[House Document 109-46]
[From the U.S. Government Publishing Office]
109th Congress, 1st Session House Document 109-46
REQUEST FOR FY 2006 BUDGET AMENDMENTS
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A REQUEST FOR A FY 2006 BUDGET AMENDMENT FOR THE DEPARTMENT OF VETERANS
AFFAIRS
July 18, 2005.--Referred to the Committee on Appropriations and ordered
to be printed
The White House
Washington, July 14, 2005.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: My Administration is committed to
ensuring that our Nation's veterans continue to receive timely
and high-quality health care. To this end, I ask the Congress
to consider the enclosed $1.977 billion FY 2006 budget
amendment for the Department of Veterans Affairs (VA). I am
requesting these resources to cover the expected increased
costs in FY 2006 that VA will experience in its medical care
budget.
The details of this proposal are set forth in the enclosed
letter from the Director of the Office of Management and
Budget.
Sincerely,
George W. Bush.
[Estimate No. 8, 109th Cong., 1st Sess.]
Executive Office of the President,
Office of Management and Budget,
Washington, DC, July 14, 2005.
The President
The White House.
Submitted for your consideration is a request for a $1.977
billion FY 2006 budget amendment for the Department of Veterans
Affairs (VA) medical care budget. The discretionary budget
authority proposed in your FY 2006 Budget would be increased by
this amount. With this amendment, discretionary spending
proposed in your Budget would grow by 2.3 percent, less than
the expected rate of inflation, and non-security discretionary
spending would be held below the FY 2005 level.
The VA has recently determined that due to unanticipated
growth in the number of patients using the VA health care
system and the increased cost per patient of providing this
care, the FY 2005 enacted budget and the FY 2006 proposed
budget include insufficient funding. On June 28, 2005,
Secretary Nicholson informed the Congress of additional needs
for the VA medical care system. On June 30, 2005, you submitted
a $975 million supplemental request to Congress to address FY
2005 needs. In that supplemental request you indicated that the
Administrtion would be submitting a budget amendment for FY
2006.
The details of this FY 2006 request and how the request
rlates to the FY 2005 supplemental funding request that was
transmitted to the Congress on June 30,2005, are described
below.
FY 2005 supplemental I
The FY 2005 supplemental for VA medical care proposed a
$975 million increase for VA to cover a 2.9 percent unexpected
increase in the number of patients in 2005. VA predicted a 2.3
percent increase in patients and now predicts that number to be
5.2 percent.
FY 2006 budget amendment
The components of the amendment are:
An additional $300 million to meet FY 2005 needs. The
supplemental covered the increased cost for the additional
number of new patients. However, new VA data indicate that the
average cost per patient in the entire system has increased by
one percent because of the increasing number of visits per
patient and the complexity of their conditions. The President's
original budget assumed that VA would carry over funding from
FY 2005 to meet FY 2006 needs, but now $300 million of that
expected carryover will be used for the re-estimated FY 2005
needs. The FY 2006 budget amendment will cover the loss ofthis
expected carryover.
A $677 million increase for VA to cover an estimated 2.0
percent increase in the number of patients expected to seek
care in FY 2006. The President's Budget assumed 5.2 million
patients in FY 2006 and VA now predicts this number to be 5.3
million patients.
A $400 million increase to recognize that the average cost
per patient in the entire system will continue to grow in FY
2006 to 1.2 percent more than expected.
A $600 million upward revision to correct for the estimated
cost of long-term care.
Recommendation
I have carefully reviewed this proposal and am satisfied
that this is necessary at this time. Therefore, I join the
Secretary of the Department of Veterans Affairs in recommending
that you transmit this amendment to the Congress.
Sincerely,
Joshua B. Bolten, Director
Enclosures
FY 2006 Budget Amendment
DEPARTMENT OF VETERANS AFFAIRS
Medical Programs
MEDICAL SERVICES
FY 2006 Budget Appendix Pages: 893-897
FY 2006 Pending Request: $22,377,141,000 (includes two
legislative fee proposals)
Proposed Amendment: $1,977,000,000
Revised Request: $24,354,141,000
(In the appropriations language under the above heading,
delete ``$19,789,141,000'' and substitute
``$21,766,141,000''.)$22,377,141,000 (includes two legislative
fee proposals)
This amendment would increase the resources available to
the Medical Services Fund to address an increase in the demand
and cost for VA medical care that began in FY 2005 and will
continue through FY 2006.
The request would increase FY 2006 outlays by
$1,810,338,900.