Veterans committee pressured on funding Michaud mulls Bush budget proposal

WASHINGTON – Veterans’ organizations made their pitch Thursday for more money for the federal Veterans Affairs Department to the U.S. House Veterans’ Affairs Committee on which Rep. Michael Michaud of Maine serves.

The Bush administration has asked for $80.6 billion for the department in the next fiscal year, representing an $8.8 billion increase over this year. The department’s health care budget would rise 11.3 percent next year to $34.3 billion.

But many Democrats, including Rep. Bob Filner of California, complained that the amount still falls far short of fulfilling veterans’ needs. Another $4 billion would be needed, Filner said, to satisfy veterans’ needs across the country.

Michaud, who was not necessarily complaining, said his office was still looking into what the proposed budget would mean specifically for Maine.

“My big concern is that they’re moving monies around. We’ve heard that there is going to be a shortage in a lot of divisions,” Michaud said. “And we’re currently keeping a close eye on what it means to Maine and making sure that we have plenty not only to adequately fund programs but also to try to get [proposed] clinics …. up and running as well.”

Chairman Steve Buyer, R-Ind., said he was not worried about any shortfalls in the 2007 budget. “What I’ve learned in the years in which Republicans have been in the majority, whatever the benchmark is that we set, the Democrats will have the theme that it isn’t enough,” he said. “It isn’t just with veterans’ benefits; it could be with education, it could be with Medicare, it could be with Medicaid.”

During the hearing Buyer made a point of contrasting Michaud’s political style on the committee to that of Filner, with whom the chairman occasionally bickered during the hearing. He referred to the Maine Democrat as “a very valued member of the committee. Mr. Michaud is sincere and he’s engaging and he is substantive,” Buyer said.

Among the complaints registered about the proposed budget Thursday, are a plan to impose a $250 enrollment fee on higher-income, non-disabled veterans seeking Veterans Affairs medical benefits. The administration also wants to increase the co-payment on prescription drug benefits from $8 to $15 per monthly medication.

According to several witnesses at the hearing, the VA estimates that these charges would discourage 200,000 veterans from seeking health care coverage for the first time and force more than one million current enrollees to drop out.

Michaud, in a statement after the hearing, called the enrollment fee and the co-payment plan “a non-starter” and said he will oppose the higher charges.

He also said he was “concerned with potential funding shortfalls at facilities around the country. Last year, many facilities, including Togus [in Maine], were forced to borrow, put off hiring or tap into capital accounts to maintain medical services. And ultimately, Congress had to pass emergency supplemental funding for the VA of over $1 billion.

“It is my hope that the VA has given us a full account of their needs this year, so we will not experience a similar budget mess this year that would require another supplemental,” Michaud said in the statement.

The majority of groups testifying Thursday, including the Vietnam Veterans of America and the Association of Service Disabled Veterans, were in favor of mandatory spending for the VA. Though Bush is seeking an increase for 2007, that is not always the case, and the VA budget is subject to cuts, like most other agency budgets, according to witnesses.

Another major issue that the committee will be tackling is a reform of the GI Bill, which helped to expand the middle class after World War II by paying for veterans to attend college. However, the bill does not give the same benefits to members of the Reserve and National Guard. With a large number of reservists and National Guard members fighting in Iraq and Afghanistan, this is becoming an issue that both sides of the aisle are getting behind. Both Michaud and Buyer said they support the extension of benefits.