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FY 2005 Budget Released Monday
The President’s FY 2005 budget proposal was formally released yesterday, Monday, February 2. Anticipating a record deficit of $521 billion, overall domestic spending is being held to a 4% increase over current year levels. However, most of the growth is directed toward defense and homeland security. As a result, domestic discretionary programs, including VA medical care and research, education, transportation, housing, etc., will grow less than 1% overall.
However, unless Congress takes action to add funding during the upcoming appropriations process, VA research is not going to fare even that well. The FY 2005 budget request for VA research is $770 million. This amount is intended to cover both the direct costs and the research support currently paid from the medical care appropriation. The current year estimate for research support, commonly known as the VERA research allocation, is about $415 million so overall, the budget proposal represents a $50 million cut, down from $820 million.
When questioned during a VA budget briefing on Monday afternoon, DVA Principal Deputy Assistant Secretary for Management Mark Catlett stated that it is VA’s intent to split the $770 million total down the middle between direct costs and research support. With $405.6 for FY 2004, this represents a $20 million (5%) cut to $385. When asked why research was slated for a cut as opposed to making a small reduction other line items, Mr. Catlett stated that “in a current services year” cuts had to be made somewhere. Consequently, a $400 million program is being cut to make up for a shortfall in the budget for an agency that expects to receive $32 billion in discretionary funding.
The budget document released by the White House is explicit in stating why the research program was targeted. After extolling the benefits of VA research, the OMB document states, “However, VA needs to develop meaningful performance measures to assess the direction and effectiveness of the research program, as revealed by the Government-wide Program Assessment Rating Tool (PART). As a result, the research budget (including reimbursements) is maintained at the previous level while VA develops better performance measures to assess the direction of the program.”
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