about the effects of force structure changes on base populations. The Committee further directs the Army and Marine Corps to submit no later than October 1, 2008, and semi-annually thereafter, to the Committees on Appropriations of both Houses of Congress an updated report on projected base population increases for those installations that will add at least 1,000 permanent party military personnel (compared to the 2003 baseline) under BRAC, global restationing, and Growing the Force. In addition to the total growth in base population for each such installation from 2003-2013, this report shall provide, at minimum, a breakout of the data for each such installation showing the growth during the same period in the numbers of permanent party active duty military members, Department of Defense civilians, Reserve component personnel, students and trainees, contractors, military family members, school age children of military family members, and school age children of DoD civilians. In addition, the report shall also contain a description of the status of local school construction efforts at all installations with an expected base population growth of 20 percent or more.
Management of Overseas Basing- On September 17, 2004, the Department of Defense delivered its `Report to Congress on Strengthening U.S. Global Defense Posture', inaugurating what it described as `the most profound re-ordering of U.S. military forces overseas since our current posture was cemented at the end of World War II and the Korean War.' The report announced a shift away from forward-stationed garrisons to deter specific threats toward a flexible network of smaller, but rapidly expandable, sites to meet a wide range of possible contingencies. This shift toward forward operating sites and cooperative security locations reduced the need for new overseas military construction projects and increased reliance on host nation and contractor-maintained facilities. The Committee is concerned that the Department has not made a concomitant effort to ensure that planning, budgeting, and financial management practices are in place to ensure adequate oversight of the costs and operations of this new base structure. Currently, management and oversight are fragmented between different command levels of both the services and the Combatant Commands, defeating transparency and accountability. The Committee therefore directs the Department to include, with the Overseas Master Plan submission in 2009, a management annex that describes current arrangements for planning, programming, budgeting, financial management, and contract management for overseas bases, as well as initiatives being taken to correct deficiencies in such arrangements. The Committee understands that the Army has instituted a pilot program under which the Installation Management Command will assume responsibility for the forward operating site at Soto Cano Air Base in Honduras. The management annex shall also include an assessment of this pilot program and a discussion of both `lessons learned' and the prospect of applying this approach to all overseas forward operating sites and cooperative security locations.
Need for Review of Global Basing Strategy.--The Committee is also concerned by recent developments that have called into question the underlying rationale of the Integrated Global Presence and Basing Strategy (IGPBS) that was developed from the global posture review. In response to concerns expressed by the Commander of European Command (EUCOM) about the adequacy of the forces to be left within the EUCOM area of responsibility by IGPBS, the Secretary of Defense decided in 2007 to extend two brigade combat teams (BCTs) in Germany until 2012-2013, during which these two BCTs purportedly will be moved to the United States, though it is unclear whether the reasons necessitating this extension will no longer apply by then. The Secretary also decided recently to halt the planned removal of approximately 3,500 troops from Korea, for reasons that are not entirely clear. Furthermore, the decision by the Administration to create Africa Command (AFRICOM) has opened the question of what basing structure in Africa should be created to support this new command. Finally, the conflicts in Iraq and Afghanistan have demonstrated a need to reconcile this new basing approach to long-term conflicts involving continuous rotation of large forces to the same areas over a period of many years, blurring the distinction between `forward-deployed' and `forward-stationed' forces, and between `expeditionary' and `enduring' locations. The new Global Posture strategy rested on certain key assumptions, such as:
- (1) Pursuant to the 2001 Quadrennial Defense Review, the U.S. should shift its approach to strategic planning from a `threat-based' approach to a `capabilities-based' approach. This approach is expressed in the statement of the September 2004 report that `we cannot know exactly where or when we will be called on to fight';
- (2) U.S. military forces would acquire and maintain the necessary capabilities in mobility, deployment readiness, and expeditionary base construction to overcome any reduction in the advantages of forward stationing; and
- (3) Overseas force reductions in certain areas could be implemented without any undue harm to U.S. relationships with host nations, NATO, or new security commitments.
The Committee believes that the next Administration should conduct a reassessment of these assumptions and adjust the Integrated Global Presence and Basing Strategy to account for developments that were not anticipated or accounted for by the Department in its initial global posture review.
Africa Command.--The Committee is concerned about the Department's conflicting indications regarding the future permanent headquarters of Africa Command. The Committee has been informed in the past that headquarters locations in the United States were ruled out; however, recent reports suggest that U.S. locations will be included in a comprehensive survey of potential locations, in addition to those in Africa and Europe. The Committee therefore directs the Department of Defense to submit a report to the Committees on Appropriations of both Houses of Congress on potential future locations for AFRICOM headquarters no later than December 31, 2008. This report shall include, at minimum: (1) the fundamental considerations that need to be taken into account in the siting of an AFRICOM headquarters, such as proximity to the area of responsibility, utilization of existing U.S. infrastructure including State Department facilities, host nation political sensitivities, and consistency with AFRICOM's structure and mission; (2) the specific criteria to be considered in deciding between specific locations within the African continent, should that be the chosen approach; (3) the merits and disadvantages of keeping AFRICOM headquarters at its current location in Stuttgart, Germany; and (4) a comprehensive listing of all specific locations that have been considered. In addition, this report shall include an assessment of existing cooperative security locations and forward operating sites in Africa and the extent to which they meet AFRICOM's mission requirements. This report may be submitted in classified form.
Inflation in Military Construction- The Committee remains very concerned by the inadequacy of inflation factors used to form the budget requests for military construction and family housing. The baseline construction inflation rate used by the Department of Defense, which is based on the gross domestic product price index rather than indices of material and labor costs in the construction sector, is merely 2 percent for fiscal year 2009. This figure is grossly out of step with the construction inflation estimates reported by the private sector. The Committee also notes a report by the Department that the fiscal year 2008 Base Realignment and Closure program would require 11 percent additional funding if the 2007, rather than 2006, pricing guidance had been used to form that program. The Committee is fully supportive of efforts by the Department to more accurately account for recent changes and regional variation in the construction market through the use of more up-to-date pricing guidance and area cost factors. However, the Committee believes that the overall military construction budget will continue to be at risk if the baseline inflation rate does not better reflect actual market conditions. The failure to fully account for these conditions is evidenced by the increased number of scope reductions, project cancellations, and reprogramming requests in recent years. The Committee therefore directs the Department to incorporate more realistic inflation estimates into its construction program. The Committee further directs the Department to report to the Committees on Appropriations of both Houses of Congress the baseline inflation rate used to form the fiscal year 2010 military construction and family housing request, along with a comparison of this figure to the construction inflation rate used by other Federal agencies in their fiscal year 2010 budget requests for construction. This report shall be submitted no later than seven days after the submission of the fiscal year 2010 budget request.
Fort Monmouth.--The Committee is concerned that the Departments of Defense and Veterans Affairs have not taken adequate steps to ensure the availability of medical services for veterans and military retirees after the scheduled closure of Fort Monmouth, which will occur by September 2011. The Committee therefore directs the Departments of Defense and Veterans Affairs jointly to submit a report on how the medical service needs of these populations will be addressed, including the potential need for new facilities, no later than January 30, 2009.
TITLE I
DEPARTMENT OF DEFENSE
MILITARY CONSTRUCTION OVERVIEW
(INCLUDING RESCISSIONS OF FUNDS)
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Fiscal year 2008 enacted level (including rescissions) $9,926,457,000
Fiscal year 2009 budget request 11,362,876,000
Committee recommendation in the bill (including rescissions) 11,741,876,000
Comparison with:
Fiscal year 2008 enacted level 1,815,419,000
Fiscal year 2009 budget request 379,000,000
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Military construction accounts provide funds for new construction, construction improvements, planning and design, and host nation support. Projects funded by these accounts include facilities for operations, training, maintenance, research and development, supply, medical care, and force protection, as well as unaccompanied housing, utilities infrastructure, and land acquisition.
The Committee recommends a total appropriation of $11,814,466,000 and rescissions of $72,590,000 for Military Construction, an increase of $1,815,419,000 above the fiscal year 2008 enacted level and an increase of $379,000,000 above the budget request.
Use of Planning and Design Funds to Source Reprogrammings.--The Committee notes with concern the increased utilization of planning and design funds to offset prior approval reprogramming requests. Planning and design funds are appropriated by the Committee to ensure that the Future Years Defense Program for military construction and family housing is adequately scoped and executable upon the approval of construction funds. The Committee expects that such funds will be used solely for this purpose. The increasing frequency of the use of such funds to offset shortfalls in actual construction indicates two things: first, that the Department has failed to adequately budget for inflation in the construction market to the point where incidental bid savings on certain projects are no longer adequate to cover unforeseeable cost increases on other projects; and second, that the Department has overestimated its planning and design requirements in previous budget submissions. To correct for the over-estimation of planning and design funds, the Committee recommends the following adjustments to military construction planning and design accounts: Army, -$30,000,000; Air Force, -$5,000,000; Defense-Wide, -$5,000,000 (Special Operations Command, -$2,500,000; National Security Agency, -$2,500,000); and Army National Guard, -$10,000,000. The Committee further encourages the services and Defense agencies to make greater use of alternatives to the design-bid-build approach, such as design-build and early contractor involvement.
Innovative Construction Methods.--The Committee notes that the current level of spending on military construction is higher, in constant dollars, than during any sustained period since the mid-1950s. Given the enormous volume of construction to be executed to satisfy the requirements of Base Realignment and Closure, global restationing, Growing the Force, and numerous other initiatives, the Committee encourages the Department of Defense to make full use of innovative construction techniques, such as standard designs and permanent modular facilities, consistent with departmental goals for sustainability, recapitalization, quality of life, and operational requirements.
Submission of Project-Level Detail for Military Construction Initiatives.--The Committee is concerned by indications that the Department of Defense may include a lump-sum request for military construction associated with the relocation of Marine Corps personnel and dependents from Okinawa to Guam in the fiscal year 2010 budget request, rather than specifying individual projects in accordance with normal practice. The Committee has rejected this approach when the Department has requested lump-sum appropriations for previous military construction initiatives, such as the Growing the Force initiative for the Army and Marine Corps. The Committee directs the Department to ensure that all military construction requests for initiatives, including the relocation to Guam, comprise specific projects that are individually scoped and executable in the year of appropriation, and to submit the corresponding project-level detail, including 1391 forms, to the Committee along with any such requests.
Incremental Funding of Military Construction Projects.--The Committee will continue to exercise its prerogative to recommend incremental funding of military construction projects where appropriate, in accordance with authorizing legislation. The Committee recommends incremental funding for the Command and Battle Center at Wiesbaden, Germany under Military Construction, Army.
Facilities Sustainment, Restoration and Modernization (FSRM).--The Department is directed to continue describing on form 1390 the backlog of FSRM requirements at installations with future construction projects. For troop housing requests, form 1391 should describe any FSRM 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 accounts are described below:
- (1) components of the facility may be repaired by replacement. Such replacement can be up to current standards or codes;
- (2) interior arrangements and restorations may be included as repair;
- (3) 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; and
- (4) 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.
Transfer of Funds to Foreign Currency Account.--The Committee directs the Department of Defense to submit a report to the Committees on Appropriations of both Houses of Congress no later than December 1, 2008, on the amounts of expired funds transferred from military construction and family housing accounts to the Foreign Currency Fluctuations, Construction, Defense account at the end of fiscal year 2008.
Projects.--Congress has made significant reforms in the way it reviews funding for the Federal government; reforms which the Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does not begin with Congress. It begins with the Executive Branch. The Administration, in selecting projects, goes through a process that is the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter or modify this list to reflect additional priorities. The Committee is concerned that Executive Order 13457 effectively gives the Administration line-item veto authority over military construction projects funded in the bill, which would negatively impact the long history of cooperation the Committee has had with the Department of Defense regarding such projects. Therefore, the Committee has included bill language incorporating the military construction projects specified in the table entitled `Military Construction' that appear on pages 93 through 110 into the text of the bill by reference.
MILITARY CONSTRUCTION, ARMY
(INCLUDING RESCISSIONS OF FUNDS)
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Fiscal year 2008 enacted level (including rescissions) $3,927,893,000
Fiscal year 2009 budget request 4,615,920,000
Committee recommendation in the bill (including rescissions) 4,750,216,000
Comparison with:
Fiscal year 2008 enacted level 822,323,000
Fiscal year 2009 budget request 134,296,000
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The Committee recommends an appropriation of $4,801,536,000 and rescissions of $51,320,000 for Military Construction, Army, an increase of $822,323,000 above the fiscal year 2008 enacted level and an increase of $134,296,000 above the budget request.
The Committee recommends the following rescissions due to bid savings and cancellations of previously appropriated projects:
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Public law/location Project title ConferenceAgreement
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PL 110-5 (FY 2007);
NC: Fort Bragg Digital Multipurpose Range Complex -20,000,000
Italy: Vicenza Barracks Complex (PN 61847) -4,980,000
Italy: Vicenza Barracks Complex (PN 62438) -4,440,000
Italy: Vicenza Brigade Complex -5,300,000
Subtotal, PL 110-5 -34,720,000
PL 110-161 (FY 2008):
NV: Hawthorne Army Depot Ground Water Treatment Plant -3,500,000
NY: Fort Drum Brigade Complex-Company Operations -6,600,000
TX: Fort Bliss Health and Dental Clinic -6,500,000
Subtotal, PL 110-161 -51,320,000 -16,600,000
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Virginia-Fort Myer: Hatfield Gate Expansion.--Of the funds provided for planning and design in this account, the Committee directs that not less than $300,000 be made available for the design of this project.
Unaccompanied Housing Privatization Feasibility Study.--The Committee notes that the Army has committed to fully funding the modernization of 147,700 permanent party barracks spaces by fiscal year 2013, two years later than the previous, pre-Growing the Force target of 134,500 spaces. While the Army should be commended for making this commitment to better housing for unaccompanied soldiers, the Committee is concerned that budgetary pressures will lead to further extensions of the timeline for completion. The Committee believes that the Army should consider the possibility of expanding unaccompanied housing privatization for both senior and junior enlisted personnel. The Committee therefore directs the Army to study the feasibility of such an initiative and report its findings to the Committees on Appropriations of both Houses of Congress no later than December 31, 2008. This study shall analyze both the financial and legal aspects of privatization, as well as potential impacts on command, unit cohesion, and quality of life.
Army Medical Action Program.--The Committee is concerned that current facilities for the Army Medical Action Program (AMAP) are insufficient for their purpose, as indicated by the recent report that wounded warriors suffering from post-traumatic stress disorder at one installation are regularly exposed in their current housing to the noise of gunfire from nearby training ranges. Although the Army included $138,100,000 for such facilities in the fiscal year 2008 emergency supplemental request, the Committee understands that the full estimated requirement for AMAP military construction is approximately $1,400,000,000. The Department of Defense has not responded to repeated Committee requests for a full list of AMAP projects and the associated 1391 forms. The Committee finds this unacceptable and directs the Army to submit a list of all AMAP projects and the associated 1391 forms to the Committee no later than July 18, 2008.
MILITARY CONSTRUCTION, NAVY AND MARINE CORPS
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Fiscal year 2008 enacted level (including rescissions) $2,187,837,000
Fiscal year 2009 budget request 3,096,399,000
Committee recommendation in the bill 3,280,809,000
Comparison with:
Fiscal year 2008 enacted level 1,092,972,000
Fiscal year 2009 budget request 184,410,000
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The Committee recommends an appropriation of $3,280,809,000 for Military Construction, Navy and Marine Corps, an increase of $1,092,972,000 above the fiscal year 2008 enacted level and an increase of $184,410,000 above the budget request.
Maine-Portsmouth NSY: Dry Dock #3 Waterfront Support Facility.--Of the funds provided for planning and design in this account, the Committee directs that not less than $1,450,000 be made available for the design of this project.
MILITARY CONSTRUCTION, AIR FORCE
(INCLUDING RESCISSIONS OF FUNDS)
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Fiscal year 2008 enacted level $1,149,277,000
Fiscal year 2009 budget request 934,892,000
Committee recommendation in the bill (including rescissions) 958,843,000
Comparison with:
Fiscal year 2008 enacted level (190,434,000)
Fiscal year 2009 budget request 23,951,000
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The Committee recommends an appropriation of $976,524,000 and rescissions of $17,681,000 for Military Construction, Air Force, a decrease of $190,434,000 below the fiscal year 2008 enacted level and an increase of $23,951,000 above the budget request.
The Committee recommends the following rescissions due to bid savings from previously appropriated projects:
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Public law/location Project title ConferenceAgreement
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PL 109-114 (FY 2006);
Korea; Kunsan AB Dormitory -1,359,000
PL 110-5 (FY 2007):
AK: Eielson AFB Add/Alter Physical Fitness Center -1,415,000
AK: Elmendorf AFB F/A-22 Corrosion Control/Low Observable Composite Repair Facility -1,119,000
HI: Hickam AFB C-17 Fuel Cell Nose Dock -1,047,000
Subtotal, PL 110-5 -3,581,000
PL 110-161 (FY 2008):
AK: Elmendorf AFB -17,681,000 -12,741,000
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Arizona-Luke AFB: Repair Runway Pavement.--Of the funds provided for planning and design in this account, the Committee directs that not less than $1,755,000 be made available for the design of this project.
Texas-Lackland AFB: Security Forces Building, Phase 1.--Of the funds 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.
Texas-Laughlin AFB: Student Officer Quarters, Phase 2.--Of the funds provided for planning and design in this account, the Committee directs that not less than $1,440,000 be made available for the design of this project.
Texas-Randolph AFB: Fire and Rescue Station.--Of the funds provided for planning and design in this account, the Committee directs that not less than $972,000 be made available for the design of this project.
MILITARY CONSTRUCTION, DEFENSE-WIDE
(INCLUDING TRANSFER AND RESCISSION OF FUNDS)
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Fiscal year 2008 enacted level (including rescissions) $1,599,404,000
Fiscal year 2009 budget request 1,783,998,000
Committee recommendation in the bill (including rescission) 1,610,861,000
Comparison with:
Fiscal year 2008 enacted level 11,457,000
Fiscal year 2009 budget request (173,137,000)
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The Committee recommends an appropriation of $1,614,450,000 and a rescission of $3,589,000 for Military Construction, Defense-Wide, an increase of $11,457,000 above the fiscal year 2008 enacted level and a decrease of $173,137,000 below the budget request.
The Committee recommends the following rescission due to the cancellation of a previously appropriated project:
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Public law/location Project title ConferenceAgreement
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PL 108-324 (FY 2005):
VA: Oceana NAS Bulk Fuel Storage Tank -3,589,000
Total -3,589,000
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Medical Treatment Facilities Construction.--The Committee is greatly concerned with the large backlog of needed recapitalization for medical treatment facilities for military servicemembers and their families. The current Future Years Defense Program (FYDP) for Tricare Management Activity military construction averages $412,000,000 per year for fiscal years 2009 through 2013, and much of this amount is accounted for by medical research facilities. With the services identifying recapitalization requirements ranging in the several billions of dollars, the current FYDP for medical construction is obviously and severely insufficient. The Department's inventory of medical treatment facilities is riddled with aging hospitals, clinics, and other facilities that do not meet current standards for medical care. Adding to this problem is the fact that several installations are adding thousands of personnel and dependents due to base realignment and closure, the relocation of units from Europe and Korea to the United States, and the Growing the Force initiative that will add 92,000 active duty personnel to the Army and Marine Corps. The Committee therefore directs the Department of Defense to develop a comprehensive master plan for medical treatment facilities construction, to include both recapitalization and new requirements. This plan shall include a comprehensive priority list of projects for all services, provide a cost estimate for each project, supply data on the current state of facilities and the projected change in demand for services due to growth for each location on the list, indicate the extent to which identified construction requirements are programmed in the FYDP, and indicate the resources required for associated planning and design work. This report shall be submitted to the Committees on Appropriations of both Houses of Congress no later than December 31, 2008.
Department of Defense Education Activity.--The Committee is concerned that the current rate of funding for Department of Defense Education Activity (DODEA) construction is not sufficient to maintain the quality of schools deserved by the children of servicemembers. The Committee therefore directs DODEA to submit a report to the Committees on Appropriations of both Houses of Congress on the status of its military construction program no later than December 31, 2008. The report shall include, at minimum: (1) a comprehensive list of all current DODEA schools and a quality assessment of each school's facilities, indicating where facilities are nonexistent, undersized, or otherwise inadequate to carry out authorized activities; (2) a comprehensive list of all construction projects required to bring facilities up to current standards as indicated by the DODEA Education Facilities Specifications and eliminate temporary facilities, as well as the estimated cost of each project; (3) the impact of base realignment and closure and global restationing actions on the student populations of affected schools; and (4) an estimate of the total annual sustainment, restoration and modernization funds required to maintain the facilities of each DODEA district at current codes and the Department-prescribed recapitalization rate.
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD
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Fiscal year 2008 enacted level (including rescissions) $536,656,000
Fiscal year 2009 budget request 539,296,000
Committee recommendation in the bill 628,668,000
Comparison with:
Fiscal year 2008 enacted level 92,012,000
Fiscal year 2009 budget request 89,372,000
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The Committee recommends an appropriation of $628,668,000 for Military Construction, Army National Guard, an increase of $92,012,000 above the fiscal year 2008 enacted level and an increase of $89,372,000 above the budget request.
Maryland-Dundalk: Readiness Center Add/Alt.--Of the funds provided for planning and design in this account, the Committee directs that not less than $579,000 be made available for the design of this project.
Minnesota-Arden Hills ATS: Infrastructure Improvements.--Of the funds provided for planning and design in this account, the Committee directs that not less than $1,005,000 be made available for the design of this project.
North Carolina-Camp Butner: Training Complex.--Of the funds provided for planning and design in this account, the Committee directs that not less than $1,376,000 be made available for the design of this project.
Pennsylvania-Honesdale: Readiness Center Add/Alt.--Of the funds provided for planning and design in this account, the Committee directs that not less than $504,000 be made available for the design of this project.
Pennsylvania-Pittsburgh: Combined Support Maintenance Shop.--Of the funds provided for planning and design in this account, the Committee directs that not less than $3,250,000 be made available for the design of this project.
South Carolina-Sumter: Readiness Center.--Of the funds provided for planning and design in this account, the Committee directs that not less than $382,000 be made available for the design of this project.
Vermont-Ethan Allen Range: Readiness Center.--Of the funds provided for planning and design in this account, the Committee directs that not less than $323,000 be made available for the design of this project.
Virginia-Fort Belvoir: Readiness Center and NGB Conference Center.--Of the funds provided for planning and design in this account, the Committee directs that not less than $1,085,000 be made available for the design of this project.
MILITARY CONSTRUCTION, AIR NATIONAL GUARD
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Fiscal year 2008 enacted level $287,537,000
Fiscal year 2009 budget request 34,374,000
Committee recommendation in the bill 142,809,000
Comparison with:
Fiscal year 2008 enacted level (144,728,000)
Fiscal year 2009 budget request 108,435,000
---------------------------------------------------
The Committee recommends an appropriation of $142,809,000 for Military Construction, Air National Guard, a decrease of $144,728,000 below the fiscal year 2008 enacted level and an increase of $108,435,000 above the budget request.
Illinois-Greater Peoria RAP: C-130 Squadron Operations Center.--Of the funds provided for planning and design in this account, the Committee directs that not less than $400,000 be made available for the design of this project.
Massachusetts-Otis ANGB: TFI Digital Ground Station FOC Beddown.--Of the funds 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 project.
Rhode Island-Quonset State AP: Replace Control Tower.--Of the funds provided for planning and design in this account, the Committee directs that not less than $600,000 be made available for the design of this project.
MILITARY CONSTRUCTION, ARMY RESERVE
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $148,133,000
Fiscal year 2009 budget request 281,687,000
Committee recommendation in the bill 282,607,000
Comparison with:
Fiscal year 2008 enacted level 134,474,000
Fiscal year 2009 budget request 920,000
--------------------------------------------------
The Committee recommends an appropriation of $282,607,000 for Military Construction, Army Reserve, an increase of $134,474,000 above the fiscal year 2008 enacted level and an increase of $920,000 above the budget request.
Texas-Bryan: Reserve Center.--Of the funds 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 project.
MILITARY CONSTRUCTION, NAVY RESERVE
-------------------------------------------------
-------------------------------------------------
Fiscal year 2008 enacted level $64,430,000
Fiscal year 2009 budget request 57,045,000
Committee recommendation in the bill 57,045,000
Comparison with:
Fiscal year 2008 enacted level (7,385,000)
Fiscal year 2009 budget request -
-------------------------------------------------
The Committee recommends an appropriation of $57,045,000 for Military Construction, Navy Reserve, a decrease of $7,385,000 below the fiscal year 2008 enacted level and the same as the budget request.
MILITARY CONSTRUCTION, AIR FORCE RESERVE
------------------------------------------------------------------
------------------------------------------------------------------
Fiscal year 2008 enacted level (including rescission) $25,290,000
Fiscal year 2009 budget request 19,265,000
Committee recommendation in the bill 30,018,000
Comparison with:
Fiscal year 2008 enacted level 4,728,000
Fiscal year 2009 budget request 10,753,000
------------------------------------------------------------------
The Committee recommends an appropriation of $30,018,000 for Military Construction, Air Force Reserve, an increase of $4,728,000 above the fiscal year 2008 enacted level and an increase of $10,753,000 above the budget request.
Massachusetts-Westover ARB: Joint Service Lodging Facility. Of the funds provided for planning and design in this account, the Committee directs that not less than $943,000 be made available for the design of this project.
NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $201,400,000
Fiscal year 2009 budget request 240,867,000
Committee recommendation in the bill 218,867,000
Comparison with:
Fiscal year 2008 enacted level 17,467,000
Fiscal year 2009 budget request (22,000,000)
--------------------------------------------------
The North Atlantic Treaty Organization Security Investment Program (NSIP) consists of annual contributions by NATO member countries. The program finances the costs of construction needed to support the roles of the major NATO commands. The investments cover facilities such as airfields, fuel pipelines and storage, harbors, communications and information systems, radar and navigational aids, and military headquarters.
The Committee recommends an appropriation of $218,867,000 for NSIP, an increase of $17,467,000 above the fiscal year 2008 enacted level and a decrease of $22,000,000 below the budget request.
The decrease from the budget request is due to the Committee's recommendation to appropriate the funds for the Department of Defense contribution to the new NATO headquarters facility under Military Construction, Defense-Wide, rather than under NSIP.
Occasionally, the U.S. has been forced to delay temporarily the authorization of projects due to shortfalls in U.S. obligation authority. The Committee directs the Secretary of Defense to notify the Committee 30 days prior to taking such action.
FAMILY HOUSING OVERVIEW
----------------------------------------------------------------------
----------------------------------------------------------------------
Fiscal year 2008 enacted level (including rescissions) $2,866,724,000
Fiscal year 2009 budget request 3,203,455,000
Committee recommendation in the bill 3,166,455,000
Comparison with:
Fiscal year 2008 enacted level 299,731,000
Fiscal year 2009 budget request (37,000,000)
----------------------------------------------------------------------
Family housing construction accounts provide funds for new construction, construction improvements, the Federal government costs for family housing privatization projects, and planning and design. The operation and maintenance accounts provide funds to pay for maintenance and repair, furnishings, management, services, utilities, leasing, interest, mortgage insurance, and miscellaneous expenses.
The Committee recommends a total appropriation of $3,166,455,000 for the family housing construction and operation and maintenance accounts, an increase of $299,731,000 above the fiscal year 2008 enacted level and a decrease of $37,000,000 below the budget request.
Report on Government-Owned Family Housing.--The Committee understands that the Department of Defense defines an inadequate family housing unit as any unit requiring whole-house repair, improvement, or replacement exceeding a per unit cost of $50,000 adjusted by the area cost factor. The Committee further understands that the Services utilize condition assessments, based on private sector housing industry construction codes and sizing standards, as the basis for determining whether a unit meets the threshold of inadequacy. The Committee is concerned that this minimal definition of inadequacy will result in a remnant of Government-owned housing that does not keep pace with the rising expectations of servicemembers and their families due to the success of privatization. The Committee therefore directs the Secretaries of the Army, Navy and Air Force to provide a report to the Committees on Appropriations of both Houses of Congress on the application of the DoD definition of inadequate housing no later than December 31, 2008. This report shall include at minimum: (1) a detailed description of the condition assessment method utilized, including the specific basis of sizing standards; (2) a breakdown of the total units currently assessed as `adequate' into quintiles according to the per unit cost of whole-house repair, improvement, or replacement; and (3) a breakdown of all government-owned units, both adequate and inadequate, by installation (along with an indication, where applicable, of those units for which a privatization, replacement, or improvement project is currently programmed in the Future Years Defense Program).
Growing the Force and Family Housing Requirements.--The Growing the Force initiatives to add 92,000 active duty personnel to the Army and Marine Corps will generate significant new requirements for family housing. At the direction of the Committee, both the Army and Marine Corps submitted a stationing plan indicating the units and numbers of personnel to be added to each installation. The Committee directs the Secretaries of the Army and the Navy to submit a plan for addressing the additional family housing requirements due to Growing the Force. This plan shall specify, by each affected installation, the projected additional family members, the projected requirement for privatized or government-owned military family housing, the current housing deficit (if any) at the installation, the projects programmed into the current Future Years Defense Plan to address the requirement, and a target date for meeting the requirement. This plan shall be submitted no later than December 31, 2008.
Family Housing Privatization Progress Reports.--The Committee directs the Department of Defense to continue submitting semi-annual progress reports on the family housing privatization program, including a breakout of military tenant satisfaction rates by project.
Foreign Currency Savings and Sub-Account Transfers.--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 Committees on Appropriations of both Houses of Congress on how these savings are allocated by December 1, 2008. In addition, the Committee directs the Services and Defense agencies to notify the Committees on Appropriations of both Houses of Congress within 30 days of a transfer of funds between subaccounts within the family housing construction and family housing operation and maintenance accounts, if such transfer is in excess of 10 percent of the funds appropriated to the sub-account to which the funds are being transferred. Notifications to the Committees shall indicate the sub-accounts and amounts that are being used to source the transfer.
Leasing Reporting Requirements.--The Secretary of Defense is directed to report to the Committees on Appropriations of both Houses of Congress quarterly on the details of all new or renewed domestic leases entered into during the previous quarter that exceed the cost threshold set by 10 U.S.C. 2828(b)(2), 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 renewed lease agreements that exceed the cost threshold set by 10 U.S.C. 2828(e)(1) 21 days prior to entering into such an agreement; and (3) base leasing decisions on the economic analysis.
Projects.--Congress has made significant reforms in the way it reviews funding for the Federal government; reforms which the Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does not begin with Congress. It begins with the Executive Branch. The Administration, in selecting projects, goes through a process that is the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter or modify this list to reflect additional priorities. The Committee is concerned that Executive Order 13457 effectively gives the Administration line-item veto authority over military construction projects funded in the bill, which would negatively impact the long history of cooperation the Committee has had with the Department of Defense regarding such projects. Therefore, the Committee has included bill language incorporating the housing construction projects specified in the table entitled `Military Construction' that appear on pages 93 through 110 into the text of the bill by reference.
FAMILY HOUSING CONSTRUCTION, ARMY
-------------------------------------------------------------------
-------------------------------------------------------------------
Fiscal year 2008 enacted level (including rescission) $419,841,000
Fiscal year 2009 budget request 678,580,000
Committee recommendation in the bill 646,580,000
Comparison with:
Fiscal year 2008 enacted level 226,739,000
Fiscal year 2009 budget request (32,000,000)
-------------------------------------------------------------------
The Committee recommends an appropriation of $646,580,000 for Family Housing Construction, Army, an increase of $226,739,000 above the fiscal year 2008 enacted level and a decrease of $32,000,000 below the budget request. The appropriation includes $226,000,000 to construct new family housing units, $420,001,000 to improve or privatize existing units, and $579,000 for planning and design.
FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $731,920,000
Fiscal year 2009 budget request 716,110,000
Committee recommendation in the bill 716,110,000
Comparison with:
Fiscal year 2008 enacted level (15,810,000)
Fiscal year 2009 budget request - - -
--------------------------------------------------
The Committee recommends an appropriation of $716,110,000 for Family Housing Operation and Maintenance, Army, a decrease of $15,810,000 below the fiscal year 2008 enacted level and the same as the budget request.
FAMILY HOUSING CONSTRUCTION, NAVY AND MARINE CORPS
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $293,129,000
Fiscal year 2009 budget request 382,778,000
Committee recommendation in the bill 382,778,000
Comparison with:
Fiscal year 2008 enacted level 89,649,000
Fiscal year 2009 budget request - - -
--------------------------------------------------
The Committee recommends an appropriation of $382,778,000 for Family Housing Construction, Navy and Marine Corps, an increase of $89,649,000 above the fiscal year 2008 enacted level and the same as the budget request. The appropriation includes $62,598,000 to construct new family housing units, $318,011,000 to improve or privatize existing units, and $2,169,000 for planning and design.
FAMILY HOUSING OPERATION AND MAINTENANCE, NAVY AND MARINE CORPS
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $371,404,000
Fiscal year 2009 budget request 376,062,000
Committee recommendation in the bill 376,062,000
Comparison with:
Fiscal year 2008 enacted level 4,658,000
Fiscal year 2009 budget request - - -
--------------------------------------------------
The Committee recommends an appropriation of $376,062,000 for Family Housing Operation and Maintenance, Navy and Marine Corps, an increase of $4,658,000 above the fiscal year 2008 enacted level and the same as the budget request.
FAMILY HOUSING CONSTRUCTION, AIR FORCE
-------------------------------------------------------------------
-------------------------------------------------------------------
Fiscal year 2008 enacted level (including rescission) $312,747,000
Fiscal year 2009 budget request 395,879,000
Committee recommendation in the bill 395,879,000
Comparison with:
Fiscal year 2008 enacted level 83,132,000
Fiscal year 2009 budget request - - -
-------------------------------------------------------------------
The Committee recommends an appropriation of $395,879,000 for Family Housing Construction, Air Force, an increase of $83,132,000 above the fiscal year 2008 enacted level and the same as the budget request. The appropriation includes $71,828,000 to construct new family housing units, $316,343,000 to improve or privatize existing units, and $7,708,000 for planning and design.
Air Force Family Housing Privatization- The Committee is concerned with the status of the Military Housing Privatization Initiative projects at Moody AFB, Patrick AFB, Hanscom AFB, and Little Rock AFB. The Committee recommends that the Air Force establish a single point of contact for each project to assist and provide information to all concerned parties until the sale of these projects is concluded and the initial development phase is completed at each site. The Committee urges the Air Force to resolve the status of these projects expeditiously, and to address, to the maximum extent possible, the concerns of those parties (such as subcontractors) not directly involved in negotiations on the sale of these projects. The Committee directs the Air Force to report to the Committee on the status of these four projects no later than August 1, 2008.
FAMILY HOUSING OPERATION AND MAINTENANCE, AIR FORCE
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $688,335,000
Fiscal year 2009 budget request 599,465,000
Committee recommendation in the bill 594,465,000
Comparison with:
Fiscal year 2008 enacted level (93,870,000)
Fiscal year 2009 budget request (5,000,000)
--------------------------------------------------
The Committee recommends an appropriation of $594,465,000 for Family Housing Operation and Maintenance, Air Force, a decrease of $93,870,000 below the fiscal year 2008 enacted level and a decrease of $5,000,000 below the budget request.
FAMILY HOUSING OPERATION AND MAINTENANCE, DEFENSE-WIDE
-------------------------------------------------
-------------------------------------------------
Fiscal year 2008 enacted level $48,848,000
Fiscal year 2009 budget request 49,231,000
Committee recommendation in the bill 49,231,000
Comparison with:
Fiscal year 2008 enacted level 383,000
Fiscal year 2009 budget request - - -
-------------------------------------------------
The Committee recommends an appropriation of $49,231,000 for Family Housing Operation and Maintenance, Defense-Wide, an increase of $383,000 above the fiscal year 2008 enacted level and the same as the budget request.
DEPARTMENT OF DEFENSE FAMILY HOUSING IMPROVEMENT FUND
----------------------------------------------
----------------------------------------------
Fiscal year 2008 enacted level $500,000
Fiscal year 2009 budget request 850,000
Committee recommendation in the bill 850,000
Comparison with:
Fiscal year 2008 enacted level 350,000
Fiscal year 2009 budget request - - -
----------------------------------------------
The Family Housing Improvement Fund (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.
The Committee recommends an appropriation of $850,000 for the Department of Defense Family Housing Improvement Fund, an increase of $350,000 above the fiscal year 2008 enacted level and the same as the budget request.
DEPARTMENT OF DEFENSE HOMEOWNERS ASSISTANCE FUND
------------------------------------------------
------------------------------------------------
Fiscal year 2008 enacted level - - -
Fiscal year 2009 budget request $4,500,000
Committee recommendation in the bill 4,500,000
Comparison with:
Fiscal year 2008 enacted level 4,500,000
Fiscal year 2009 budget request - - -
------------------------------------------------
The Homeowners Assistance Fund account finances the Homeowners Assistance Program (HAP) which provides assistance to individual military and Federal civilian homeowners who sustain losses on the sales of their primary residences due to declining real estate markets attributable to the closure or realignment of military installations. This non-expiring revolving fund receives funding from several sources, including appropriations, borrowing authority, reimbursable authority, prior fiscal year unobligated balances, appropriation transfers, revenue from sale of acquired properties, and recovery of prior year obligations.
The Committee recommends an appropriation of $4,500,000 for the Department of Defense Homeowners Assistance Fund, an increase of $4,500,000 above the fiscal year 2008 enacted level and the same as the budget request.
CHEMICAL DEMILITARIZATION CONSTRUCTION, DEFENSE-WIDE
(INCLUDING TRANSFER OF FUNDS)
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $104,176,000
Fiscal year 2009 budget request 134,278,000
Committee recommendation in the bill 134,278,000
Comparison with:
Fiscal year 2008 enacted level 30,102,000
Fiscal year 2009 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.
The Committee recommends an appropriation of $134,278,000 for Chemical Demilitarization Construction, Defense-Wide, an increase of $30,102,000 above the fiscal year 2008 enacted level and the same as the budget request.
Projects- Congress has made significant reforms in the way it reviews funding for the Federal government; reforms which the Committee takes very seriously as it executes its constitutional authority. Earmarking or directed spending of Federal dollars does not begin with Congress. It begins with the Executive Branch. The Administration, in selecting projects, goes through a process that is the functional equivalent of earmarking. When the Committee reviews the budget request, it goes through a process of rigorous review and may alter or modify this list to reflect additional priorities. The Committee is concerned that Executive Order 13457 effectively gives the Administration line-item veto authority over construction projects funded in the bill, which would negatively impact the long history of cooperation the Committee has had with the Department of Defense regarding such projects. Therefore, the Committee has included bill language incorporating the construction projects specified in the table below into the text of the bill by reference.
CHEMICAL DEMILITARIZATION CONSTRUCTION
Chemical Demilitarization Construction
[In thousands of dollars]
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Location FY 2009 administration request
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Colorado: Pueblo Chem-Agent Disposal Pilot Plant 65,060
Kentucky: Blue Grass Chem-Agent Disposal Pilot Plant 57,218
Kentucky: Blue Grass Army Depot Defense Access Road 12,000
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BASE REALIGNMENT AND CLOSURE ACCOUNT 1990
--------------------------------------------------
--------------------------------------------------
Fiscal year 2008 enacted level $295,689,000
Fiscal year 2009 budget request 393,377,000
Committee recommendation in the bill 473,377,000
Comparison with:
Fiscal year 2008 enacted level 177,688,000
Fiscal year 2009 budget request 80,000,000
--------------------------------------------------
The Committee recommends an appropriation of $473,377,000 for the Base Realignment and Closure Account 1990, an increase of $177,688,000 above the fiscal year 2008 enacted level and an increase of $80,000,000 above the budget request. Of the amount provided above the budget request, the Committee directs that $60,000,000 shall be made available to the Navy, and $20,000,000 shall be made available to the Army. The Committee is aware that there is a backlog of remaining requirements, particularly for cleanup of unexploded ordnance, for closed installations dating back to the 1988 BRAC round. The Committee is concerned by the slow pace of progress in remediating these properties and directs the Department of Defense to make funding for previous BRAC rounds a higher priority.
BASE REALIGNMENT AND CLOSURE ACCOUNT 2005
----------------------------------------------------
----------------------------------------------------
Fiscal year 2008 enacted level $7,235,591,000
Fiscal year 2009 budget request 9,065,386,000
Committee recommendation in the bill 9,065,386,000
Comparison with:
Fiscal year 2008 enacted level 1,829,795,000
Fiscal year 2009 budget request - - -
----------------------------------------------------
The Committee recommends an appropriation of $9,065,386,000 for the Base Realignment and Closure Account 2005, an increase of $1,829,795,000 above the fiscal year 2008 enacted level and the same as the budget request. This funding supports the most recent base realignment and closure round which affects over 800 locations across the nation through 24 major closures, 24 major realignments, and 765 other actions.
Traffic Impacts at BRAC-Affected Installations.--The Committee is concerned about the potential for increased traffic congestion at the new military medical facility to be constructed in Bethesda, Maryland through the Base Realignment and Closure process. The Committee supports the responsible commander's decision to request certification for two projects under the Defense Access Roads (DAR) program, and urges the Department to expeditiously review this request. The Committee also directs the Department of Defense to proactively identify all other necessary transportation improvements at BRAC-affected installations that may be eligible for DAR certification. When environmental impact statements identify specific projects that are needed, the Committee directs the Department to ensure that a needs report is generated and reviewed as expeditiously as possible. The Committee further directs the Department to aggressively plan and budget for DAR-certified projects arising from BRAC actions.
ADMINISTRATIVE PROVISIONS
The bill includes 27 provisions that were included in the fiscal year 2008 enacted appropriations bill. The bill does not include one new provision proposed by the Administration that would provide for new starts under a continuing resolution. The administrative provisions included in the bill are as follows:
Section 101 prohibits the use of funds 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 use of construction funds for 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 except under certain conditions.
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 prohibits the use of funds 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 countries bordering the Arabian Gulf. The Administration proposed to delete this provision.
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 countries bordering 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, either temporary or permanent, exceed $100,000. The Administration proposed to delete this provision.
Section 114 limits obligations to no more than 20 percent during the last two months of the fiscal year. The Administration proposed to delete this provision.
Section 115 allows funds appropriated in prior years to be used for new projects authorized during the current session of Congress.
Section 116 allows 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 NATO, Japan, Korea, and United States allies bordering the Arabian Gulf to assume a greater share of defense costs. The Administration proposed to delete this provision.
Section 119 allows for the transfer of proceeds from `Base Realignment and Closure Account, Part I' to the continuing Base Realignment and Closure accounts.
Section 120 allows for the transfer of funds from Family Housing, Construction accounts to the Department of Defense Family Housing Improvement Fund and funds from Military Construction accounts to the Department of Defense Military Unaccompanied Housing Improvement Fund. The Administration proposed to modify this provision.
Section 121 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. The Administration proposed to delete this provision.
Section 122 provides transfer authority to the Homeowners Assistance Program.
Section 123 requires that funds in 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. The Administration proposed to modify this provision.
Section 124 makes funds in the Ford Island Improvement Fund available until expended.
Section 125 prohibits the use of funds for military construction, family housing, or land acquisition projects at installations closed or realigned under BRAC, except under certain conditions. The Administration proposed to delete this provision.
Section 126 allows the transfer of expired funds to the `Foreign Currency Fluctuations, Construction, Defense' account. This provision was included in the fiscal year 2007 House passed appropriations bill and is proposed by the Administration in fiscal year 2008.
Section 127 prohibits the use of funds for any action related to the expansion of Pinon Canyon Maneuver Site, Colorado. The Administration proposed to delete this provision.
TITLE II
DEPARTMENT OF VETERANS AFFAIRS
--------------------------------------------------------
--------------------------------------------------------
Fiscal year 2008 enacted level 1 $87,595,142,000
Fiscal year 2009 budget request 1 90,761,057,000
Committee recommendation in the bill 1 93,685,057,000
Comparison with:
Fiscal year 2008 enacted level 6,089,915,000
Fiscal year 2009 budget request 2,924,000,000
--------------------------------------------------------
The Department of Veterans Affairs is one of the largest Federal agencies in terms of employment with an average employment of approximately 253,000. The nation has more than 23,500,000 veterans, and 35,900,000 family members of living veterans and survivors of deceased veterans. Thus, close to 59,400,000 people, comprising about 19.6 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 $93,685,057,000 in new budget authority for programs in fiscal year 2009, an increase of $6,089,915,000 or seven percent above the fiscal year 2008 enacted level and an increase of $2,924,000,000 above the budget request.
The funds recommended provide compensation payments to 3,356,343 veterans and survivors of deceased veterans with service-connected disabilities; pension payments to 517,736 non-service-connected disabled veterans, widows and children in need of financial assistance; education training, tuition assistance, and vocational assistance to 567,854 veterans, servicemembers, and reservists, and 82,728 eligible dependents of deceased veterans or seriously disabled veterans; housing credit assistance in the form of 180,000 guaranteed loans to veterans and servicemembers; administration or supervision of life insurance programs with 7,087,725 policies for veterans and active duty servicemembers providing coverage of $1,084,862,000,000; inpatient care and treatment of beneficiaries in 153 hospitals, 50 domiciliary residential rehabilitation treatment programs (formerly called `domiciliaries'), 135 nursing homes, and 1,089 outpatient clinics, which includes independent, satellite, community-based, and rural outreach clinics involving 70,457,000 visits; and administration of the National Cemetery Administration for burial of eligible veterans, servicemembers and their survivors.
VETERANS BENEFITS ADMINISTRATION
COMPENSATION AND PENSIONS
(INCLUDING TRANSFER OF FUNDS)
-----------------------------------------------------
-----------------------------------------------------
Fiscal year 2008 enacted level $41,236,322,000
Fiscal year 2009 budget request 43,111,681,000
Committee recommendation in the bill 43,111,681,000
Comparison with:
Fiscal year 2008 enacted level 1,875,359,000
Fiscal year 2009 budget request
-----------------------------------------------------
This appropriation provides funds for service-connected compensation payments to an estimated 3,356,343 beneficiaries and pension payments to another 517,736 beneficiaries with non-service-connected disabilities. The average cost per compensation case in 2009 is estimated at $11,817, and pension payments are projected at a unit cost of $7,737.
The Committee recommends an appropriation of $43,111,681,000 for compensation, pension, and burial benefits, an increase of $1,875,359,000 above the fiscal year 2008 enacted level and the same as the budget request.
The appropriation includes authority to transfer funding not to exceed $26,798,000, of which $9,853,000 is for the General Operating Expenses account and $13,792,000 is for the Medical Support and Compliance and Information Technology Systems accounts. These funds are for the 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 saving provisions include verifying pension income against Internal Revenue Service (IRS) and Social Security Administration (SSA) data; establishing a match with the SSA to obtain verification of Social Security numbers; and the VA pension cap for Medicaid-eligible single veterans and surviving spouses alone in Medicaid-covered nursing homes. The bill also includes 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 Committee concurs with the Administration proposal to provide a cost-of-living adjustment (COLA), based on the change in the Consumer Price Index, to all compensation beneficiaries, including dependency and indemnity compensation for spouses and children. This adjustment is currently estimated at 2.5 percent and 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, 2008, has an estimated cost of $687,235,000 during fiscal year 2009 and is reflected in the Compensation and Pensions appropriation level.
Burial Benefits.--The Committee is concerned about the eroding value of the plot allowance and burial benefits provided to our nation's veterans by the Department of Veterans Affairs. Because the benefits are not indexed to inflation, their value continues to diminish each year. As a result, families and state veterans' cemeteries have been left to cover the increasing costs. The Committee urges the Department to assess the viability of increasing the plot allowance and burial benefits to cover the same percentage of veterans' burial costs that they covered in 1973, when they were initiated.
READJUSTMENT BENEFITS
----------------------------------------------------
----------------------------------------------------
Fiscal year 2008 enacted level $3,300,289,000
Fiscal year 2009 budget request 3,086,944,000
Committee recommendation in the bill 3,086,944,000
Comparison with:
Fiscal year 2008 enacted level (213,345,000)
Fiscal year 2009 budget request - - -
----------------------------------------------------
This appropriation finances the education and training of veterans and servicemembers 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 Department of Defense. 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 servicemembers who were captured or missing-in-action.
The Committee recommends an appropriation of $3,086,944,000 for Readjustment Benefits, a decrease of $213,345,000 below the fiscal year 2008 enacted level and the same as the budget request.
VETERANS INSURANCE AND INDEMNITIES
-------------------------------------------------
-------------------------------------------------
Fiscal year 2008 enacted level $41,250,000
Fiscal year 2009 budget request 42,300,000
Committee recommendation in the bill 42,300,000
Comparison with:
Fiscal year 2008 enacted level 1,050,000
Fiscal year 2009 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 $42,300,000 for Veterans Insurance and Indemnities, an increase of $1,050,000 above the fiscal year 2008 enacted level and the same as the budget request. The amount provided will enable the Department to transfer funding to the service-disabled veterans insurance fund and transfer additional amounts for payments for the 2,250 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.
VETERANS HOUSING BENEFIT PROGRAM FUND PROGRAM ACCOUNT
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Program account Limitation on direct loans for specially adapted housing loans Administrative expenses
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Fiscal year 2008 enacted level $17,389,000 $500,000 $154,562,000
Fiscal year 2009 budget request 2,000,000 500,000 157,210,000
Committee recommendation in the bill 2,000,000 500,000 157,210,000
Comparison with:
Fiscal year 2008 enacted level (15,389,000) 2,648,000
Fiscal year 2009 budget request
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The purpose of the 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. Loan guaranties are made to servicemembers, 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 $2,000,000) for funding subsidy payments, $500,000 for the limitation on direct loans for specially adapted housing loans, and $157,210,000 for administrative expenses.
VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
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Program account Limitation on direct loans Administrative expenses
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Fiscal year 2008 enacted level $71,000 $3,287,000 $311,000
Fiscal year 2009 budget request 61,000 3,180,000 320,000
Committee recommendation in the bill 61,000 3,180,000 320,000
Comparison with:
Fiscal year 2008 enacted level (10,000) (107,000) 9,000
Fiscal year 2009 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 $1,041 (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.
The Committee recommends $61,000 for funding subsidy program costs and $320,000 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 direct loans to $3,180,000. It is estimated that the Department will make 4,021 loans in fiscal year 2009, with an average amount of $791.
NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT
(INCLUDING TRANSFER OF FUNDS)
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Administrative expenses:
Fiscal year 2008 enacted level $628,000
Fiscal year 2009 budget recommendation 646,000
Committee recommendation in the bill 646,000
Comparison with:
Fiscal year 2008 enacted level 18,000
Fiscal year 2009 budget request - - -
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The Native American Veteran Housing Loan Program, as authorized by title 38 United States Code, chapter 37, subchapter V, provides the Secretary with authority to make direct housing loans to Native American veterans for the purpose of purchasing, constructing, or improving dwellings on trust lands. The Committee recommends the budget request of $646,000 for administrative expenses of the Native American Veteran Housing Loan Program, which may be transferred to and merged with the General Operating Expenses account.
GUARANTEED TRANSITIONAL HOUSING LOANS FOR HOMELESS VETERANS PROGRAM ACCOUNT
Public Law 105-368, the Veterans Benefits 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 2009. Bill language is included allowing the use of up to a total of $750,000 in Medical Support and Compliance and General Operating Expenses funds to administer this program.
VETERANS HEALTH ADMINISTRATION
The Department operates the largest Federal medical care delivery system in the country, with 153 hospitals, 50 domiciliary residential rehabilitation treatment programs (formerly called `domiciliaries'), 135 nursing homes, and 1,089 outpatient clinics which include independent, satellite, community-based, and rural outreach clinics.
The Veterans Health Administration (VHA) is comprised of four accounts: Medical Services, Medical Support and Compliance, Medical Facilities, and Medical and Prosthetic Research. For these accounts, the Administration has requested total resources of $39,178,503,000 in direct appropriations and $2,544,000,000 in Medical Care Collections Fund appropriations, to fund the various operating programs of the VHA.
The Committee recommends an appropriation of $40,783,270,000 for these accounts. This is an increase of $3,582,050,000 above the fiscal year 2008 enacted level and an increase of $1,604,767,000 above the budget request. The Committee recommendation uses the rate of health care spending growth reported by the Center for Medicare and Medicaid Services which is higher than the inflation rate used by the Department to build the request. The recommendation also provides additional funding to address specific healthcare issues.
Health Care Sharing Incentive Fund.--Recent reports continue to highlight the importance of cooperation between the Department of Defense and Department of Veterans Affairs in order to ensure a seamless transition for our veterans, to identify the best treatment plans, and to ensure care is available to veterans in all areas of the nation. The Committee is pleased by the progress the Departments have made this year towards greater cooperation to include: providing liaisons to key organizations such as the National Intrepid Center of Excellence for Traumatic Brain Injury, and the Office of the Secretary of Veterans Affairs; providing Federal Recovery Coordinators at several Military Treatment Facilities; continuing work on the establishment of International Classification of Diseases--9th Revision (ICD-9) codes for Traumatic Brain Injuries (TBI); and continuing efforts on shared electronic medical information. Despite these efforts, much still needs to be done. The bill includes language to allow the Department to transfer a minimum of $15,000,000 to the DoD/VA Health Care Sharing Incentive Fund. The Committee directs that these funds are to be used for joint programs between the Department of Defense and the Department of Veterans Affairs that seek to improve the continuity of care for veterans and expects the Departments to continue their efforts in the development of programs to track trauma, Post-Traumatic Stress Disorder (PTSD), and TBI patients and their treatment/progress over time and through both medical systems; the development of comprehensive and universal clinical practice guidelines based on evidence-based medicine and clinical efficacy for blast injuries, traumatic brain injuries and PTSD; access to services through joint clinics; and projects that promote a seamless transition to include programs that improve the electronic exchange of information. The Committee also expects the Departments to increase their efforts in the area of suicide prevention.
Traumatic Brain Injury.--The Committee notes that Traumatic Brain Injury (TBI) was included as a Select Program in the budget submission. The Department of Veterans Affairs is directed to continue to include TBI as a Select Program in all future budget submissions. All reports indicate that Traumatic Brain Injury is among the signature injuries of the Global War on Terror. The Committee recognizes that the Department is working diligently to address the challenges associated with this injury through early detection and treatment and urges the Department to continue its work and take every opportunity to partner with the Department of Defense. The Committee encourages the Department to consider neurocognitive screening as a detection option. Additionally, the Committee directs the Department to report to the Committees on Appropriations of both Houses of Congress by February 27, 2009 on the steps that are being taken to ensure that this patient population continues to be followed after initial treatment and that the VHA is fully prepared to address their future medical needs. The Committee urges the Department to continue its efforts to refine current International Classification of Diseases--9th Revision (ICD-9) codes to better reflect the TBI patient population within the Departments of Defense and Veterans Affairs. The Department of Veterans Affairs is directed to include an update of progress on the revision of the ICD-9 codes for TBI within the quarterly status reports provided to Congress during fiscal year 2009.
Innovations.--The Committee believes that investing in innovation is a key factor in ensuring a responsive, efficient, quality healthcare system and commends the Department for providing funds from the National Reserve Fund to finance innovation. The Committee feels that more can be done, however, to test and adopt innovations from the private sector and encourages the Department to increase funding for this program so that additional public/private pilot projects may be implemented in fiscal year 2009. The Committee directs the Department to report to the Committees on Appropriations of both Houses of Congress annually on the funding provided for innovation from the National Reserve Fund for the previous fiscal year by April 1st of each year.
Priority 8 Enrollment.--The Committee believes that the Department should do everything possible to increase access to medical care for all our veterans, but not in a manner that will negatively impact the medical care of currently enrolled patients. The Secretary is directed to increase Priority 8 enrollment by 10 percent, (an enrollment level increase the Committee believes appropriate for VHA capacity and current patient projections) in fiscal year 2009 and provide this enrollment to Priority 8 veterans with the lowest income level. The Committee estimates that it will require an additional $568,000,000 in order to implement this direction and has provided increases within the medical accounts accordingly. The Secretary is further directed to report to the Committees on Appropriations of both Houses of Congress within 90 days of enactment of this Act on the Department's progress.
Federal Recovery Coordinators.--The Report on the President's Commission on Care for America's Returning Wounded Warriors, July 2007, emphasized the importance of the Federal Recovery Coordinator's role in the `system of care that enables injured service members to maximize their recovery and their opportunity to return to the mainstream of American life'. The budget submission indicates that the Office of Care Management and Social Work Service was created and that eight Federal Recovery Coordinators were hired in order to implement this recommendation. The Committee is concerned that current staffing levels for this program may be insufficient to address the needs of both current wounded and the additional wounded that will enter this system. The Committee directs the Secretary to report by January 30, 2009, to the Committees on Appropriations of both Houses of Congress on the progress of this program and the actions that will be taken to ensure that there are sufficient Federal Recovery Coordinators. Additionally, the report will provide a review of the resources that both the Department of Veterans Affairs and the Department of Defense have provided to the Recovery Plan efforts.
Diabetes.--More than 70 percent of veterans who seek medical care through the VHA are overweight and 20 percent of the patient population has diabetes; which is a rate that is almost three times higher than the general population. The Committee is encouraged by the efforts that the Department has taken to address the challenges of obesity and diabetes to include: the Managing Overweight/Obesity for Veterans Everywhere (MOVE) Program; and the expansion of the formulary to include innovative drug therapies. The Committee urges the Department to continue to increase its emphasis on this issue through even greater partnership with local communities and other federal agencies on programs for obesity and diabetes prevention; additional research; and adherence to nationally recognized clinical guidelines for treatment and care.
Access to Care in the Chattanooga, Tennessee Market.--The Committee notes that the Capital Asset Realignment for Enhanced Services (CARES) report recognized that access to inpatient and surgical services in the Chattanooga, Tennessee market needed improvement. The CARES solution was to recommend that the Department use existing authorities and policies to contract for inpatient and surgical care to improve access in this market. The Committee believes that access has not improved and directs the Secretary to report to the Committees on Appropriations of both Houses of Congress by January 30, 2009 on what actions the Department plans to take to improve access in this area.
MEDICAL SERVICES
(INCLUDING TRANSFER OF FUNDS)
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Fiscal year 2008 enacted level 1 $28,105,220,000
Fiscal year 2009 budget request 2 29,819,503,000
Committee recommendation in the bill 30,854,270,000
Comparison with:
Fiscal year 2008 enacted level 2,749,050,000
Fiscal year 2009 budget request 1,034,767,000
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This appropriation provides for medical services of eligible veterans and beneficiaries in Department 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 $30,854,270,000 for Medical Services, an increase of $2,749,050,000 or 9.8 percent above the fiscal year 2008 enacted level when adjusted for transfers and an increase of $1,034,767,000 above the budget request. The Committee estimates that $400,000,000 will be needed to increase enrollment of Priority 8 veterans by 10 percent and has increased funding accordingly. Funding has also been increased an additional $100,000,000 to increase the beneficiary travel reimbursement mileage rate to 41.5 cents per mile from the current rate of 28.5 cents per mile; an additional $10,000,000 for new Vet Centers; an additional $200,000,000 to increase the availability of fee-based services; an additional $116,000,000 for new generation prosthetics; an additional $32,000,000 to allow for additional personnel for the HUD-Veterans Affairs Supportive Housing Program to address an anticipated increase in the number of section 8 vouchers approved and directs the Department to increase the number of case workers as necessary to accommodate the increase in vouchers; and an additional $8,000,000 to increase the homeless grant and per diem program to the authorized level of $130,000,000.
The Committee has included bill language to make available through September 30, 2010, up to $1,350,000,000 of the Medical Services appropriation.
Mental Health and Substance Abuse Services.--While the Committee is encouraged by recent progress the Department has made to include: the policy to allow comorbid inpatient treatment of Post-Traumatic Stress Disorder and substance abuse disorder; the establishment of a suicide hotline in partnership with the Department of Health and Human Services; the increase in mental health initiative funding; and the increase of 23 additional Vet Centers, the Committee believes that much more can be done by the Department to provide for our veterans who are struggling with mental illness and/or substance abuse. The Committee was disappointed that the budget request for fiscal year 2009 did not highlight substance abuse as a Select Program and is concerned that this oversight may reflect a reduced interest in this program. The Committee expects that not less than $584,000,000 will be spent on the Substance Abuse Treatment Program in fiscal year 2009. The Committee has also included bill language to ensure that not less than $3,800,000,000 will be spent on specialty mental health care. The Committee expects the Department to utilize all available mental health resources to ensure access to mental health services for all veterans and to increase availability to fee-based services in areas where the Department is unable to offer care. The Department is further urged to continue work with the Department of Defense and Department of Health and Human Services to develop comprehensive and universal clinical practice guidelines based on evidence-based medicine for PTSD, and to increase work in the areas of suicide prevention and military sexual trauma. The Department is encouraged to consider all treatment options to include the feasibility of utilizing virtual reality exposure therapy in conjunction with neuroprotective antioxidant micronutrients, group psychotherapy; and eye movement desensitization and reprocessing.
The Committee remains concerned that additional action is needed to ensure that the Department is prepared to care for this patient population and directs the Secretary to report to the Committees on Appropriations of both Houses of Congress by January 30, 2009 on actions taken to address the recommendations made by the Fourth National Summit on Women Veterans Issues, the actions taken to address the recommendations made by the `Blue Ribbon Work Group on Suicide Prevention in the Veteran Population', the actions taken to address the recommendations made by the expert panel in public health suicide programs, and the actions taken by the Department to ensure that the VHA is prepared both now and in the future to provide care for this population. Additionally, the Committee has included language directing the Office of Inspector General to conduct a review of the Department's progress in the implementation of the recommendations of the Mental Health Strategic Plan.
Access to Medical Care in Remote Areas.--The Committee continues to be concerned by reports of poor access to care for veterans living in rural areas, areas where VHA services are not available, and areas where travel to VHA facilities is lengthy or difficult. While the Committee agrees that VHA facilities are the preferred option for health care services and that the electronic health record reduces waste while improving treatment, the Committee notes that receiving care should be the first priority. The Committee has therefore provided an additional $200,000,000 for fee-based services. The Committee directs the Under Secretary for Health to distribute this funding outside of the Veterans Equitable Resource Allocation process to regions where additional fee-based services are most needed.
HIV/AIDS.--The Committee notes that the budget request has included $73,680,000 to update HIV testing policies, pending authorization. The Committee agrees with the funding and commends the Department for taking this action.
Prosthetics.--The Committee recommends an additional increase of $116,000,000 above the budget request for new generation prosthetics. The Secretary is directed to review policies with regard to prosthetics and report to the Committees on Appropriations of both Houses of Congress by January 30, 2009 on the steps taken to ensure that the Department is providing veterans with appropriate prosthetic support given recent advances in technology.
Outpatient Services for the Blind.--The Committee was pleased to see an increase in funding for Blind Rehabilitation Services and expects the Department to continue current outpatient services for the blind at no less than fiscal year 2008 levels.
High Risk Populations.--The Committee believes that every effort should be made to increase research, develop early detection and prevention programs, and partner with the Department of Defense and Department of Health and Human Services to develop comprehensive and universal clinical practice guidelines based on evidence-based medicine for diseases that are prevalent among the veteran population and/or the veteran population is at greater risk of contracting than other Americans. The Committee encourages the Department to consider increasing efforts for Amyotrophic Lateral Sclerosis, and Chronic Obstructive Pulmonary Disease; lung cancer screening technologies such as computed tomography scans and computer aided detection in conjunction with chest x-rays; photon-mediated pain treatment; ultrasonic bone stimulation on healing; and bladder cancer screening.
Increase in Mileage Reimbursement Rate for Veterans.--The Committee has included an additional $50,000,000 for a total increase of $100,000,000, to increase the mileage reimburseent rate for veterans by an additional 6.5 cents, to 41.5 cents per mile. This further increase is necessary due to the fact that average retail gasoline prices have increased an average of $1.75 per gallon since January 2007 to a national average of over $4 per gallon.
MEDICAL CARE COLLECTIONS FUND
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 Congressional Budget Office estimate of fees that will be collected in fiscal year 2009 is $2,544,000,000.
MEDICAL SUPPORT AND COMPLIANCE
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Fiscal year 2008 enacted level 1 $4,062,000,000
Fiscal year 2009 budget request 2 4,256,000,000
Committee recommendation in the bill 4,400,000,000
Comparison with:
Fiscal year 2008 enacted level 338,000,000
Fiscal year 2009 budget request 144,000,000
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The Medical Support and Compliance appropriation funds the expenses of management and administration of the Department's health care system to include financial management, public health and environmental hazard, quality and performance management, medical inspection, human research oversight, training programs and continuing education, security, volunteer operations, and human resources.
The Committee recommends $4,400,000,000 for Medical Support and Compliance, an increase of $338,000,000 above the fiscal year 2008 enacted level and an increase of $144,000,000 above the budget request. The Committee estimates that an additional $100,000,000 will be needed to increase enrollment of Priority 8 veterans by 10 percent and has increased funding accordingly.
The Committee has included bill language to make available through September 30, 2010, up to $250,000,000 of the Medical Support and Compliance appropriation.
Third-Party Collections- The Committee is concerned about a recent GAO report that reiterates findings that third party billing and collection processes at the Department continue to be ineffective and limit the revenue received from third party insurance companies. Significant dollars continue to go uncollected, dollars that could be used to further improve the quality and quantity of veterans health care. The Committee believes the Department could do more to increase third party collections and directs the Department to provide a report to the Committees on Appropriations of both Houses of Congress by August 1, 2008 on the specific actions taken to improve third party collections, the results of the Revenue Improvement Demonstration pilot project directed in House Report 109-305, and the feasibility of establishing consolidated patient account centers.
Increasing Collaborations at Veterans Health Administration Facilities- The Committee is encouraged by the progress the Department has made in increasing its collaborations with minority health schools. The Committee has heard testimony, however, about the need for increased efforts and therefore, directs the Department to provide a report to the Committees on Appropriations of both Houses of Congress by January 30, 2009 on the actions taken to improve collaboration with minority health professions schools.
MEDICAL FACILITIES
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Fiscal year 2008 enacted level 1 $4,260,000,000
Fiscal year 2009 budget request 4,661,000,000
Committee recommendation in the bill 5,029,000,000
Comparison with:
Fiscal year 2008 enacted level 769,000,000
Fiscal year 2009 budget request 368,000,000
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The Medical Facilities appropriation provides funds for the operation and maintenance of the Department's health care system's capital infrastructure. Included under this heading are provisions for costs associated with utilities, engineering, capital planning, leases, laundry, groundskeeping, garbage, housekeeping, facility repair, and property disposition and acquisition.
The Committee recommends an appropriation of $5,029,000,000 for Medical Facilities, an increase of $769,000,000 above the fiscal year 2008 enacted level and an increase of $368,000,000 above the budget request. The Committee estimates than an increase of $68,000,000 is needed to accommodate an increased enrollment of Priority 8 veterans by 10 percent and has increased funding accordingly. This recommendation also includes an increase of $300,000,000 for non-recurring maintenance to be distributed in a manner not subject to the Veterans Equitable Resource Allocation. The Committee directs that first priority for this funding be given to maintenance that addresses life/safety and suicide prevention deficiencies on mental health wards.
The Committee has included bill language to make available through September 30, 2010, up to $350,000,000 of the Medical Facilities appropriation.
Community-Based Outpatient Clinics.--The Department is directed to provide the Committees on Appropriations of both Houses of Congress with a status report outlining the actions which have been taken to activate community-based outpatient clinics at the following locations: Chattanooga, Tennessee; Charlottesville, Virginia; Lynchburg, Virginia; and Northwest Washington.
Magnetic Resonance Imaging (MRI).--The Committee encourages the Department to consider the advantages of upright MRI scanning over traditional recumbent MRI scanning in the diagnosis of certain lumbar and cervical pathologies.
MEDICAL AND PROSTHETIC RESEARCH
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Fiscal year 2008 enacted level $480,000,000
Fiscal year 2009 budget request 442,000,000
Committee recommendation in the bill 500,000,000
Comparison with:
Fiscal year 2008 enacted level 20,000,000
Fiscal year 2009 budget request 58,000,000
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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 services 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 organizations provide support for the Department's researchers.
The Committee recommends $500,000,000 for Medical and Prosthetic Research, an increase of $20,000,000 above the fiscal year 2008 enacted level and an increase of $58,000,000 above the budget request. The Committee was disappointed to learn that the budget request had not only cut this account, but had also applied that cut to research in areas that are most relevant to Operation Enduring Freedom and Operation Iraqi Freedom veterans; research areas such as acute trauma, mental illness, and substance abuse all suffered substantial cuts. The recommended increase restores these research areas to their fiscal year 2008 levels. The Committee directs that the additional increase of $20,000,000 be applied to research topics most prevalent within our veteran population.
Research Partnerships.--The Committee believes the Department is uniquely positioned to lead the nation in applying medical research to medical practice. The Department is encouraged to increase its partnering with the Department of Defense and the Department of Health and Human Services in the development of clinical practices using evidence-based medicine and clinical efficacy.
NATIONAL CEMETERY ADMINISTRATION
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Fiscal year 2008 enacted level $195,000,000
Fiscal year 2009 budget request 180,959,000
Committee recommendation in the bill 240,000,000
Comparison with:
Fiscal year 2008 enacted level 45,000,000
Fiscal year 2009 budget request 59,041,000
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The National Cemetery Administration was established in accordance with Public Law 93-43, 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 servicemembers and discharged veterans, together with their spouses and certain dependents, and to permanently maintain their graves; to provide headst