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VA Budget - Cuts That Kill

By John Lindquist

Every major program in the U.S. (except major weapons programs) is up for deep cuts this year. Since 1979 the VA has been taking cuts and this year is no different. There's supposed to be $1 billion off the top of the VA budget.

All this comes from a President who can praise the dead at Normandy while ignoring the contributions of their living comrades once he gets home. This time around all veterans and our families are being dealt the first in a series of death blows to the VA medical system.

Whether you fought the "Good War" against facism, or one of the nasty ones like Korea or Vietnam, the ax of David Stockman is about to fall, with the help of Wisconsin's Senator Kasten. The so-called "painless" budget cuts would include:

1. No cost of living increases for VA Disability checks.

2. A proposed savings of $ 600 million by applying a means test or by attempting to bill 3rd party insurance companies for non-service connected disabilities.

This means test has been on the books for years and the VA chose not to use it because it does not need it. Vets with insurance go to private hospitals. Twenty-five % of vets who use the VA make less than $6000 a year. Only 1 in 9 veterans use the VA in their lifetime. The point is that only the service-connected and poor veterans now use the VA. A means test is simply a waste of time and money, both of which could be used on patients.

The attempt to bill 3rd party insurers is another smokescreen. The Office of Management and Budget (OMB) used to say that the VA could save $300+ million through this device. Now they have cooled down to $65 million. In fact most insurance policies exclude payments to the government.

3. The raising of the GI Bill user fee from 1% to 3.8% would wipe out the GI Bill home loan program. Why would vets pay out $3-$5,000 with not a penny going to the principle. Yet this is a VA program of particular value to the Vietnam-era Vet, and a stimulus to the housing market.

4. The new cuts would wipe out 8,000 healthcare staff jobs. This will happen at a time when the DAV reports a quarter of a million vets a year are being turned away at VA's across the country. We wait 45 days for an outpatient appointment. A 70% Increase in staff is needed in the next 15 years.

5. The new Senate budget freezes the construction of 2 new hospitals and 320 new nursing home beds. Since 1971 the VA has eliminated 1700 nursing home beds, cuts that aim directly at World War I and II veterans. 6. Not directly related to the budget cuts is the idea by Kemp /Kasten/Reagan to tax service-connected disability payments. Under this plan, the greater the disability, the greater the tax. This proposal, part of Reagan's tax simplification plan has angered vets as much as any. The country owes a moral debt to the men and women who fought for their country, no matter what war they fought in. As Reagan said during his first campaign, "Veterans benefits are part of the cost of war." Seems like more empty words, like those at Normandy.

At present the House version of the budget for the VA would cut nothing and increase healthcare by $250 million. The budget goes to a Senate/House Conference committee for compromise. Pressure on both Houses of Congress is still needed. The time to save the system of VA benefits and healthcare is now. If cuts absolutely have to be made, make them in the VA's front office!

This nation spends billions on nukes and bombers we don't need, and on wars like Vietnam or Central America. The government learned nothing from the experience of Vietnam. Now it wants to discard us like used Dixie cups. Vets are getting to know how it feels to be a welfare mother, a school kid with no breakfast, a homeless person on the street, or an old man with no medical care. We are all in the same boat.

Together our fight can be won. Reagan, Stockman, Senator Kasten--all of them--can be stopped, but we must stick together.

For our enemies in Washington who do not worry about the cost of wars, much less the pain and death suffered by the men and women of this country, I'd like to end with the truth that vets have won these battles before--and we'll win again!

John Lindquist
National Office
VVAW