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New GAO report shows VA's failures. |
Dear Friend –
This week, a new government investigation revealed the truth about the VA’s budget problems. For those of us who care about America’s veterans – it’s a very disturbing story.
Even worse – I’m concerned that the problems still continue and could undermine our ability to care for veterans returning home from Iraq and Afghanistan.
Remember last year . . . when I was warning that the Department of Veteran Affairs was overwhelmed and under-funded? I tried three times to boost VA funding, three times my amendments were voted down and the VA assured us that everything was fine.
But it wasn’t.
As early as October 2004, the VA was anticipating problems with its budget. But it didn’t tell Congress until June 2005 – when it dropped the bombshell that it was facing a $3 billion shortfall.
Now, a new government report shows what was really going on behind the scenes inside the VA . . . while veterans were waiting on long lines to see a doctor.
The report found:
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The VA knew there were serious problems, but misled Congress for 6 months.
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The VA knew its “cost savings” were hot air, but misled Congress for 4 years.
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The VA's budgets were based on "unrealistic assumptions, errors in estimation, and insufficient data."
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And most damning -- the VA did not accurately plan to handle the impact of veterans from Iraq and Afghanistan.
The report also says we may still not be getting accurate information from the VA.
I’m very concerned that the VA is still not prepared to handle the lion’s share of veterans who will be coming home from service in Iraq and Afghanistan.
You can bet I’m going to stay on top of this and keep pushing for the answers and budgets that will honor our veterans.
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Included in this Issue...
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Murray Calls for a Real Budget Based on Real Demands after GAO Report Reveals VA Failures
(09/20/06) – U.S. Senator Patty Murray (D-WA) today called on Department of Veterans Affairs (VA) Secretary Jim Nicholson to provide Congress with an accurate plan for the health care of America's veterans, a plan based on real numbers and real demands for service. The call comes after the Government Accountability Office (GAO) released a stunning report detailing the VA's failure to provide accurate information for budget needs in fiscal years 2005 and 2006. The report found that the VA used faulty information when planning for overall health care demands and that it estimated health care costs for service members returning from Iraq and Afghanistan based on prewar data.
"Protecting and taking care of our soldiers is the most basic responsibility for those planning and executing a war," said Murray. "Unfortunately, this report offers a stunning indictment of this Administration's commitment to our troops when they return home from Iraq and Afghanistan."
The GAO report was commissioned to investigate two emergency budget requests made by the President in 2005 for a total of nearly $3 billion. Those Presidential requests came after Senator Murray made a similar request for additional funds based on reports of under-funded services for veterans. The GAO looked into why realistic funding levels were not initially requested by the VA and why additional funds were needed. The GAO report found that the additional funding was necessary because the VA prepared their '05 and '06 budgets using "unrealistic assumptions, errors in estimation, and insufficient data." Specifically, the report found that:
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The VA failed to report the problems they were experiencing to Congress in a timely manner.
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The VA underestimated the cost of serving veterans returning from Iraq and Afghanistan because they used budget information that predates the war.
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The VA used faulty information on when they would see real dollars from proposed cost saving measures.
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The VA in many cases did not have any actual means of implementing proposed cost saving measures.
"This is really about the VA being frank with Congress and the American people about its needs," said Murray. "When the VA plays politics with their budget, America's veterans get shortchanged."
"It's time for Secretary Nicholson to explain how the VA is going to put in place a system that will be able to handle the cost of providing mental health care, reducing patient wait times, and providing for an influx of Iraq and Afghanistan veterans," said Murray. "I have not seen that plan, and today's report certainly does not lead me to believe such a plan exists."
"This independent report once again illustrates a VA that is incapable of preparing a real plan for the care of our nation's veterans," said Senator Murray. "There was no plan when service members were sent off to Iraq and Afghanistan, there is no plan now, and most tragically, there is no plan in place for when they return home."
Senator Murray has consistently called upon Secretary Nicholson to provide Congress with the full scope of the VA's fiscal needs.
In March 2005, after hearing reports from various veterans groups citing long lines for care Senator Murray requested $2.85 billion in supplemental spending to meet the increased demand. In the months after Murray's request, the VA continually misled Congress about the existence of a budget shortfall.
In April of 2005, Secretary Nicholson wrote that he did not "foresee any challenges" that would preclude the VA from providing "timely, quality service." The Secretary also testified in a June 2005 Senate Veterans Affairs Committee hearing that the VA had "an adequate level right now" for mental health. However, those on the front lines of the VA's effort to provide care have not echoed the Secretary's confidence in the Department's ability to provide for Veterans. In fact, as recently as earlier this year, Frances Murphy, M.D., Undersecretary for Health Policy Coordination at our Department of Veterans Affairs, noted that some VA clinics could not provide mental health or substance abuse care to veterans, or if they do, "waiting lists render that care virtually inaccessible."
Senator Murray's 2005 request for $2.85 billion in supplemental funding was ultimately denied by the Republican-led Senate. Shortly after Murray's effort was thwarted, the President's requests provided the funding for the $3 billion budget shortfall that the VA revealed in June 2005.
The GAO report released today was requested by Senators Daniel Akaka (D-WA), Richard Durbin (D-IL), Ken Salazar (D-CO) and Murray. Senator Murray is a member of the Veterans Affairs Committee.
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Murray Reveals Stunning GAO Report at Veterans Hearing with the American Legion
(9/20/06) Thank you, Mr. Chairman. I want to thank Commander Morin and all the American Legion members and staff. The American Legion ensures that America's veterans have a voice here in Congress. Frankly, if
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| Leaders and members of the American Legion testify at a hearing of the Senate Veterans’ Affairs Committee. |
GAO Report
That's why this morning I want to discuss a new report from the Government Accountability Office. I requested the report with Senators Akaka, Durbin, Salazar, and Chairman Buyer to find out why the VA was so wrong in its budget projections for FY 2005 and 2006. Frankly, the answers are damning and they cast doubt on whether or not we can rely on the VA for accurate numbers and straight answers. I want to focus on three findings.
GAO's Findings
First, the GAO found that the VA knew it had serious problems with its budget, but failed to notify us in Congress. 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." Finally, the GAO found that the VA did not have a plan to meet the needs of all the service members from the conflicts in Iraq and Afghanistan. The report does not comment on the situation today, but looking at the CBO submission and other data, I'm concerned this "lack of a plan" may continue to this day.
VA Misled Congress
For me, I think one of the most disturbing findings is that the VA kept assuring us in Congress that everything was fine – while inside the VA it was clear that shortfalls were growing. The VA became aware it would have problems in October 2004 – but didn't admit those problems until June of 2005. Veterans were telling me of long lines and delays in care, and when I proposed giving the VA more money, the Administration fought me every step of the way. And who paid the price for the VA's deceptions? America's veterans, and that's just wrong.
Timeline of VA Deceptions
Let me walk through some of the deceptions that this report documents because it shows a troubling gap between what the VA knew and what the VA told us. Starting back in October 2004, the VA knew money was tight. It anticipated serious budget challenges, so it created a working group. Two months later, in December 2004, that budget group made internal recommendations like delaying new initiatives and shifting around funding to deal with the shortfall. Two months later, in February 2005, the Bush Administration released its budget proposal for 2006, which the GAO found was based on bad assumptions, bad estimates and bad data.
A week later at a hearing – on February 15th, 2005, I asked the VA Secretary if the President's budget was sufficient. I pointed to the Independent Budget – which called for a $3.5 billion increase – and asked him if the Independent Budget was closer to what we really needed. He told me, "I have many of the same concerns, and I end up being satisfied that we can get the job done with this budget."
Let me remind everyone in this room that it was in February, March, and April of 2005 that I was hearing from veterans groups like the American Legion about they were seeing on the ground – delays in care and a system stretched to capacity. But the VA continued to say everything was fine. On March 8th, Secretary Nicholson told a House committee that the president's FY 2006 budget, "gives VA what it needs."
I was hearing a much different story as I spoke with veterans around the country. That's why on March 10th, I offered an amendment in the Senate Budget Committee to increase veterans funding by 3%. My amendment was voted down. That same month, the VA's internal monthly reports showed that demand for healthcare was exceeding projections. That was another warning sign that the VA should have shared with us, but it didn't.
On March 16th, Senator Akaka and I offered an amendment on the Senate floor to increase veterans funding by $2.85 billion. That amendment was voted down. The next month, on April 5th, Secretary Nicholson wrote to Senator Hutchison saying – quote "I can assure you that the VA does not need emergency supplemental funds in FY 2005."
A week later, on April 12th, I offered two amendments on the Senate floor to boost veterans funding. Senators looked at the Secretary's assurances that everything was fine, and voted against both of my amendments. Veterans didn't get the funding they needed, and the deception continued. On June 9th, I asked Secretary Nicholson at a hearing if he had enough funding to deal with the mental health challenges of veterans returning from Iraq and Afghanistan. He assured me the VA was fine.
So for six months we had happy talk that everything is fine with the VA. Then, in June – just two weeks after the Secretary's latest assurance -- the truth finally came out. On June 23rd, the VA revealed a massive shortfall of $3 billion. I went to work with Senator Craig, Senator Akaka and others and we came up with the funding – but we could have solved that problem much earlier and saved veterans the delays they experienced.
The VA knew about a problem back in October 2004. They saw it getting worse. They kept assuring us everything was fine. They worked to defeat my amendments to provide funding, and they didn't come clean until June 2005. That is unacceptable.
Veterans Deserve Answers
I think America’s veterans deserve real answers. This report shows that the VA was not telling Congress the truth and fighting those of us who were trying to help. Mr. Chairman I hope that this Committee can bring Secretary Nicholson before us and get some real answers, so we can make sure the VA does not repeat the same mistakes of the past two years. We owe that to our veterans who are sacrificing for us today.
And Mr. Chairman, the report also suggests that even in its latest quarterly reports to us – the VA is slow to report and does not provide key information we required – such as the time required for veterans to get their first appointment.
Phony Savings
We certainly deserve an explanation of why the VA lied to us about so-called "management efficiencies" that the GAO found were nothing but hot air. This report clearly shows the VA lied to us for four fiscal years, through four budgets, and four appropriations cycles about efficiencies it was finding. And when they could not make these efficiencies a reality, they took the funds from veterans healthcare. Mr. Chairman, the people in this room deserve answers from the VA.
VA Had No Plan for Iraq, Afghanistan
Finally, and most importantly, the report verifies that the VA had no plan treating veterans coming back from Iraq and Afghanistan. The VA had no plan then – and sitting here today I fear they still don't have plan. And let's remember – we still have not seen the lion's share of Iraq War veterans come back home, separate from the Armed Forces, and seek care from the VA.
Commander Morin – I think this report gives you and the Independent Budget leaders an even larger voice and an even greater measure of credibility because you were right over the past few years. The VA didn't listen to you. The Congress didn't listen to you. The White House didn't listen to you, and America's veterans – who you serve everyday – paid the price. I am committed to making sure we get to the bottom of this – and more importantly – learn from these mistakes so that every veteran can get the respect, healthcare and benefits they have earned.
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