CRAIG SAYS ?DIALOGUE BEGUN? WITH VFW ON LONG-TERM BUDGET FIX FOR VETERANS

March 7, 2006
Media contact: Jeff Schrade (202)224-9093

(Washington, DC) Thirty eight years ago, at a placed called Quang Tri, Vietnam, Clement Bradley "Alan" Gruber was hit by enemy fire. He died the next day, March 8, 1968. He was remembered today by his friend, Veterans of Foreign Wars Commander-in-Chief Jim Mueller as Mueller testified Tuesday before the U.S. Senate Committee on Veterans' Affairs. Mueller encouraged senators to focus "on the one individual" even as the committee works on budgeting billions of dollars on behalf of millions of veterans.

"That is sound advice and wise counsel," said Committee Chairman Larry Craig as the Idaho Republican talked about the record $80 billion budget proposed for the Department of Veterans Affairs by President Bush for 2007. "I will remember ?the one,' and remind my colleagues to remember a specific veteran even as we examine the big picture on spending for all."

[To see pictures from the hearing, click on: 2006 - March 7 - VFW hearing]

Craig said he will continue to fight for veterans programs and funding, while at the same time asking members of the Veterans of Foreign Wars to help him develop sustainable long-term budgets that will meet the needs of all veterans. But at the same time, Craig warned about fearmongering.

"I don't agree with the rhetoric that is flowing out there that gives the President a little praise for the 2007 historic budget increase for veterans, but says we are going to have to cut the veterans budget in 2008 and beyond.  That is pure politics and not reality.  This Congress is not going to cut veterans budgets.  Period.  End of statement," Craig said.

The budget for VA has risen from approximately $48 billion in 2001 to approximately $80 billion proposed for 2007.

"Within a few years, we will likely be looking at our first $100 billion yearly budget for the VA," Craig said. But even with that, he noted that some have blamed "tax cuts for the rich" as the reason the VA may experience fiscal problems in the coming years.

"There needs to be a reality check, I think, so that all veterans know what has happened and how we got here.  At the end of the Clinton administration, the federal government took in $1.789 trillion dollars in revenue.  In 2005, the federal government took in $2.154 trillion.  That is a 20 percent increase in revenue even after the Bush tax cuts.  More revenue is coming in than ever before.  That's one side of the story," Craig said.  "The other side is the spending."

"During that same time, overall federal spending increased 38 percent, while spending on veterans increased 46 percent. Last year we plussed up the VA budget by $1.5 billion when they were short. And we also said to the VA that we're not going to go through this again, and we are going to map their budget and track it, and demand quarterly reports.

"We've had the first report on VA's budget, and we are on track. Now, what I am asking is that we look at this budget, and future budgets, with a discerning eye," Craig said.

The Idaho Republican noted that 10 years ago when Congress opened the VA health care system to more veterans, a variety of veterans' organizations told Congress that lower priority veterans ? those with higher incomes and no service connected disabilities ? should have access to VA care at their own expense.

"I realize that times have changed and veterans groups now oppose new fees. But if we do not accept the proposed $21 dollar a month insurance premium proposed by the VA and the $15 prescription fee, Congress will need to find $795 million in the federal budget to cover that shortfall," Craig.

"We may find that money this year. It is difficult but not impossible. But long-term, if present trends continue, VA spending will collide with demands made in other areas of government. I want to minimize the collision in order to protect veterans."

VFW officials pledged to work with Craig telling him that the budget system is "not working today."

"Then consider this a dialogue begun," Craig said.

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