<DOC> [109 Senate Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:32203.wais] S. Hrg. 109-771 THE LEGISLATIVE PRESENTATION OF THE AMERICAN LEGION ======================================================================= HEARING BEFORE THE COMMITTEE ON VETERANS' AFFAIRS UNITED STATES SENATE ONE HUNDRED NINTH CONGRESS SECOND SESSION __________ SEPTEMBER 20, 2006 __________ Printed for the use of the Committee on Veterans' Affairs Available via the World Wide Web: http://www.access.gpo.gov/congress/ senate ______ U.S. GOVERNMENT PRINTING OFFICE 32-203 WASHINGTON : 2007 _____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092250 Mail: Stop SSOP, Washington, DC 20402ÿ090001 COMMITTEE ON VETERANS' AFFAIRS Larry E. Craig, Idaho, Chairman Arlen Specter, Pennsylvania Daniel K. Akaka, Hawaii, Ranking Kay Bailey Hutchison, Texas Member Lindsey O. Graham, South Carolina John D. Rockefeller IV, West Richard Burr, North Carolina Virginia John Ensign, Nevada James M. Jeffords, (I) Vermont John Thune, South Dakota Patty Murray, Washington Johnny Isakson, Georgia Barack Obama, Illinois Ken Salazar, Colorado Lupe Wissel, Majority Staff Director Bill Brew, Minority Staff Director C O N T E N T S ---------- September 20, 2006 SENATORS Page Craig, Hon. Larry E., Chairman, U.S. Senator from Idaho.......... 1 Burr, Hon. Richard, U.S. Senator from North Carolina............. 3 Isakson, Hon. Johnny, U.S. Senator from Georgia.................. 4 Murray, Hon. Patty, U.S. Senator from Washington................. 5 Salazar, Hon. Ken, U.S. Senator from Colorado.................... 6 Thune, Hon. John, U.S. Senator from South Dakota................. 8 Neal, Hon. Richard, U.S. Representative from Massachusetts....... 8 WITNESSES Morin, Paul, National Commander, The American Legion; accompanied by Steve Robertson, Director, National Legislative Commission; David Rehbein, of Iowa, Chairman, National Legislative Commission; K. Robert Lewis, of Connecticut, Chairman, National Veterans Affairs and Rehabilitation Commission; and Peter Gaytan, Director, National Veterans Affairs and Rehabilitation Commission..................................................... 10 Prepared statement........................................... 19 THE LEGISLATIVE PRESENTATION OF THE AMERICAN LEGION ---------- SEPTEMBER 20, 2006 U.S. Senate, Committee on Veterans' Affairs, Washington, DC. The Committee met, pursuant to notice, at 10 a.m., in room SD-106, Dirksen Senate Office Building, Hon. Larry E. Craig, Chairman of the Committee, presiding. Present: Senators Craig, Burr, Thune, Isakson, Jeffords, Murray, Obama, and Salazar. OPENING STATEMENT OF HON. LARRY E. CRAIG, CHAIRMAN, U.S. SENATOR FROM IDAHO Chairman Craig. Good morning, ladies and gentlemen. The Committee on Veteran's Affairs of the U.S. Senate will come to order. It is a pleasure to welcome all of you to this hearing of the Senate Committee on Veteran's Affairs today. First of all, I want to thank all of you for your service to our country and for your service to our Nation's veterans. I want to especially extend a special thanks to the American Legion members who are here from my home State of Idaho: State Commander Wayne Mitchell; Rickey Helsley, who is the adjutant; Mel Napier, my liaison, along with Jim Kempton, who is Chairman of the Veterans Commission. Gentlemen, would you please stand. Thank you. [Applause.] Chairman Craig. Thank you for being here. I was going to joke with Judge Lance, if he were here. But I do not see Al in the audience, and it is a good thing he is not here. He has many cases to adjudicate over at the court. So he is at work on behalf of veterans, and that is where he ought to be. But I would be remiss, of course, if I did not recognize Al Lance, and at least his presence in our Nation's capital. Mr. Commander, I want to congratulate you on your new title and thank you for being here today, for bringing your career of dedicated service to veterans to this job. I understand that you have many issues that you want to discuss today, and I look forward to hearing your comments for the record, for this Committee, and for the U.S. Senate. But I also, most importantly, want to thank you for this distinguished organization recognizing your leadership and allowing you to carry it on. I also want to recognize the Immediate Past Commander, National Commander, Tom Bock. Tom, it is nice to see you. Thanks for being here. [Applause.] Chairman Craig. As your testimony will, no doubt, highlight today, there are many issues facing veterans and their families today. Since becoming Chairman of the Senate Veterans' Affairs Committee, I have made it my priority to take a hard, honest look at VA services and how they are delivered, particularly to returning servicemen and women of Operation Iraqi Freedom and Operation Enduring Freedom. It is critical that we meet the needs not only of our older veterans, but also of those returning from the battlefield of today. We continually evaluate the challenges associated with the seamless transition from active duty into the life of a veteran, and we want to make some progress in these programs, such as adaptive housing. We are revisiting the educational programs. I have just announced today, along with Danny Akaka, my Ranking Member, that we are going to advance the cause of the spouse for that injured veteran as it relates to the educational benefits that are entitled but are simply staged out down the line. And we want to make sure that those are available as quickly as possible. We are dealing with America's heroes of the past and America's heroes of today, and we want to make sure that they are responsibly and appropriately dealt with on behalf of Americans. As the Chairman of this Committee, over the course of my chairmanship we have activated the Committee in a way that it probably has not been active in a good number of years: 23 hearings, 9 field hearings, 4 markups, and this year already over 20 hearings to deal with those critical issues that all of us are concerned about. I am particularly proud of a few of the Committee's accomplishments, and I would like to take just a moment to mention those. I want to tell you a story about three young fellows who visited my office in Washington last fall. One of those young men had only one leg. The other had no legs. And the other gentleman had no eyes. They had been out there in the battle of the war on terrorism. These three gentlemen had identified a problem. They came to my office to see if I might help them solve it. I listened to their presentation. It was clear they had done their homework. When the meeting was over, I was moved because of their passion and their motivation and their dedication, and we introduced legislation. Immediately following the meeting, I turned to my colleague, Danny Akaka, and out of that came the Wounded Warrior Traumatic Injury Insurance Protection program. As many of you know, under the bill those wounded since the start of OIF and OEF will receive immediate financial payments ranging from $25,000 to $100,000 for qualifying injuries. Already, nearly 2,700 servicemembers with traumatic injuries have received payment under the program. They come from all over America, and there are 18 from my State of Idaho. These are brave men and women who have lost a limb, who are deaf or who are blind, or who may be paralyzed or severely burned, who deserve that kind of immediate treatment; or they may be suffering from the effects of traumatic brain injury. I have met with a few of those recipients. The program is working. It is working very well. It is helping them, their loved ones, and their families. In addition to the Wounded Warrior Program legislation, Congress passed legislation to direct DOD to provide Web-based, customized, integrated information to survivors about their Federal benefits. This Committee held hearings on this topic, and I was surprised to learn that DOD had not already been doing this. There was simply not an integrated informational flow to the survivor of one of our lost warriors. It was simply unacceptable to me and to the Committee. In the midst of their grief, widows and widowers were expected to navigate a complex web of Federal bureaucracy to receive the much needed benefits and assistance by law they were entitled to have. The good news is we have fixed that problem or, should I say, we are fixing it because we are monitoring it closely now that the software is in place to make sure that it works and works well and there is one-stop shopping for the benefits that these survivors should expect. Third, we passed the VA Cost-of-Living Adjustment Act in 2005, and, of course, you all know this legislation provided a 4.1 percent increase in VA disability compensation and survivor programs. We also passed legislation to close the so-called parole loophole. As you know, prior to the enactment, Arlington and VA National Cemetery burials and funeral honors were provided for certain capital offenders. I believed that was wrong, the Committee believed that was wrong, and the loophole was closed. Finally, the Respect for America's Fallen Heroes Act was signed into law in May 2006, and I am proud that this new law will preserve the honor of our military funerals by criminalizing demonstrations at our National Cemeteries while sustaining the property rights of private landowners around those cemeteries. The Senate has also provided legislation to provide cost-of-living adjustments to disability compensation to improve insurance, housing, and other benefits, and to provide enhancement for our health care programs. Well, I am sure I could go on and on, but the American Legion and its auxiliary has been there all along, working with us to assure that we get it right as we work with America's veterans. So, Mr. Commander, you can be proud of your organization and the people you have working with in the benefit of that organization that we work closely with here. Before I turn to the gentleman who is here to introduce you, let me turn to some of my colleagues here on the Committee. Senator Burr, do you have any additional comments you would like to make? STATEMENT OF HON. RICHARD BURR, U.S. SENATOR FROM NORTH CAROLINA Senator Burr. Mr. Chairman, just very briefly, let me recognize my colleague from the House, Richard Neal, a tremendous supporter of our veterans. I welcome the Commander and want to tell him that I look forward to his testimony and how much importance I put on the input that he'll supply us. And I think the Chairman deserves a tremendous amount of credit. It has been he and the Ranking Member that have driven much of the legislation that he has highlighted. And I think without his level of enthusiasm and his feeling of responsibility--and I stress that--I am not sure that this Committee would have accomplished as much as it has. We are not totally there. We will never, Commander, hear you come and say everything is perfect. That is a goal. And though I know as time goes on your 2.7 million member roster will continue to grow, it is important that we here and around the country remember that the commitment that we made was not simply to the greatest generation and to those who served in Korea and to those who served in Vietnam. It is those that serve today, and we have got to be as focused on tomorrow as we are with the challenges in front of us today. Your organization helps us to remember that outstanding obligation and the responsibility that we have to make sure that future members who sit on this side as well as on that side understand what the commitment is. I thank the Chair. Chairman Craig. Thank you, Senator. Senator Johnny Isakson, from the great State of Georgia. STATEMENT OF HON. JOHNNY ISAKSON, U.S. SENATOR FROM GEORGIA Senator Isakson. I also will be brief. I want to welcome Richard Neal. I had the privilege of serving with him for 6 years in the House. He does a great job. We are glad to have you. And I am very honored to have Commander Morin here. I am a Legion member of the American Legion Post in Loganville, Georgia, and Bud Boss has me always mention his name because he usually watches C-SPAN. So I am here, Bud. Support the American Legion. I also want to welcome Roger Tingler from Covington, Georgia, and Charles Barrett from Smyrna, Georgia, my home county of Cobb County in the State of Georgia. We are delighted to have you here. The American Legion is a great organization. I think our Chairman has done a magnificent job of responding to the critical needs that have been brought to us by the American Legion, and I am proud to serve with him and work with you, Commander Morin, for the betterment of those who have served our country so notably and so honorably. And I appreciate the time, Mr. Chairman. Chairman Craig. Senator, thank you very much. External communication via C-SPAN is not accepted. Senator Isakson. It is not accepted? [Laughter.] Senator Isakson. I am sorry, Bud. I tried. Chairman Craig. We are not supposed to play to the cameras. Now let me recognize Senator Patty Murray of the State of Washington, who is a very outspoken advocate for America's veterans and for the veterans in her State. Patty? STATEMENT OF HON. PATTY MURRAY, U.S. SENATOR FROM WASHINGTON Senator Murray. Well, thank you very much, Mr. Chairman. I appreciate your holding this hearing, and, Commander Morin, to you and all your dedicated staff, thank you for being a tremendous voice for so many veterans out there. I really appreciate it. I want to welcome leaders from my home State of Washington: Bob Wallace, who has just been great. Kathy Nyland from Seattle is here as well. They have just been fabulous to work with, and I have been very proud to stand shoulder to shoulder with them on many, many occasions. Mr. Chairman, I did want to take just a minute this morning to talk about a new report that just came out from the Government Accountability Office. Senators Akaka, Durbin, Salazar, and Chairman Buyer asked for it to find out why the VA was so wrong in its budget projections back in 2005 and 2006. And we now have that GAO report. It is out today. And, frankly, Mr. Chairman, the answers are pretty damning, and they really cast doubt on whether or not we can rely on the VA for accurate numbers and straight answers. It had three really important findings. It said, first of all, that the GAO found that the VA knew that it had serious problems with its budget, but it failed to notify us in Congress. And it suggests that the VA could still be sending us inaccurate information in its quarterly reports. Second, the GAO found that the VA was basing its budgets on unrealistic assumptions, errors in estimation, and insufficient data. And, finally, the GAO found that the VA did not have a plan to meet the needs of all the servicemembers from the conflicts in Iraq and Afghanistan. The report doesn't comment on the situation today, but looking at the CBO submission and other data, I am very concerned that the lack of a plan today may continue to affect the VA and whether or not we have sufficient funding. Frankly, for me, one of the most disturbing findings as I read through this report last night, is that the VA kept assuring us in Congress that everything was fine, but inside the VA, at the very time they were telling us everything was OK, it was very clear that they knew that there were shortfalls. I have a timeline and I don't want to take the Committee through it all right now, but I think you all remember that I kept saying back in October of 2004 that we had problems. But the VA, even though they knew it inside the VA, did not admit it until 2005. And, really, our American veterans have paid the price of that. I will take time later to walk through the outline of all they knew and were doing inside the VA and not telling us, Mr. Chairman. But I think that our American veterans deserve a real answer, and I think this report, as more people are aware of its findings, are going to find out that the VA was not telling Congress and is actually fighting those of us who are trying to make it work right. So, Mr. Chairman, I really hope that Secretary Nicholson can come before us and we can get some real answers and we can make sure that the VA does not repeat the mistakes of the past 2 years. And I think we owe it to the veterans who are sacrificing so much for all of us today. Mr. Chairman, I also would note that the report suggests that even in its latest quarterly report to it that we require them to do, the VA is slow to report and does not provide us key information that we are required to know in order to make decisions like how long it takes veterans to get their first appointment. I think all of us deserve an explanation of why the VA was not honest with us about their so-called management efficiencies, but that the GAO found in this report were nothing but hot air, and that the VA consistently for 4 years-- 4 fiscal years, 4 budgets, and 4 appropriations cycles--were not telling us the truth. I think that it is critical that this Committee understand that and that we make sure that the VA is not continuing in that way, and I hope that we can do it. But for today, Commander Morin, I think that this report that came out gave you and the Independent Budget leaders an even larger voice. And, I think, it is a tremendous measure of credibility that you put that out, and you were right, and we need to continue to listen to what you have to say to us. It is unfortunate the VA did not listen, Congress did not listen, the White House did not listen, and the American veterans, who you serve, deserved everybody to listen. So I think we have a lot of work ahead of us. I hope that all of us are committed to getting to the bottom of this new GAO report, and more importantly, learn from those mistakes so that we are not continuing to make them, because we do have a number of Iraq war veterans who are returning yet who are not part of the VA system who I believe we are not budgeting for, and we are all going to pay the price. Thank you, Mr. Chairman. [Applause.] Chairman Craig. Patty, thank you. Now let me recognize Senator Ken Salazar, the State of Colorado. Ken? STATEMENT OF HON. KEN SALAZAR, U.S. SENATOR FROM COLORADO Senator Salazar. Thank you very much, Chairman Craig, and thank you, Senator Murray, for your comments as well. Chairman Craig, I would hope that perhaps this Committee could take both the VA and the GAO report and look at some of the very important---- Chairman Craig. It will be dealt with appropriately. Senator Salazar. I appreciate that very much, Chairman Craig. I want to thank the American Legion for being here with us today as we hear from our Nation's veterans about what your needs and your concerns are. As the Nation's largest veterans service organization, the American Legion does great work on behalf of its 2.7 million members, and I am proud of that work. As I have stressed before, it is important for those of us in Congress to hear about veterans' issues from the perspective of the veterans themselves. Our priorities should be your priorities. You are here to tell us what we can do better to serve you, and we are here to listen. I am happy to welcome Mr. Paul Morin, the new National Commander of the American Legion, to share your critical perspective. I thank you for coming. I appreciate your leadership on these issues and your willingness to be an advocate for our Nation's veterans. While I am sad to see my Commander from Colorado, Tom Bock, here today not as a current Commander, I am very proud of the service that he has given to the American Legion, and I am confident that he will continue to give great service to the American Legion and to our veterans in the future. We owe our veterans a debt we can never fully repay. When our Nation called on them to serve, these brave men and women answered that call with unwavering and selfless dedication. Now they are calling on us. They are calling on us to live up to our promises, to provide them with high-quality health care to compensate them for disabilities they have incurred as a result of their service, and to help make sure they have adequate employment and a roof over their heads. We must answer this call, and we must answer it with the same steadfast commitment our veterans have given to our Nation. In my view, answering that call starts with ensuring mandatory funding for the VA's health care system. Simply put, our veterans need to know that funding for the health care that they have earned is not susceptible to the budgetary ups and downs of Washington, DC. They need to know that it will be here today, tomorrow, and in future years. I have cosponsored legislation to ensure that funding for VA health care is guaranteed, and I am glad to have the support of the American Legion in those efforts. In addition, I share in your concerns about recent proposals to limit the ability of certain veterans, namely Priority 7 and 8 veterans, to access the VA health care system by establishing new enrollment fees and increasing copays and premiums for these veterans. I am hopeful that as the Administration and Congress look ahead to next year's budget, efforts to balance the beginning on the backs of our veterans will not be the way that we resolve some of our Federal deficit issues. Let me just conclude by saying that I have very much enjoyed the work with the American Legion, and my good friend Jim Stankle from Routt County, Colorado Springs, who also is in the audience, I welcome him here to Washington, DC. Thank you, Mr. Chairman. Chairman Craig. Ken, thank you very much. Lastly, let me turn to Senator John Thune, who has just arrived. John, do you have any opening comments? Senator Thune. Thank you. What was that? Senator Burr. Briefly. Chairman Craig. That is correct. Brief opening comments. STATEMENT OF HON. JOHN THUNE, U.S. SENATOR FROM SOUTH DAKOTA Senator Thune. You made everybody else be brief, right, Mr. Chairman? Especially my colleague from North Carolina here. I appreciate very much having the American Legion in front of us today, Mr. Chairman. Thank you for holding this hearing. I want to recognize Paul Evenson and Gene Schumacher, who have traveled here from South Dakota, representing the American Legion in my great State. It has been an honor to be able to work with him as the Senator from South Dakota, and particularly as we have worked to pass a constitutional amendment to allow Congress to prohibit the desecration of the American flag. I also want to extend a warm welcome to Paul Morin, the new National Commander of the American Legion. I have had the privilege of meeting and working with him on a couple of occasions already in South Dakota and here in Washington. I know he will serve his fellow legionnaires in a very, very effective way. As we work to complete the veterans' budget for fiscal year 2007 and prepare for fiscal year 2008, we want to take into careful consideration the views of the American Legion. I look forward to today's testimony and, again, Mr. Chairman, want to thank you for inviting this very distinguished veterans service organization to present their views to our Committee. Thank you. Chairman Craig. John, thank you very much. Now let me turn to Representative Richard Neal, the 2nd Congressional District of the great State of Massachusetts, for the introduction of our National Commander. Richard? STATEMENT OF HON. RICHARD NEAL, HOUSE REPRESENTATIVE FROM MASSACHUSETTS Mr. Neal. Thank you very much, Mr. Chairman, and thanks to Members of the Committee who are assembled this morning as we await testimony from Mr. Morin and other members of the American Legion. I want to thank Mr. Burr and Mr. Thune and Mr. Isakson because I did serve with them in the House of Representatives, and they brought great honor to that institution, and any differences that we had along political lines were quickly put aside based and formed on the friendships that we held for each other. And to Senator Murray and to Senator Salazar, as I have gotten to know you two, we are very grateful, along with Chairman Craig, for the advocacy you bring to veterans' affairs. Mr. Chairman and Members of the Committee, we frequently in Washington use the term ``honor''--sometimes lightly and sometimes in a very serious vein. But today the term ``honor'' reverberates throughout this chamber, and it reverberates because of the men and women sitting behind me who have so honorably served this Nation in time of peril. And we recall today the honor that comes to those who have served America, even as we meet, across the globe, including the 146,000 soldiers in Iraq and in Afghanistan. I do not have a prepared statement this morning as I introduce Paul Morin, and the reason I do not is because I do not need one. This is an honor for me today to introduce him. We have been friends for more than 30 years. And part of the relief I feel today, as you indicated in your opening comments, Senator Craig, about his advocacy and hearing from him, I have had to listen to him for 30 years. [Laughter.] Mr. Neal. And never has he missed an opportunity but to pursue and advocate on behalf of America's veterans. Where we live in the Pioneer Valley, as well as across the 2nd Congressional District, there are many American Legion Posts, many VFW Posts, but they all have in common the basic notion of honorable service to our Nation--again, during difficult times and even in moments of peace. Paul Morin, in every sense of the term, is Mr. Citizen, not just because of the Legion hat and the new title of National Commander that he holds today, but because of the involvement that he brings back home in Chicopee, Massachusetts, to a variety of tasks. He is active across that community. Everybody in the city of Chicopee in western Massachusetts, they know Paul Morin. But let me tell you the best anecdote that I can this morning. About a week and a half ago, I visited the Holyoke Soldiers Home to see some old friends, as I do, not an official visit, not an announced visit. But as I traveled through the hallways and many of the veterans there recognized me, they all said what great care and treatment they receive at the Holyoke Soldiers Home that he presides over. And he does it with great energy and great dedication every day. That is the best testament I can think of today to Paul Morin, the manner in which he services veterans from many of the conflicts of those who sit in that soldiers home today, sometimes in wheelchairs, sometimes finding it hard to get around. But every moment they could be sure that it is the professional maintenance of that facility as well as the advocacy of Paul Morin that ensures that they get first class care. We made a contract with our veterans, and it is a permanent contract. It is not renewable year to year. It is something that we have to see through to its end. And in the case of Paul Morin, whether or not it was education, employment, or health care, he has been in the vanguard of veterans' advocacy. Being a veteran himself during the Vietnam era, I think he has witnessed firsthand the needs of our veterans across this Nation. I want to say this, if I can: Many of us in public life, we travel to the ceremonies in which these individuals are elevated to high honor. We go to those events at the American Legion halls, and they are part of our litany of responsibilities that we have, and then we move on perhaps to a PTA meeting, or perhaps we move to the next meeting of the Chamber of Commerce or to visit with labor unions and others in our districts. People like Paul Morin, they have a blind eye to individuals because of political persuasion or their professional achievements, as long as they are members of that alumni called the veterans of America. He has distinguished himself as their advocate. There isn't any place I would have been this morning, but right here introducing my friend, the National Commander of the American Legion to all of you. Again, my friend, and this honor, Paul Morin. [Applause.] Chairman Craig. Commander, with that very eloquent and appropriate introduction, please proceed. STATEMENT OF PAUL A. MORIN, NATIONAL COMMANDER, THE AMERICAN LEGION; ACCOMPANIED BY STEVE ROBERTSON, DIRECTOR, NATIONAL LEGISLATIVE COMMISSION; DAVID REHBEIN, OF IOWA, CHAIRMAN, NATIONAL LEGISLATIVE COMMISSION; K. ROBERT LEWIS, OF CONNECTICUT, CHAIRMAN, NATIONAL VETERANS AFFAIRS AND REHABILITATION COMMISSION; AND PETER GAYTAN, DIRECTOR, NATIONAL VETERANS AFFAIRS AND REHABILITATION COMMISSION Mr. Morin. That is why he had no challenge in yesterday's election in Massachusetts. [Laughter.] Mr. Morin. Chairman Craig and Members of the Committee, it is an honor for me to appear before this distinguished body to present the American Legion's legislative priorities. Congressman Neal, thank you for taking the time out of your busy schedule to introduce me today. I thank you for your friendship as well as your dedication to doing what is right for America. Your unwavering support for our veterans issues as well as protecting our great flag. It is a clear indication to the voters of Massachusetts that they are well represented. I look forward to our continued friendship and continuing to work this year side by side in my term as National Commander of the American Legion. Thank you, Congressman Neal. With your permission, Mr. Chairman, I would like to recognize a few outstanding leaders and veterans' advocates in the audience today. First, please allow me to introduce our National Vice Commanders: Byron White, of Alabama; Elgin Wahlborg, of Kansas; Lloyd H. Woods, of Maine; Robert Lahiere, of Tennessee; and Allan C. Setterberg, of Utah. [Applause.] Mr. Morin. Thank you. Also with us today are a number of past National Commanders who have given a year of their life in service to our great organization. I would ask that they stand and be recognized at this time. Commanders? [Applause.] Mr. Morin. It is my pleasure now to introduce the President of the Nation's largest patriotic women's organization in the world, the American Legion Auxiliary National President Ms. Joann Cronin, of Missouri. Joann? [Applause.] Chairman Craig. Joann, welcome to the Committee. Mr. Morin. With President Cronin are a number of national officers and past National Presidents of the 21 American Legion Auxiliary, and I would ask that they stand to be recognized [Applause.] Mr. Morin. I also would like to recognize the Commander of the Sons of the American Legion, Earl Ruttkofsky, of Michigan, who is with us today. [Applause.] Commander Morin. I take this moment to recognize two individuals who direct our national staff and do an outstanding job in service to America's veterans, our National Adjutant, Robert Spinogle, and the Executive Director of our Washington Office, John Summer, if they would please stand. [Applause.] Mr. Morin. I would like to take this opportunity to recognize the one person who has been the key to my success in this organization and in life. The road to becoming National Commander is paved with sacrifices, and this wonderful woman has sacrificed quite a bit in her support of my service with the American Legion, and I would not be here today without her help, her love, and her friendship---- Elaine. [Applause.] Mr. Morin. Mr. Chairman and Members of the Committee, the American Legion has a proud tradition of advocating on behalf of America's veterans, and this testimony reflects our commitment to ensuring VA is capable of meeting its obligation to all American veterans. VA has managed to live up to its proud history of caring for American heroes despite shortfalls in funding. The selfless dedication of VA employees is the driving force behind the incredible change in the quality of VA health care. The horror stories of wounded servicemembers returning from war and being warehoused in ill-equipped VA hospitals is now thankfully just a memory. It is difficult to imagine that the current VA system--which has scored higher in quality than any private health care facility for the past 6 years--was once being considered for closure by Congress. That quality of care is directly attributed to the hard-working staff at the VA, and I applaud them. Each generation of veterans has earned the right to quality health care and transitional programs available through the Department of Veterans Affairs. The American Legion will continue to work with both committees to ensure that the VA is indeed capable of providing ``care for him who shall have borne the battle and for his widow and his orphan.'' With young American servicemembers continuing to answer the Nation's call to arms in every corner of the globe, we must now, more than ever, work together to honor their sacrifices. As veterans of the global war on terrorism return home, they are turning to the VA not only for health care but also for assistance in transitioning back to the civilian world. In order for that to occur, veterans service organizations must be afforded the opportunity to present testimony before the very committees that oversee the operations of the Department of Veterans Affairs. Mr. Chairman, it is unfortunate that we are not joined this morning by your colleagues from the House Veterans' Affairs Committee. While we are thankful for the opportunity to address this esteemed body, we are disappointed in the decision of the Chairman of the House Veterans' Affairs Committee not to join us here today. Historically, the Veterans' Affairs Committees in both Houses have been an example of bipartisan progress. However, that seems to be quickly fading from the norm. I thank you, sir, for not silencing the voice of American veterans and allowing me to speak today on behalf of 2.7 million members of the American Legion. We owe it to the brave men and women who have served and who are now serving to work together to ensure VA is funded at levels that will allow all enrolled eligible veterans to receive quality health care in a timely manner. As National Commander of this great organization, I am ready to work with you to accomplish this goal. Proposals to improve the VA budget by charging veterans increased copayments for prescriptions and outpatient care is not the solution to adequate funding. Balancing the VA budget on the backs of American veterans is wrong. Ensuring VA is funded at levels that will allow all eligible veterans to receive care is the solution. The American Legion recommends $36 billion in discretionary funding for veterans health care in fiscal year 2008. In an effort to provide a stable and adequate funding process, the American Legion fully supports assured funding for veterans medical care. Under the current discretionary funding method, VA health care funding has failed to keep pace with medical inflation and the changing needs of the veteran population; VA has been forced to ration care by denying service to eligible veterans; VA has had to forego the modernization of many of its facilities and the purchase of necessary state-of-the-art medical equipment; VA is subject to an annual funding battle for limited discretionary funding. Additionally, the current discretionary funding process leaves VA facility administrators without a clear plan for the future. The American Legion urges this Committee to support legislation that would establish a system of capitation-based funding for veterans health care. Annual funding would be without fiscal year limitation, meaning that any savings VHA realized in a fiscal year would be retained rather than returned to the Treasury, providing VHA with incentives to develop efficiencies and creating a pool of funds for enhanced services, needed capital improvements, expanded research and development, and other purposes. The Veterans Health Administration is now struggling to maintain its national dominance in 21st century health care with funding methods that were developed in the 19th century. No other modern health care organization could be expected to survive under such a system. The American Legion believes that health care rationing for veterans must end. It is time to guarantee health care funding for all veterans. The American Legion believes that Congress should allow VA to bill, collect, and retain third-party reimbursements from Medicare on behalf of Medicare-eligible veterans. Nearly all veterans pay into Medicare for their entire working lives. However, when they are most likely to need medical services from the hospital system designed specifically for them, they must turn elsewhere because the VA cannot bill Medicare. This is wrong, and I urge you to correct this injustice. Additionally, all third-party reimbursements, copayments, and deductibles should be added to the budget, counted as an offset against it. The American Legion firmly believes that making VA a Medicare provider and designating VA medical care as a mandatory funding item within the Federal budget will enable the VA to fulfill its mission to care for those who have borne the battle. In March 1999, GAO reported that the VA could spend one of every four of its health care dollars operating, maintaining, and improving capital assets at its national major delivery locations, including 4,700 buildings and 18,000 acres of land nationwide. Recommendations stemming from the report included the development of asset-restructuring plans for all markets to guide the future investment decisionmaking, among other initiatives. VA's answer to GAO and Congress was the initiation and development of the Capital Asset Realignment for Enhanced Services, better known as CARES. The CARES initiative is a blueprint for the future of VHA. However, the American Legion is concerned that long-term care and mental health care were never factored into the CARES assessment. It is impossible to clearly plan the future of VA health care delivery without considering these two areas. In May 2004, the long-awaited final CARES decision was released. The decision directed VHA to conduct 18 feasibility studies at those health care delivery sites where final decisions could not be made due to inaccurate and incomplete information. VHA contracted with PricewaterhouseCoopers to develop a broad range of viable options and, in turn, develop business plans based on a limited number of selected options. To help develop those options and to ensure the stakeholders' input, then-VA Secretary Principi created the Local Advisory Panels, known as LAPs, which are now made up of local stakeholders. The final decision on which business plan option will be implemented for each site lies with the Secretary of Veterans Affairs. The American Legion is disappointed in the slow progress in the LAP process and the CARES initiative overall. Both Stage I and Stage II of the process included two scheduled LAP meetings at each of the sites being studied with the whole process scheduled for conclusion in February 2006. It was not until April of 2006, after nearly a 7-month hiatus, that Secretary Nicholson announced the continuation of the services at Big Spring, Texas, and like all the other sites, it had only been through Stage I. Seven months of silence is no way to reassure the veterans community that the process is alive and well. The American Legion continues to express concerns over the apparent short- circuiting of the LAPs and the silencing of its stakeholders. Upon conclusion of the initial CARES process, then- Secretary Principi called for a ``billion dollars a year for the next 7 years'' to implement CARES. The American Legion continues to support that recommendation and encourages the VA and Congress to move forward with a focused intent. The American Legion recommends a separate $1 billion for the implementation of CARES in fiscal year 2008. Historically, VA's long-term care has been the subject of discussion and legislation for nearly two decades. In a landmark July 1984 study, ``Caring for the Older Veteran,'' it was predicted that a wave of elderly veterans had the potential to overwhelm VA's long-term care capacity. Further, the recommendations of the Federal Advisory Committee on the Future of Long-Term Care in its 1998 report ``VA Long-Term Care at the Crossroads,'' made recommendations that serve as the foundation for VA's national strategy to revitalize and re-engineer long-term care services. It is now 2006, and that wave of veterans has arrived. Additionally, Public Law 106-117, the Millennium Health Care Act, enacted in November 1999, required the VA to continue to ensure 1998 levels of extended care services (defined as VA nursing home care, VA domiciliary, VA home-based primary care, and VA adult day health care) in its facilities. Yet VA has continually failed to maintain the bed levels mandated by law. VA's inability to adequately address the long-term care problem facing the agency was most notable during the CARES process. The planning for the long-term care mission, one of the major services VA provides to veterans, was not even addressed in the CARES initiative, which is touted as the most comprehensive analysis of VA's health care infrastructure that has ever been conducted. Incredibly, despite 20 years of forewarning, the February 2004 CARES Commission Report to the Secretary of VA states that the VA has yet to develop a long-term care strategic plan with well-articulated policies that address the issues of access and integrated planning for the long-term care of seriously mentally ill veterans. The Commission also reported that VA had not yet developed a consistent method for the placement of long-term care units. It was not for the lack of prior studies that the VA has never had a coordinated long-term care strategy. The Secretary's CARES decision agreed with the Commission and directed VHA to develop a strategic plan, taking into consideration all the complexities involved in providing such care across the VA system. The American Legion supports the publication and the implementation of a long-term care strategic plan that addresses the increasing long-term care needs of America's veterans. We are, however, disappointed, that it has now been over 2 years since the CARES decision and no plan of long-term care has been published. The American Legion believes that the VA should take America's aging veterans seriously and take proactive steps to provide the care mandated by Congress. Congress should do its part and provide adequate funding to the VA to implement its mandates. The American Legion supports current legislation that would ensure appropriate payments for the cost of long-term care provided to veterans in State veterans homes. Stronger oversight of assured payments to State veterans homes, full reimbursement for the treatment of veterans 70 percent service connected or higher, and the more efficient delivery of pharmaceuticals. It is vital that the VA meet the long-term care requirements of the Millennium Health Care bill, and we urge this Committee to support adequate funding for the VA to meet the long-term care needs of America's veterans. Mr. Chairman, the American Legion is committed to ensuring that the VA carries out its historic and statutory responsibility to provide medical care and benefits to those who have selflessly and honorably served in the defense of this Nation. There are approximately 2.6 million veterans receiving disability compensation, and the VA reports that this number is increasing at a rate of 5,000 to 7,000 veterans per month. VA reported that its 57 Veterans Benefits Administration regional offices issued more than 763,000 disability determinations in fiscal year 2005. Three and four percent increases are expected in fiscal year 2006 and 2007, amounting to approximately 826,000 claims in fiscal year 2006 and 842,000 in fiscal year 2007. A majority of these claims involve multiple issues that are legally and medically complex and at times time consuming to adjudicate. The increasing complexity of VA claims adjudication continues to be a major challenge for VA rating specialists. Since judicial review of veterans' claims was enacted in 1988, the remand rate of those cases appealed to the United States Court of Appeals for Veterans Claims has historically been about 50 percent. In a series of precedent-setting decisions by the CAVC and the United States Court of Appeals for the Federal Circuit, a number of longstanding VA policies and regulations have been invalidated because they were not consistent with the statute. These court decisions immediately added thousands of cases to regional office workloads since they require the review and reworking of tens of thousands of completed and pending claims. As of August 19, 2006, there were more than 389,000 rating cases pending in the VBA system. Of these, 92,0947, or 23.6 percent, have been pending for more than 180 days. According to the VA, the appeals rate has also increased from a historical rate of about 7 percent of all rating decisions being appealed to a current rate that fluctuates between 11 to 14 percent. This equates to more than 152,000 appeals currently pending at VA regional offices, with more than 132,000 requiring some type of further adjudicative action. While the number of claims and appeals has continued to increase, the FTE levels have decreased. Because VBA has lost much of its institutional knowledge base over the past 4 years, due to the retirement of many of its employees with over 30 years of service, staffing at most regional offices is now mostly comprised of trainees and individuals with less than 5 years of experience. Concern over adequate staffing in VBA to handle its demanding workload was addressed by the VA's Office of the Inspector General in its May 2005 report on variances in compensation payments. The bottom line is that the VBA must have enough people to handle its ever increasing workload. Expecting the VBA to do more work with less staff is not only unrealistic, it is also an unacceptable disservice to our Nation's veterans. Another area of concern is the review of the VA's compensation program being conducted by the Veterans' Disability Benefits Commission. The American Legion will remain vigilant in our efforts to monitor the Commission's activities. We welcome recommendations that will improve the delivery of benefits to our veterans and their dependents. However, we will adamantly oppose any recommendation that will take away or restrict current benefits or is otherwise unfair to America's veterans. Mr. Chairman, one other key issue of concern that I would like to highlight today is the American Legion's dedication to ensuring that VA is capable of meeting the mental health care needs of both the current population of veterans seeking care and the new generation of veterans returning from Iraq and Afghanistan. As the global war on terror continues, casualties are mounting and the ability of the Nation to take care of those who have fought bravely continues to be tested. We must not fail. History has shown that the cost of war does not end on the battlefield. Servicemembers do not all suffer from obvious injuries such as amputations, gunshot wounds, and other severely disabling conditions. The estimation has been as high as 30 percent of those serving in the war on terrorism will suffer the hidden wounds of traumatic stress and other psychiatric conditions due to combat exposure and the rigors of the battlefield. These new veterans should fare much better than their Vietnam veteran counterparts. Much more is known about the factors that predispose an individual to chronic PTSD, the qualities of the stressors that may lead to PTSD, and the factors in the post-trauma life course that may help or worsen PTSD symptoms. Today, more than 123,000 veterans are service connected for PTSD, most as a direct result of combat exposure. VA's Special Commitment on PTSD was established 20 years ago to aid Vietnam veterans diagnosed with PTSD. Since its establishment, the Committee has made many recommendations to the VA on ways to improve PTSD services. A February 2005 GAO report pointed out that the VA delayed fully implementing the recommendations of the Special Committee, giving rise to questions regarding VA's capacity to treat veterans returning from military combat who may be at risk for developing PTSD while maintaining PTSD services for veterans currently receiving them. In September 2004, the GAO also reported that officials at six of seven VA medical facilities stated that they might not be able to meet an increase in demand for PTSD services. Additionally, the Special Committee reported in its 2004 report that sufficient capacity is not available within the VA system to meet the demand of new combat veterans and still provide services to other veterans. The additional support being provided nationwide by the Vet Centers is proving invaluable. Their mission is to seek out veterans suffering life readjustment problems related to their time in service and assisting them in all aspects of readjustment. Today, 206 Vet Centers are located in communities throughout the United States, District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. Sixty-five percent of the 737-member clinical staff are veterans and of those over 40 percent are combat veterans. In April 2003, the Secretary of Veterans Affairs extended Vet Center eligibility to veterans of Operation Enduring Freedom and, later that same year, extended eligibility to veterans of Operation Iraqi Freedom. In February 2004, VA Under Secretary for Health authorized the Vet Center program to hire 50 OEF/OIF veterans to conduct outreach to their comrades from the global war on terrorism. These outreach counselors are in 34 States and in the District of Columbia. Additionally, on August 5, 2003, the Vet Centers were authorized to furnish bereavement counseling services to surviving parents, spouses, children, and siblings of servicemembers who die while on active duty, to include federally activated Reserve and National Guard personnel. As of January 31, 2005, Vet Centers had served 14,259 OIF/ OEF veterans and families, either at Vet Centers or at demobilization sites, 29 percent of which are PTSD clients. Vet Centers are an invaluable resource to veterans and the VA. Given the extended commitment of current combat operations, repeated deployments, and the importance of retaining experienced combat servicemen and women in an all-volunteer military, it is essential to promote the readjustment of servicemen and women and their families. The American Legion continues to be an unwavering advocate for Vet Centers and their most important mission. Over the past 3 years, the American Legion's System Worth Saving Task Force has completed site visits at every single VA Medical Center in the United States. During these site visits, we took special note of mental health services provided and at the ability of the facilities to balance the current demand for long-term care along with the recently returning veterans who are now turning to the VA for mental health care. Like the GAO report, we found that many facilities were increasingly concerned with their ability to handle an increasing mental health workload. Our site visits revealed a number of facilities that are forced to convert capital improvement dollars to health care dollars in order to meet the service demands of the current veteran patient population. The shifting of those funds has resulted in the delay of needed infrastructure repairs resulting in huge maintenance backlogs at facilities. The health care needs of VA, to include mental health services, must be funded at a level that will prevent the shifting of funds from one account to another. It is our obligation as a Nation to ensure that VA is funded at a level that will prevent the rationing of health care. Mr. Chairman, the American Legion appreciates the strong relationship we have developed with this Committee. With the increasing military commitments worldwide, it is important that we work together to ensure that the services and the programs offered through VA are available to the new generation of American servicemembers who are now returning home. You have the power to ensure that their sacrifices are indeed honored with the thanks of a grateful Nation. The American Legion is fully committed to working with each of you to ensure that America's veterans receive the entitlements they have earned. Whether it is improved accessibility to health care, timely adjudication of disability claims, improved educational benefits, or employment services, each and every aspect of these programs touches veterans from every generation. Together, we can ensure that these programs remain productive, viable options for the men and women who have chosen to answer the Nation's call because service to its Nation is a noble profession. The brave men and women who are serving in our Armed Forces in Iraq and Afghanistan and throughout the world deserve no less. I look forward to working with each of you throughout the next year to improve the lives of all Americans, especially its veterans, who deserve it. Thank you, Mr. Chairman, for the opportunity to be here. [Applause.] [The prepared statement of Mr. Morin follows:] Prepared Statement Paul A. Morin, National Commander, The American Legion [GRAPHIC] [TIFF OMITTED] T2203.001 [GRAPHIC] [TIFF OMITTED] T2203.002 [GRAPHIC] [TIFF OMITTED] T2203.003 [GRAPHIC] [TIFF OMITTED] T2203.004 [GRAPHIC] [TIFF OMITTED] T2203.005 [GRAPHIC] [TIFF OMITTED] T2203.006 [GRAPHIC] [TIFF OMITTED] T2203.007 [GRAPHIC] [TIFF OMITTED] T2203.008 [GRAPHIC] [TIFF OMITTED] T2203.009 [GRAPHIC] [TIFF OMITTED] T2203.010 [GRAPHIC] [TIFF OMITTED] T2203.011 [GRAPHIC] [TIFF OMITTED] T2203.012 [GRAPHIC] [TIFF OMITTED] T2203.013 [GRAPHIC] [TIFF OMITTED] T2203.014 [GRAPHIC] [TIFF OMITTED] T2203.015 [GRAPHIC] [TIFF OMITTED] T2203.016 [GRAPHIC] [TIFF OMITTED] T2203.017 [GRAPHIC] [TIFF OMITTED] T2203.018 [GRAPHIC] [TIFF OMITTED] T2203.019 [GRAPHIC] [TIFF OMITTED] T2203.020 [GRAPHIC] [TIFF OMITTED] T2203.021 [GRAPHIC] [TIFF OMITTED] T2203.022 [GRAPHIC] [TIFF OMITTED] T2203.023 [GRAPHIC] [TIFF OMITTED] T2203.024 [GRAPHIC] [TIFF OMITTED] T2203.025 [GRAPHIC] [TIFF OMITTED] T2203.026 [GRAPHIC] [TIFF OMITTED] T2203.027 Senator Burr [presiding]. Commander, thank you so much for that very thorough testimony on behalf of not only your members but all veterans across America who will benefit from that insight. May I ask you to take the opportunity to introduce those at the table with you so they are not overlooked. Mr. Morin. Yes, Mr. Chairman. The Chairman of the National Legislative Commission Dave Rehbein, of Iowa; National Chairman of Veterans Affairs and Rehab, K. Robert Lewis, of Connecticut; Staff Director of VA&R, Peter Gaytan; and our Legislative Director Steve Robertson. Thank you, Mr. Chairman. Chairman Craig [presiding]. Senator, thank you for chairing in my absence. I had a couple of phone calls that were demanding my time, and, Commander, again, thank you very much for your very complete testimony and thoughts about the role of VA as it relates to our responsibilities. We do have a vote scheduled, I believe, for 11:15. I would hope that our colleagues would offer brevity in their questions so we can get to your responses. I will do that. I think it is important that we give our colleagues a chance or an opportunity to ask as many questions as possible. I appreciate, Commander, the position of American Legion as it relates to permanent funding or entitlement funding as an approach toward dealing with VA. At the same time, I cannot step back from the reality at hand. And the reality is that in the 6 years that our President, the current President, has been the Chief Executive of this country, the VA budget has increased 70 percent. That is better than 10 percent a year. It has increased faster than any other segment of our Government except the military, and that is pretty remarkable as it relates to the overall funding effort. We are now at nearly $80 billion in the 2007 budget. In my tenure as Chairman of this Committee, I will preside over the first $100 billion budget to veterans, and I am not going to blink and step back from that. In fact, I will be very proud of it. And I know we will sort through these differences over time, but I have to tell you, this Committee, while it criticizes itself on occasion and it criticizes the Congress as we work through these approaches, I cannot step back from being very proud of the effort at hand and that this country and our taxpayers are stepping forward at an unprecedented level to serve and provide for veterans in this country. That is a substantial increase, and many of us will criticize that it is probably not enough. But we will work hard to make sure that continues. With that comment, let me turn to my colleagues for any questions. Senator Burr, do you have any questions of the Commander? Senator Burr. Mr. Chairman, I will be extremely brief. You covered in great detail a lot of areas. I am curious, Commander, even though you mentioned the staffing problems, the inexperience, the need for training within the veterans appeals process, recently Judge Greene has called back two former judges to try to handle some of the backlog. Do you feel that that is enough, or are there more that need to be done? Mr. Morin. It is a Band-Aid approach to a major problem. We appreciate the additional two judges being called back, but when you look at the number of cases that still need to be heard, it will reduce the backlog for a short time period. They only have a limited time that they can serve as called-back judges. It will help the veterans. We would still continue to ask for more. And my point is the employees, when you have a turnover of Vietnam veterans as myself who gave their life in service to the VA, and all of a sudden reached a magic number to retire, and the mass exodus occurred. That is what caused us to have employees reviewing claims with 1 to 5 years' experience. And with that lack of base, long-term care knowledge, it has caused so many more veterans to file claims of appeals. Senator Burr. Well, I think, clearly, this Committee has shown their willingness to take this issue head on and try to resolve it, and I think the Chairman has committed to make sure that happens. As we all know, the Veterans' Administration has put together a fairly sound plan for reversing the pattern of neglect and the safeguard of personal identification, personal information, electronic data. Assuming that plan continues to work as expected and no further data loss occurs, what will be the next step that we need to make to re-establish that level of trust between veterans and the Veterans' Administration? Mr. Morin. I think the trust that has been broken will come in time, and as we all pray that none of that data was retrieved in any format, and only time will tell that. And if it is, I am sure that this Committee and the President would stand behind those veterans who were affected by the theft. I think the Veterans' Administration needs to look beyond where they are today with the technology that is available out there to many of us that we log into our computers is very simple, the technology out there of touching your fingerprint to the screen also puts another lock security in there, a computer looking at you into the retina of your eye. So there are many avenues out there that can put additional protections in there of safeguarding it. The trust of American veterans to the ones securing its data will come back when it is shown that the system has additional safeguards within it. Senator Burr. Thank you, Commander. Thank you, Mr. Chairman. Chairman Craig. Thank you, Senator. Senator Murray. Mr. Chairman, thank you very much. I will be quick. I know Senator Jeffords and Senator Obama have arrived and want to do opening statements or questions as well. I wanted to ask you--first of all, thank you so much for your very excellent testimony. As always, you give a very comprehensive view of what we really need to be focused on, and I appreciate your being very straight with us about the challenges that we face, and I look forward to working with you. I did want to touch on a couple of issues. One of them is the unemployment rate of 20- to 24-year-old veterans who are coming home from Iraq and Afghanistan. I am talking to a high number of young people coming home who cannot get employment, who are facing of being sent back to Iraq or who just come home and cannot get jobs. And I know the statistics back up the fact that we have double the number of young people between 20 and 24 who are unemployed coming home from Iraq and Afghanistan than in the regular general population. Can you give us an idea on some of the things that you think the VA and DOD and Department of Labor should be doing to address this issue? Mr. Morin. I will have Peter Gaytan, one of our staff, respond to that question. Mr. Gaytan. Well, thank you, Senator, for your concern over that population of returning veterans who are running into major employment problems. The American Legion supports licensure and certification for those individuals who are in the military and who are leaving service. What DOD and what VA needs to do and what the American Legion is urging they do is take a look at when these young men and women put on the uniform and when they become trained jet engine mechanics or when DOD trains them to understand how to be a dental technician or a mechanic on a C- 5, the American public has an investment in that individual. Taxpayer dollars have educated and trained that individual. When they decide to take the uniform off and leave that gate and go back to the civilian community, we as a Nation already have an investment in their future, and we need to get a return on that investment. So, if the civilian licensing and certification is parallel with DOD training, when that individual walks out of the gate, they will not be struggling for employment. What they will be able to do is take that training and education into the civilian community and become a productive member of society. And, hopefully, we will see a decrease in that number of unemployed veterans who are coming back, because we as a Nation owe it to them to ensure that their lives are benefited by their service to this country, that they are not forgotten when they walk out of that gate. And the American Legion feels strongly about that, and we look forward to working with DOD, VA, and with this Committee to ensure that occurs. Senator Murray. Good. Thank you very much, and I look forward to working with you, too. I am deeply concerned about that. I have talked to young kids coming home after serving as a medic for a year, and they cannot even use what they learned on the fields in Iraq when they come home. Mr. Gaytan. And when that happens, they are not the only ones that are losing. We as a Nation are losing. Senator Murray. Right. Thank you very much. I appreciate that. The other issue, real quickly, I am hearing from a lot of OEF and OIF veterans who are really struggling to get the services they need, particularly our Guard and Reserve members who come home separated and out in very small communities and do not live near a base and do not necessarily hear about what is going on. Do you have any thoughts on what we can do to do a better job with our transition service, particularly for the National Guard and Reserves? Mr. Morin. We have been very fortunate. We just signed a Memorandum of Understanding with the Pentagon on Heroes to Hometown, and what we have done is produced a pamphlet that we have dispensed to all our posts and units and squadrons of the American Legion throughout this Nation. And with that Memorandum of Understanding, we have an individual who is working at the Pentagon who will take individuals' names and transmit them back to the post in that local community to be there to assist them. It is like a buddy system. Senator Murray. So you are getting access to that information. Mr. Morin. We are now getting access to that information, but that buddy system is important, so when he is home and he is having a hard time maneuvering the system, he can pick up the phone and call that buddy to assist him and work together on it and not become discouraged. And we are very proud of that Memorandum of Understanding that we have been able to sign. Senator Murray. Good. I hope to hear progress on making sure that is staying in effect, and I appreciate you working on that. Mr. Morin. We will. Senator Murray. Thank you, Mr. Chairman Chairman Craig. Patty, thank you very much. Let me turn to Senator Thune. John? Senator Thune. Thank you, Mr. Chairman, and, Commander, thank you again for your excellent testimony, comprehensive testimony. I appreciate your focus in a couple of areas. We had a wonderful celebration this past weekend in South Dakota; 32,000 people came out to recognize our Vietnam veterans and give them the welcome home that they never received. And it occurs to me there was a lot of closure that occurred for a lot of veterans at that event, and I know from friends that I have, Vietnam veterans, many of the wounds and the scars and the injuries that they come back with--and this is true, I think, of OIF and OEF veterans--are not just physical. And your emphasis on PTSD and the needs that are there and the need for the VA to be appropriately addressing that I think is something that we as a Committee--or I certainly am very interested in. I hope that we will be able to continue to explore how we make sure the resources are there to deal with the demands that are going to come, not only for the physical injuries but also the other injuries that our veterans have incurred in the previous conflicts. I want to combine a couple of questions because I know we are limited on the time here, and I would like to have you, if I could, address two things. One, I am very interested in rural veterans and delivery of health care in rural areas. As you know, I represent a very rural State. You have been in my State. We have been fortunate to have community-based outpatient clinics in several areas of my State, but we have a couple more that we are trying to get that have been on the books for a long time. You had referenced in your testimony concerns about the CARES initiative overall, particularly VA's consulting Local Advisory Panels, or LAPs, that you referenced in your testimony. I am concerned about the progress in that respect, too, because it is a program that has been so helpful in rural areas. And that is a focus of mine on this Committee as how do we provide better service to rural areas, and CBOCs has been a great mechanism for doing that. But my impression is that things have really slowed down. I am interested to get your thoughts, again, to maybe reinforce some examples of where that is the case, and what we need to be doing to further intensify our efforts to get these CARES initiative moving forward, and moving forward at a rate that I think we all want to see. And secondly, if you could just respond, it has been mentioned briefly here, the whole issue of privacy. No veteran ought to have their privacy compromised when it comes to their personal information, and there is absolutely no excuse for what happened a year ago--actually, it was not a year ago. It was several months ago. And it seems to me, at least, that one of the issues where that problem occurred has to do with the IT system at the VA. The VA has been in the process of trying to centralize their information technology functions. I am curious to know what the Legion's views are on the progress toward centralizing the IT function at the VA, placing them under the authority of the VA's CIO, and if that is something that you would like to see happen at a faster rate than is currently occurring as well. So, those are two issues--rural veterans/CARES initiative and the IT function at the VA--and what your views are with respect to what is going on there and what needs to be done. That is a lot to handle, and I apologize for putting it all into one question. Mr. Morin. This Committee has the power to make the CARES process happen by putting at least $1 billion in the budget for the CARES initiatives. We support CBOCs. We support access to quality health care of veterans as closest to their home as possible. And if in those areas that you speak of, CBOCs are the right way to go, then we would support that 100 percent. The IT issue, when we are talking about the security of information of veterans, yesterday was not fast enough. The centralizing of it, is that the answer that will make it happen? Yes, we support it if that is what is going to happen to secure the data of those veterans. I had the great opportunity to visit with the Chairman yesterday, and when we talk about putting $1 billion in the budget for CARES, we talk about those initiatives and you speak of CBOCs in your hometown, how is it going to happen? Is it going to happen on a political basis or is it going to happen where they need to happen? And I think the Chairman and I had a great discussion on this, and we took the aspect of how the State Veterans Home Program works in allocation of its money. I think if we see a mechanism put in place, the allocation of money for opening VA hospitals and CBOCs throughout this country in a fair and equitable way, where care to veterans is happening, you have succeeded in accomplishing something. Thank you. Senator Thune. Thank you. Mr. Chairman, I appreciate your response and, again, the views of this great organization. My father is a member of the American Legion in my hometown of Murdo, South Dakota, and as I said, areas in my State, as in yours, Mr. Chairman, I know this is an interest in which you have--you know, would like to see solutions as well. But those veterans in rural areas, particularly we get the older veterans, it is a real issue, making sure that we have access to health care for them in areas that are close to them. So I share your interest in moving that CARES initiative along, and I know that this Committee does, and we will do everything we can to make sure they have the funding to do that. So thank you, Mr. Chairman, for your testimony. Mr. Morin. Senator, I appreciate getting to know you and visiting your State and being out there with you and your sincere commitment to veterans. And I am still a negotiator. [Laughter.] Chairman Craig. Well done, Commander. Senator Thune. Well put. Thank you. Chairman Craig. Let me turn to our colleague from Vermont, Senator Jim Jeffords. Jim? Senator Jeffords. Thank you, Mr. Chairman. I am very pleased to be here today to hear from the American Legion about how we can improve care for our Nation's veterans. Mr. Morin, we greatly value your advice on both the legislative proposals and your observations about how policies are affecting the lives of veterans. I also would like to recognize Milt Willis of Vermont, who has provided decades of strong leadership for American Legion service and Vermont veterans. I appreciate his work. Mr. Morin, in Vermont, as in other States, we are working to provide care to an aging population that in some cases are hours away from existing veterans facilities. Private nursing homes do not provide the care specific to the needs of the veterans but are sometimes the only option to those who do not wish to travel hours from their families and communities. There has been a discussion of proposals to designate a certain number of beds for veterans in private nursing homes in areas distant from VA facilities. Do you feel that a system could be developed whereby private nursing homes could provide adequate care for aging veterans? Mr. Morin. Presently, the VA contracts with private nursing homes throughout America. That is one of our questions. In the facilities within the VA, there seems to be a trend that when they no longer can provide adequate medical care, they look for other placement. And if it is some veteran in need of long-term care, there are two options to the VA--or, actually three: they maintain them within their facility, they place them in a contract nursing home, and if that veteran is not 70 percent or more disabled, they pay up to 6 months. If he is more than 70 percent, they continue to pay the full rate of that private nursing home. But if he is less than 70 percent, after 6 months that veteran then has to pay out-of-pocket. And it is sad to say that those veterans in most cases have very little money and then become a pauper and have to be put on Medicaid. The next avenue is State veterans homes. State veterans homes now provide 51 percent of long-term care to American veterans. States have accepted quite a bit of a responsibility in that. So as I said in my testimony, we support long-term care within the VA and within the State veterans homes. And do we support contract nursing home? Yes, if that is the best avenue available to the veteran in need. Senator Jeffords. Mr. Morin, as you know, 500,000 veterans are estimated to be homeless over the course of a year. The majority of these men and women have alcohol or drug abuse problems, and many face mental illness. I applaud the efforts of the American Legion to confront this very difficult challenge of ending homelessness. In your view, what specific strategies should the VA adopt to improve services to homeless veterans and bring us closer to the goal of ending homelessness among veterans within 10 years? Mr. Morin. Veterans' homelessness is not a new issue to us as a Nation. When you look back to the Civil War, how the State Veterans Home Program became shelters for homeless Civil War veterans. So it is not new to our society of homeless veterans. A lot of energy and funding has gone in to assist homeless veterans. But as I said in my testimony, the first piece is the mental health care of that veteran. The ravages of war do not end on the battlefield. It may be years later that mental health capacity is needed. You only need to work with a homeless veteran, as you said, and understand that mental illness is not being treated because there is inadequate space available within the VA for him to be treated, and watch a veteran's home life, his marriage being destroyed by that is tough to see. And that is why I said in my remarks that the VA through its CARES process failed to recognize the mental health capacity of veterans, and we need to address that issue first. If we truly want to address the mental health of veterans, we need to do that first, and we will reduce the homeless population. But we need to address that. You can give an individual a place to sleep. You can feed him three squares a day. But if you are not addressing that mental health aspect, we have let them down. Senator Jeffords. Thank you. Chairman Craig. Jim, thank you very much. Well, Commander, a vote is under way so I will make a concluding statement. First and foremost, let me thank you for being here today and being the advocate that you are. It is obvious by your testimony and by your response to questions that you are a compassionate Commander who takes his responsibility very, very seriously. Now, all of us here on this Committee are here by choice, and we are here to serve our veterans and to sort out the difficulties, the competition, if you will, for resources, and to do as best we believe this country can do to serve our veterans. It does not mean we always get it right, and that is why you are here, and that is why this is always work in progress. Your praise for the VA today and its employees is very, very appropriate. On the whole, there is no question in my mind in my connection with the VA and being at their facilities that in almost all cases they are phenomenally hardworking, dedicated people with the veterans' best interests in mind. And as we work through the budget and the budget processes, we will work with you and your organization and other veterans advocacy groups to get it as right as we can as it relates to our resources. And as you and I both agreed yesterday and, again today, there will be times when we disagree. But it will be done openly and publicly, and we will sort out those differences as we conclude the process on an annualized basis. I will continue to assure America's veterans that they will get all resources we can possibly gain for them to be applied in the right way. Many of our colleagues today spoke about the issue of IT. Just before you arrived in my office yesterday, the gentleman who has been nominated, whom we will hear from next week before the Committee, who will head up that division of the VA was there to visit with me. And I am pleased to announce that there is a comprehensive program now under way. And my admonishment, if you will, to this gentleman was: If you can get the IT process in hand the way you got electronic medical recordkeeping in hand that so dramatically helped improve the veterans health care and its quality that you represented earlier in your testimony, then VA will once again lead the Government in having handled this problem in an appropriate fashion in the construct of the culture and the attitude within the VA as it relates to how we handle this critical information and to do so on an ongoing basis. Technology got out in front of us. Not long ago, the Secretary sat before this Committee, where you are sitting today, and held up a little black box about this size, pulled it out of his shirt pocket and said, ``Twenty million names and addresses can go here.'' So it can be put in anybody's shirt pocket and taken off campus, off property. But if the culture is there, if the understanding is there of the value and the protocol, all that we have to do to assure that with some of the technologies that you referenced, we can help VA get this right. And they then can lead the country, as they are leading health care in the country today in this kind of technology. So, again, Commander, to you, to the American Legion, and to all who have assembled here today, let me thank you so very much for your presence, your testimony, your advocacy, and, most importantly, your patriotism. It is greatly appreciated. Thank you much. [Applause.] Mr. Morin. Thank you, Mr. Chairman. Chairman Craig. The Committee will stand adjourned---- Senator Jeffords Mr. Chairman, I want to just give some accolades to you. Chairman Craig. Oh, well, in that case, we will reconvene. [Laughter.] Senator Jeffords. I just want to say that over the course of our lives together, I have watched you as you pursue the problems that we have in the area that is so great for all of us. I just want to thank you for all the effort you have put in and ask the audience if they agree with me that you are doing a heck of a great job. [Applause.] Chairman Craig. Thank you. Jim, that is very generous of you. Thank you very much. Now the Committee will stand adjourned. [Whereupon, at 11:27 a.m., the Committee was adjourned.] <all>