Budget FY 2012 - Department of Veterans Affairs [PDF - U.S

DEPARTMENT OF VETERANS AFFAIRS

The 2012 Budget provides the resources to help achieve thePresident's vision of transforming VA into a 21st Century organ-ization that is veteran-centric, results-driven, and forward-look-ing. This Budget provides $61,853 million in gross discretionaryfunding for veterans health, benefits, and other services, including$58,775 million in net discretionary budget authority and $3,078million in anticipated medical collections.

✦

VETERANS HEALTH ADMINISTRATIONFederal Funds

MEDICAL SERVICES

For necessary expenses for furnishing, as authorized by law, inpatientand outpatient care and treatment to beneficiaries of the Department ofVeterans Affairs and veterans described in section 1705(a) of title 38,United States Code, including care and treatment in facilities not underthe jurisdiction of the Department, and including medical supplies andequipment, food services, and salaries and expenses of health care employ-ees hired under title 38, United States Code, and aid to State homes asauthorized by section 1741 of title 38, United States Code; $41,354,000,000,plus reimbursements, shall become available on October 1, 2012, andshall remain available until September 30, 2013: Provided, That, of theamount made available under this heading $1,015,000,000 shall remainavailable until September 30, 2014: Provided further, That, notwithstand-ing any other provision of law, the Secretary of Veterans Affairs shall es-tablish a priority for the provision of medical treatment for veterans whohave service-connected disabilities, lower income, or have special needs:Provided further, That, notwithstanding any other provision of law, theSecretary of Veterans Affairs shall give priority funding for the provisionof basic medical benefits to veterans in enrollment priority groups 1through 6: Provided further, That, notwithstanding any other provisionof law, the Secretary of Veterans Affairs may authorize the dispensing ofprescription drugs from Veterans Health Administration facilities to en-rolled veterans with privately written prescriptions based on requirementsestablished by the Secretary: Provided further, That the implementationof the program described in the previous proviso shall incur no additionalcost to the Department of Veterans Affairs.

Note.—This account receives advance appropriations; a full-year 2011 appropri-ation for this account was enacted in the Consolidated Appropriations Act, 2010(P.L. 111–117).

Special and Trust Fund Receipts (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.CR2010 actualIdentification code 36–0160–0–1–703

236236242Balance, start of year ....................................................................0100Adjustments:

..................................3Rounding adjustment ................................................................0191

236236245Balance, start of year ................................................................0199Receipts:

652702698Pharmaceutical Co-payments, MCCF ........................................0220222Enhanced-use Lease Proceeds, MCCF .......................................0221

161158169First Party Collections, MCCF ....................................................02222,1971,9541,904Third Party Collections, MCCF ...................................................0223

444Parking Fees, MCCF ...................................................................0224575757Compensated Work Therapy, MCCF ............................................0225333MCCF, Long-term Care Copayments ..........................................0226222Payments from Compensation and Pension, MCCF ...................0240

3,0782,8822,839Total receipts and collections ................................................0299

3,3143,1183,084Total: Balances and collections .................................................0400Appropriations:

–3,078–2,882–2,848Medical Care Collections Fund ..................................................0500

236236236Balance, end of year ..................................................................0799

Program and Financing (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Obligations by program activity:7,2507,2297,361Acute hospital care ...................................................................0001557537516Rehabilitative care ....................................................................0002

3,9713,8283,457Psychiatric care .........................................................................00033,8963,5953,355Nursing home care ....................................................................0004

747265Subacute care ...........................................................................0005535149State home domiciliary ..............................................................0006

25,06322,96220,276Outpatient care .........................................................................00071,2281,1211,034CHAMPVA ...................................................................................0008953..................................VA contingency fund ..................................................................0009

43,04539,39536,113Total operating expenses ...............................................................0091132185203Acute hospital care ...................................................................0101131820Rehabilitative care ....................................................................01026794103Psychiatric care .........................................................................0103436066Nursing home care ....................................................................0104122Subacute care ...........................................................................0105

328457506Outpatient care .........................................................................0107

584816900Total capital investment ................................................................0191

43,62940,21137,013Total direct program ......................................................................0293

43,62940,21137,013Total direct obligations ..................................................................0799241228377Reimbursable program ..............................................................0801

43,87040,43937,390Total new obligations .....................................................................0900

Budgetary Resources:Unobligated balance:

1,0011,209615Unobligated balance brought forward, Oct 1 .........................1000..................................–25Unobligated balance transferred to other accounts ..............1010..................................45Unobligated balance transferred from other accounts ..........1011

1,0011,209635Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:953.................34,708Appropriation ....................................................................1100

.................–15–15Appropriations transferred to other accounts ....................11203,0782,8822,896Appropriations transferred from other accounts ...............1121

4,0312,86737,589Appropriation, discretionary (total) .......................................1160Advance appropriations, discretionary:

39,65037,136.................Advance appropriation ..................................................1170–552..................................Advance appropriations permanently reduced ..............1173

39,09837,136.................Advanced appropriation, discretionary (total) ...................1180Spending authority from offsetting collections, discretionary:

241228370Collected ...........................................................................1700..................................7Change in uncollected payments, Federal sources ............1701

241228377Spending auth from offsetting collections, disc (total) .........175043,37040,23137,966Budget authority (total) .............................................................190044,37141,44038,601Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–2Unobligated balance expiring ................................................1940

5011,0011,209Unexpired unobligated balance, end of year ..........................1941

Change in obligated balance:Obligated balance, start of year (net):

5,9304,9164,366Unpaid obligations, brought forward, Oct 1 (gross) ..............3000–11–11–10Uncollected pymts, Fed sources, brought forward, Oct 1 ........3010

5,9194,9054,356Obligated balance, start of year (net) .......................................302043,87040,43937,390Obligations incurred, unexpired accounts .............................3030

..................................119Obligations incurred, expired accounts .................................3031–42,394–39,425–36,959Outlays (gross) ......................................................................3040

..................................–7Change in uncollected pymts, Fed sources, unexpired ..........3050

..................................6Change in uncollected pymts, Fed sources, expired ..............3051Obligated balance, end of year (net):

7,4065,9304,916Unpaid obligations, end of year (gross) .................................3090–11–11–11Uncollected pymts, Fed sources, end of year .........................3091

7,3955,9194,905Obligated balance, end of year (net) .........................................3100

Budget authority and outlays, net:Discretionary:

43,37040,23137,966Budget authority, gross .........................................................4000Outlays, gross:

37,35934,62832,573Outlays from new discretionary authority ..........................40105,0354,7974,386Outlays from discretionary balances .................................4011

1029

MEDICAL SERVICES—ContinuedProgram and Financing—Continued


42,39439,42536,959Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–63–59–47Federal sources .................................................................4030

–178–169–331Non-Federal sources .........................................................4033

–241–228–378Offsets against gross budget authority and outlays (total) ....4040Additional offsets against gross budget authority only:

..................................–7Change in uncollected pymts, Fed sources, unexpired .......4050

..................................8Offsetting collections credited to expired accounts ...........4052

..................................1Additional offsets against budget authority only (total) ........4060

43,12940,00337,589Budget authority, net (discretionary) .........................................407042,15339,19736,581Outlays, net (discretionary) .......................................................408043,12940,00337,589Budget authority, net (total) ..........................................................418042,15339,19736,581Outlays, net (total) ........................................................................4190

For 2013, the Budget is requesting $52.5 billion in advanceappropriations for the three medical care appropriations: MedicalServices, Medical Support and Compliance, and Medical Facilit-ies. This request for advance appropriations fulfills the Adminis-tration's commitment to provide reliable and timely resources tosupport the delivery of accessible and high-quality medical ser-vices for veterans. Advance appropriations require a multi-yearapproach to budget planning whereby one year builds off theprevious year. This funding enables timely and predictablefunding for VA's medical care to prevent our Nation's veteransfrom being adversely affected by budget delays, and providesopportunities to more effectively use resources in a constrainedfiscal environment. For example, estimated savings from man-agement improvements to be achieved in 2011 and 2012 will becarried forward into the following years to reduce the new appro-priations needed in 2012 and 2013. Without the carryover ofthese resources from 2011 and 2012, currently estimated at $1.1billion, VA would need a higher level of appropriations in 2012and 2013.

For 2012, two administrative provisions revise the $50.6 billionadvance appropriations for the three medical care accounts bothto account for the civilian pay freeze beginning in January 2011and to propose a contingency fund to address a potential increasein demand for medical care services due to changes in economicconditions. For the civilian pay freeze, the budget is lowering theadvance appropriations by $713 million to reflect the savingsfrom eliminating the January 2011 civilian pay raise amountrequested at 1.4 percent in the 2011 President's budget submis-sion and a January 2012 civilian pay raise amount assumed tobe 2.3 percent. For the contingency fund, the budget potentiallyincreases the advance appropriations by $953 million to reflectthe impact of economic conditions estimated by the VA's EnrolleeHealth Care Projection Model. The contingency fund wouldprovide additional funds up to $953 million to become availablefor obligation if the Administration determines that the additionalcosts due to changes in economic conditions, as estimated by theModel, materialize in 2012. The economic impact is incorporatedinto the Model for the first time this year. Based on experiencefrom 2010, the need for this fund will be carefully monitored in2012. This cautious approach recognizes the potential impact ofeconomic conditions as estimated by the Model while acknow-ledging the uncertainty associated with the estimates. VA alsoprovides funds in 2012 to support the "Caregivers and VeteransOmnibus Health Services Act of 2010" to provide supplementalhelp to family caregivers of the most severely wounded veteransreturning from Iraq and Afghanistan.

With the resources requested for 2012 and 2013, VA will furtherexpand health care eligibility to non-disabled veterans earningmodest incomes. This expansion will bring nearly 550,000 eligibleveterans into the VA health care system by 2013. The requestedlevels provide the resources needed to achieve this expansionwhile maintaining high quality and timely care for lower-incomeand service-disabled veterans who currently rely on VA medicalcare.

Medical Services.—For Medical Services, the Budget reflectsthe following appropriation funding: the 2011 enacted advanceappropriations of $37.1 billion; the 2012 appropriation requestof $40.1 billion; and the 2013 advance appropriations request of$41.4 billion. This appropriation provides for a comprehensive,integrated health care delivery system that addresses the needsof eligible veterans and beneficiaries in VA medical centers,outpatient clinic facilities, contract hospitals, State homes, andoutpatient programs on a fee basis. Hospital and outpatient careis also provided by the private sector for certain dependents andsurvivors of veterans under the Civilian Health and MedicalPrograms for the Department of Veterans Affairs (CHAMPVA).

Medical Care Collections Fund (MCCF).—For 2013, VA estim-ates collections of nearly $3.3 billion, representing seven percentof available resources. VA has the authority to collect inpatientand outpatient co-payments, medication co-payments, andnursing home co-payments; authority for certain income verific-ation; authority to recover third-party insurance payments fromveterans for nonservice-connected conditions; and authority tocollect revenue from enhanced use leases. These collections alsoinclude those collected from the Compensated Work TherapyProgram, Compensation and Living Expenses Program, and theParking Program.

WORKLOAD

Provision of veterans' health care.—the VA contingency fund of$953 million is included in each of the program activities below.

Acute hospital care.—Costs for 2012 are estimated to be $7,601million for operating medical, neurological, surgical, contract andState home hospital beds.

Estimated operating levels are:=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 est.2010 actual662,245642,546623,354Patients treated ...................................................................................

9,0788,9338,858Average daily census ............................................................................42,06541,95940,767Average employment ............................................................................

Rehabilitative care.—Costs for 2012 are estimated to be $589million for the provision of rehabilitative care, including spinalcord injury care.


2012 est.2011 est.2010 actual16,33215,90915,628Patients treated ...................................................................................1,1401,1331,130Average daily census ............................................................................4,3084,2974,175Average employment ............................................................................

Psychiatric care.—Costs for 2012 are estimated to be $4,162million for the inpatient, residential, and outpatient care of vet-erans with problems related to mental illness, including alcoholand drug problems.


2012 est.2011 est.2010 actual168,270162,351156,601Patients treated ...................................................................................10,37810,1689,940Average daily census ............................................................................28,52528,45327,645Average employment ............................................................................

Nursing home care.—Costs for 2012 are estimated to be $3,939million for the care of residents in VA community living centers,contract nursing homes, and State nursing homes.


2012 est.2011 est.2010 actual106,348102,677100,239Patients treated ...................................................................................38,13337,47437,057Average daily census ............................................................................

THE BUDGET FOR FISCAL YEAR 2012Veterans Health Administration—ContinuedFederal Funds—Continued1030

19,87319,82319,260Average employment ............................................................................

Noninstitutional extended care.—Costs for 2012 are estimatedto be $1,613 million for noninstitutional extended care programssuch as adult day care; home based primary care, skilled nursingand rehabilitation care; and home health aids.


2012 est.2011 est.2010 actual113,926109,25685,940Average daily census ............................................................................

Subacute care.—Costs for 2012 are estimated to be $75 millionfor the treatment of veterans who require a level of care betweenacute and long-term care, as provided in VA hospital intermediatebed sections.


2012 est.2011 est.2010 actual2,6793,3834,294Patients treated ...................................................................................105123147Average daily census ............................................................................506505491Average employment ............................................................................

State home domiciliary care.—Costs for 2012 are estimated tobe $53 million for the care of veterans in locations other thantheir own homes, such as domiciliary care programs.


2012 est.2011 est.2010 actual4,0464,1624,281Patients treated ...................................................................................2,7102,7102,710Average daily census ............................................................................

Outpatient care.—Costs for 2012 are estimated to be $24,610million for outpatient medical and dental care provided by staff,physicians, and dentists participating under a fee basis arrange-ment for certain eligible veterans.

Estimated operating levels are:

NUMBER OF MEDICAL VISITS AND DENTAL WORKLOADS=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 est.2010 actualMedical visits (in thousands):

74,55371,22567,878Staff visits ...........................................................................................14,83713,18311,678Fee visits ..............................................................................................1,4441,3701,283Readjustment counseling .....................................................................

90,83485,77880,839Total .........................................................................................4,273,4574,145,6363,946,188Dental procedures: .......................................................................

89,33389,10886,575Average employment ............................................................................

Civilian Health And Medical Program of the Department ofVeterans Affairs (CHAMPVA).—Costs for 2012 are estimated tobe $1,228 million for private hospital and outpatient care for de-pendents and survivors of certain veterans.


2012 est.2011 est.2010 actual920910901Average daily hospital census ..............................................................

11,28310,7959,812Outpatient (in thousands) ....................................................................

PERFORMANCE MEASURES

Provide high-quality health care.—Use of clinical practiceguidelines in treating patients results in improved health ofveterans and reduced use of services. The prevention indexspotlights and summarizes a variety of evidence-based measuresfor high-quality preventive health care. VHA's strategy to monitorsatisfaction through patient surveys will identify areas of improve-ment in all medical services.=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 est.2010 actual92%92%92%Clinical Practice Guidelines Index III ....................................................93%93%91%Prevention Index IV ...............................................................................

Access to medical care.—VA's strategy is to improve access andtimeliness of service by reducing waiting times in specialty andprimary care clinics for new patient appointments in medicalcenters nationwide and by relying more extensively on non-insti-tutional forms of long-term care. In 2011, VHA will begin meas-uring the three appointment performance measures using a 14-day standard instead of the previous 30-day standard. VA strives

to improve timely access to the delivery of primary and specialtycare which is critical to providing high-quality care to veterans.=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 est.2010 actualNew appointment performance measures for 2011 are provided below:

94%93%93%Percentage of primary care appointments completed within 14 days of

the desired date ...............................................................................

94%93%93%Percentage of specialty care appointments completed within 14 days

of the desired date ...........................................................................

85%85%84%Percentage of new patient appointments completed within 14 days of

the desired date ...............................................................................

The performance measures below have been changed from 30 days to 14days (see new measures above):

MeasureChanged

MeasureChanged99%

Percentage of primary care appointments completed within 30 days ofthe desired date ...............................................................................

MeasureChanged

MeasureChanged99%

Percentage of specialty care appointments completed within 30 daysof the desired date ...........................................................................

MeasureChanged

MeasureChanged99%

Percentage of new patient appointments completed within 30 days ofappointment create date ..................................................................

113,926109,25685,940Non-institutional long-term care average daily census ............................

VA DOD sharing.—VA's strategy is to improve collaborationand exchange with DOD.

=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===2012 est.2011 est.2010 actual

$113$108Not

applicableAmount billed for health care services provided to the DOD beneficiaries

at VA facilities ($ in millions) ...........................................................

Revenue cycle improvement.—VHA is seeking to improve itsperformance in the area of medical care collections. The revenuecycle improvement plan includes initiatives that will improveefficiency and accuracy.=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 est.2010 actual404845Gross days of revenue outstanding third-party collections .......................

Object Classification (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Direct obligations:Personnel compensation:

13,63713,43712,856Full-time permanent .........................................................11.1279276254Other than full-time permanent ........................................11.3

1,5761,5521,492Other personnel compensation ..........................................11.5

15,49215,26514,602Total personnel compensation ......................................11.94,4004,3044,093Civilian personnel benefits ....................................................12.1

111111Benefits for former personnel ................................................13.0838077Employee travel .....................................................................21.0

798770745Beneficiary travel ..................................................................21.0151414Interagency motor pool payments ..........................................21.0333All other .................................................................................21.0

372923Transportation of things ........................................................22.0..................................1Rental payments to others ....................................................23.2

318287259Communications, utilities, and miscellaneous charges ........23.3312417Printing and reproduction .....................................................24.0

6,0074,7013,847Other contractual services ....................................................25.2938989Outpatient dental fees ..........................................................25.6

2,1961,8081,547Medical and nursing fees ......................................................25.6629574537Community nursing homes ....................................................25.6

1,6741,4321,274Contract hospitalization ........................................................25.6

896821762Civilian Health and Medical Program of the Department of

Veterans Affairs (CHAMPVA) ..............................................25.6

8,9118,1267,375Medical supplies and materials ............................................26.0858817900Equipment .............................................................................31.0

..................................1Land and structures ..............................................................32.0796741691Medical grants, subsidies, and contributions .......................41.0381315145Medical grants to private organizations ................................41.0

43,62940,21137,013Direct obligations ..............................................................99.0241228377Reimbursable obligations .........................................................99.0

43,87040,43937,390Total new obligations ............................................................99.9

Employment Summary=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


182,828182,349177,123Direct civilian full-time equivalent employment ............................10011,7821,7961,790Reimbursable civilian full-time equivalent employment ...............2001

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1031DEPARTMENT OF VETERANS AFFAIRSVeterans Health Administration—Continued

Federal Funds—Continued

MEDICAL SUPPORT AND COMPLIANCE

For necessary expenses in the administration of the medical, hospital,nursing home, domiciliary, construction, supply, and research activities,as authorized by law; administrative expenses in support of capital policyactivities; and administrative and legal expenses of the Department forcollecting and recovering amounts owed the Department as authorizedunder chapter 17 of title 38, United States Code, and the Federal MedicalCare Recovery Act (42 U.S.C. 2651 et seq.); $5,746,000,000, plus reimburse-ments, shall become available on October 1, 2012, and shall remainavailable until September 30, 2013: Provided, That, of the amount madeavailable under this heading $145,000,000 shall remain available untilSeptember 30, 2014.




Obligations by program activity:1,1331,0891,071Acute hospital care ...................................................................00011059994Rehabilitative care ....................................................................0002785727664Psychiatric care .........................................................................0003568529475Nursing home care ....................................................................0004141412Subacute care ...........................................................................0005

2,6512,8262,511Outpatient care .........................................................................0006857671CHAMPVA ...................................................................................0007

5,3415,3604,898Total operating expenses ...............................................................0091181720Acute hospital care ...................................................................0101111Rehabilitative care ....................................................................0102

151416Psychiatric care .........................................................................010310911Nursing home care ....................................................................0104393842Outpatient care .........................................................................0105



5,4245,4394,988Total direct obligations ..................................................................0799666334Reimbursable program activity .................................................0801



.................132226Unobligated balance brought forward, Oct 1 .........................1000

..................................–1Unobligated balance transferred to other accounts ..............1010

..................................14Unobligated balance transferred from other accounts ..........1011

.................132239Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:..................................4,930Appropriation ....................................................................1100..................................–48Appropriations transferred to other accounts ....................1120

..................................4,882Appropriation, discretionary (total) .......................................1160Advance appropriations, discretionary:

5,5355,307.................Advance appropriation ..................................................1170–111..................................Advance appropriations permanently reduced ..............1173


666333Collected ...........................................................................1700..................................1Change in uncollected payments, Federal sources ............1701

666334Spending auth from offsetting collections, disc (total) .........17505,4905,3704,916Budget authority (total) .............................................................19005,4905,5025,155Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–1Unobligated balance expiring ................................................1940..................................132Unexpired unobligated balance, end of year ..........................1941


1,2941,043833Unpaid obligations, brought forward, Oct 1 (gross) ..............3000–1–1–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3010

1,2931,042832Obligated balance, start of year (net) .......................................30205,4905,5025,022Obligations incurred, unexpired accounts .............................3030

..................................–66Obligations incurred, expired accounts .................................3031–5,396–5,251–4,746Outlays (gross) ......................................................................3040

..................................–1Change in uncollected pymts, Fed sources, unexpired ..........3050

..................................1Change in uncollected pymts, Fed sources, expired ..............3051

Obligated balance, end of year (net):1,3881,2941,043Unpaid obligations, end of year (gross) .................................3090

–1–1–1Uncollected pymts, Fed sources, end of year .........................3091

1,3871,2931,042Obligated balance, end of year (net) .........................................3100



4,8624,7554,001Outlays from new discretionary authority ..........................4010534496745Outlays from discretionary balances .................................4011


Offsetting collections (collected) from:–62–59–32Federal sources .................................................................4030–4–4–2Non-Federal sources .........................................................4033


..................................–1Change in uncollected pymts, Fed sources, unexpired .......4050


...................................................Additional offsets against budget authority only (total) ........4060


For 2013, the Budget is requesting $5.7 billion in advance ap-propriations for Medical Support and Compliance. This requestfor advance appropriations fulfills the Administration's commit-ment to provide reliable and timely resources to support the de-livery of accessible and high-quality medical services for veterans.

For Medical Support and Compliance, the Budget reflects thefollowing appropriation funding: the 2011 enacted advance ap-propriations of $5.3 billion; the 2012 appropriations request of$5.4 billion; and the 2013 advance appropriations request of $5.7billion. The Medical Support and Compliance appropriation fin-ances the expenses of management, security, and administrationof the VA health care system through the operation of VA medicalcenters, other facilities, Veterans Integrated Service Networkoffices and facility director offices, chief of staff operations,quality of care oversight, legal services, billing and coding activ-ities, procurement, financial management, and human resourcemanagement.





290289279Other personnel compensation ..........................................11.5

2,8302,8242,738Total personnel compensation ......................................11.9847829789Civilian personnel benefits ....................................................12.1

333Benefits for former personnel ................................................13.0827977Employee travel .....................................................................21.0444All other .................................................................................21.0

131110Transportation of things ........................................................22.0112106101Communications, utilities, and miscellaneous charges ........23.3161514Printing and reproduction .....................................................24.0

1,3031,3701,047Other contractual services ....................................................25.2444Medical and nursing fees ......................................................25.6

127115110Medical supplies and materials ............................................26.0..................................1Provisions ..............................................................................26.0

837989Equipment .............................................................................31.0..................................1Land and structures ..............................................................32.0






43,23443,17841,611Direct civilian full-time equivalent employment ............................1001831828823Reimbursable civilian full-time equivalent employment ...............2001

✦

DOD-VA HEALTH CARE SHARING INCENTIVE FUND



Obligations by program activity:457579DOD-VA health care sharing incentive fund ..............................0001


81126124Unobligated balance brought forward, Oct 1 .........................1000..................................25Unobligated balance transferred from other accounts ..........1011..................................1Recoveries of prior year unpaid obligations ...........................1021

81126150Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:.................3055Appropriations transferred from other accounts ...............1121

81156205Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

3681126Unexpired unobligated balance, end of year ..........................1941


876433Unpaid obligations, brought forward, Oct 1 (gross) ..............3000457579Obligations incurred, unexpired accounts .............................3030

–30–52–47Outlays (gross) ......................................................................3040..................................–1Recoveries of prior year unpaid obligations, unexpired .........3080

Obligated balance, end of year (net):1028764Unpaid obligations, end of year (gross) .................................3090


.................3055Budget authority, gross .........................................................4000Outlays, gross:

.................8.................Outlays from new discretionary authority ..........................4010304447Outlays from discretionary balances .................................4011

305247Outlays, gross (total) .............................................................4020.................3055Budget authority, net (total) ..........................................................4180

305247Outlays, net (total) ........................................................................4190

The purpose of the Joint Incentive Fund (JIF) is to enable theDepartments to carry out a program to identify and provide in-centives to implement creative sharing initiatives at the facility,intra-regional and nationwide levels. The JIF promotes collabor-ation and new approaches to problem solving to enable the De-partments to more effectively service veterans. The Departmentshave established the fund and developed processes and criteriato solicit and select projects. Section 721 of the 2003 NationalDefense Authorization Act, Public Law 107–314, established thefund and requires VA and Department of Defense (DOD) to es-tablish a joint incentive program. In 2012, each Secretary shallcontribute a minimum of $15 million to the fund after the appro-priation is enacted.



Direct obligations:111111Personnel compensation: Full-time permanent .........................11.1225Civilian personnel benefits ........................................................12.1

264443Advisory and assistance services ..............................................25.1265Supplies and materials .............................................................26.031114Equipment .................................................................................31.0111Land and structures ..................................................................32.0

457579Total new obligations ............................................................99.9



127127127Direct civilian full-time equivalent employment ............................1001

✦

MEDICAL FACILITIES

For necessary expenses for the maintenance and operation of hospitals,nursing homes, and domiciliary facilities and other necessary facilitiesof the Veterans Health Administration; for administrative expenses insupport of planning, design, project management, real property acquisitionand disposition, construction, and renovation of any facility under thejurisdiction or for the use of the Department; for oversight, engineering,and architectural activities not charged to project costs; for repairing, al-tering, improving, or providing facilities in the several hospitals andhomes under the jurisdiction of the Department, not otherwise providedfor, either by contract or by the hire of temporary employees and purchaseof materials; for leases of facilities; and for laundry services,$5,441,000,000, plus reimbursements, shall become available on October1, 2012, and shall remain available until September 30, 2013: Provided,That, of the amount made available under this heading $145,000,000shall remain available until September 30, 2014.




Obligations by program activity:1,063965736Acute hospital care ...................................................................0001

988769Rehabilitative care ....................................................................0002784683480Psychiatric care .........................................................................0003542471342Nursing home care ....................................................................0004141310Subacute care ...........................................................................0005

1,6742,0101,747Outpatient care .........................................................................0007556CHAMPVA ...................................................................................0008

4,1804,2343,390Total operating expenses ...............................................................0091292341538Acute hospital care ...................................................................0101252946Rehabilitative care ....................................................................0102

197230363Psychiatric care .........................................................................0103144168266Nursing home care ....................................................................0104

346Subacute care ...........................................................................01056357431,170Outpatient care .........................................................................0107

1,2961,5152,389Total capital investment ................................................................0191


5,4765,7495,779Total direct obligations ..................................................................0799363525Reimbursable program ..............................................................0801



991081,024Unobligated balance brought forward, Oct 1 .........................1000..................................6Unobligated balance transferred from other accounts ..........1011

991081,030Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:..................................4,859Appropriation ....................................................................1100

Advance appropriations, discretionary:5,4265,740.................Advance appropriation ..................................................1170–50..................................Advance appropriations permanently reduced ..............1173


373525Collected ...........................................................................17005,4135,7754,884Budget authority (total) .............................................................19005,5125,8835,914Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:..................................–2Unobligated balance expiring ................................................1940.................99108Unexpired unobligated balance, end of year ..........................1941



MEDICAL FACILITIES—ContinuedProgram and Financing—Continued



2,9693,0302,334Unpaid obligations, brought forward, Oct 1 (gross) ..............30005,5125,7845,804Obligations incurred, unexpired accounts .............................3030





4,0804,3533,084Outlays from new discretionary authority ..........................40101,4131,4922,000Outlays from discretionary balances .................................4011






For 2013, the Budget is requesting advance appropriations of$5.4 billion for 2013 for Medical Facilities. This request for ad-vance appropriations fulfills the Administration's commitmentto provide reliable and timely resources to support the deliveryof accessible and high-quality medical services for veterans.

For Medical Facilities, the Budget reflects the following appro-priation funding: the 2011 enacted advance appropriations of$5.7 billion; the 2012 appropriations request of $5.4 billion; andthe 2013 advance appropriations request of $5.4 billion. MedicalFacilities provides for the operations and maintenance of thecapital infrastructure required to provide health care to the Na-tion's veterans. These costs include utilities, engineering, capitalplanning, leases, laundry services, grounds maintenance, trashremoval, housekeeping, fire protection, pest management, facilityrepair, and property disposition and acquisition.





124124122Other personnel compensation ..........................................11.5


111Benefits for former personnel ................................................13.0101010Employee travel .....................................................................21.0232221All other .................................................................................21.0131313Transportation of things ........................................................22.0191817Rental payments to GSA ........................................................23.1

551462287Rental payments to others ....................................................23.2577568550Communications, utilities, and miscellaneous charges ........23.3

1,0671,251644Other contractual services ....................................................25.2332307288Medical supplies and materials ............................................26.0938994Equipment .............................................................................31.0

1,2041,4272,295Medical land and structures .................................................32.0..................................1Interest and dividends ..........................................................43.0






✦

MEDICAL AND PROSTHETIC RESEARCH

For necessary expenses in carrying out programs of medical and pros-thetic research and development as authorized by chapter 73 of title 38,United States Code, $508,774,000, plus reimbursements, shall remainavailable until September 30, 2013.

Note.—A full-year 2011 appropriation for this account was not enacted at thetime the budget was prepared; therefore, this account is operating under a continu-ing resolution (P.L. 111–242, as amended). The amounts included for 2011 reflectthe annualized level provided by the continuing resolution.



Obligations by program activity:252265234Bio-medical laboratory science research ...................................0001819583Rehabilitation research .............................................................0002809587Health services research ...........................................................00037910084Clinical science research ..........................................................0004

492555488Total operating expenses ...............................................................0091323530Bio-medical laboratory science research ...................................010110116Rehabilitation research .............................................................0102571Health services research ...........................................................0103594Clinical science research ..........................................................0104


544617529Total direct program ......................................................................0192

544617529Total direct obligations ..................................................................0799404034Reimbursable program ..............................................................0801

584657563Total new obligations .....................................................................0900


7010661Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:509581581Appropriation ....................................................................1100

Spending authority from offsetting collections, discretionary:404034Collected ...........................................................................1700

549621615Budget authority (total) .............................................................1900619727676Total budgetary resources available ..............................................1930





..................................–2Obligations incurred, expired accounts .................................3031–561–609–555Outlays (gross) ......................................................................3040



549621615Budget authority, gross .........................................................4000Outlays, gross:

391443345Outlays from new discretionary authority ..........................4010170166210Outlays from discretionary balances .................................4011

561609555Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:


..................................–12Non-Federal sources .........................................................4033

–40–40–34Offsets against gross budget authority and outlays (total) ....4040

509581581Budget authority, net (discretionary) .........................................4070521569521Outlays, net (discretionary) .......................................................4080509581581Budget authority, net (total) ..........................................................4180



For 2012, the total budgetary resources of $1.7 billion comprise$509 million in direct appropriations, $509 million in medicalcare support, and $710 million in Federal and private sectorgrants. The research program will support 3,220 full time equi-valents through direct appropriation and a total of over 15,000research staff through all funding sources.

This account is an intramural program and VA R&D has hadsignificant success developing research leading to clinicalachievements that improve the health and quality of life for vet-erans and the Nation. VA is at the forefront of producing newtransformational approaches and technologies for preventing,diagnosing, and treating disease. VA research transforms medi-cine by uniquely engaging veterans both as clinical patients andas research volunteers. Through technology, advancements, andinformation, research helps transform VA's health care into aleading example of medicine in the 21st Century.

High priority research programs in 2012 will provide OperationEnduring Freedom (OEF), Operation Iraqi Freedom (OIF) andOperation New Dawn (OND) veterans and rural veterans withcritical needs research activity. VA will focus on key areas affect-ing OEF/OIF/OND veterans including Homelessness/Access toCare and Rural Health, Personalized Medicine and Military Ex-posure-Related Illnesses. Homelessness is a top priority for VA,and research will focus on interventions, risk factors and healthcare usage patterns in an effort to eliminate homelessness. Withregard to Access to Care, one of the critical missions of VA re-search is to identify system-wide gaps in care to veterans. Thisincludes assessing specific barriers to care for vulnerable popula-tions, including rural veterans. VA research has demonstratedan explicit focus on access as a component of validating thequality of care in all VA health care services, organizationalstructures, and mechanisms for delivering care. Current studiesaddress new telemedicine and telehealth initiatives, communitybased outpatient clinics (CBOCs), collaborative care models, ac-cess for OEF/OIF/OND veterans, and access to specialized caresuch as VA rehabilitation services. The development, evaluation,and implementation of new telemedicine technologies representan important focus of research to improve access to VA healthcare, particularly for rural veterans. Emphasis will also be placedon personalized medicine where using information on a patients'genetic make-up can lead to a more tailored, precise and effectivelevel of care. The Million Veteran Program, with the goal of col-lecting one million genetic samples, will be a significant initialundertaking in 2012 as VA expects to continue investigatingwhether genetic influences in disease and/or responses to medic-ations can be used to further advance personalized care with theultimate goal to develop an evidence base for treatments thatare optimized to each veteran's genetic makeup.

VA core research priorities in 2012 will include Mental Health,Gulf War Veterans' Illnesses and Exposures, Prosthetics, Trau-matic Brain Injury and Spinal Cord Injury.

VA scientists who partner with colleagues from other Federalagencies, academic medical centers, nonprofit organizations, andcommercial entities nationwide further expand the reach andscope of VA research. Through VA's academic affiliations as wellas collaborations with other Federal agencies, it is fully integratedwith the larger biomedical research community.

Veterans' health issues are addressed comprehensively in thefollowing four program divisions and the medical care researchsupport required for these programs:

Biomedical laboratory.—Supports preclinical research to under-stand life processes from a molecular, genomic, and physiologicallevel in regard to diseases affecting veterans.

Clinical science.—Administers investigations (i.e., human sub-ject research such as drug, surgical, single subject, pilot andmulti-center cooperative studies as well as feasibility trials) aimedat instituting new, more effective clinical care.

Health services.—Supports studies to identify and promote ef-fective and efficient strategies to improve the delivery of healthcare to veterans.

Rehabilitation.—Develops novel approaches to restoring veter-ans with traumatic amputation, central nervous system injuries,loss of sight and/or hearing, or other physical and cognitiveimpairments to full and productive lives.

VA's Medical and Prosthetic Research programs are includedin the Federal Science & Technology (FS&T) budget.

Performance Measure=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 est.2010 Actual

N/A100%80%Progress towards development of one new treatment for post-traumaticstress disorder (PTSD) - Measure will be dropped after 2011 ...................

SUMMARY OF PROGRAM RESOURCES

[in millions of dollars]=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 est.2010 actual509581581Medical and prosthetic research appropriation ........................................

1,0241,096996Federal resources (includes VA Medical Care support funding) ................195195184Other non-federal resources .....................................................................

1,7281,8721,761Total program resources ...............................................................




147158164Full-time permanent .........................................................11.1191919Other than full-time permanent ........................................11.3373737Other personnel compensation ..........................................11.5

203214220Total personnel compensation ......................................11.9837569Civilian personnel benefits ....................................................12.1864Employee travel .....................................................................21.0232Rental payments to GSA ........................................................23.1111Communications, utilities, and miscellaneous charges ........23.3111Printing and reproduction .....................................................24.0

147203158Other services from non-federal sources ...............................25.2495436Supplies and materials .........................................................26.0506038Equipment .............................................................................31.0

544617529Direct obligations ..............................................................99.0404034Reimbursable obligations .........................................................99.0





✦

MEDICAL CARE COLLECTIONS FUND



Budgetary Resources:Budget authority:

Appropriations, discretionary:3,0782,8822,848Appropriation (special fund) .............................................1101

–3,078–2,882–2,848Appropriations transferred to other accounts ....................1120

...................................................Appropriation, discretionary (total) .......................................1160

...................................................Total budgetary resources available ..............................................1930


...................................................Budget authority, gross .........................................................4000



MEDICAL CARE COLLECTIONS FUND—ContinuedProgram and Financing—Continued


...................................................Budget authority, net (total) ..........................................................4180

...................................................Outlays, net (total) ........................................................................4190

VA has the authority to collect co-payments which are depositedinto the Medical Care Collections Fund (MCCF) receipt account.As allowed by the provisions of the appropriations Act, these re-ceipts are transferred to the Medical Services appropriation wherethey remain available until expended for the purposes of thisaccount. In 2010, $2.8 billion was collected in the MCCF receiptaccount and transferred to the Medical Services appropriationto provide health care to our veterans. These collections consistof co-payments from veterans for inpatient, outpatient, andnursing home care and prescribed medications; third-party insur-ance payments from veterans for nonservice-connected conditions;and collections from enhanced-use leases, the Compensated WorkTherapy Program, Compensation and Living Expensed Program,and the Parking Program.

✦

CANTEEN SERVICE REVOLVING FUND



Obligations by program activity:274250213Reimbursable operating expenses .............................................0801183166142Reimbursable direct operations ................................................0802

171716Reimbursable capital investment: Sales program: Purchase of

equipment and leasehold ......................................................0810




Spending authority from offsetting collections, mandatory:479437368Collected ...........................................................................1800486440374Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:1273Unexpired unobligated balance, end of year ..........................1941


101114Unpaid obligations, brought forward, Oct 1 (gross) ..............3000–2–2–2Uncollected pymts, Fed sources, brought forward, Oct 1 ........3010

8912Obligated balance, start of year (net) .......................................3020474433371Obligations incurred, unexpired accounts .............................3030

–482–434–374Outlays (gross) ......................................................................3040Obligated balance, end of year (net):

21011Unpaid obligations, end of year (gross) .................................3090–2–2–2Uncollected pymts, Fed sources, end of year .........................3091

.................89Obligated balance, end of year (net) .........................................3100

Budget authority and outlays, net:Mandatory:


473432368Outlays from new mandatory authority .............................4100926Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–479–437–368Non-Federal sources .........................................................4123

...................................................Budget authority, net (mandatory) ............................................41603–36Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................41803–36Outlays, net (total) ........................................................................4190

The Veterans Canteen Service was established to furnish, atreasonable prices, meals, merchandise, and services necessaryfor the comfort and well-being of veterans in VA medical facilities.

Financing.— Operations will be financed from current revenues.



Reimbursable obligations:Personnel compensation:

737169Full-time permanent .............................................................11.1313029Other than full-time permanent ............................................11.3

10410198Total personnel compensation ...........................................11.9292828Civilian personnel benefits ........................................................12.1222Travel and transportation of persons .........................................21.0665Other services from non-federal sources ...................................25.2

315279222Supplies and materials .............................................................26.0181716Equipment .................................................................................31.0

474433371Reimbursable obligations .....................................................99.0




3,2853,2603,246Reimbursable civilian full-time equivalent employment ...............2001

✦

MEDICAL CENTER RESEARCH ORGANIZATIONS



Obligations by program activity:267252237Operating expenses ...................................................................0801



Spending authority from offsetting collections, mandatory:267252248Collected ...........................................................................1800363348333Total budgetary resources available ..............................................1930



..................................11Unpaid obligations, brought forward, Oct 1 (gross) ..............3000267252237Obligations incurred, unexpired accounts .............................3030


...................................................Unpaid obligations, end of year (gross) .................................3090



267252248Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:


...................................................Budget authority, net (mandatory) ............................................4160

...................................................Outlays, net (mandatory) ...........................................................4170


...................................................Outlays, net (total) ........................................................................4190

These nonprofit corporations provide a flexible funding mech-anism for the conduct of approved research at Department ofVeterans Affairs medical centers. These organizations will derivefunds to operate various research activities from Federal andnon-Federal sources. No appropriation is required to supportthese activities.




Reimbursable obligations:888Travel and transportation of persons .........................................21.0

226211202Other services from non-federal sources ...................................25.2242418Supplies and materials .............................................................26.0999Equipment .................................................................................31.0



✦

Trust FundsGENERAL POST FUND, NATIONAL HOMES



..................................1Balance, start of year ....................................................................0100Receipts:

272625General Post Fund, National Homes, Deposits ...........................0220221General Post Fund, National Homes, Interest on Investments ....0240

292826Total receipts and collections ................................................0299

292827Total: Balances and collections .................................................0400Appropriations:

–29–28–27General Post Fund, National Homes ..........................................0500

–29–28–27Total appropriations ..............................................................0599

...................................................Balance, end of year ..................................................................0799



Obligations by program activity:252527Religious, recreational, and entertainment activities ................000122.................Therapeutic residence maintenance ..........................................0003




Appropriations, mandatory:292827[-8180] .............................................................................1202






566Unpaid obligations, end of year (gross) .................................3090



2827.................Outlays from new mandatory authority .............................4100..................................26Outlays from mandatory balances ....................................4101

282726Outlays, gross (total) .............................................................4110292827Budget authority, net (total) ..........................................................4180282726Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:797978Total investments, SOY: Federal securities: Par value ...............5000797979Total investments, EOY: Federal securities: Par value ...............5001

This fund consists of gifts, bequests, and proceeds from the saleof property left in the care of the facilities by former beneficiaries;patients' fund balances; and proceeds from the sale of effects of

beneficiaries who die leaving no heirs or without having otherwisedisposed of their estate. Such funds are used to promote thecomfort and welfare of veterans at hospitals, nursing homes, anddomiciliaries where no general appropriation is available. PublicLaw 102–54 authorizes compensation work therapy and thera-peutic transitional housing and loan programs to be funded fromthe General Post Fund. (38 U.S.C. chs. 83 and 85.)



Direct obligations:999Other services from non-federal sources ...................................25.2

141414Supplies and materials .............................................................26.0333Equipment .................................................................................31.0111Land and structures ..................................................................32.0


✦

BENEFITS PROGRAMSFederal Funds

COMPENSATION AND PENSIONS

(INCLUDING TRANSFER OF FUNDS)

For the payment of compensation benefits to or on behalf of veterans anda pilot program for disability examinations as authorized by section 107and chapters 11, 13, 18, 51, 53, 55, and 61 of title 38, United States Code;pension benefits to or on behalf of veterans as authorized by chapters 15,51, 53, 55, and 61 of title 38, United States Code; and burial benefits, theReinstated Entitlement Program for Survivors, emergency and other of-ficers' retirement pay, adjusted-service credits and certificates, paymentof premiums due on commercial life insurance policies guaranteed underthe provisions of title IV of the Servicemembers Civil Relief Act (50 U.S.C.App. 541 et seq.) and for other benefits as authorized by sections 107, 1312,1977, and 2106, and chapters 23, 51, 53, 55, and 61 of title 38, UnitedStates Code, $58,067,319,000, to remain available until expended:Provided, That not to exceed $32,187,000 of the amount appropriatedunder this heading shall be reimbursed to "General operating expenses'',"Medical support and compliance'', and "Information technology systems''for necessary expenses in implementing the provisions of chapters 51, 53,and 55 of title 38, United States Code, the funding source for which isspecifically provided as the "Compensation and pensions'' appropriation:Provided further, That such sums as may be earned on an actual qualify-ing patient basis, shall be reimbursed to "Medical care collections fund''to augment the funding of individual medical facilities for nursing homecare provided to pensioners as authorized.




Obligations by program activity:46,32353,92838,095Veterans ....................................................................................01016,2738,7735,198Survivors ...................................................................................0102

52,59662,70143,293Compensation sub-total ................................................................0191

52,59662,70143,293Other compensation expenses .......................................................0200202020Chapter 18 ................................................................................0201716864Clothing allowance ....................................................................0202121212Misc assistance (EAJ, SAFD) ......................................................0203

205170144Medical exam pilot program ......................................................0204.................1.................OBRA payment to VBA and IT ....................................................0205

877Reinstated entitlement program for survivors ...........................0206.................4.................Health and human services .......................................................0207

316282247Total other compensation expenses ...............................................0291

52,91262,98343,540Total compensation .......................................................................02933,3483,2463,187Veterans ....................................................................................0302

1037DEPARTMENT OF VETERANS AFFAIRSBenefits Programs

Federal Funds

COMPENSATION AND PENSIONS—ContinuedProgram and Financing—Continued


1,5951,3681,158Survivors ...................................................................................0303

4,9434,6144,345Pensions sub total .........................................................................039123020Reimbursements to GOE, ITand VHA ..........................................0401

4,9454,6444,365Total pensions ...............................................................................0492422626Burial allowance .......................................................................050223109Burial plots ...............................................................................0503333130Service-connected deaths .........................................................0504141414Burial flags ...............................................................................0505767159Headstones and markers ...........................................................0506222229Graveliners/Pre-placed crypts ...................................................0507

210174167Total burial program ......................................................................0591

58,06767,80148,072Total new obligations (object class 42.0) ......................................0900


23314,056424Unobligated balance brought forward, Oct 1 .........................1000..................................527Unobligated balance transferred from other accounts ..........1011

23314,056951Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, mandatory:58,06753,97860,773Appropriation ....................................................................1200

..................................404Appropriations transferred from other accounts ...............1221

58,06753,97861,177Appropriations, mandatory (total) .........................................126058,30068,03462,128Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:23323314,056Unexpired unobligated balance, end of year ..........................1941


1223,9253,754Unpaid obligations, brought forward, Oct 1 (gross) ..............300058,06767,80148,072Obligations incurred, unexpired accounts .............................3030

–53,349–71,604–47,901Outlays (gross) ......................................................................3040Obligated balance, end of year (net):

4,8401223,925Unpaid obligations, end of year (gross) .................................3090



53,22953,85843,958Outlays from new mandatory authority .............................410012017,7463,943Outlays from mandatory balances ....................................4101

53,34971,60447,901Outlays, gross (total) .............................................................411058,06753,97861,177Budget authority, net (total) ..........................................................418053,34971,60447,901Outlays, net (total) ........................................................................4190

Summary of Budget Authority and Outlays (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.CR2010 actual

Enacted/requested:58,06753,97861,177Budget Authority .......................................................................53,34971,60447,901Outlays ......................................................................................

Legislative proposal, subject to PAYGO:23..................................Budget Authority .......................................................................23..................................Outlays ......................................................................................

Total:58,09053,97861,177Budget Authority .......................................................................53,37271,60447,901Outlays ......................................................................................

WORKLOAD=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actualCompensation:

1,185,6921,354,4591,081,116Rating-Related Actions ........................................................................468,496420,931372,176Non Rating Actions ...............................................................................

Pension:140,017125,801111,230Rating-Related Actions ........................................................................436,970392,605347,131Non Rating Actions ...............................................................................

This appropriation provides for the payment of compensation,pension, and burial benefits to veterans and survivors.

Compensation is paid to veterans for disabilities incurred in oraggravated during active military service. Dependency and In-demnity Compensation is paid to survivors of servicepersons or

veterans whose death occurred while on active duty or as a resultof service-connected disabilities. Compensation and vocationalrehabilitation is provided to the children of Vietnam veteranswho were born with certain birth defects. The Secretary may paya clothing allowance to each veteran who uses a prescribedmedication for a service-connected skin condition or wears aprosthetic or orthopedic appliance (including a wheelchair) which,in the judgment of the Secretary, tends to damage or tear theclothing of such veteran.

Miscellaneous benefits provided for are:(a) payments for claims made pursuant to the provision of the

World War Adjusted Compensation Act of 1924, as amended;(b) a special allowance (38 U.S.C. 1312) to dependents of cer-

tain Veterans who died after December 31, 1956, but who werenot fully and currently insured under the Social Security Act;and

(c) payments authorized by the Equal Access to Justice Act.The appropriation also provides for a program to allow VA to

perform income matches for certain compensation recipients.In accordance with Public Law 97–377, the Reinstated Entitle-

ment Program for Survivors (REPS) program restores SocialSecurity benefits to certain surviving spouses or children of vet-erans who died of service-connected causes.

Legislation is proposed to provide a cost-of-living adjustmentcomparable to the annual social security increase to recipientsof disability compensation, dependency and indemnity compens-ation, and clothing allowances. The increase, effective with pay-ments made on January 1, 2012, is expected to be 0.9 percent.

AVERAGE NUMBER OF COMPENSATION CASES AND PAYMENTS=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actualVeterans:

3,588,3153,458,8183,154,727Cases ...................................................................................................$12,909$15,592$12,075Average payment per case, per year .....................................................

$46,323$53,928$38,094Total obligations (in millions) ......................................................

Survivors:388,214386,281343,039Cases ...................................................................................................$16,157$22,711$15,152Average payment per case, per year .....................................................


Chapter 18:1,1861,1851,184Children ...............................................................................................

$16,747$16,598$16,598Average payment per case, per year .....................................................

$20$20$20Total obligations (in millions) ......................................................

Clothing allowance:98,73095,14289,960Number of veterans ..............................................................................$722$716$716Average payment per case, per year .....................................................

$71$68$64Total obligations (in millions) ......................................................

Other compensation caseload:471471471Special allowance dependents .............................................................

2.8282,8282,828Equal Access to Justice payments ........................................................

REPS:335329278Cases ...................................................................................................

$22,214$22,140$26,104Average benefit ....................................................................................

$7$7$7Obligations (in millions) ..............................................................

Pension benefits may be paid to veterans or their survivors. Aveteran's entitlement is based on active duty service of a specificlength (normally 90 days or more) during a designated warperiod, disabilities considered permanent and total, and countableincome below established levels. There is no disability require-ment for survivor cases or veterans age 65 or older. Income sup-port is provided at established benefit levels.

An automatic annual cost-of-living increase comparable to theannual social security increase is provided for those pensioners

THE BUDGET FOR FISCAL YEAR 2012Benefits Programs—ContinuedFederal Funds—Continued1038

in the improved program and to parents receiving dependencyand indemnity compensation. The increase, effective with pay-ments made on January 1, 2012, is expected to be 0.9 percent.

AVERAGE NUMBER OF PENSION CASES AND PAYMENTS=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actualVeterans:

303,783307,690311,648Cases ...................................................................................................$11,005$10,550$10,225Average payment per case, per year .....................................................


Survivors:203,178200,256194,675Cases ...................................................................................................$7,846$6,831$5,947Average payment per case, per year .....................................................


Burial benefits provide for: (a) the payment of an allowance of$700 (plus transportation charges where death occurs under VAcare) to reimburse, in part, the burial and funeral expense of aneligible deceased veteran; (b) the payment of $700 for a plot al-lowance where an eligible veteran is not buried in a nationalcemetery or other cemetery under the jurisdiction of the UnitedStates; (c) the payment of a burial allowance up to $2,000 whena veteran dies as a result of a service-connected disability; (d)furnishing a flag to drape the casket of each deceased veteranentitled thereto; (e) furnishing a headstone or marker for thegrave of a veteran and, in certain cases, eligible dependents; and(f) authority to provide outer burial receptacles in the NationalCemetery Administration.

NUMBER OF BURIAL BENEFITS=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actual59,73158,15156,180Burial allowance .......................................................................................33,15232,27531,181Burial plot ................................................................................................17,49516,69516,032Service-connected deaths ........................................................................

500,002500,002489,574Burial flags ..............................................................................................347,983347,149353,851Headstones and markers ..........................................................................17,89518,07518,259Graveliners ...............................................................................................35,00034,68931,955Preplaced crypts .......................................................................................

COMPENSATION AND PENSIONS

(Legislative proposal, subject to PAYGO)



Obligations by program activity:4..................................Veterans ....................................................................................0101

4..................................Total compensation .......................................................................029319..................................Veterans ....................................................................................0302

19..................................Total pensions ...............................................................................0492

23..................................Total new obligations (object class 42.0) ......................................0900


Appropriations, mandatory:23..................................Appropriation ....................................................................120023..................................Total budgetary resources available ..............................................1930


...................................................Unpaid obligations, brought forward, Oct 1 (gross) ..............300023..................................Obligations incurred, unexpired accounts .............................3030

–23..................................Outlays (gross) ......................................................................3040Obligated balance, end of year (net):



23..................................Budget authority, gross .........................................................4090Outlays, gross:

23..................................Outlays from new mandatory authority .............................410023..................................Budget authority, net (total) ..........................................................4180

23..................................Outlays, net (total) ........................................................................4190

Legislation will be proposed to extend the use of data matchingrecords with the IRS and HHS and to adjust the eligibility re-quirements for Special Monthly Pension.

✦

READJUSTMENT BENEFITS

For the payment of readjustment and rehabilitation benefits to or onbehalf of veterans as authorized by chapters 21, 30, 31, 33, 34, 35, 36, 39,51, 53, 55, and 61 of title 38, United States Code, $11,011,086,000, toremain available until expended: Provided, That expenses for rehabilita-tion program services and assistance which the Secretary is authorizedto provide under subsection (a) of section 3104 of title 38, United StatesCode, other than under paragraphs (1), (2), (5), and (11) of that subsection,shall be charged to this account.




Obligations by program activity:482465441Sons and daughters ..................................................................0101727266Spouses .....................................................................................0102

554537507Total education and training .........................................................0191532495463Vocational rehabilitation training ..............................................0201308301297Subsistence allowance ..............................................................0202958575Automobiles and adaptive equipment .......................................0203797268Housing grants ..........................................................................0204

1,014953903Total special assistance to disabled veterans ...............................0291252626Work study .................................................................................0301191919Payments to States ...................................................................0302

9,3929,1277,102All-volunteer assistance: Basic benefits and all other ..............0303..................................15Tuition Assistance .....................................................................0304.................11Licensing and Certification .......................................................0305

664Reporting fees ...........................................................................0306131Reimbursement to GOE .............................................................0309

9,4439,1827,168Total All-volunteer assistance and other .......................................0391

11,01110,6728,578Total Readjustment benefits direct program .................................0393

11,01110,6728,578Total direct obligations ..................................................................0799332Veterans and servicepersons basic benefits ..............................0801

12611599Veterans and servicepersons supplementary benefits ...............0802134123104Chapter 1606 reservists benefits ..............................................080311910993Chapter 1606 reservists supplementary benefits ......................08048891109Chapter 1607 reservists benefits ..............................................0805

470441407Reimbursable program activities, subtotal ...................................0809

470441407Total reimbursable obligations ......................................................0899




..................................–527Unobligated balance transferred to other accounts ..............1010


Appropriations, mandatory:11,01110,3969,232Appropriation ....................................................................1200

..................................–411Appropriations transferred to other accounts ....................1220

11,01110,3968,821Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:


Memorandum (non-add) entries:..................................276Unexpired unobligated balance, end of year ..........................1941


320415154Unpaid obligations, brought forward, Oct 1 (gross) ..............300011,48111,1138,985Obligations incurred, unexpired accounts .............................3030

1039DEPARTMENT OF VETERANS AFFAIRSBenefits Programs—Continued


READJUSTMENT BENEFITS—ContinuedProgram and Financing—Continued






11,05910,5158,009Outlays from new mandatory authority .............................4100322693715Outlays from mandatory balances ....................................4101



11,01110,3968,821Budget authority, net (mandatory) ............................................416010,91110,7678,317Outlays, net (mandatory) ...........................................................417011,01110,3968,821Budget authority, net (total) ..........................................................418010,91110,7678,317Outlays, net (total) ........................................................................4190

WORKLOAD - Vocational Rehabilitation and Employment=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actual76,94876,18674,692Evaluation and planning ..........................................................................76,71175,95174,462Rehabilitation services .............................................................................19,12818,93818,567Employment services status .....................................................................14,98014,83214,541Vocational/educational counseling ...........................................................

WORKLOAD - Education=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actual442,575428,955668,286Original claims .........................................................................................

2,507,9222,430,7432,140,559Adjustments/supplemental claims ...........................................................

This appropriation finances educational assistance allowancesfor certain service persons, veterans, and for eligible dependentsof those: (a) veterans who died from service-connected causes orhave a total and permanent rated service-connected disability;and (b) servicepersons who were captured or missing in action.In addition, certain disabled veterans are provided with vocationalrehabilitation, specially adapted housing grants, and automobilegrants with the associated approved adaptive equipment. Volun-tary contributions by eligible servicepersons and matching con-tributions provided by the Department of Defense are includedin the Post-Vietnam Era Veterans Education Account.

The Post 9–11 GI Bill (Chapter 33).—Public Law 110–252,greatly expanded education benefits beginning on August 1, 2009.Based on length of active duty service and training rate, traineesmay be entitled to benefits including: tuition and fees, housingallowance, books and supplies stipend, kickers, and Yellow Ribbonmatching payments. Certain active duty members of the ArmedForces may transfer benefits to a spouse or children.

All volunteer force educational assistance (Montgomery GIBill).—Public Law 98–525, enacted October 19, 1984, establishedtwo new educational programs: an assistance program for veter-ans who enter active duty during the period beginning July 1,1985; and an assistance program for certain members of the Se-lected Reserve. Public Law 108–375 established a program toprovide educational assistance to members of the reserve compon-ents called or ordered to active service in response to a war ornational emergency declared by the President or the Congress,in recognition of the sacrifices that those members make in an-swering the call to duty. The Readjustment Benefit appropriationpays the basic benefit allowance for veterans, except for certainPost-Vietnam Era Veterans Education participants who trans-ferred to the Montgomery GI Bill program. Supplementary edu-cational assistance, Post-Vietnam Era Veterans Education con-verters, reservists, and the National Call to Service Program arefinanced by payments from Department of Defense.

Survivors and Dependants Educational Assistance program(Chapter 35).—This program provides benefits to children andspouses of veterans who died of a service-connected disability orwhose service-connected disability is rated permanent and total.In addition, dependents of servicepersons missing in action orinterned by a hostile foreign government for more than 90 daysare also eligible. The following table provides a comparison oftrainees and costs for the Dependents Educational Assistanceprogram.

The following table shows a caseload and cost comparison forthese beneficiaries under existing legislation.

CASELOAD AND AVERAGE COST DATA=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actualChapter 33:

512,752492,773365,640Number of trainees ...............................................................................$16,527$16,096$14,466Average cost per trainee .......................................................................

$8,474$7,932$5,289Total cost (in millions) .................................................................

Chapter 30:129,153178,595247,075Number of trainees ...............................................................................$8,061$7,309$6,717Average cost per trainee .......................................................................

$1,041$1,305$1,660Total cost (in millions) .................................................................


$251$231$195Total cost (in millions) .................................................................


$88$91$109Total cost (in millions) ..............................................................................

=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===Chapter 35 Sons and Daughters:

77,54575,77575,437Number of trainees ...............................................................................$6,214$6,135$5,850Average cost per trainee (in dollars) ....................................................


Chapter 35 Wives and Widow(ers):15,33715,33714,374Number of trainees ...............................................................................$4,725$4,664$4,591Average cost per trainee (in dollars) ....................................................


Special Assistance to Disabled Veterans (chapter 31).—Service-disabled veterans requiring vocational rehabilitation receive as-sistance to cover the costs of subsistence, tuition, books, supplies,and equipment. In addition to monetary benefits, individualsmay also receive rehabilitation evaluation, planning, and deliveryservices designed to move the veteran into a suitable job.


2012 est.2011 CR2010 actualChapter 31:

23,10321,84421,416Rehabiliation, Evaluation, Planning and Service cases ........................81,84281,09780,589Number of trainees ...............................................................................

$10,258$9,826$9,436Average cost per trainee (in dollars) ....................................................


Specially Adapted Housing Grants.—Specially adapted housinggrants, up to a maximum of $63,780, are provided to certainseverely disabled veterans. In 2011, the maximum grant amountwas $63,870 and is projected to increase, based on a cost of con-struction index, to $66,841 in 2012. Veterans who suffer service-connected blindness or who have lost the use of both upper ex-tremities can receive up to $12,756 in 2010. The maximum grantamount is projected to increase to $13,368 in 2012.

Automobile Grants and Adaptive Equipment.—Certain disabledveterans are provided with automobile grants with the associatedapproved adaptive equipment. An allowance, up to a maximum


of $11,000, is provided to certain service-disabled veterans andservicepersons toward the purchase price of an automobile. Ad-aptive equipment and the maintenance and replacement of suchequipment is also provided.


2012 est.2011 CR2010 actualHousing grants:

1,9481,8781,811Number of housing grants ....................................................................$40,397$38,140$37,724Average cost per grant .........................................................................


Automobiles or other conveyances:1,8341,8341,834Number of conveyances ........................................................................

$11,000$11,000$10,891Average benefit ....................................................................................


Adaptive equipment (including maintenance, repair, and installation forautomobiles):

7,3197,3197,319Number of items ...................................................................................$10,196$8,787$7,573Average benefit ....................................................................................


Tuition Assistance.—Public Law 106–398, enacted October 30,2000, allows the military services to pay up to 100 percent of tu-ition and expenses charged by a school for service members. If aservice department pays less than 100 percent, a service membereligible for the Montgomery GI Bill Active-duty (MGIB) or thePost 9–11 GI Bill (Chapter 33) can elect to receive VA benefitsfor all or a portion of the remaining expenses. Public Law 108–454established a program that provides availability of educationbenefits for payment for national admissions exams and nationalexams for credit at institutions of higher education.

The National Exams.—The benefit allows VA to reimburse forthe fee charged for national tests for admission to institutions ofhigher learning and national tests providing an opportunity forcourse credit at institutions of higher learning.

Licensing and Certification Test Payments.—Under Public Law106–419, veterans and other eligible persons may receive up to$2,000 to pay fees required for civilian occupational licensingand certification examinations needed to enter, maintain, or ad-vance in employment in a vocation or profession, effective March1, 2001.

National Call to Service.—The 2003 National Defense Author-ization Act directs the Department of Defense to offer an activeduty enlistment option of 15 months plus training time to facilit-ate interest in National Service. Program participants will begiven the opportunity to select one of the following incentives: a$5,000 enlistment bonus, repayment of student loans up to$18,000, or one of two education allowances.

Work-Study.—Certain veterans, reservists, and dependentspursuing a program of rehabilitation, education or training, whoare enrolled as full-time students, can work up to 250 hours persemester, receiving the Federal ($7.25 as of July 24, 2009) orstate minimum wage rate, whichever is higher.

Payments to States.—State approving agencies are reimbursedfor the costs of inspecting, approving, and supervising programsof education and training offered by educational institutions andtraining establishments in which veterans, dependents, and re-servists are enrolled or are about to enter.

Reporting Fees.—Reporting fees are paid to education andtraining institutions to help defray the costs of certifying educa-tion enrollment for veterans enrolled in training during a calendaryear.



11,01110,6728,578Direct obligations: Grants, subsidies, and contributions ...............41.0

470441407Reimbursable obligations: reimbursable obligations ............99.0


✦

VETERANS INSURANCE AND INDEMNITIES

For military and naval insurance, national service life insurance, ser-vicemen's indemnities, service-disabled veterans insurance, and veteransmortgage life insurance as authorized by title 38, United States Code,chapters 19 and 21, $100,252,000, to remain available until expended.




Obligations by program activity:171113VMLI death claims .....................................................................0010836746Payment to service-disabled veterans insurance ......................0012

1007859Total direct expenses .....................................................................010053.................Reimbursable program activity .................................................0801

53.................Reimbursable program activities, subtotal ...................................0809




Appropriations, mandatory:1007849Appropriation ....................................................................1200

..................................7Appropriations transferred from other accounts ...............1221

1007856Appropriations, mandatory (total) .........................................1260Spending authority from offsetting collections, mandatory:

533Collected ...........................................................................18001058159Budget authority (total) .............................................................19001068260Total budgetary resources available ..............................................1930



.................51Unpaid obligations, brought forward, Oct 1 (gross) ..............30001058159Obligations incurred, unexpired accounts .............................3030


..................................5Unpaid obligations, end of year (gross) .................................3090



1058154Outlays from new mandatory authority .............................4100.................51Outlays from mandatory balances ....................................4101



1007856Budget authority, net (mandatory) ............................................41601008352Outlays, net (mandatory) ...........................................................41701007856Budget authority, net (total) ..........................................................41801008352Outlays, net (total) ........................................................................4190

WORKLOAD=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actual931,659972,330907,710Policy service actions ...............................................................................

1,027,4001,117,6001,140,316Collections ................................................................................................66,62064,03042,898Disability claims .......................................................................................

198,450209,800231,612Insurance awards .....................................................................................



VETERANS INSURANCE AND INDEMNITIES—ContinuedNote.—Department of Veterans Affairs insurance policy loans

are not an extension of Federal credit. Credit schedules previouslyshown for this account have been discontinued.

The insurance business line administers six life insurance pro-grams, including two trust funds, two public enterprise funds, atrust revolving fund, and Veterans' Mortgage Life Insurance(VMLI), and supervises four additional programs for the benefitof servicepersons, veterans, and their beneficiaries through con-tracts with a commercial company. All programs are operatedon a commercial basis, to the extent possible, consistent with allapplicable statutes. The insurance appropriation is the supple-mental funding mechanism for the following Government lifeinsurance activities: National Service Life Insurance (NSLI);Service-Disabled Veterans Insurance Fund (S-DVI); and Veterans'Mortgage Life Insurance.

National Service Life Insurance.—Payments are made to theNSLI fund for certain World War II veterans for: (a) extra hazardsof service; (b) gratuitous insurance granted to certain personsunable to apply for National Service Life Insurance; and (c) deathclaims on policies under the waiver of a premium while the in-sured was on active duty.

Payment to Service-Disabled Veterans Insurance Fund.—Pay-ments are made to the S-DVI fund to supplement the premiumsand other receipts of the fund in amounts necessary to pay claimson insurance policies issued to veterans with service-connecteddisabilities.

Veterans' Mortgage Life Insurance.—Payments are made tomortgage holders under this program, which provides mortgageprotection life insurance to veterans who have received a grantfor specially adapted housing due to severe disabilities. Thegeneral decline in the number of policies and the amount of in-surance in force is expected to continue in 2011 as indicated inthe following table.

POLICIES AND INSURANCE IN FORCE=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actualVMLI Policies2,4002,4002,381Number of Policies ...........................................................................$312$181$177Amount of Insurance (dollars in millions) ........................................



1007856Direct obligations: Insurance claims and indemnities ...................42.0

533Reimbursable obligations: reimbursable obligations ............99.0


✦

FILIPINO VETERANS EQUITY COMPENSATION FUND



Obligations by program activity:.................70113Filipino veterans equity compensation fund ..............................0001

.................70113Total new obligations (object class 42.0) ......................................0900


.................70116Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:..................................67Appropriations transferred from other accounts ...............1121.................70183Total budgetary resources available ..............................................1930


Change in obligated balance:.................70113Obligations incurred, unexpired accounts .............................3030.................–70–113Outlays (gross) ......................................................................3040


..................................67Budget authority, gross .........................................................4000Outlays, gross:

.................70113Outlays from discretionary balances .................................4011

..................................67Budget authority, net (total) ..........................................................4180

.................70113Outlays, net (total) ........................................................................4190

This fund was established under the Consolidated Security,Disaster Assistance, and Continuing Appropriations Act of 2009(PL 110–329), to make payments to eligible persons who servedin the Philippines during World War II. Payments were sub-sequently authorized by Congress in the American Recovery andReinvestment Act of 2009 (PL 111–5). Original funding of$198,000,000 was supplemented by a transfer of $67,000,000authorized by PL 111–212 that remains available until expended.Payments to citizens of the United States are $15,000. Paymentsto non-U.S. citizens are $9,000.

✦

SERVICE-DISABLED VETERANS INSURANCE FUND



Obligations by program activity:201919Capital investment ....................................................................0801

11610380Death claims .............................................................................0802877All other .....................................................................................0803

1096Payments to GOE and IT ............................................................0804




Spending authority from offsetting collections, mandatory:154134109Collected ...........................................................................1800154134109Budget authority (total) .............................................................1900159143121Total budgetary resources available ..............................................1930








154134109Outlays from new mandatory authority .............................4100.................46Outlays from mandatory balances ....................................4101





.................46Outlays, net (mandatory) ...........................................................4170


.................46Outlays, net (total) ........................................................................4190

The Insurance Act of 1951 established the Service-DisabledVeterans Insurance (S-DVI) program for veterans with service-connected disabilities. S-DVI is open to veterans who separated


from the service on or after April 25, 1951. This fund financesthe payment of claims on existing life insurance policies and re-mains open for new issues at standard rates to veterans havingservice-connected disabilities.

OPERATING COSTS

Death claims.—Represents payments to designated beneficiar-ies.

All other.—Represents payments to policyholders who surrendertheir policies for their cash value and hold endowment policieswhich have matured.

Capital investment.—A policyholder may borrow up to 94 per-cent of the value of his or her policy.

Payments to General Operating Expenses (GOE).—Representsthe administrative costs of claims processing and account main-tenance.

The trend in the number and amount of policies in force is in-dicated in the following table.


2012 est.2011 CR2010 actual256,143239,914213,295Number of policies (EOY) ..........................................................................$2,667$2,479$2,179Insurance in force (dollars in millions) (EOY) ...........................................

Financing.—Operations are financed from premiums and otherreceipts. Additional funds are received by transfer from the Vet-erans Insurance and Indemnities appropriation, instead of directappropriations to this fund.

Operating results and financial condition.—Since premium andother receipts are insufficient to cover operations, the fund con-tinues to project liabilities in excess of assets. The deficit is ex-pected to reach an estimated $1,225 million by September 30,2012.



Reimbursable obligations:201919Investments and loans ..............................................................33.0

13411993Insurance claims and indemnities ............................................42.0



✦

VETERANS REOPENED INSURANCE FUND



Obligations by program activity:343533Death claims .............................................................................0801567Dividends ..................................................................................0802455All other .....................................................................................0803222Capital investment: policy loans ...............................................0804




Spending authority from offsetting collections, mandatory:192426Collected ...........................................................................1800

.................–1.................Change in uncollected payments, Federal sources ............1801

192326Spending auth from offsetting collections, mand (total) .......1850256285309Total budgetary resources available ..............................................1930



475153Unpaid obligations, brought forward, Oct 1 (gross) ..............3000

–4–5–5Uncollected pymts, Fed sources, brought forward, Oct 1 ........3010


–48–52–49Outlays (gross) ......................................................................3040.................1.................Change in uncollected pymts, Fed sources, unexpired ..........3050

Obligated balance, end of year (net):444751Unpaid obligations, end of year (gross) .................................3090–4–4–5Uncollected pymts, Fed sources, end of year .........................3091

404346Obligated balance, end of year (net) .........................................3100





Offsetting collections (collected) from:–13–17–18Interest on Federal securities ............................................4121–6–7–8Non-Federal sources .........................................................4123


.................1.................Change in uncollected pymts, Fed sources, unexpired .......4140

...................................................Budget authority, net (mandatory) ............................................4160292823Outlays, net (mandatory) ...........................................................4170

...................................................Budget authority, net (total) ..........................................................4180292823Outlays, net (total) ........................................................................4190


Note.—Department of Veterans Affairs insurance policy loansare not an extension of Federal credit. Credit schedules previouslyshown for this account have been discontinued.

This fund pays claims and administrative costs on participatinglife insurance policies issued during the period May 1, 1965,through May 2, 1966, under three life insurance programs: (1)service-disabled standard insurance; (2) service-disabled ratedinsurance; and (3) nonservice-disabled insurance availing disabledWorld War II and Korean conflict veterans an opportunity toacquire life insurance coverage who were no longer eligible forother Government insurance.

Budget program:Death claims.—Represents payments to designated beneficiar-

ies.Dividends.—Policyholders participate in the distribution of

annual dividends.All other.—This represents resources for the administrative

costs of processing claims and maintaining the accounts, andto those policyholders who: (a) surrender their policies for cashvalue; (b) hold endowment policies which have matured; and(c) have purchased total disability income coverage and sub-sequently become disabled.

Policy loans made.—A policyholder may borrow up to 94 per-cent of the cash value of his policy at an interest rate adjustedto reflect private sector borrowing costs.The following table reflects the decrease in the number of

policies and the amount of insurance in force:


2012 est.2011 CR2010 actual24,17527,73531,425Number of policies ...............................................................................$247$281$317Insurance in force (dollars in millions) .................................................

Financing.—Operations are financed from premiums collectedfrom policyholders and interest on investments. Excess earningsof the fund are distributed to the policyholders in the form of anannual dividend.



VETERANS REOPENED INSURANCE FUND—ContinuedObject Classification (in millions of dollars)

=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===



373835Insurance claims and indemnities ............................................42.06810Interest and dividends ..............................................................43.0



✦

SERVICEMEMBERS' GROUP LIFE INSURANCE FUND



Obligations by program activity:834836822Premium payments ...................................................................0801

.................270297Payments to carrier ...................................................................0802332Payment to GOE .........................................................................0803

8371,1091,121Total new obligations (object class 41.0) ......................................0900



Spending authority from offsetting collections, mandatory:8371,1091,121Collected ...........................................................................18008381,1101,122Total budgetary resources available ..............................................1930



..................................11Unpaid obligations, brought forward, Oct 1 (gross) ..............30008371,1091,121Obligations incurred, unexpired accounts .............................3030

–837–1,109–1,132Outlays (gross) ......................................................................3040Obligated balance, end of year (net):



8371,1091,121Budget authority, gross .........................................................4090Outlays, gross:

8371,1091,121Outlays from new mandatory authority .............................4100..................................11Outlays from mandatory balances ....................................4101

8371,1091,132Outlays, gross (total) .............................................................4110Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:–837–1,109–1,121Non-Federal sources .........................................................4123


..................................11Outlays, net (mandatory) ...........................................................4170


..................................11Outlays, net (total) ........................................................................4190


This fund finances the payment of group life insurance premi-ums to private insurance companies under the Servicemembers'Group Life Insurance (SGLI) Act of 1965, as amended. SGLI isa program for servicemembers on active duty, ready reservists,members of the National Guard, members of the CommissionedCorps of the National Oceanic and Atmospheric Administrationand the Public Health Service, cadets and midshipmen of thefour service academies, and members of the Reserve OfficerTraining Corps. SGLI coverage is available in $50,000 incrementsup to the maximum of $400,000. Veterans' Group Life Insurance(VGLI) is a program of post-separation insurance which allowsservice members to convert their SGLI coverage to renewableterm insurance. Family Servicemembers' Group Life Insurance

(FSGLI) is a program extended to the spouses and dependentchildren of members insured under the SGLI program. FSGLIprovides up to a maximum of $100,000 of insurance coverage forspouses, not to exceed the amount of SGLI the insured memberhas in force, and $10,000 of free coverage for dependent children.Spousal coverage is issued in increments of $10,000.

The Servicemembers' Group Life Insurance Traumatic InjuryProtection Program (TSGLI) became effective December 1, 2005.TSGLI provides for payment between $25,000 and $100,000(depending on the type of injury) to any member of the uniformedservices covered by SGLI who sustains a traumatic injury thatresults in certain serious losses.



Reimbursable obligations:8371,1091,121Grants, subsidies, and contributions ........................................41.0

8371,1091,121Reimbursable obligations .....................................................99.0

✦

VETERANS HOUSING BENEFIT PROGRAM FUND

For the cost of direct and guaranteed loans, such sums as may be neces-sary to carry out the program, as authorized by subchapters I through IIIof chapter 37 of title 38, United States Code: Provided, That such costs,including the cost of modifying such loans, shall be as defined in section502 of the Congressional Budget Act of 1974: Provided further, Thatduring fiscal year 2012, within the resources available, not to exceed$500,000 in gross obligations for direct loans are authorized for speciallyadapted housing loans.

In addition, for administrative expenses to carry out the direct andguaranteed loan programs, $154,698,000.




Obligations by program activity:Credit program obligations:

5..................................Direct loan subsidy ................................................................0701314205Loan guarantee subsidy ........................................................0702

.................5372Reestimates of direct loan subsidy .......................................0705

.................3543Interest on reestimates of direct loan subsidy .......................0706

.................1,091642Reestimates of loan guarantee subsidy ................................0707

.................20546Interest on reestimates of loan guarantee subsidy ................0708155165144Administrative expenses .......................................................0709

4741,569952Total new obligations .....................................................................0900




Appropriations, mandatory:3191,403808Appropriation ....................................................................12004741,568973Budget authority (total) .............................................................19005161,6111,016Total budgetary resources available ..............................................1930




1..................................Unpaid obligations, brought forward, Oct 1 (gross) ..............30004741,569952Obligations incurred, unexpired accounts .............................3030

–474–1,568–952Outlays (gross) ......................................................................3040


Obligated balance, end of year (net):11.................Unpaid obligations, end of year (gross) .................................3090



155165144Outlays from new discretionary authority ..........................4010Mandatory:

3191,403808Budget authority, gross .........................................................4090Outlays, gross:

3191,403808Outlays from new mandatory authority .............................4100Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:..................................–6Federal sources .................................................................4120

Additional offsets against gross budget authority only:..................................6Offsetting collections credited to expired accounts ...........4142

3191,403808Budget authority, net (mandatory) ............................................41603191,403802Outlays, net (mandatory) ...........................................................41704741,568973Budget authority, net (total) ..........................................................41804741,568946Outlays, net (total) ........................................................................4190

Summary of Budget Authority and Outlays (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Enacted/requested:4741,568973Budget Authority .......................................................................4741,568946Outlays ......................................................................................

Legislative proposal, subject to PAYGO:–86..................................Budget Authority .......................................................................–86..................................Outlays ......................................................................................

Total:3881,568973Budget Authority .......................................................................3881,568946Outlays ......................................................................................

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Direct loan levels supportable by subsidy budget authority:1221016Acquired Direct Loans ...............................................................115001

1,114981245Vendee Direct Loans ..................................................................115004

1,2361,082251Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

4.09–0.13–10.15Acquired Direct Loans ...............................................................132001–2.12–2.42–4.45Vendee Direct Loans ..................................................................132004

–1.51–2.21–4.59Weighted average subsidy rate ..................................................132999Direct loan subsidy budget authority:

5.................–1Acquired Direct Loans ...............................................................133001–24–24–10Vendee Direct Loans ..................................................................133004

–19–24–11Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

5.................–1Acquired Direct Loans ...............................................................134001–24–24–11Vendee Direct Loans ..................................................................134004

–19–24–12Total subsidy outlays .................................................................134999Direct loan upward reestimates:

.................79Acquired Direct Loans ...............................................................135001

.................5.................Vendee Direct Loans ..................................................................135004

.................76106Acquired and Vendee Loan Reestimates ....................................135005

.................88115Total upward reestimate budget authority .................................135999Direct loan downward reestimates:

.................–2.................Acquired Direct Loans ...............................................................137001

.................–8–3Vendee Direct Loans ..................................................................137004

.................–2.................Acquired and Vendee Loan Reestimates ....................................137005

.................–12–3Total downward reestimate budget authority ............................137999

Guaranteed loan levels supportable by subsidy budget authority:57,46968,40763,140Housing Guaranteed Loans .......................................................2150011,046990227Guaranteed Loan Sale Securities—Vendee ...............................215002

58,51569,39763,367Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

0.35–0.31–0.17Housing Guaranteed Loans .......................................................23200110.752.002.42Guaranteed Loan Sale Securities—Vendee ...............................232002

0.54–0.28–0.16Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

201–212–107Housing Guaranteed Loans .......................................................233001112205Guaranteed Loan Sale Securities—Vendee ...............................233002

314–192–102Total subsidy budget authority ..................................................233999

Guaranteed loan subsidy outlays:201–212–111Housing Guaranteed Loans .......................................................234001112205Guaranteed Loan Sale Securities—Vendee ...............................234002

313–192–106Total subsidy outlays .................................................................234999Guaranteed loan upward reestimates:

.................1,264674Housing Guaranteed Loans .......................................................235001

.................3314Guaranteed Loan Sale Securities—Vendee ...............................235002

.................1,297688Total upward reestimate budget authority .................................235999Guaranteed loan downward reestimates:

.................–17–243Housing Guaranteed Loans .......................................................237001

.................–1–22Guaranteed Loan Sale Securities—Vendee ...............................237002

.................–18–265Total downward reestimate subsidy budget authority ...............237999

Administrative expense data:155165171Budget authority .......................................................................3510155165144Outlays from new authority .......................................................3590

As required by the Federal Credit Reform Act of 1990, this ac-count records, for these programs, the subsidy costs associatedwith the direct loans obligated and loan guarantees committedin 1992 and beyond, (including modifications of direct loans orloan guarantees that resulted from obligations or commitmentsin any year), as well as for the administrative expenses of theseprograms. The subsidy amounts are estimated on a net presentvalue basis.

Veterans housing program account.—The housing programhelps eligible veterans, active duty personnel, surviving spouses,and members of the Reserves and National Guard purchasehomes by substituting the Federal Government's guaranty for adown payment that might otherwise be required when purchasinga home. Under 38 U.S.C. 3703 and Public Law 110–389 501, theguaranty amount from January 1, 2009 through December 31,2011 for a borrower with full entitlement is as follows:

(a) 50 percent for loans of $45,000 or less; $22,500 for loansgreater than $45,000, but no more than $56,250;

(b) The lesser of $36,000 or 40 percent of the loan amount forloans greater than $56,250, but not more than $144,000;

(c) 25 percent for loans in excess of $144,000 up to $417,000or;

(d) The lesser of 25 percent of the loan amount or the maxim-um guaranty amount for loans greater than $417,000.The maximum guaranty amount varies depending on the loca-

tion of the property.1) For all locations in the United States other than Alaska,

Guam, Hawaii, and the U.S. Virgin Islands, the maximumguaranty amount is the greater of 25 percent of (a) $417,000 or(b) 125 percent of the area median price for a single-familyresidence, but in no case will the guaranty exceed $273,656.25.

2) In Alaska, Guam, Hawaii, and the U.S. Virgin Islands, themaximum guaranty amount is the greater of 25 percent of (a)$625,500 or (b) 125 percent of the area median price for a single-family residence, but in no case will the guaranty exceed$410,484.38.

3) The maximum guaranty amounts set forth above will beadjusted October 1, 2011 and will affect loans closed on October1, 2011 through December 31, 2011.

4) Beginning with loans closed on January 1, 2012, the max-imum guaranty amounts will be based on the Freddie Maccounty loan limits as determined under 12 U.S.C. 1454(a)(2).This appropriation provides for the corporate leadership and

operational support to VA's housing business line.The housing program facilitates the extension of private capital,

on more liberal terms than generally available to nonveterans,to assist veterans and servicepersons in obtaining housing credit,and assist veterans in retaining their homes during periods oftemporary economic difficulty through intensive supplementalmortgage loan servicing.



VETERANS HOUSING BENEFIT PROGRAM FUND—ContinuedGuaranteed transitional housing loans for homeless veter-

ans.—Established as a pilot project by the Veterans BenefitsImprovement Act of 1998, Public Law 105–368, this program willnot execute any new loans. The existing loan will continue to beserviced within the financing account and no further funds willbe required from the program account.

WORKLOAD

[In thousands]=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actual275334328Construction and valuation ..................................................................614744732Loan processing ...................................................................................10110191Loan service and claims .......................................................................



Direct obligations:155165144Other services from non-federal sources ...................................25.23191,404808Grants, subsidies, and contributions ........................................41.0

4741,569952Total new obligations ............................................................99.9

VETERANS HOUSING BENEFIT PROGRAM FUND





–86..................................Loan guarantee subsidy ........................................................0702

–86..................................Total new obligations (object class 41.0) ......................................0900


Appropriations, mandatory:–86..................................Appropriation ....................................................................1200–86..................................Total budgetary resources available ..............................................1930

Change in obligated balance:–86..................................Obligations incurred, unexpired accounts .............................303086..................................Outlays (gross) ......................................................................3040


–86..................................Budget authority, gross .........................................................4090Outlays, gross:

–86..................................Outlays from new mandatory authority .............................4100–86..................................Budget authority, net (total) ..........................................................4180–86..................................Outlays, net (total) ........................................................................4190



Guaranteed loan levels supportable by subsidy budget authority:106..................................Housing Guaranteed Loans .......................................................215001

1,046..................................Guaranteed Loan Sale Securities—Vendee ...............................215002

1,152..................................Total loan guarantee levels .......................................................215999Guaranteed loan subsidy (in percent):

–8.22..................................Guaranteed Loan Sale Securities—Vendee ...............................232002

–0.47..................................Weighted average subsidy rate ..................................................232999Guaranteed loan subsidy budget authority:

–86..................................Guaranteed Loan Sale Securities—Vendee ...............................233002

–86..................................Total subsidy budget authority ..................................................233999Guaranteed loan subsidy outlays:

–86..................................Guaranteed Loan Sale Securities—Vendee ...............................234002

–86..................................Total subsidy outlays .................................................................234999

✦

HOUSING DIRECT LOAN FINANCING ACCOUNT



Obligations by program activity:339Property sales expense ..............................................................00039156Property management/other expense ........................................0004

121815Subtotal .........................................................................................0091Credit program obligations:

1,2361,082252Direct loan obligations ..........................................................07109590106Payment of interest to Treasury .............................................0713242411Negative subsidy obligations ................................................0740

.................83Downward reestimate paid to receipt account ......................0742

.................4.................Interest on downward reestimates ........................................0743

1,3551,208372Direct program activities, subtotal ................................................0791

1,3671,226387Total new obligations .....................................................................0900


153153–33Unobligated balance brought forward, Oct 1 .........................1000..................................33Adjustment of unobligated bal brought forward, Oct 1 .........1020

153153.................Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:1,3631,2261,297Borrowing authority ...........................................................1400

..................................–757Borrowing authority applied to repay debt ........................1421

1,3631,226540Borrowing authority, mandatory (total) .................................1440Spending authority from offsetting collections, mandatory:

1,1701,172477Collected ...........................................................................1800..................................–1Change in uncollected payments, Federal sources ............1801

–1,165–1,172–476Spending authority from offsetting collections applied to

repay debt .....................................................................1825

5..................................Spending auth from offsetting collections, mand (total) .......18501,3681,226540Financing authority(total) .........................................................19001,5211,379540Total budgetary resources available ..............................................1930



231643Unpaid obligations, brought forward, Oct 1 (gross) ..............3000..................................–1Uncollected pymts, Fed sources, brought forward, Oct 1 ........3010

231642Obligated balance, start of year (net) .......................................30201,3671,226387Obligations incurred, unexpired accounts .............................3030

–1,365–1,219–414Financing disbursements (gross) ..........................................3040..................................1Change in uncollected pymts, Fed sources, unexpired ..........3050


...................................................Uncollected pymts, Fed sources, end of year .........................3091


Financing authority and disbursements, net:Mandatory:

1,3681,226540Financing authority, gross .....................................................4090Financing disbursements:

1,3651,219414Financing disbursements, gross ...........................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–5–87–115Federal sources: Payments from program account ............4120

–1,051–995–227Reimbursements from DLFA ..............................................4120–4–3–5Transfer of loan sales from loan sale security ...................4120

..................................–35Interest on uninvested funds ............................................4122–29–25–44Repayments of principal ...................................................4123–37–34–31Interest received on loans .................................................4123–9–8–2Fees ..................................................................................4123

–35–20–17Cash sale of properties .....................................................4123..................................–1Other .................................................................................4123

–1,170–1,172–477Offsets against gross financing auth and disbursements

(total) ................................................................................4130

Additional offsets against financing authority only (total):..................................1Change in uncollected pymts, Fed sources, unexpired .......4140

1985464Financing authority, net (mandatory) ........................................416019547–63Financing disbursements, net (mandatory) ...............................41701985464Financing authority, net (total) ......................................................418019547–63Financing disbursements, net (total) ............................................4190


Status of Direct Loans (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Position with respect to appropriations act limitation on obligations:1,2361,082252Direct loan obligations exempt from limitation .........................1131

1,2361,082252Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:663639696Outstanding, start of year .........................................................1210

1,2361,082251Disbursements: Direct loan disbursements ...............................1231Repayments:

–29–25–44Repayments and prepayments ..............................................1251

–1,051–995–227Proceeds from loan asset sales to the public with

recourse ............................................................................1253

Write-offs for default:–28–38–61Direct loans ...........................................................................1263

..................................24Other adjustments, Data Reconciliation ................................1264

791663639Outstanding, end of year .......................................................1290

As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Govern-ment resulting from direct loans obligated in 1992 and beyond(including modifications of direct loans that resulted from oblig-ations in any year). The amounts in this account are a means offinancing and are not included in the budget totals.

Balance Sheet (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2010 actual2009 actualIdentification code 36–4127–0–3–704

ASSETS:Federal assets:

1689Fund balances with Treasury .....................................................1101Investments in US securities:

63101Receivables, net ....................................................................1106Net value of assets related to post-1991 direct loans receivable:

639696Direct loans receivable, gross ....................................................140181Interest receivable .....................................................................1402

2218Foreclosed property ....................................................................1404714713Allowance for subsidy cost .........................................................1405

1,3831,428Net present value of assets related to direct loans ................1499

1,6141,538Total assets ...............................................................................1999LIABILITIES:

Federal liabilities:1,5871,491Debt ...........................................................................................2103

1947Other ..........................................................................................21058...........................Non-Federal liabilities: Other .........................................................2207

1,6141,538Total liabilities ...........................................................................2999

1,6141,538Total upward reestimate subsidy BA [36–1119] ............................4999

✦

HOUSING GUARANTEED LOAN FINANCING ACCOUNT



Obligations by program activity:444604988Losses on defaulted loans .........................................................0002

1,052994270Reimburse DLFA for loan sales ..................................................00042222Payment to trustee reserve ........................................................0005

.................1.................Reimburse liquidating for subordination certificate ..................0006104106137Property sales expense ..............................................................0009757964Property management expense ..................................................001026289Property improvement expense ..................................................0011

1411226Loans acquired ..........................................................................0012

1,8441,9361,496Subtotal .........................................................................................0091Credit program obligations:

1,4131,2511,806Default claim payments on principal ....................................071111.................Default claim payments on interest ......................................0712

..................................3Payment of interest to Treasury .............................................0713

.................212107Negative subsidy obligations ................................................0740


.................11118Interest on downward reestimates ........................................0743

1,4141,4822,182Direct program activities, subtotal ................................................0791



3,5962,2132,600Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Borrowing authority, mandatory:.................21299Borrowing authority ...........................................................1400

Spending authority from offsetting collections, mandatory:3,4694,8013,325Collected ...........................................................................1800

..................................–34Change in uncollected payments, Federal sources ............1801

.................–212–99Spending authority from offsetting collections applied to

repay debt .....................................................................1825

3,4694,5893,192Spending auth from offsetting collections, mand (total) .......18503,4694,8013,291Financing authority(total) .........................................................19007,0657,0145,891Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:3,8073,5962,213Unexpired unobligated balance, end of year ..........................1941



4426311Obligated balance, start of year (net) .......................................30203,2583,4183,678Obligations incurred, unexpired accounts .............................3030

–3,258–3,637–3,460Financing disbursements (gross) ..........................................3040..................................34Change in uncollected pymts, Fed sources, unexpired ..........3050




3,4694,8013,291Financing authority, gross .....................................................4090Financing disbursements:

3,2583,6373,460Financing disbursements, gross ...........................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–314–1,316–694Payments from program account ......................................4120–957–940–279Recoveries from DLFA ........................................................4120–73–65–105Interest on uninvested funds ............................................4122

–611–936–877Funding fees .....................................................................4123–544–545–1,140Cash sale of properties .....................................................4123

..................................–1Redemption of properties and other ..................................4123–970–999–229Loan sale proceeds ...........................................................4123

–3,469–4,801–3,325Offsets against gross financing auth and disbursements

(total) ................................................................................4130

Additional offsets against financing authority only (total):..................................34Change in uncollected pymts, Fed sources, unexpired .......4140

...................................................Financing authority, net (mandatory) ........................................4160–211–1,164135Financing disbursements, net (mandatory) ...............................4170

...................................................Financing authority, net (total) ......................................................4180–211–1,164135Financing disbursements, net (total) ............................................4190

Status of Guaranteed Loans (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Position with respect to appropriations act limitation oncommitments:

57,46968,40763,140Guaranteed loan commitments exempt from limitation ............2131

1,046990227Guaranteed loan commitments for loan asset sales with

recourse ................................................................................2132

58,51569,39763,367Total guaranteed loan commitments .....................................215016,90819,87017,653Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:286,043224,306192,945Outstanding, start of year .........................................................221057,46968,40763,140Disbursements of new guaranteed loans ..................................22311,046990227Guarantees of loans sold to the public with recourse ................2232

–6,530–5,681–4,834Repayments and prepayments ..................................................2251Adjustments:

–1,413–1,251–1,806Terminations for default that result in acquisition of

property .............................................................................2262

–588–728–1,017Terminations for default that result in claim payments ........2263..................................–24,349Other adjustments, net .........................................................2264

336,027286,043224,306Outstanding, end of year .......................................................2290



HOUSING GUARANTEED LOAN FINANCING ACCOUNT—ContinuedStatus of Guaranteed Loans—Continued


Memorandum:

99,11085,16568,057Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299

As required by the Federal Credit Reform Act of 1990, this non-budgetary account records all cash flows to and from the Govern-ment resulting from loan guarantees committed in 1992 andbeyond, including modifications of guaranteed loans that resultedfrom commitments in any year, and from the guarantee of loanssold through the securitization programs. The amounts in thisaccount are a means of financing and are not included in thebudget totals.



ASSETS:Federal assets:

2,4772,579Fund balances with Treasury .....................................................1101Investments in US securities:

1,483718Receivables, net ....................................................................1106Net value of assets related to post-1991 acquired defaulted

guaranteed loans receivable:...........................9Accounts receivable from foreclosed property ............................1504

1,200890Foreclosed property ....................................................................1504...........................33Allowance for subsidy cost (-) ....................................................1505

1,200932Net present value of assets related to defaulted guaranteedloans .................................................................................

1599

5,1604,229Total assets ...............................................................................1999LIABILITIES:

10299Federal liabilities: Other liabilities .................................................2105Non-Federal liabilities:

1519Accounts payable .......................................................................2201254...........................Debt ...........................................................................................2203

4,8813,911Non-federal liabilities for loan guarantees ................................2204

5,1604,229Total liabilities ...........................................................................2999

5,1604,229Total upward reestimate subsidy BA [36–1119] ............................4999

HOUSING GUARANTEED LOAN FINANCING ACCOUNT





Offsets against gross financing authority and disbursements:Offsetting collections (collected) from:

86..................................Federal sources .................................................................4120–86..................................Non-Federal sources .........................................................4123

...................................................Offsets against gross financing auth and disbursements

(total) ................................................................................4130

...................................................Financing authority, net (total) ......................................................4180

...................................................Financing disbursements, net (total) ............................................4190



Position with respect to appropriations act limitation oncommitments:

106..................................Guaranteed loan commitments exempt from limitation ............2131

1,046..................................Guaranteed loan commitments for loan asset sales with

recourse ................................................................................2132

1,152..................................Total guaranteed loan commitments .....................................2150288..................................Guaranteed amount of guaranteed loan commitments .................2199

Cumulative balance of guaranteed loans outstanding:...................................................Outstanding, start of year .........................................................2210

106..................................Disbursements of new guaranteed loans ..................................2231

1,046..................................Guarantees of loans sold to the public with recourse ................2232

...................................................Adjustments: Terminations for default that result in acquisition

of property .............................................................................2262

1,152..................................Outstanding, end of year .......................................................2290

Memorandum:

288..................................Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299

✦

HOUSING LIQUIDATING ACCOUNT



Obligations by program activity:222Claims processed and repaid default claims ............................0104333Other operating expenses ..........................................................0105

555Total operating expenses ...............................................................0191Credit program obligations:

458Default claim payments on principal ....................................0711




.................–2–5Capital transfer of unobligated balances to general fund ......1022

...................................................Unobligated balance (total) ......................................................1050Budget authority:


–6–7–7Capital transfer of spending authority from offsetting

collections to general fund ...........................................1820

91015Spending auth from offsetting collections, mand (total) .......185091015Total budgetary resources available ..............................................1930



.................21Unpaid obligations, brought forward, Oct 1 (gross) ..............300091013Obligations incurred, unexpired accounts .............................3030


..................................2Unpaid obligations, end of year (gross) .................................3090



91012Outlays from new mandatory authority .............................4100.................2.................Outlays from mandatory balances ....................................4101



..................................–1Federal sources .................................................................4120–3–3–3Loan repayments and prepayments ..................................4123–3–3–6Sale of homes, cash ..........................................................4123–1–1–2Interest on loans ...............................................................4123–1–1–1Interest on subordinate certificates ..................................4123–2–3–3Principal collection of Veteran liability debts ....................4123–3–4–4Principal collection on Veteran liability debts ...................4123–1–1–1Other revenues (including adjustments) ...........................4123


–6–7–7Budget authority, net (mandatory) ............................................4160–6–5–10Outlays, net (mandatory) ...........................................................4170–6–7–7Budget authority, net (total) ..........................................................4180–6–5–10Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:140140140Total investments, SOY: non-Fed securities: Market value .........5010140140140Total investments, EOY: non-Fed securities: Market value .........5011




Cumulative balance of direct loans outstanding:141721Outstanding, start of year .........................................................1210–3–3–4Repayments: Repayments and prepayments .............................1251




Cumulative balance of guaranteed loans outstanding:586696831Outstanding, start of year .........................................................2210–88–104–124Repayments and prepayments ..................................................2251

Adjustments:.................–1–1Terminations for default that result in loans receivable ........2261

–5–5–8Terminations for default that result in acquisition of

property .............................................................................2262

..................................–2Terminations for default that result in claim payments ........2263


Memorandum:

211251299Guaranteed amount of guaranteed loans outstanding, end of

year .......................................................................................2299

Addendum:Cumulative balance of defaulted guaranteed loans that result

in loans receivable:122133Outstanding, start of year .....................................................2310

..................................1Disbursements for guaranteed loan claims ...........................2331–2–3–4Repayments of loans receivable ............................................2351–4–6–9Write-offs of loans receivable ................................................2361

61221Outstanding, end of year ...................................................2390

As required by the Federal Credit Reform Act of 1990, this ac-count records all cash flows to and from the Government resultingfrom direct loans obligated and loan guarantees committed priorto 1992. All new activity in this program in 1992 and beyond isrecorded in the corresponding program and financing accounts.



ASSETS:56Federal assets: Fund balances with Treasury .................................1101

140140Non-Federal assets: Investments in non-Federal securities, net .....12011720Direct loans, gross .........................................................................1601–2–2Allowance for estimated uncollectible loans and interest (-) .........1603

1518Direct loans and interest receivable, net ...................................1604910Foreclosd property direct loans ......................................................1606

2428Value of assets related to direct loans .......................................16992133Defaulted guaranteed loans, gross ................................................1701

–18–26Allowance for estimated uncollectible loans and interest (-) .........1703

37Defaulted guaranteed loans and interest receivable, net ..........170478Foreclosed property ........................................................................1706

1015Value of assets related to loan guarantees ................................1799

179189Total assets ...............................................................................1999LIABILITIES:

177189Federal liabilities: Debt ..................................................................21032...........................Non-Federal liabilities: Other .........................................................2207

179189Total liabilities ...........................................................................2999NET POSITION:

......................................................Total net position .......................................................................3999

179189Total liabilities and net position .....................................................4999



Direct obligations:558Land and structures ..................................................................32.0453Investments and loans ..............................................................33.0

..................................2Insurance claims and indemnities ............................................42.0

91013Direct obligations ..................................................................99.0


✦

NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT

For administrative expenses to carry out the direct loan program author-ized by subchapter V of chapter 37 of title 38, United States Code,$1,116,000.

VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

For the cost of direct loans, $19,000, as authorized by chapter 31 of title38, United States Code: Provided, That such costs, including the cost ofmodifying such loans, shall be as defined in section 502 of the Congres-sional Budget Act of 1974: Provided further, That funds made availableunder this heading are available to subsidize gross obligations for theprincipal amount of direct loans not to exceed $3,019,000.

In addition, for administrative expenses necessary to carry out the directloan program, $343,000, which may be paid to the appropriation for"General operating expenses''.





.................51Reestimates of direct loan subsidy .......................................0705

..................................1Interest on reestimates of direct loan subsidy .......................0706111Administrative expenses .......................................................0709

163Total new obligations (object class 25.2) ......................................0900




Appropriations, mandatory:152Appropriation ....................................................................1200263Budget authority (total) .............................................................1900485Total budgetary resources available ..............................................1930


Change in obligated balance:163Obligations incurred, unexpired accounts .............................3030

–2–6–3Outlays (gross) ......................................................................3040



111Outlays from new discretionary authority ..........................4010Mandatory:


152Outlays from new mandatory authority .............................4100263Budget authority, net (total) ..........................................................4180263Outlays, net (total) ........................................................................4190



Direct loan levels supportable by subsidy budget authority:92216Native American Direct Loans ...................................................115002322Vocational Rehabilitation ..........................................................115003

122418Total direct loan levels ..............................................................115999Direct loan subsidy (in percent):

–11.97–13.65–32.78Native American Direct Loans ...................................................1320020.631.571.27Vocational Rehabilitation ..........................................................132003

–8.82–12.38–29.00Weighted average subsidy rate ..................................................132999



NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM ACCOUNT—ContinuedSummary of Loan Levels, Subsidy Budget Authority and Outlays by Program—Continued


Direct loan subsidy budget authority:–1–3–5Native American Direct Loans ...................................................133002

–1–3–5Total subsidy budget authority ..................................................133999Direct loan subsidy outlays:

–1–3–5Native American Direct Loans ...................................................134002

–1–3–5Total subsidy outlays .................................................................134999Direct loan upward reestimates:

.................51Native American Direct Loans ...................................................135002

.................51Total upward reestimate budget authority .................................135999Direct loan downward reestimates:

.................–3–2Native American Direct Loans ...................................................137002

.................–3–2Total downward reestimate budget authority ............................137999

Administrative expense data:111Budget authority .......................................................................3510111Outlays from new authority .......................................................3590

The Native American Veterans Housing Loan program providesdirect loans to veterans living on trust lands under 38 U.S.C.chapter 37, section 3761. These loans are available to purchase,construct, or improve homes to be occupied as the veteran's res-idence. This program began as a pilot in 1993 and was madepermanent on June 15, 2006 through Public Law 109–233.

The Vocational Rehabilitation Loan Program provides additionalfunding assistance to cover the costs of subsistence, tuition, books,supplies, and equipment in conjunction with service connecteddisability benefits provided to Veterans participating in VA'sVocational Rehabilitation and Counseling Program as authorizedby chapter 31 of title 38, United States Code. Repayment of theseloans is made in monthly installments, without interest, throughdeductions from future payments of compensation, pension,subsistence allowance, educational assistance allowance, or re-tired pay.

✦

NATIVE AMERICAN DIRECT LOAN FINANCING ACCOUNT




92216Direct loan obligations ..........................................................0710213Payment of interest to Treasury .............................................0713135Negative subsidy obligations ................................................0740


.................11Interest on downward reestimates ........................................0743




.................–2–4Unobligated balances applied to repay debt .........................1023

...................................................Unobligated balance (total) ......................................................1050Financing authority:

Borrowing authority, mandatory:123024Borrowing authority ...........................................................1400


–4–6–10Spending authority from offsetting collections applied to

repay debt .....................................................................1825

..................................4Spending auth from offsetting collections, mand (total) .......1850123028Financing authority(total) .........................................................1900123028Total budgetary resources available ..............................................1930



41.................Unpaid obligations, brought forward, Oct 1 (gross) ..............3000123026Obligations incurred, unexpired accounts .............................3030

–13–27–25Financing disbursements (gross) ..........................................3040Obligated balance, end of year (net):



123028Financing authority, gross .....................................................4090Financing disbursements:

132725Financing disbursements, gross ...........................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:.................–5–1Federal sources .................................................................4120..................................–1Interest on uninvested funds ............................................4122

–2.................–10Non-federal sources - Repayments and prepayments of

principal .......................................................................4123

–2–1–2Non-Federal sources - Interest received on loans ..............4123

–4–6–14Offsets against gross financing auth and disbursements

(total) ................................................................................4130

82414Financing authority, net (mandatory) ........................................416092111Financing disbursements, net (mandatory) ...............................417082414Financing authority, net (total) ......................................................418092111Financing disbursements, net (total) ............................................4190



Position with respect to appropriations act limitation on obligations:92216Direct loan obligations exempt from limitation .........................1131

92216Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:785847Outstanding, start of year .........................................................1210102015Disbursements: Direct loan disbursements ...............................1231–2.................–10Repayments: Repayments and prepayments .............................1251

..................................6Write-offs for default: Adjustments other ..................................1264


The account preceding this section contains information on theNative American Veterans Housing Loan program, and the ac-count following this section contains information on the Guaran-teed Transitional Housing Loans for Homeless Veterans program.The Transitional Housing loans are 100% guaranteed and usethe Federal Financing Bank (FFB) as the lending institution.For budget purposes, all FFB loans shall be treated as directloans.

As required by the Federal Credit Reform Act of 1990, thesenon-budgetary accounts record all cash flows to and from theGovernment resulting from direct loans obligated in 1992 andbeyond (including modifications of direct loans that resulted fromobligations in any year). The amounts in the accounts are a meansof financing and are not included in the budget totals.




Net value of assets related to post-1991 direct loans receivable:5848Direct loans receivable, gross ....................................................14011...........................Interest receivable .....................................................................1402

5948Net present value of assets related to direct loans ................149921Other Federal assets: Other assets ................................................1901


Federal liabilities:6352Federal liabilities debt ...............................................................210311Other liabilities ..........................................................................2105

6453Total liabilities ...........................................................................2999



✦

TRANSITIONAL HOUSING DIRECT LOAN FINANCING ACCOUNT



Obligations by program activity:..................................1Transitional housing direct loan financing account ..................0005

..................................1Total new obligations .....................................................................0900


555Unobligated balance brought forward, Oct 1 .........................1000Financing authority:

Spending authority from offsetting collections, mandatory:..................................1Collected ...........................................................................1800



Change in obligated balance:..................................1Obligations incurred, unexpired accounts .............................3030..................................–1Financing disbursements (gross) ..........................................3040


..................................1Financing authority, gross .....................................................4090Financing disbursements:

..................................1Financing disbursements, gross ...........................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:..................................–1Interest on uninvested funds ............................................4122

...................................................Financing authority, net (mandatory) ........................................4160

...................................................Financing disbursements, net (mandatory) ...............................4170

...................................................Financing authority, net (total) ......................................................4180




Position with respect to appropriations act limitation on obligations:959595Limitation available from carry-forward ....................................1121

–95–95–95Unobligated limitation carried forward .....................................1143

...................................................Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:155Outstanding, start of year .........................................................1210

.................–4.................Write-offs for default: Direct loans ............................................1263





55Net value of assets related to post-1991 direct loans receivable:Direct loans receivable, gross ....................................................

1401


Federal liabilities:55Debt ...........................................................................................210355Other ..........................................................................................2105



✦

VOCATIONAL REHABILITATION DIRECT LOAN FINANCING ACCOUNT




322Direct loan obligations ..........................................................0710


Budgetary Resources:Financing authority:

Borrowing authority, mandatory:322Authority to borrow (indefinite) .........................................1400


–3–2–3Spending authority from offsetting collections applied to

repay debt .....................................................................1825

...................................................Spending auth from offsetting collections, mand (total) .......1850322Financing authority(total) .........................................................1900322Total budgetary resources available ..............................................1930

Change in obligated balance:322Obligations incurred, unexpired accounts .............................3030

–3–2–3Financing disbursements (gross) ..........................................3040


322Financing authority, gross .....................................................4090Financing disbursements:

323Financing disbursements, gross ...........................................4110Offsets against gross financing authority and disbursements:

Offsetting collections (collected) from:–3–2–3Repayments and prepayments of principal .......................4123

..................................–1Financing authority, net (mandatory) ........................................4160

...................................................Financing disbursements, net (mandatory) ...............................4170

..................................–1Financing authority, net (total) ......................................................4180




Position with respect to appropriations act limitation on obligations:322Limitation on direct loans .........................................................1111

322Total direct loan obligations ..................................................1150

Cumulative balance of direct loans outstanding:112Outstanding, start of year .........................................................1210322Disbursements: Direct loan disbursements ...............................1231

–3–2–3Repayments: Repayments and prepayments .............................1251




ASSETS:Federal assets: Investments in US securities:

...........................1Agency securities, par ................................................................1104Net value of assets related to post-1991 direct loans receivable:

11Direct loans receivable, gross ....................................................1401

11Net present value of assets related to direct loans ................1499


12Federal liabilities: Debt ..................................................................2103



✦



Trust FundsPOST-VIETNAM ERA VETERANS EDUCATION ACCOUNT



..................................1Balance, start of year ....................................................................0100Adjustments:

..................................–1Adjustment - Treasury reconciliation .........................................0191

...................................................Balance, start of year ................................................................0199Receipts:

111Contributions, Post-Vietnam Era Veterans Education

Account .................................................................................0240


–1–1–1Post-Vietnam Era Veterans Education Account .........................0500

...................................................Balance, end of year ..................................................................0799



Obligations by program activity:111Payment to post-Vietnam era trainees ......................................0001111Participant disenrollments ........................................................0003




Appropriations, mandatory:111Appropriation (trust fund) .................................................1202









111Outlays from mandatory balances ....................................4101111Budget authority, net (total) ..........................................................4180111Outlays, net (total) ........................................................................4190

This account consists of voluntary contributions by eligibleservicepersons and matching contributions provided by the De-partment of Defense. The fund provides educational assistancepayments to participants who entered the service after December31, 1976, and are pursuing training under chapter 32, title 38,U.S.C. Section 901 is a non-contributory program with education-al assistance provided by the Department of Defense. Public Law99–576, enacted October 28, 1986, closed the program perman-ently for new enrollments effective March 31, 1987. Public Law106–419, enacted November 1, 2000, provides qualified parti-cipants in this program another opportunity (through October31, 2001) to convert to the All-Volunteer Force Educational As-sistance program (Montgomery GI Bill). The estimated activityin the fund follows:

CONTRIBUTIONS, PARTICIPANTS, DISENROLLMENTS, REFUNDS AND TRAINEES

[dollars in millions]=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===

2012 est.2011 CR2010 actual$1$1$1Total budget authority ..............................................................................$0$0$0Servicepersons contributions ...............................................................$0$0$0Transferred from Department of Defense (bonus) .................................$0$0$0Transferred from Department of Defense (matching) ...........................

$0$0$0Transferred from Department of Defense (section 901) ........................192,456193,152193,912Total participants (end of year) ................................................................

448498548Number of disenrollments ........................................................................$1$1$1Total refunds ............................................................................................

264277286Total trainees ............................................................................................$1$1$1Total trainee cost ......................................................................................

$939$939$939Average cost per trainee (actual dollars) ..................................................202122Section 901 trainees .................................................................................



Direct obligations:111Grants, subsidies, and contributions ........................................41.0111Refunds .....................................................................................44.0


✦

NATIONAL SERVICE LIFE INSURANCE FUND



6,3146,9017,404Balance, start of year ....................................................................0100Adjustments:

..................................1Adjustment - Treasury reconciliation .........................................0191

6,3146,9017,405Balance, start of year ................................................................0199Receipts:

8495108NSLI Fund, Premium and Other Receipts ...................................0220358412466NSLI Fund, Interest ....................................................................0240

442507574Total receipts and collections ................................................0299

6,7567,4087,979Total: Balances and collections .................................................0400Appropriations:

–442–507–574National Service Life Insurance Fund ........................................0500–601–587–504National Service Life Insurance Fund ........................................0501

–1,043–1,094–1,078Total appropriations ..............................................................0599

5,7136,3146,901Balance, end of year ..................................................................0799



Obligations by program activity:723747724Death claims .............................................................................0001

567Disability claims .......................................................................0002423525Matured endowments ................................................................0003272829Cash surrenders ........................................................................0004

135163182Dividends ..................................................................................0005434650Interest paid on dividend credits and deposits .........................0006232320Payment to insurance account ..................................................0007

9981,0481,037Total operating expenses ...............................................................0091454641Capital investment: Policy loans ...............................................0201

1,0431,0941,078Total direct obligations ..................................................................0799129140153Death claims .............................................................................0801

111Disability claims .......................................................................0802775Matured endowments ................................................................0803556Cash surrenders ........................................................................0804

243138Dividends ..................................................................................08058911Interest paid on dividend credits and deposits .........................0806444Payment to insurance account ..................................................0807




11.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, mandatory:442507574Appropriation (trust fund) .................................................1202601587504Appropriation (previously unavailable) .............................1203

1,0431,0941,078Appropriations, mandatory (total) .........................................1260

THE BUDGET FOR FISCAL YEAR 2012Benefits Programs—ContinuedTrust Funds—Continued1052


1,2211,2911,297Budget authority (total) .............................................................19001,2221,2921,297Total budgetary resources available ..............................................1930



1,1911,2681,338Unpaid obligations, brought forward, Oct 1 (gross) ..............30001,2211,2911,296Obligations incurred, unexpired accounts .............................3030


1,1061,1911,268Unpaid obligations, end of year (gross) .................................3090






1,0431,0941,078Budget authority, net (mandatory) ............................................41601,1281,1711,147Outlays, net (mandatory) ...........................................................41701,0431,0941,078Budget authority, net (total) ..........................................................41801,1281,1711,147Outlays, net (total) ........................................................................4190

Memorandum (non-add) entries:7,4978,1618,735Total investments, SOY: Federal securities: Par value ...............50006,8127,4978,161Total investments, EOY: Federal securities: Par value ...............5001


This fund was established in 1940. It is for the World War IIservicemen's and veterans' insurance program. Over 22 millionpolicies were issued under this program. Activity of the fund re-flects a declining claim workload. The trend in the number andamount of policies in force is shown as follows:


2012 est.2011 CR2010 actual587,765665,775748,895Number of policies ....................................................................................$7,186$8,050$8,924Insurance in force (dollars in millions) .....................................................

This fund is operated on a commercial basis to the extent pos-sible. The income of the fund is derived from premium receipts,interest on investments, and payments which are made to thefund from the Veterans Insurance and Indemnities appropriation.

Assets of the fund, which are largely invested in special interest-bearing Treasury securities and in policy loans, are expected todecrease from an estimated $7,902 million as of September 30,2011 to $7,195 million as of September 30, 2012. The actuarialestimate of policy obligations as of September 30, 2012, totals$6,947 million, leaving a balance of $248 million for contingencyreserves.

The status of the fund, excluding noncash transactions, is asfollows:

Status of Funds (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Unexpended balance, start of year:7,5068,1708,743Balance, start of year ................................................................0100

7,5068,1708,743Total balance, start of year ....................................................0199Cash income during the year:

Current law:Offsetting receipts (proprietary):

8495108NSLI Fund, Premium and Other Receipts ...........................1220Offsetting receipts (intragovernmental):

358412466NSLI Fund, Interest ............................................................1240Offsetting collections:

178197219National Service Life Insurance Fund ................................1280

620704793Income under present law .....................................................1299Proposed legislation:

...................................................Income under proposed legislation ........................................2299

620704793Total cash income .................................................................3299Cash outgo during year:

Current law:–1,306–1,368–1,366National Service Life Insurance Fund ....................................4500–1,306–1,368–1,366Outgo under current law (-) ...................................................4599

Proposed legislation:...................................................Outgo under proposed legislation (-) .....................................5599

–1,306–1,368–1,366Total cash outgo (-) ...............................................................6599

...................................................Total adjustments .....................................................................7699Unexpended balance, end of year:

899Uninvested balance (net), end of year .......................................87006,8127,4978,161Invested balance, end of year ....................................................8701

6,8207,5068,170Total balance, end of year .....................................................8799Commitments against unexpended balance, end of year:

...................................................Total commitments (-) ...........................................................9899



Direct obligations:454641Investments and loans ..........................................................33.0

797816785Insurance claims and indemnities ........................................42.0201232252Interest and dividends ..........................................................43.0



✦

UNITED STATES GOVERNMENT LIFE INSURANCE FUND



101317Balance, start of year ....................................................................0100Adjustments:

..................................–1Adjustment - Treasury reconciliation .........................................0191

101316Balance, start of year ................................................................0199Receipts:

111Interest and Profits on Investments in Public Debt Securities,

USGLI ....................................................................................0240


–1–1–1United States Government Life Insurance Fund .........................0500–3–3–3United States Government Life Insurance Fund .........................0501

–4–4–4Total appropriations ..............................................................0599

71013Balance, end of year ..................................................................0799



Obligations by program activity:222Death claims .............................................................................0001111Other costs ................................................................................0007

333Direct program activities, subtotal ................................................0091111Dividends ..................................................................................0802

111Reimbursable program activities, subtotal ...................................0809



Appropriations, mandatory:111Appropriation (trust fund) .................................................1202333Appropriation (previously unavailable) .............................1203

444Appropriations, mandatory (total) .........................................1260444Total budgetary resources available ..............................................1930


Trust Funds—Continued

UNITED STATES GOVERNMENT LIFE INSURANCE FUND—ContinuedProgram and Financing—Continued












This fund was established in 1919 to receive premiums and payclaims on insurance issued under the provisions of the War RiskInsurance Act. The general decline in the activity of the fund isindicated in the following table:


2012 est.2011 CR2010 actual2,1552,9203,765Number of policies ....................................................................................

$6$8$11Insurance in force (dollars in millions) .....................................................

The fund is operated on a commercial basis to the extent pos-sible. The income of the fund is derived from interest on invest-ments. Effective January 1, 1983, premiums were discontinuedbecause reserves held in the fund were adequate to meet futureliabilities of the program.

Assets of the fund, which are largely invested in interest-bearingsecurities and policy loans, are estimated to decrease from $17.6million as of September 30, 2011, to $13.5 million as of September30, 2012, as an increasing number of policies mature throughdeath or disability. The actuarial evaluation of policy obligationsas of September 30, 2012, totals $12.9 million, leaving a balanceof $0.6 million for contingency reserves.

Status of Funds (in millions of dollars)=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Unexpended balance, start of year:172126Balance, start of year ................................................................0100

172126Total balance, start of year ....................................................0199Cash income during the year:

Current law:Offsetting receipts (intragovernmental):

111Interest and Profits on Investments in Public Debt

Securities, U .................................................................1240

111Income under present law .....................................................1299Proposed legislation:

...................................................Income under proposed legislation ........................................2299

111Total cash income .................................................................3299Cash outgo during year:

Current law:–5–5–6United States Government Life Insurance Fund .....................4500–5–5–6Outgo under current law (-) ...................................................4599

Proposed legislation:...................................................Outgo under proposed legislation (-) .....................................5599

–5–5–6Total cash outgo (-) ...............................................................6599

...................................................Total adjustments .....................................................................7699Unexpended balance, end of year:

1..................................Uninvested balance (net), end of year .......................................8700121721United States Government Life Insurance Fund .........................8701

131721Total balance, end of year .....................................................8799Commitments against unexpended balance, end of year:

...................................................Total commitments (-) ...........................................................9899



Direct obligations:222Insurance claims and indemnities ............................................42.0222Interest and dividends ..............................................................43.0


✦

VETERANS SPECIAL LIFE INSURANCE FUND



Obligations by program activity:10810293Death claims .............................................................................0801

565Cash surrenders ........................................................................0802566265Dividends ..................................................................................0803262628All other .....................................................................................0804876Payments to insurance account ................................................0805

121213Capital investment ....................................................................0806



1,5381,5711,588Unobligated balance brought forward, Oct 1 .........................1000Budget authority:



171182193Spending auth from offsetting collections, mand (total) .......18501,7091,7531,781Total budgetary resources available ..............................................1930

Memorandum (non-add) entries:1,4941,5381,571Unexpired unobligated balance, end of year ..........................1941




–217–215–198Outlays (gross) ......................................................................3040..................................1Change in uncollected pymts, Fed sources, unexpired ..........3050







Offsetting collections (collected) from:–110–117–125Interest on Federal securities ............................................4121–61–65–69Non-Federal sources .........................................................4123


..................................1Change in uncollected pymts, Fed sources, unexpired .......4140

...................................................Budget authority, net (mandatory) ............................................416046334Outlays, net (mandatory) ...........................................................4170


THE BUDGET FOR FISCAL YEAR 2012Benefits Programs—ContinuedTrust Funds—Continued1054


Memorandum (non-add) entries:1,9641,9972,001Total investments, SOY: Federal securities: Par value ...............50001,9181,9641,997Total investments, EOY: Federal securities: Par value ...............5001


This fund finances the payment of claims on life insurancepolicies issued before January 3, 1957, to veterans who servedin the Armed Forces subsequent to April 1, 1951. No new policiescan be issued. Policyholders may elect to purchase total disabilityincome coverage with the payment of additional premiums.

Benefit program:Death claims.—Represents payments to designated beneficiar-

ies.Cash surrenders.—A policyholder may terminate his or her

insurance by cashing in the policy for its cash value.Dividends.—Policyholders participate in the distribution of

annual dividends.All other.—Classified in this category are payments to policy-

holders who: (a) hold endowment policies which have matured;(b) have purchased total disability income coverage and sub-sequently become disabled; and (c) are paid interest on dividendcredits and deposits.The following table reflects the decrease in the number of

policies and the amounts of insurance in force:


2012 est.2011 CR2010 actual148,532158,111167,320Number of policies ....................................................................................$2,044$2,136$2,218Insurance in force (dollars in millions) .....................................................

Financing.—Payments from this fund are financed primarilyfrom premium receipts and interest on investments.




123117107Insurance claims and indemnities ............................................42.0808690Interest and dividends ..............................................................43.0



✦

DEPARTMENTAL ADMINISTRATIONFederal Funds

CONSTRUCTION, MAJOR PROJECTS

For constructing, altering, extending, and improving any of the facilities,including parking projects, under the jurisdiction or for the use of theDepartment of Veterans Affairs, or for any of the purposes set forth insections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122of title 38, United States Code, including planning, architectural andengineering services, construction management services, maintenance orguarantee period services costs associated with equipment guaranteesprovided under the project, services of claims analysts, offsite utility andstorm drainage system construction costs, and site acquisition, where theestimated cost of a project is more than the amount set forth in section8104(a)(3)(A) of title 38, United States Code, or where funds for a projectwere made available in a previous major project appropriation,$589,604,000, to remain available until expended, of which $5,000,000shall be to make reimbursements as provided in section 13 of the ContractDisputes Act of 1978 (41 U.S.C. 612) for claims paid for contract disputes:Provided, That except for advance planning activities, including needsassessments which may or may not lead to capital investments, and other

capital asset management related activities, including portfolio develop-ment and management activities, and investment strategy studies fundedthrough the advance planning fund and the planning and design activitiesfunded through the design fund, including needs assessments which mayor may not lead to capital investments, and salaries and associated costsof the resident engineers who oversee those capital investments fundedthrough this account, and funds provided for the purchase of land for theNational Cemetery Administration through the land acquisition line item,none of the funds made available under this heading shall be used forany project which has not been submitted to the Congress in the budgetaryprocess: Provided further, That funds made available under this headingfor fiscal year 2012, for each approved project shall be obligated: (1) bythe awarding of a construction documents contract by September 30, 2012;and (2) by the awarding of a construction contract by September 30, 2013:Provided further, That the Secretary of Veterans Affairs shall promptlysubmit to the Committees on Appropriations of both Houses of Congressa written report on any approved major construction project for whichobligations are not incurred within the time limitations established above.




Obligations by program activity:1,5221,813758Medical programs .....................................................................0001

9372111National cemeteries ..................................................................0002757Staff offices ..............................................................................0005

1,6221,890876Total new obligations .....................................................................0900


2,1162,8122,560Unobligated balance brought forward, Oct 1 .........................1000Budget authority:

Appropriations, discretionary:5901,1941,194Appropriation ....................................................................1100

..................................–67Appropriations transferred to other accounts ....................1120

5901,1941,127Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:

..................................1Collected ...........................................................................17005901,1941,128Budget authority (total) .............................................................1900

2,7064,0063,688Total budgetary resources available ..............................................1930Memorandum (non-add) entries:

1,0842,1162,812Unexpired unobligated balance, end of year ..........................1941


2,3271,3791,496Unpaid obligations, brought forward, Oct 1 (gross) ..............30001,6221,890876Obligations incurred, unexpired accounts .............................3030

..................................–1Obligations incurred, expired accounts .................................3031–1,002–942–992Outlays (gross) ......................................................................3040



5901,1941,128Budget authority, gross .........................................................4000Outlays, gross:


1,002942992Outlays, gross (total) .............................................................4020Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:..................................–1Federal sources .................................................................4030

5901,1941,127Budget authority, net (discretionary) .........................................40701,002942991Outlays, net (discretionary) .......................................................40805901,1941,127Budget authority, net (total) ..........................................................4180

1,002942991Outlays, net (total) ........................................................................4190

The Construction, Major Projects appropriation funds construc-tion projects costing more than $10 million, including medicalfacility projects at New Orleans, LA; and Denver, CO; seismiccorrection projects in San Juan, PR; and Seattle, WA; and aclinical improvement project in Bay Pines, FL. Construction

1055DEPARTMENT OF VETERANS AFFAIRSDepartmental Administration

Federal Funds

CONSTRUCTION, MAJOR PROJECTS—Continuedfunding is also included for the next phases of a combinedcemetery expansion/medical facilities improvement project in St.Louis, MO; and a polytrauma/ambulatory care project in PaloAlto, CA. The request also contains design funding for three newmedical facility projects in Reno, NV; San Francisco, CA; andWest Los Angeles, CA. In addition, a new columbarium expansionand replacement of administration building project would befunded at the National Cemetery in Honolulu, HI.

Additional funds are provided to reimburse the Judgment Fund,improve facility security at Department-owned buildings, pur-chase land for future cemetery expansions, fund salaries andassociated costs of resident engineers who oversee the Depart-ment's capital investments, and support advance planning anddesign activities. Along with new 2012 budget authority, VA willutilize available prior year appropriations to fund the majorconstruction program.



Direct obligations:6610Other services from non-federal sources ...............................25.2

2424.................Other goods and services from federal sources .....................25.333.................Supplies and materials .........................................................26.033.................Equipment .............................................................................31.0

1,5861,853865Land and structures ..............................................................32.0

1,6221,889875Direct obligations ..............................................................99.0.................11Reimbursable obligations .........................................................99.0

1,6221,890876Total new obligations ............................................................99.9

✦

CONSTRUCTION, MINOR PROJECTS

For constructing, altering, extending, and improving any of the facilities,including parking projects, under the jurisdiction or for the use of theDepartment of Veterans Affairs, including planning and assessments ofneeds which may lead to capital investments, architectural and engineeringservices, maintenance or guarantee period services costs associated withequipment guarantees provided under the project, services of claims ana-lysts, offsite utility and storm drainage system construction costs, and siteacquisition, or for any of the purposes set forth in sections 316, 2404, 2406,8102, 8103, 8106, 8108, 8109, 8110, 8122, and 8162 of title 38, UnitedStates Code, where the estimated cost of a project is equal to or less thanthe amount set forth in section 8104(a)(3)(A) of title 38, United StatesCode, $550,091,000, to remain available until expended, along with un-obligated balances of previous "Construction, minor projects'' appropri-ations which are hereby made available for any project where the estimatedcost is equal to or less than the amount set forth in such section: Provided,That funds made available under this heading shall be for: (1) repairs toany of the nonmedical facilities under the jurisdiction or for the use of theDepartment which are necessary because of loss or damage caused by anynatural disaster or catastrophe; and (2) temporary measures necessary toprevent or to minimize further loss by such causes.




Obligations by program activity:416629570Medical programs .....................................................................0001656643National cemeteries ..................................................................0002141516Regional offices ........................................................................0003322521Staff offices ..............................................................................0004




Appropriations, discretionary:550703703Appropriation ....................................................................1100550703703Budget authority (total) .............................................................1900

1,0111,1961,143Total budgetary resources available ..............................................1930Memorandum (non-add) entries:










The Construction, Minor Projects appropriation, which fundsconstruction projects costing equal to or less than $10 million, isused to improve the infrastructure of medical facilities and otherDepartment-owned facilities to reduce the risk to patient life andsafety, correct code deficiencies, and improve national cemeteriesand regional and staff offices.



Direct obligations:..................................1Personnel compensation: Other than full-time permanent ........11.3

373716Other services from non-federal sources ...................................25.255.................Supplies and materials .............................................................26.033.................Equipment .................................................................................31.0

482690633Land and structures ..................................................................32.0

527735650Direct obligations ..................................................................99.0




448Direct civilian full-time equivalent employment ............................1001

✦

GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES

For grants to assist States to acquire or construct State nursing homeand domiciliary facilities and to remodel, modify, or alter existing hospital,nursing home, and domiciliary facilities in State homes, for furnishingcare to veterans as authorized by sections 8131 through 8137 of title 38,United States Code, $85,000,000, to remain available until expended.




Obligations by program activity:87124242Grants for construction of state extended care facilities ...........0001


THE BUDGET FOR FISCAL YEAR 2012Departmental Administration—ContinuedFederal Funds—Continued1056



Appropriations, discretionary:85100100Appropriation ....................................................................110095134276Total budgetary resources available ..............................................1930








22.................Outlays from new discretionary authority ..........................4010180205109Outlays from discretionary balances .................................4011

182207109Outlays, gross (total) .............................................................402085100100Budget authority, net (total) ..........................................................4180


✦

GRANTS FOR CONSTRUCTION OF [STATE]VETERANS CEMETERIES

For grants to assist States and Tribal Governments in establishing, ex-panding, or improving veterans cemeteries as authorized by section 2408of title 38, United States Code, $46,000,000, to remain available untilexpended.




Obligations by program activity:464648Grants for construction of state veterans cemeteries ................0001












2525.................Outlays from new discretionary authority ..........................40108736Outlays from discretionary balances .................................4011


✦

GENERAL OPERATING EXPENSES

For necessary operating expenses of the Department of Veterans Affairs,not otherwise provided for, including administrative expenses in supportof Department-Wide capital planning, management and policy activities,uniforms, or allowances therefor; not to exceed $25,000 for official receptionand representation expenses; hire of passenger motor vehicles; and reim-bursement of the General Services Administration for security guard ser-vices, and the Department of Defense for the cost of overseas employeemail, $2,466,989,000: Provided, That expenses for services and assistanceauthorized under paragraphs (1), (2), (5), and (11) of section 3104(a) oftitle 38, United States Code, that the Secretary of Veterans Affairs determ-ines are necessary to enable entitled veterans: (1) to the maximum extentfeasible, to become employable and to obtain and maintain suitable em-ployment; or (2) to achieve maximum independence in daily living, shallbe charged to this account: Provided further, That the Veterans BenefitsAdministration shall be funded at not less than $2,018,764,000: Providedfurther, That of the funds made available under this heading, not to exceed$128,000,000 shall remain available until September 30, 2013: Providedfurther, That from the funds made available under this heading, theVeterans Benefits Administration may purchase (on a one-for-one replace-ment basis only) up to two passenger motor vehicles for use in operationsof that Administration in Manila, Philippines:

Provided further, That of the funds made available under this heading,$23,584,000 is to strengthen the Department's acquisition workforce capa-city and capabilities: Provided further, That, with respect to the previousproviso, such funds may be transferred by the Secretary to any other ac-count in the Department to carry out the purposes provided herein:Provided further, That, with respect to the previous proviso, such transferauthority is in addition to any other transfer authority provided in thisAct: Provided further, That, with respect to the fifth proviso, such fundsshall be available for training, recruitment, retention, and hiring membersof the acquisition workforce as defined by the Office of Federal ProcurementPolicy Act, as amended (41 U.S.C. 401 et seq.): Provided further, That,with respect to the fifth proviso, such funds shall be available for inform-ation technology in support of acquisition workforce effectiveness or formanagement solutions to improve acquisition management.




Obligations by program activity:1,6641,8051,468Compensation and pensions .....................................................0010151175180Education ..................................................................................0011203188183Vocational rehabilitation and counseling ..................................0012

111Insurance ..................................................................................0013448415396General administration .............................................................0014

2,4672,5842,228Direct program activities, subtotal ................................................0091209184151Compensation and pensions .....................................................0801

131Education ..................................................................................0802353531Insurance ..................................................................................0804

137137121Housing .....................................................................................0805508467392General administration .............................................................0806





..................................11Expired unobligated bal transferred to unexpired accts ........1012


Appropriations, discretionary:2,4672,5462,087Appropriation ....................................................................1100

..................................–6Unobligated balance of appropriations permanently

reduced .........................................................................1131

2,4672,5462,081Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:


1057DEPARTMENT OF VETERANS AFFAIRSDepartmental Administration—Continued


GENERAL OPERATING EXPENSES—ContinuedProgram and Financing—Continued


Memorandum (non-add) entries:..................................–28Unobligated balance expiring ................................................1940..................................38Unexpired unobligated balance, end of year ..........................1941



641650357Obligated balance, start of year (net) .......................................30203,3573,4102,924Obligations incurred, unexpired accounts .............................3030






2,8692,8862,165Outlays from new discretionary authority ..........................4010552533428Outlays from discretionary balances .................................4011



Additional offsets against gross budget authority only:...................................................Offsetting collections credited to expired accounts ...........4052


Note.—The total cost of administering veterans insurance pro-grams is funded through direct appropriations to this accountand through reimbursements from the insurance trust fund.

This appropriation provides for the Department's top manage-ment direction and administrative support, including fiscal,personnel, and legal services, as well as for the administrationof veteran benefits.

General Administration.—Includes departmental executivedirection, departmental support offices, the General Counsel,and the Board of Veterans' Appeals.

The Pershing Hall Revolving Fund was created to operate andmanage Pershing Hall, an asset of the United States, located inParis, France. All operating expenses for Pershing Hall are borneby the revolving fund and all receipts generated by the operationof Pershing Hall are deposited in the revolving fund.

Note.—Reflects FTE treated as reimbursements in all yearsand the effects of Credit Reform, per P.L. 101–508.




1,3261,3121,281Full-time permanent .........................................................11.1626259Other personnel compensation ..........................................11.5


111Benefits for former personnel ................................................13.0395534Travel and transportation of persons .....................................21.0321Transportation of things ........................................................22.0

150169115Rent ......................................................................................23.1202215Rental payments to others ....................................................23.2303423Communications, utilities, and miscellaneous charges ........23.3646Printing and reproduction .....................................................24.0

240324275Other services from non-federal sources ...............................25.2194318Supplies and materials .........................................................26.0

21169Equipment .............................................................................31.010101Grants, subsidies, and contributions ....................................41.0





21,32921,23020,258Direct civilian full-time equivalent employment ............................10012,3072,2422,100Reimbursable civilian full-time equivalent employment ...............2001

✦

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General, to include in-formation technology, in carrying out the provisions of the InspectorGeneral Act of 1978 (5 U.S.C. App.), $109,391,000, of which $6,000,000shall remain available until September 30, 2013.




Obligations by program activity:109109108Direct program ..........................................................................0101

109109108Total direct program ......................................................................0192444Reimbursable program ..............................................................0801



11.................Unobligated balance brought forward, Oct 1 .........................1000Budget authority:



113113113Budget authority (total) .............................................................1900114114113Total budgetary resources available ..............................................1930




..................................–2Obligations incurred, expired accounts .................................3031–111–110–101Outlays (gross) ......................................................................3040







109109109Budget authority, net (discretionary) .........................................407010710697Outlays, net (discretionary) .......................................................4080109109109Budget authority, net (total) ..........................................................418010710697Outlays, net (total) ........................................................................4190

This appropriation provides for carrying out the independentoversight responsibilities of the Inspector General Act of 1978.This oversight includes VA-wide audit, investigation, health careinspection, and management support functions to identify and


report weaknesses and deficiencies that create conditions for ac-tual or potential fraud and other criminal activity, mismanage-ment, and waste in VA programs and operations. The auditfunction plans and conducts internal programmatic and financialaudits and evaluations of all facets of VA operations. The healthcare inspection function performs legislatively mandated medicalcare quality assurance reviews and oversight of VA health careprograms. The investigative function performs criminal and ad-ministrative investigations of improper and illegal activities in-volving VA operations, personnel, beneficiaries, and other parties.




656653Full-time permanent .........................................................11.1..................................5Other personnel compensation ..........................................11.5

656658Total personnel compensation ......................................11.9181918Civilian personnel benefits ....................................................12.1665Employee Travel .....................................................................21.0

..................................1Transportation of things ........................................................22.0558Rental payments to GSA ........................................................23.1111Communications, utilities, and miscellaneous charges ........23.3

1089Other services from non-federal sources ...............................25.2..................................1Supplies and materials .........................................................26.0

447Equipment .............................................................................31.0

109109108Direct obligations ..............................................................99.0444Reimbursable obligations .........................................................99.0




585600530Direct civilian full-time equivalent employment ............................1001272523Reimbursable civilian full-time equivalent employment ...............2001

✦

INFORMATION TECHNOLOGY SYSTEMS

For necessary expenses for information technology systems and telecom-munications support, including developmental information systems andoperational information systems; for pay and associated costs; and for thecapital asset acquisition of information technology systems, includingmanagement and related contractual costs of said acquisitions, includingcontractual costs associated with operations authorized by section 3109of title 5, United States Code, $3,161,376,000, plus reimbursements, shallremain available until September 30, 2013.




Obligations by program activity:335408300Veterans health administration .................................................0001184323126Veterans benefits administration ..............................................0002

561National cemetery administration .............................................00031,8002,0302,041Information technology infrastructure .......................................00049151,142843General administration and other .............................................0005

3,2393,9093,311Direct program activities, subtotal ................................................0091151919Credit administration ................................................................080113129Insurance administration ..........................................................080212127Veterans Health Administration .................................................08041096General administration and other .............................................0805




77679688Unobligated balance brought forward, Oct 1 .........................1000..................................4Unobligated balance transferred from other accounts ..........1011

77679692Unobligated balance (total) ......................................................1050Budget authority:

Appropriations, discretionary:3,1613,3073,307Appropriation ....................................................................1100

..................................–5Unobligated balance of appropriations permanently

reduced .........................................................................1131

3,1613,3073,302Appropriation, discretionary (total) .......................................1160Spending authority from offsetting collections, discretionary:


Memorandum (non-add) entries:..................................–3Unobligated balance expiring ................................................1940.................77679Unexpired unobligated balance, end of year ..........................1941


1,8431,608834Unpaid obligations, brought forward, Oct 1 (gross) ..............30003,2893,9613,352Obligations incurred, unexpired accounts .............................3030





2,1642,2431,568Outlays from new discretionary authority ..........................40101,2391,483998Outlays from discretionary balances .................................4011




The Information Technology (IT) Systems appropriation fundsIT services such as systems development and performance, oper-ations and maintenance, information protection, and customersupport. This appropriation enables the effective and efficientdelivery of services to the nation's largest healthcare network aswell as the veterans benefits and corporate business lines withinthe Department of Veterans Affairs (VA).

Development.—The Office of Information & Technology (OI&T)invests in projects designed to improve the delivery of VA servicesand benefits for veterans and their families. This account alsosupports improvements to VA's financial and management sys-tems as well as inter-agency efforts such as the development ofthe Virtual Lifetime Electronic Record with the Department ofDefense.

Operations and Maintenance.—The Office of Information &Technology purchases, maintains, manages, and supports all thecomputer, phone, telecommunication, and data systems equip-ment for all VA facilities.



Direct obligations:676645596Personnel compensation: Full-time permanent .....................11.1184191164Civilian personnel benefits ....................................................12.1

111Benefits for former personnel ................................................13.0212018Travel and transportation of persons .....................................21.0

600788541Communications, utilities, and miscellaneous charges ........23.31,2311,6081,569Other services from non-federal sources ...............................25.2

111Other goods and services from federal sources .....................25.3253118Supplies and materials .........................................................26.0

500622398Equipment .............................................................................31.0



INFORMATION TECHNOLOGY SYSTEMS—ContinuedObject Classification—Continued


.................25Land and structures ..............................................................32.0






✦

NATIONAL CEMETERY ADMINISTRATION

For necessary expenses of the National Cemetery Administration foroperations and maintenance, not otherwise provided for, including uni-forms or allowances therefor; cemeterial expenses as authorized by law;purchase of one passenger motor vehicle for use in cemeterial operations;hire of passenger motor vehicles; and repair, alteration or improvementof facilities under the jurisdiction of the National Cemetery Administra-tion, $250,934,000, of which not to exceed $25,100,000 shall remainavailable until September 30, 2013.




Obligations by program activity:251250279Administrative expenses ...........................................................0201


..................................28Unobligated balance brought forward, Oct 1 .........................1000

..................................4Expired unobligated bal transferred to unexpired accts ........1012

..................................32Unobligated balance (total) ......................................................1050Budget authority:


Memorandum (non-add) entries:..................................–3Unobligated balance expiring ................................................1940...................................................Unexpired unobligated balance, end of year ..........................1941



–249–257–251Outlays (gross) ......................................................................3040..................................–2Recoveries of prior year unpaid obligations, expired .............3081






The mission of the National Cemetery Administration is tohonor veterans with final resting places in national shrines andwith lasting tributes that commemorate their service to our Na-

tion. The National Cemetery Administration's vision is to serveall veterans and their families with the utmost dignity, respect,and compassion. Every national cemetery will be a place thatinspires visitors to understand and appreciate the service andsacrifice of our Nation's veterans. There are six related programsmanaged by the National Cemetery Administration including:1) burying eligible veterans and their family members in nationalcemeteries and maintaining the graves and their environs asnational shrines; 2) administering grants to States and TribalGovernments in establishing, expanding, improving, or operatingveterans cemeteries; 3) providing headstones and markers forthe graves of eligible veterans; 4) providing presidential memorialcertificates to family and friends of deceased veterans, recognizingthe veterans' contribution and service to the Nation; 5) providinggraveliners or partial reimbursement for a privately purchasedouter burial receptacle for each new grave in open nationalcemeteries administered by the National Cemetery Administra-tion; and 6) recording First Notice of Veteran Deaths into VAelectronic files to ensure timely termination of benefits and next-of-kin notification of possible entitlement to survivor benefits.

The 2012 Budget positions the National Cemetery Administra-tion to meet veterans' emerging burial and memorial needs inthe decades to come. The major construction budget includesfunding to support implementation of new policies that willprovide a burial option to an additional 500,000 veterans andeligible family members and address client concerns in urbanareas.

The National Cemetery Administration also reflects budget in-formation for the National Cemetery Gift Fund and the NationalCemetery Administration Facilities Operation Fund. Throughthe Gift Fund, the Secretary is authorized to accept gifts andbequests which are made for the purpose of beautifying nationalcemeteries or are determined to be beneficial to such cemeteries,or are made for the purpose of the operation, maintenance, orimprovement of the National Memorial Cemetery of Arizona.Through the Facilities Operation Fund, the Secretary is author-ized to lease any undeveloped land and unused or underutilizedbuildings of the National Cemetery Administration, or parts orparcels thereof, for a term not to exceed 10 years. Proceeds fromsuch leases are deposited in the Facilities Operation Fund, andare available to cover costs incurred by the National CemeteryAdministration in the operation and maintenance of property ofthe Administration.




949391Full-time permanent .............................................................11.1444Other than full-time permanent ............................................11.3

989795Total personnel compensation ...........................................11.9323130Civilian personnel benefits ........................................................12.1333Travel and transportation of persons .........................................21.0111Transportation of things ............................................................22.0222Rent ..........................................................................................23.1779Communications, utilities, and miscellaneous charges ............23.3222Printing and reproduction .........................................................24.0

8687104Other services from non-federal sources ...................................25.2111113Supplies and materials .............................................................26.06620Equipment .................................................................................31.033.................Land and structures ..................................................................32.0





1,6961,6861,670Direct civilian full-time equivalent employment ............................1001

✦

SUPPLY FUND



Obligations by program activity:1,1761,0851,015Reimbursable program-COGS-Merchandizing ...........................0801159145198Reimbursable program-Other-Operations .................................0802272523Reimbursable program-COGS-Printing and publications ..........0803

4764193Reimbursable program-Other ....................................................0804

8247606Reimbursable program-Equipment-Procurement services and

distribution ...........................................................................0805




Spending authority from offsetting collections, mandatory:2,6622,4341,325Collected ...........................................................................1800


2,6622,4341,019Spending auth from offsetting collections, mand (total) .......18503,4133,1851,996Total budgetary resources available ..............................................1930



902902951Unpaid obligations, brought forward, Oct 1 (gross) ..............3000–1,325–1,325–1,631Uncollected pymts, Fed sources, brought forward, Oct 1 ........3010

–423–423–680Obligated balance, start of year (net) .......................................30202,6622,4341,245Obligations incurred, unexpired accounts .............................3030

–2,662–2,434–1,294Outlays (gross) ......................................................................3040..................................306Change in uncollected pymts, Fed sources, unexpired ..........3050


–1,325–1,325–1,325Uncollected pymts, Fed sources, end of year .........................3091

–423–423–423Obligated balance, end of year (net) .........................................3100



2,6622,4341,019Outlays from new mandatory authority .............................4100..................................275Outlays from mandatory balances ....................................4101


Offsetting collections (collected) from:–2,662–2,434–1,219Federal sources .................................................................4120

..................................–106Non-Federal sources .........................................................4123

–2,662–2,434–1,325Offsets against gross budget authority and outlays (total) ....4130Additional offsets against gross budget authority only:

..................................306Change in uncollected pymts, Fed sources, unexpired .......4140


..................................–31Outlays, net (mandatory) ...........................................................4170


..................................–31Outlays, net (total) ........................................................................4190

Under the provisions of 38 U.S.C. 8121, the Supply Fund is re-sponsible for the operation and maintenance of a supply systemfor VA. In this capacity, it provides policy and oversight to VAsacquisition and logistics programs, and provides best value ac-quisition of goods and services through its National AcquisitionCenter, Center for Acquisition Innovation, Technology AcquisitionCenter and soon to be established Strategic Acquisition Center.Operating as an intra-governmental, revolving fund withoutfiscal year limitations, the Supply Fund is financed by revenue

from fees on acquisitions of supplies, equipment, and services forboth VA and other Government Agency (OGA) customers. For2012 its sales are estimated to reach $7 billion, and in 2010 itoperated at a profit of $34 million with retained earnings of $288million.



Reimbursable obligations:Personnel compensation:

928858Full-time permanent .............................................................11.1111Other personnel compensation ..............................................11.5

938959Total personnel compensation ...........................................11.9312221Civilian personnel benefits ........................................................12.125246Travel and transportation of persons .........................................21.0433Rental payments to GSA ............................................................23.17611Communications, utilities, and miscellaneous charges ............23.3

272524Printing and reproduction .........................................................24.0476419247Other services from non-federal sources ...................................25.2

1,1761,086639Supplies and materials .............................................................26.0823760235Equipment .................................................................................31.0

2,6622,4341,245Reimbursable obligations .....................................................99.0




1,000880699Reimbursable civilian full-time equivalent employment ...............2001

✦

FRANCHISE FUND



Obligations by program activity:537490381Reimbursable program ..............................................................0801





537490373Spending auth from offsetting collections, disc (total) .........1750628581472Total budgetary resources available ..............................................1930




2828–8Obligated balance, start of year (net) .......................................3020537490381Obligations incurred, unexpired accounts .............................3030

–537–490–351Outlays (gross) ......................................................................3040..................................6Change in uncollected pymts, Fed sources, unexpired ..........3050


–62–62–62Uncollected pymts, Fed sources, end of year .........................3091









FRANCHISE FUND—ContinuedProgram and Financing—Continued


Additional offsets against gross budget authority only:..................................6Change in uncollected pymts, Fed sources, unexpired .......4050

...................................................Budget authority, net (discretionary) .........................................4070

..................................–28Outlays, net (discretionary) .......................................................4080


..................................–28Outlays, net (total) ........................................................................4190

The VA Franchise Fund was established under the authorityof the Government Management Reform Act of 1994 and the VAand Housing and Urban Development and Independent AgenciesAct of 1997. VA was selected by the Office of Management andBudget (OMB) in 1996 as one of the six executive branch agenciesto establish a franchise fund pilot program. Created as a revolvingfund, the VA Franchise Fund began providing common adminis-trative support services to the VA and other government agenciesin 1997 on a fee-for-service basis. In 2006, under the MilitaryQuality of Life and Veterans Affairs Appropriations Act, PublicLaw 109–114, permanent status was conferred upon the VAFranchise Fund. VA Enterprise Centers are the lines of businesswithin the VA Franchise Fund and are expected to have netbillings of about $537 million and employ 1,484 in 2012. TheFranchise Fund concept is intended to increase competition forgovernment administrative services, resulting in lower costs andhigher quality.



Reimbursable obligations:11310161Personnel compensation: Full-time permanent .........................11.1312816Civilian personnel benefits ........................................................12.1533Travel and transportation of persons .........................................21.0

13129Rental payments to GSA ............................................................23.1575239Communications, utilities, and miscellaneous charges ............23.3775Printing and reproduction .........................................................24.0

270240214Other services from non-federal sources ...................................25.2773Supplies and materials .............................................................26.0

344031Equipment .................................................................................31.0





1,4841,269822Reimbursable civilian full-time equivalent employment ...............2001

✦

ADMINISTRATIVE PROVISIONS

(INCLUDING TRANSFER OF FUNDS)SEC. 201. Any appropriation for fiscal year 2012 for "Compensation

and pensions'', "Readjustment benefits'', and "Veterans insurance andindemnities'' may be transferred as necessary to any other of the mentionedappropriations: Provided, That before a transfer may take place, the Sec-retary of Veterans Affairs shall submit notice thereof to the Committeeson Appropriations of both Houses of Congress .

(INCLUDING TRANSFER OF FUNDS)SEC. 202. Amounts made available for the Department of Veterans Af-

fairs for fiscal year 2012, in this Act or any other Act, under the "Medicalservices'', "Medical support and compliance'', and "Medical facilities''accounts may be transferred among the accounts: Provided, That beforea transfer may take place, the Secretary of Veterans Affairs shall submitnotice thereof to the Committees on Appropriations of both Houses ofCongress.

SEC. 203. Appropriations available in this title for salaries and expensesshall be available for services authorized by section 3109 of title 5, UnitedStates Code, hire of passenger motor vehicles; lease of a facility or landor both; and uniforms or allowances therefore, as authorized by sections5901 through 5902 of title 5, United States Code.

SEC. 204. No appropriations in this title (except the appropriations for"Construction, major projects'', and "Construction, minor projects'') shallbe available for the purchase of any site for or toward the construction ofany new hospital or home.

SEC. 205. No appropriations in this title shall be available for hospital-ization or examination of any persons (except beneficiaries entitled to suchhospitalization or examination under the laws providing such benefits toveterans, and persons receiving such treatment under sections 7901through 7904 of title 5, United States Code, or the Robert T. StaffordDisaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)),unless reimbursement of the cost of such hospitalization or examinationis made to the "Medical services'' account at such rates as may be fixedby the Secretary of Veterans Affairs.

SEC. 206. Appropriations available in this title for "Compensation andpensions'', "Readjustment benefits'', and "Veterans insurance and indem-nities'' shall be available for payment of prior year accrued obligationsrequired to be recorded by law against the corresponding prior year ac-counts within the last quarter of fiscal year 2011.

SEC. 207. Appropriations available in this title shall be available to payprior year obligations of corresponding prior year appropriations accountsresulting from sections 3328(a), 3334, and 3712(a) of title 31, UnitedStates Code, except that if such obligations are from trust fund accountsthey shall be payable only from "Compensation and pensions''.

(INCLUDING TRANSFER OF FUNDS)SEC. 208. Notwithstanding any other provision of law, during fiscal

year 2012, the Secretary of Veterans Affairs shall, from the NationalService Life Insurance Fund under section 1920 of title 38, United StatesCode, the Veterans' Special Life Insurance Fund under section 1923 oftitle 38, United States Code, and the United States Government Life In-surance Fund under section 1955 of title 38, United States Code, reimbursethe "General operating expenses'' and "Information technology systems''accounts for the cost of administration of the insurance programs financedthrough those accounts: Provided, That reimbursement shall be madeonly from the surplus earnings accumulated in such an insurance programduring fiscal year 2012 that are available for dividends in that programafter claims have been paid and actuarially determined reserves havebeen set aside: Provided further, That if the cost of administration of suchan insurance program exceeds the amount of surplus earnings accumulatedin that program, reimbursement shall be made only to the extent of suchsurplus earnings: Provided further, That the Secretary shall determinethe cost of administration for fiscal year 2012 which is properly allocableto the provision of each such insurance program and to the provision ofany total disability income insurance included in that insurance program.

SEC. 209. Amounts deducted from enhanced-use lease proceeds to reim-burse an account for expenses incurred by that account during a priorfiscal year for providing enhanced-use lease services, may be obligatedduring the fiscal year in which the proceeds are received.

(INCLUDING TRANSFER OF FUNDS)SEC. 210. Funds available in this title or funds for salaries and other

administrative expenses shall also be available to reimburse the Office ofResolution Management of the Department of Veterans Affairs and theOffice of Employment Discrimination Complaint Adjudication undersection 319 of title 38, United States Code, for all services provided atrates which will recover actual costs but not exceed $42,904,000 for theOffice of Resolution Management and $3,360,000 for the Office of Employ-ment and Discrimination Complaint Adjudication: Provided, That pay-ments may be made in advance for services to be furnished based on es-timated costs: Provided further, That amounts received shall be creditedto the "General operating expenses'' and "Information technology systems''accounts for use by the office that provided the service.

SEC. 211. No appropriations in this title shall be available to enter intoany new lease of real property if the estimated annual rental cost is morethan $1,000,000, unless the Secretary submits a report to the Committeeson Appropriations of both Houses of Congress .

SEC. 212. No funds of the Department of Veterans Affairs shall beavailable for hospital care, nursing home care, or medical services providedto any person under chapter 17 of title 38, United States Code, for a non-


service-connected disability described in section 1729(a)(2) of such title,unless that person has disclosed to the Secretary of Veterans Affairs, insuch form as the Secretary may require, current, accurate third-party re-imbursement information for purposes of section 1729 of such title:Provided, That the Secretary may recover, in the same manner as anyother debt due the United States, the reasonable charges for such care orservices from any person who does not make such disclosure as required:Provided further, That any amounts so recovered for care or servicesprovided in a prior fiscal year may be obligated by the Secretary duringthe fiscal year in which amounts are received.

(INCLUDING TRANSFER OF FUNDS)SEC. 213. Notwithstanding any other provision of law, proceeds or rev-

enues derived from enhanced-use leasing activities (including disposal)may be deposited into the "Construction, major projects'' and "Construc-tion, minor projects'' accounts and be used for construction (includingsite acquisition and disposition), alterations, and improvements of anymedical facility under the jurisdiction or for the use of the Department ofVeterans Affairs. Such sums as realized are in addition to the amountprovided for in "Construction, major projects'' and "Construction, minorprojects''.

SEC. 214. Amounts made available under "Medical services'' areavailable—

(1) for furnishing recreational facilities, supplies, and equipment;and

(2) for funeral expenses, burial expenses, and other expenses incidentalto funerals and burials for beneficiaries receiving care in the Depart-ment.

(INCLUDING TRANSFER OF FUNDS)SEC. 215. Such sums as may be deposited to the Medical Care Collections

Fund pursuant to section 1729A of title 38, United States Code, may betransferred to "Medical services'', to remain available until expended forthe purposes of that account.

SEC. 216. The Secretary of Veterans Affairs may enter into agreementswith Indian tribes and tribal organizations which are party to the AlaskaNative Health Compact with the Indian Health Service, and Indian tribesand tribal organizations serving rural Alaska which have entered intocontracts with the Indian Health Service under the Indian Self Determin-ation and Educational Assistance Act, to provide healthcare, includingbehavioral health and dental care. The Secretary shall require participat-ing veterans and facilities to comply with all appropriate rules and regu-lations, as established by the Secretary. The term "rural Alaska'' shallmean those lands sited within the external boundaries of the AlaskaNative regions specified in sections 7(a)(1)-(4) and (7)-(12) of the AlaskaNative Claims Settlement Act, as amended (43 U.S.C. 1606), and thoselands within the Alaska Native regions specified in sections 7(a)(5) and7(a)(6) of the Alaska Native Claims Settlement Act, as amended (43 U.S.C.1606), which are not within the boundaries of the Municipality of Anchor-age, the Fairbanks North Star Borough, the Kenai Peninsula Borough orthe Matanuska Susitna Borough.

(INCLUDING TRANSFER OF FUNDS)SEC. 217. Such sums as may be deposited to the Department of Veterans

Affairs Capital Asset Fund pursuant to section 8118 of title 38, UnitedStates Code, may be transferred to the "Construction, major projects'' and"Construction, minor projects'' accounts, to remain available until expen-ded for the purposes of these accounts.

SEC. 218. The Secretary of Veterans Affairs shall submit to the Commit-tees on Appropriations of both Houses of Congress a quarterly report onthe financial status of the Veterans Health Administration.

(INCLUDING TRANSFER OF FUNDS)SEC. 219. Amounts made available under the "Medical services'',

"Medical support and compliance'', "Medical facilities'', "General operatingexpenses'', and "National Cemetery Administration'' accounts for fiscalyear 2012, may be transferred to or from the "Information technologysystems'' account: Provided, That before a transfer may take place, theSecretary of Veterans Affairs shall submit notice thereof to the Committeeson Appropriations of both Houses of Congress .

SEC. 220. Amounts made available for the "Information technologysystems'' account may be transferred between projects: Provided, That noproject may be increased or decreased by more than $3,000,000 of costprior to submitting notice thereof to the Committees on Appropriations ofboth Houses of Congress.

SEC. 221. None of the funds appropriated or otherwise made availableby this Act or any other Act for the Department of Veterans Affairs maybe used in a manner that is inconsistent with—

(1) section 842 of the Transportation, Treasury, Housing and UrbanDevelopment, the Judiciary, the District of Columbia, and IndependentAgencies Appropriations Act, 2006 (Public Law 109–115; 119 Stat.2506); or

(2) section 8110(a)(5) of title 38, United States Code.SEC. 222. Of the amounts appropriated to the Department of Veterans

Affairs in this Act, and any other Act, for Medical Services, MedicalSupport and Compliance, Medical Facilities, Construction, minor projects,and Information Technology Systems, such sums as may be necessary,plus reimbursements, may be transferred to the Joint Department of De-fense-Department of Veterans Affairs Medical Facility DemonstrationFund, established by section 1704 of title XVII of division A of Public Law111–84, and shall be available to fund operations of the integrated CaptainJames A. Lovell Federal Health Care Center, consisting of the NorthChicago Veteran Affairs Medical Center, and Navy Ambulatory CareCenter, and supporting facilities designated as a combined Federal med-ical facility as described by Section 706 of Pub. L. No. 110–417.

SEC. 223. Such sums as may be deposited to the Medical Care CollectionsFund pursuant to section 1729A of title 38, United States Code, for healthcare provided at the Captain James A. Lovell Federal Health Care Centermay be transferred to the Joint Department of Defense-Department ofVeterans Affairs Medical Facility Demonstration Fund, established bysection 1704 of title XVII of division A of Public Law 111–84, and shallbe available to fund operations of the integrated Captain James A. LovellFederal Health Care Center, consisting of the North Chicago Veteran Af-fairs Medical Center, and Navy Ambulatory Care Center, and supportingfacilities designated as a combined Federal medical facility as describedby section 1706 of Pub. L. No. 110–417.

SEC. 224. Of the amounts available in this title for Medical Services,Medical Support and Compliance, and Medical Facilities, a minimum of$15,000,000, shall be transferred to the Department of Defense/Departmentof Veterans Affairs Health Care Sharing Incentive Fund, as authorizedby section 8111(d) of title 38, United States Code, to remain availableuntil expended, for any purpose authorized by section 8111 of title 38,United States Code.

SEC. 225. Of the discretionary funds made available to the Departmentof Veterans Affairs in the Medical Services, Medical Support and Compli-ance, and Medical Facilities accounts for Fiscal Year 2012, $713,000,000are hereby permanently cancelled, which shall be derived from amountsestimated for the Department of Veterans Affairs for the January 2011civilian pay raise amount requested at 1.4 percent in the 2011 PresidentsBudget submission and for a January 2012 civilian pay raise amountassumed to be 2.3 percent.

SEC. 226. For an additional amount for the Department of VeteransAffairs for Medical Services, $953,000,000 shall be available to providefor the increased demand for VA medical care services: Provided, Thatsuch funds shall only be available upon a determination by the Secretaryof Veterans Affairs, with the concurrence of the Director of the Office ofManagement and Budget, that:

(a) the most recent data available for:(1) National unemployment rates,(2) Enrollees' utilization rates, and(3) Obligations for Medical Services,

validates the economic conditions projected in the Enrollee HealthCare Projection Model, and

(b) additional funding is required to offset the impact of such factors.✦

GENERAL FUND RECEIPT ACCOUNTS(in millions of dollars)

=========== ==== =============== ======= =============== ==== ==== ==== ===== === ==== ==== ===


Offsetting receipts from the public:

777General Fund Proprietary Interest Receipts, not Otherwise

Classified ......................................................................36–143500

146165183Contributions fromMilitary Personnel, Veteran's Educational

Assistance Act of 1984 ..................................................36–247300

.................31269Housing Downward Reestimates ........................................36–273330

1063DEPARTMENT OF VETERANS AFFAIRS GENERAL FUND RECEIPT ACCOUNTS

General Fund Receipt Accounts—Continued


135Native American Veteran Housing Loans, Negative

Subsidies .......................................................................36–275110

.................32Native American Direct Loans, Downward Reestimate of

Subsidies .......................................................................36–275130

24236123Housing Negative Subsidies ...............................................36–275510

..................................16All Other General Fund Proprietary Receipts Including Budget

Clearing Accounts ..........................................................36–322000

178445605General Fund Offsetting receipts from the public .....................................

Intragovernmental payments:

..................................1Undistributed Intragovernmental Payments and Receivables

from Cancelled Accounts ...............................................36–388500

..................................1General Fund Intragovernmental payments ..............................................

✦

GENERAL PROVISIONSSEC. 501. No part of any appropriation contained in this Act shall re-

main available for obligation beyond the current fiscal year unless ex-pressly so provided herein.

SEC. 502. Such sums as may be necessary for fiscal year 2012 for payraises for programs funded by this Act shall be absorbed within the levelsappropriated in this Act.

SEC. 503. None of the funds made available in this Act may be used forany program, project, or activity, when it is made known to the Federalentity or official to which the funds are made available that the program,

project, or activity is not in compliance with any Federal law relating torisk assessment, the protection of private property rights, or unfundedmandates.

SEC. 504. No part of any funds appropriated in this Act shall be usedby an agency of the executive branch, other than for normal and recognizedexecutive-legislative relationships, for publicity or propaganda purposes,and for the preparation, distribution, or use of any kit, pamphlet, booklet,publication, radio, television, or film presentation designed to support ordefeat legislation pending before Congress, except in presentation to Con-gress itself.

SEC. 505. All departments and agencies funded under this Act are en-couraged, within the limits of the existing statutory authorities andfunding, to expand their use of "E-Commerce'' technologies and proceduresin the conduct of their business practices and public service activities.

SEC. 506. Unless stated otherwise, all reports and notifications requiredby this Act shall be submitted to the Subcommittee on Military Construc-tion and Veterans Affairs, and Related Agencies of the Committee on Ap-propriations of the House of Representatives and the Subcommittee onMilitary Construction and Veterans Affairs, and Related Agencies of theCommittee on Appropriations of the Senate.

SEC. 507. None of the funds made available in this Act may be used fora project or program named for an individual serving as a Member, Del-egate, or Resident Commissioner of the United States House of Represent-atives.

SEC. 508. None of the funds made available in this division or anyother division in this Act may be distributed to the Association of Com-munity Organizations for Reform Now (ACORN) or its subsidiaries.

THE BUDGET FOR FISCAL YEAR 2012GENERAL FUND RECEIPT ACCOUNTS—Continued1064

Documents

Budget FY 2012 - Department of Veterans Affairs [PDF - U.S