Veterans Affairs faces $1 billion shortfall
http://www.cnn.com/2005/POLITICS/06/23/veterans.budget.ap/
Thursday, June 23, 2005; Posted: 4:45 p.m. EDT (20:45 GMT)

WASHINGTON (AP) -- The Department of Veterans Affairs told Congress
that its health care costs grew faster than expected and left a $1
billion hole in its budget this year, lawmakers said Thursday.

House Veterans' Affairs Committee Chairman Steve Buyer, the Republican
from Indiana, said the department can meet this year's health care
costs by drawing on spare funds and money from other operations,
including building construction.

But next year's health care budget falls well over $1 billion short,
said Sen. Larry Craig, R-Idaho.

"I was on the phone this morning with Secretary of Veterans Affairs
Jim Nicholson letting him know that I am not pleased that this has
happened," said Craig, chairman of the Senate Veterans' Affairs
Committee.

"This shortfall results from either deliberate misdirection or gross
incompetence by this administration and the Department of Veteran
Affairs," said Sen. Patty Murray, D-Washington.

The shortage came to light during a routine budget review. Lawmakers
said they are still gathering details, but it appears health care for
veterans returning from Iraq and Afghanistan and poor budget
forecasting contributed to the problem.

Several Democrats urged the Bush administration to push immediately
for an emergency spending bill to fill this year's $1 billion deficit
and prevent the VA from raiding other operations to pay for health
care.

Craig said he didn't yet see the need for emergency action but planned
to call VA officials to a hearing next week to pin down more precise
spending figures.

"We're going to pound them like hell 'til we get them, then we'll make
some judgments," he said.

Murray had urged lawmakers to give the VA an extra $2 billion this
spring, while they assembled an $82 billion emergency spending bill on
war and homeland security, but the VA said it didn't need any more
money.

Overall the administration has proposed increasing the Veterans
Affairs Department budget by 2.7 percent to $70.8 billion next year.