January 15, 2012     Vol. 18, No. 1

Congress Finally Finishes Appropriations Work

As Congress prepared to recess for the Christmas holiday, work was finally completed on the FY 2012 Military Construction and Veterans Affairs (VA) appropriations bill. Prior to the expiration of the Continuing Resolution on December 16, 2011, the House and Senate opened debate on all the appropriations bills for FY 2012. Congress formally completed work on the nine appropriations bills that were unfinished using the Military Construction and Veterans Affairs appropriations bill as the vehicle for an omnibus spending bill.

The conference report approved by the House and Senate included advance appropriations recommendations for VA health care for FY 2013 that matches the Administration’s request. For FY 2013, the bill includes approximately $52.5 billion for total medical care, to include more than $41.3 billion for Medical Services. While The Independent Budget co-authors—AMVETS, Disabled American Veterans, Paralyzed Veterans of America, and Veterans of Foreign Wars—are generally pleased with this recommendation, Congress and the Administration must remain vigilant to ensure that this level of funding is sufficient when FY 2013 demand is reevaluated next year.

PVA was pleased to see that the final version of the legislation included approximately $581 million (the amount approved by the Senate last summer) for Medical and Prosthetic Research. The House version of the appropriations bill, approved last summer, had originally included a significant reduction in research spending ($531 million). In fact, the Administration had proposed to reduce research funding by approximately $72 million from the FY 2011 appropriated level to $509 million. Meanwhile, The Independent Budget called for $620 million for VA research programs.

Additionally, we are very concerned about the significant reductions recommended for funding Major and Minor Construction. The appropriations bill calls for $590 million for Major Construction, approximately $610 million less than the FY 2011 appropriated level. Also, the appropriations bill provides for $482 million for Minor Construction, the House version only called for $475 million. Without adequate funding to invest in new infrastructure and upgrades to existing buildings, added pressure will be placed on the VA to provide even greater benefits and health care services to veterans with less capacity.

While the conference report on the FY 2012 Military Construction and Veterans Affairs appropriations bill did not exceed the recommendations of The Independent Budget, the VA was spared significant cuts that many other federal agencies now face. With continued pressure on the federal budget expected next year, PVA will remain actively involved in the budget process to ensure that the VA does not face serious reductions in funding in the future.

House VA Subcommittee Holds Hearing on VA’s Compensated Work Therapy Program

On December 14, the House Committee on Veteran’s Affairs, Subcommittee on Oversight and Investigations, held an oversight hearing to discuss the successes of VA’s Compensated Work Therapy Program (CWT). Compensated Work Therapy is a Department of Veterans Affairs (VA) vocational rehabilitation program that strives to match and support work ready veterans in competitive jobs, and to consult with business and industry regarding their specific employment needs. CWT programs work to maintain highly responsive long term relationships with business and industry promoting employment opportunities for veterans with physical and mental disabilities. Typically CWT programs are located within VA medical centers in most large metropolitan areas and many smaller communities.

Subcommittee Chairman Bill Johnson (R-OH) stressed the importance of the Compensated Work Therapy for veterans in today’s economic climate. “In a time of high unemployment, especially among veterans, we all must make every effort to match qualified workers with suitable jobs. The CWT program does just that, matching disabled veterans with employers,” Johnson said.

PVA submitted questions to the Subcommittee in advance for Committee Members to direct to the VA panel. PVA’s primary concern was how the VA’s program would work in conjunction with PVA’s vocational rehabilitation. PVA’s vocational rehabilitation program also functions from within select VA hospitals, assisting catastrophically disabled veterans to prepare to reenter the workforce and to make a connection with local employers. The success of PVA’s program can be attributed to a proper match for employment for the veteran and intense follow-up with the employer for years after placement.

VA indicated in its testimony that their program was focused on the population of veterans being treated in the VA health care system for cognitive or other mental illness problems. The VA CWT program requires a VA doctor’s referral. It currently services over 41,000 veterans at 187 locations. Some particular programs, such as the one in Bedford, Massachusetts that was discussed during the hearing, have been successful working in the community. They have established working relationships with over 15 businesses in that community that are eager to employ veterans enrolled in the CWT program.

Chairman Johnson acknowledged that the CWT program is well-intended. However, he emphasized that having “some successful locations” is not good enough. All of their CWT locations should be as aggressive and successful with placing veterans who have been excluded from the workplace. Chairman Johnson said that the Subcommittee will continue having hearings to evaluate this important program and other employment programs offered by the VA.

House VA Subcommittee Reviews Implementation of “VOW to Hire Heroes Act”

On December 15, the House VA Subcommittee on Economic Opportunity held an oversight hearing to learn about the VA’s implementation of the recently enacted “VOW to Hire Heroes Act of 2011.” Representatives from the VA and the Department of Labor (DOL) were invited to testify for this hearing. The “VOW to Hire Heroes Act of 2011” was signed into law in November.

“I can’t stress enough that the proper implementation of this law is extremely critical, and as such I want to put both agencies on notice that this will be this Subcommittee’s top priority in the next session of Congress,” stated Rep. Marlin Stutzman (R-IN), Chairman of the Subcommittee on Economic Opportunity. “We need to identify any obstacles now so that our veterans can take full advantage of this jobs law.”

One major provision of the legislation is the temporary extension of Montgomery GI Bill benefits to eligible veterans to receive up to one year of training at a community college or technical school for in-demand occupations. Eligible veterans would have to be between the age of 35 and 60, be unemployed, and not have eligibility for other VA education programs.

The legislation also includes measures to increase accountability for the agencies programs that are intended to help the unemployed veteran. As an example, the legislation requires the Department of Labor to track what happens to veterans who receive counseling, training and placement. Additionally, DOL must show many eligible veterans find jobs within 90 days of completing the program, their median salary, and what percentage of training graduates are able to obtain the credentials needed to work in the skill they just learned.

Additionally, the legislation provides tax credits to employers who hire veterans. This was a major initiative of the Administration. The legislation also makes participation in the Transition Assistance Program, managed by DOL, mandatory for all servicemembers.
Chairman Stutzman indicated that implementation of this law will be the top priority of the Subcommittee. Proper implementation of this law will help Congress attain the goal of reducing unemployment among veterans to levels below the national unemployment rate.
Department of Justice Settles Allegations of Disability-Based Housing Discrimination.

The United States Department of Justice has announced a settlement of its Fair Housing Amendments Act lawsuit against the owners, developers, and architects of a 276-unit complex in Louisville, Ky. Under the settlement, the defendants will pay all costs related to making the apartment complex accessible to persons with disabilities and pay $275,000 to compensate 29 individuals who filed the initial complaint. The retrofitting includes modifying walkways, removing steps, providing accessible curb ramps and providing accessible walks to site amenities, such as the clubhouse, pool, mailbox and trash facilities. It also requires the defendants to reconfigure thermostats and outlets to accessible heights, increase door widths and reconfigure bathrooms and kitchens.

PVA is currently an organizational plaintiff in a lawsuit in the Southern District of Virginia alleging similar fair housing violations against the apartment developer HH Hunt. Two PVA members are individual plaintiffs in that case.

The lawsuit arose from a complaint that was filed with the Department of Housing and Urban Development (HUD) by a former resident of Park Place Apartments. HUD referred the matter to the Justice Department, which conducted its own investigation and subsequently filed the lawsuit in August 2010.