113th Congress: Political Environment and Outlook

Results of the 2012 Federal Elections

The Status Quo Prevails

• President Obama Re-Elected to Second Term• Winning Percentage Drops from 53% to 51%

• Democrats Retain Control of the Senate• Pick Up Two Net Seats (55 D&I to 47 R)

• Republicans Retain Control of the House • Net Loss of Eight Seats (232 R to 200 D)

• VA Secretary Shinseki Stays for Second Term

Results of the 2012 Federal Elections

Some Changes in Congressional Leadership

• Sen. Sanders (D-VT) Assumes VA Committee Chair• Senator Burr (R-NC) Remains Ranking Member• Most Committee Members Return to SVAC

• Rep. Miller (R-FL) Remains House VA Chairman• Rep. Michaud (D-ME) Becomes New Ranking Member• Wholesale Changes in Committee Membership,

Subcommittee Chairs and Ranking Slots

• Sen. Murray (D-WA) Becomes New Budget Chairman

Results of the 2012 Federal Elections

Is Gridlock the New Status Quo in DC?

• Can Divided Government Work Together?• Early Partisan Battles on Debt Ceiling and Sequestration

• Will Budget Crisis Affect Veterans Funding?• Advance Appropriations and Ruling on Sequestration Provide

Some Protection for VA Benefits and Programs This Year

• Will Electoral Politics Block New Policy Changes?• Non-Stop Congressional Election Cycle• 2016 Presidential Campaign Already Underway

Budget Outlook for Veterans Programs

No Resolution to Continuing Budget Crisis

• Congress Failed (Again!) to Pass Budget on Time• Late 15 of Last 16 Years, 21 of Last 24

• FY 2013 Continuing Resolution Expires April 1st

• Most Agencies and Programs Funded at FY 2012 Levels• VA Funded at Proposed FY 2013 Levels (4.5% Increase)• VA Medical Care $1.5 Billion Below IB Recommendation

• Will Advance Appropriations Advance?• VA Health Care Has Full Year FY 2013 Appropriation• BUT, FY 2014 Advance NOT Yet Approved

Budget Outlook for Veterans Programs

Budget Obstacle Course Ahead

• Sequestration First Hurdle for New Congress• VA Exempted from Virtually All Automatic Cuts• BUT NOT Employment & Training Programs in DOL

• Appropriations for Second Half of FY 2013• VBA Funded at Increased 2013 Request Level• FY 2014 Advance Appropriations Must Be Approved• VA Must End Reliance on Old or New Gimmicks

• (i.e. - “Operational Improvements”)

Budget Outlook for Veterans Programs

Administration’s New FY 2014 VA Budget Plan

• President Delayed Budget Past February Deadline• Will Not Arrive Until March; Congress May Not Wait

• FY 2014 Proposal Likely to Track FY 2013 Proposal• Advance Appropriation for FY 2014 Expected to Remain

• 3.3% Increase for Medical Care Funding• Other Discretionary Accounts Expect Level Funding• Mandatory Funding Will Continue Rising

Budget Outlook for Veterans Programs

FY 2007 Actual

FY 2008 Actual

FY 2009 Actual

FY 2010 Actual

FY 2011 Actual

FY 2012 Estimate

FY 2013 Request

FY 2014 Advance

$35.810$38.726

$42.981$47.385

$50.813 $53.378 $55.672 $57.513

Total VA Medical Care Funding Has Risen Annually

(in $Billions)

Budget Outlook for Veterans Programs

FY 2008 Actual

FY 2009 Actual

FY 2010 Actual

FY 2011 Actual

FY 2012 Estimate

FY 2013 Request

FY 2014 Advance

0 .0 %

2 .0 %

4 .0 %

6 .0 %

8 .0 %

1 0 .0 %

1 2 .0 %

8.1%

11.0%

10.2%

7.2%

5.0%4.3%

3.3%

BUT Annual Rate of Increase in

VA Medical Care Spending Has Been Trending

Downward

Budget Outlook for Veterans Programs

FY 2007 Actual

FY 2008 Actual

FY 2009 Actual

FY 2010 Actual

FY 2011 Actual

FY 2012 Estimate

FY 2013 Request

0

5 0 0

1 ,0 0 0

1 ,5 0 0

2 ,0 0 0

2 ,5 0 0

$339

$1,531

$923$1,194 $1,074

$590 $532

$525

$631

$742

$703

$467

$482 $608

Minor ConstructionMajor Construction

VA Construction Funding Has Also Declined

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 20130

50

100

150

200

250

300

350

$85 $85

$165 $175

$100 $85 $85 $85

$150Stimulus FundingS.V.H. Construction Grants

State Home Construction Grants Also Decreased

Legislative Outlook for Veterans Programs

Congressional Priorities

• VA Health Care Funding• H.R. 803 - Putting Veterans First Act

Reps. Miller (FL) and Michaud (ME)• Infrastructure / Construction Issues

• New CBO Lease Scoring• Waste, Fraud and Abuse in All VA Spending• Mental Health Care, PTSD & Suicide• Claims Processing Reform• Veterans Transition to Employment

Policy Outlook for Veterans Programs

VA Long Term Care Programs

• LTSS – Long Term Services and Support• Increasing Focus on Non-Institutional Care

• VISN and VAMC’s “Rebalancing” LTSS• Local Re-Allocation of Resources

Policy Outlook for Veterans Programs

VBA Claims Processing Reform

• Secretary’s Goal for 2015: End the Backlog• All Claims within 125 Days, 98% Accuracy

• People, Processes and Technology• New Smart, Paperless IT System

• VBMS, SEP, VRM• New Organizational Model for VAROs

• FDC, DBQ, SNL• Training, Testing and Quality Control

Working With VSOs for Success

• The Independent Budget (VFW, DAV, PVA & AMVETS)• Budget Recommendations • Policy Recommendations• NASVH Endorses IB• IB Supports NASVH Recommendations

• Major VSOs Tremendously Influential in DC• Testifying at Virtually All Congressional Hearings• Close Relationships with Congressional Staff• Collaborating with VBA on Claims Reform

• VSO Resolutions Often Come From Local Chapters• Summer Conventions Adopt Resolutions• State, Local Conventions in Spring