CRAIG SAYS VA BUDGET WILL HIT $100 BILLION A YEAR<br><i>New GAO report on VA budget process critical, but chairman says VA now on track

September 20, 2006
Media contact: Jeff Schrade (202)224-9093

(Washington, DC) During a hearing with leaders of The American Legion on Wednesday, U.S. Senate Veterans Affairs Committee Chairman Larry Craig discussed the tremendous increases in spending on veterans in the past few years and said more increases are on the way.

"We will spend $80 billion next year on our nation's veterans, and by the time President Bush leaves office at the end of 2008, I expect VA's budget will be right around $100 billion," said Craig (R-Idaho). "With the enactment of the budget for 2007, VA health care spending will have increased by nearly 70 percent since President Bush took office."

The chairman's comments came just as the U.S. Government Accountability Office (GAO) released a report Wednesday on VA budgeting practices. The report was requested by several members of Congress after a budget shortfall last year caused Congress to add $2.7 billion in emergency money to VA's budget.

"While some veterans are always skeptical of Congress, it's clear that when a financial need has been identified, we have stepped up to the plate and provided the money," Craig said.

The GAO report criticized VA officials for "unrealistic assumptions, errors in estimation, and insufficient data" which led to requests for additional funding for fiscal years 2005 and 2006.

"When I discovered the budget shortfall last year, I worked with my colleagues to swiftly address the budget gap and provide the money VA needed. To prevent this from happening again, I requested that VA provide the Committee with quarterly budget reports. We now have a transparent budget process that seems to be working. All members of Congress ? Republicans and Democrats ? are free to ask any question and get answers," Craig said.

"I'm pleased, frankly that VA has adopted most, if not all, of GAO's recommendations. VA's budget appears to be on track and veterans and taxpayers are better off as a result."

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