Department of Veterans Affairs

Our Mission

2/9/2016 1

Lincoln’s Charge, 1865 ~ 

“To care for him who shall have 

borne the battle, and for his widow 

and his orphan.”

Today ~ To care for those “who 

shall have borne the battle, and 

for” their families and their 

survivors.

. . . the best, most inspiring mission and the greatest clients of any 

benefits or health care system in the world
DEPARTMENT OF VETERANS AFFAIRS

FY 2017 

PRESIDENT’S BUDGET REQUEST

2/9/2016 2

February 9, 2016
Department of Veterans Affairs

VA 2017 Budget Request Supports

the President’s Vision

2/9/2016 3

• The Nation’s commitment to Veterans and their families 

remains strong

• The 2017 Budget for Veterans’ benefits and services is a 

strong request in a tight fiscal environment

• As in prior years, the President continues to support the 

funding increases needed to meet the Nation’s obligations 

to our Veterans

Total VA funding has grown by nearly 86% since 2009

• The VA budget request for 2017 is $182.3 

billion:

– Mandatory $ 103.6 billion

– Discretionary(w/ collections) $ 78.7 billion

Mandatory

56.8%

Discretionary

43.2%
Department of Veterans Affairs

2017 VA Budget Request

2017 President’s Budget

$182.3 Billion

(includes collections - $3.6B)

Mandatory: $103.6 B Discretionary: $78.7 B 

Mandatory & Discretionary Accounts

Discretionary 

43.2%

Mandatory

56.8%

Discretionary Accounts

Medical Programs

88.1%

Construction

1.3%

Information 

Technology

5.4%

Benefits Programs

3.8%

Other

1.3%

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Department of Veterans Affairs

2017 and 2018 Budget Request

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2017 Discretionary Budget

• The 2017 Discretionary budget (with collections) requests an increase of $3.6 billion 

(4.9 percent) over the 2016 enacted level

($ in billions)

2017 “Second Bite”

• The budget requests a $1.7 billion increase above the 2017 Advance Appropriation for 

Medical Care (the “second bite”); will fund additional access, Hepatitis C at $1.5 billion, 

Care in the Community, infrastructure, leasing, and Caregivers

2018 Advance Appropriations (AA)

• The request for Discretionary Medical Care AA of $66.4 billion is $1.4 billion (2.1 percent) 

above the 2017 request 

• The request for Mandatory Benefits AA of $103.9 billion is an increase of $1.4 billion 

(1.4 percent) above the 2017 request

The President’s Discretionary and Mandatory requested budgets 

reflect expanding service needs for Veterans and their families 2009 2010 2011 2012 2013 2014 2015 2016 2017

50.6 55.9 59.1 61.3 64.3 66.5 68.5 75.1 78.7
Department of Veterans Affairs

2017 Budget Request

($ in millions)

The President’s 2017 Budget requests significant increases in funding 

for Medical Care, the Board of Veterans’ Appeals, and Mandatory 

Benefits Programs, compared to the 2016 enacted appropriations

2/9/2016 6

2015 2016 2017

Actuals Enacted Request $ %

Medical Services 45,196 49,972 52,752 2,780 5.6%

Medical Support & Compliance 5,874 6,144 6,524 380 6.2%

Medical Facilities (Includes NRM) 4,737 5,020 5,723 703 14.0%

Medical Care Appropriations /1 55,807 61,136 64,999 3,863 6.3%

 Medical Care Collections Fund (MCCF) 3,423 3,515 3,558 4 3 1.2%

 Total, Medical Care with Collections 59,230 64,651 68,557 3,906 6.0%

Medical Research 589 631 663 3 3 5.2%

Veterans Benefits Administration 2,532 2,708 2,826 118 4.4%

General Administration 321 337 418 8 1 24.1%

Board of Veterans' Appeals 9 9 110 156 4 6 42.1%

National Cemetery Administration 257 271 286 1 5 5.5%

Construction-Major 562 1,244 528 -716 -57.5%

Construction - Minor 495 406 372 -34 -8.4%

Grants for State Extended Care Facilities 9 0 120 8 0 -40 -33.3%

Grants for Veterans Cemeteries 4 6 4 6 4 5 -1 -2.2%

Information Technology 3,902 4,133 4,278 145 3.5%

Inspector General 127 137 160 2 3 17.1%

Loan Administration Funds 161 166 200 3 4 20.7%

DoD Transfers to Joint Accounts 138 136 139 3 2.0%

Joint Incentive Fund Rescission -30

Total Discretionary Funding without MCCF 65,126 71,551 75,151 3,601 5.0%

Total Discretionary Funding with MCCF 68,549 75,066 78,709 3,644 4.9%

Total Mandatory Funding 95,424 92,396 103,631 11,235 12.2%

Total VA with MCCF 163,973 167,462 182,340 14,879 8.9%

/1 'Medical Care Appropriations do not include actual or anticipated transfer to the Joint DoD-VA Healthcare Accounts

Excludes Veterans Choice Act funding of $15 billion in 2014

Change 2016 v 2017
Department of Veterans Affairs

Total Full-Time Equivalents (FTE)

The 2017 Budget increases FTE by 12,634 (3.6 percent) over 2016. 

Large FTE increases are requested for Medical Care and the 

Board of Veterans’ Appeals

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FY 2015 FY 2016 FY 2017 

Actuals Enacted PB FTE %

Medical Services* 216,337 227,358 236,520 9,162 4.0%

Medical Support & Compliance 49,479 51,052 52,350 1,298 2.5%

Medical Facilities 23,644 23,656 24,209 553 2.3%

Other (DoD-VA Fund Accounts) 2,184 2,224 2,229 5 0.2%

Canteen Service 3,351 3,351 3,351 0 0.0%

Veterans Choice Act Sec. 802 30 40 40 0 0.0%

 Subtotal Medical Care 295,025 307,681 318,699 11,018 3.6%

Medical Research 3,521 3,551 3,606 55 1.5%

National Cemetery Administration 1,730 1,789 1,809 20 1.1%

Information Technology 7,309 7,631 8,334 703 9.2%

Veterans Benefits Administration 21,522 21,871 22,171 300 1.4%

General Administration 2,586 3,048 3,153 105 3.4%

Board of Veterans' Appeals 646 680 922 242 35.6%

Inspector General 676 721 821 100 13.9%

Franchise Fund 1,217 1,708 1,769 61 3.6%

Supply Fund 1,048 1,120 1,150 30 2.7%

Total FTE 335,280 349,800 362,434 12,634 3.6%

* Medical Care FTEs Include Section 801 Veterans Choice Act FTEs

Change 2016 v 2017 
Department of Veterans Affairs

What We Are Buying in 2017

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The budget request provides Veterans high quality benefits and services:

• Veterans Health Administration (VHA)

• Nearly 7.0 million unique patients to be treated 

• 115 million outpatient visits 

• Expansion of medical facilities through leasing

• Veterans Benefits Administration (VBA)

• About 5.3 million Veterans and Survivors will receive disability compensation or 

pension benefits

• Nearly 1.2 million Service members, Veterans, Survivors, and beneficiaries will 

receive education or vocational rehabilitation benefits and services

• 141,000 Service members and Veterans will be provided Vocational 

Rehabilitation and Employment services

• 1.4 million disability and pension claims will be processed, a 3 percent increase 

over 2016

• National Cemetery Administration (NCA)

• Greater access will be provided by funding for new national cemeteries in 2017 

in western New York and southern Colorado, and cemetery expansions in 

Jacksonville, Florida and South Florida

• Nearly 132,100 Veterans and eligible family members will be interred in VA 

national cemeteries
Department of Veterans Affairs

Our Veterans -- Our Clients

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In 2017, we will continue to service the millions of Veterans enrolled in VA 

health care to include the 90-year-old Veterans of WW II, 80-year-old Veterans of 

Korea, 60-year-old Veterans of Vietnam and the Cold War, 40-year-old Veterans of 

the Persian Gulf, and 20-year-old Veterans of Iraq and Afghanistan

0

2

4

6

8

10

12

14

16

1975 1981 1987 1993 2000 2005 2011 2017 2023

<35 35-54 55-64 65+
Department of Veterans Affairs

Veterans Who Use VA Medical System

• Since 2009, the total number of unique Veteran patients who 

use VA’s healthcare system has increased almost 22 percent 

to nearly 7 million in 2017 

• Priority 1-6 Veterans (service-related disabilities, lowincome, POWs, Purple Heart recipients) are up over 31 

percent 

• Priority 7-8 Veterans (income, location determinants) 

are down by over 12 percent 

• Operation Enduring Freedom, Iraqi Freedom, and New 

Dawn Veterans services are up 177 percent 

2/9/2016 10
Department of Veterans Affairs

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Medical Care Budget 

($ in billions)

• Medical Care is 87 percent of VA’s discretionary budget

• The 2017 budget request is $3.9 billion (6.3 percent) over 2016 

$0

$20

$40

$60

$80

2015 2016 2017 2018

Collections $3.423 $3.515 $3.558 $3.627

Appropriations $55.807 $61.136 $64.999 $66.385

 $59.230 $64.651 $68.557 $70.012

2015 2016 2017 2018
Veterans Choice Act

2016 and 2017 Funding Plan

Veterans Access – Section 801 $5B

($ in millions)

 $-

 $1,000

 $2,000

 $3,000

2015

Actual 2017

2015

Actual 2016 2017

Staffing $610 $1,415 $822

Other Med $- $20 $16

Facilities $545 $876 $16

IT $54 $309 $-

Const $98 $103 $116

$2,723

$970

2016

Veterans Choice Program – Section 802 $10B 

($ in millions)

$1,307

2/9/2016 12

Veterans Choice Act funding boosts near-term access and allows VA 

to increase future health care service capabilities 

$0

$1,000

$2,000

$3,000

$4,000

$5,000

2015

Actual

2016 2017

2015

Actual 2016 2017

IT Support $18 $50 $0

Admin Supt $322 $100 $158

Fee Care $3,159 $1,531 $4,661

$3,499

$1,681

$4,820
Department of Veterans Affairs

Access to Health Care 

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• Technology:

– Telehealth: $1.2 billion to deliver medical care via telehealth, which 

helps monitor chronic health care needs, especially in remote locations 

– VistA Evolution: $260 million to enhance our Electronic Healthcare 

Record (EHR), including interoperability and VLER Health

– Data Management: $50 million to use data as a strategic resource

– Information Security: $370 million to protect Veterans’ information

• Programs:

– Women-specific medical care -- $515 million

– Mental health care -- $7.8 billion 

– Care in the Community, including rural areas -- $7.5 billion, Veterans 

Choice Act funding is estimated at $4.7 billion -- totaling $12.2B

• Infrastructure:

– Activation of new and enhanced health care facilities -- $836 million to 

for identified requirements

Technology, Programs, Infrastructure
Department of Veterans Affairs

2/9/2016 14

Medical and Prosthetic Research

Budgetary Resources

($ in millions)

• FY 2017 appropriation request is $663 million - nearly $33 

million (5.2 percent) over the enacted FY 2016 appropriation

• VA also receives $1.3 billion in federal and private grants 

and other support which increases the total funding for 

research to $1.9 billion 

• Funding supports research for over 3,600 projects: 

• Traumatic Brain Injury and Central Nervous System injuries - $91.2 

million

• Cancer Research - $59.5 million

• Dementia and Neurological Degeneration - $25.4 million

• Heart Disease/Cardiovascular Health - $63.8 million

• Mental Illness - $115.8 million

• Substance Abuse - $30.1 million

• Diabetes and Major Complications - $35.8 million 
Department of Veterans Affairs

Veterans Homelessness Program

• In 2017, VA is investing $1.6 billion in programs to assist Veterans 

who are currently homeless and to prevent at-risk Veterans from 

becoming homeless 

• Funding provided for specific programs that reduce and prevent 

Veteran homelessness, to include:

– $496 million for Housing and Urban Development-Veterans Affairs 

Supportive Housing (HUD-VASH) for case management and 

supportive services - an increase of 45% from 2014

– $371 million for health treatment

– $300 million for Supportive Services for Veteran Families (SSVF) 

– $247 million for Grant and Per Diem program, including program 

liaisons

– $75 million for job training

– $122 million for other homeless Veterans programs

2/9/2016 15
Department of Veterans Affairs

2/9/2016 16

Progress in Reducing 

the Disabilities Claims Backlog 

2015 2016 2017
Department of Veterans Affairs

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Veterans Benefits Administration

Discretionary Budget

($ in millions)

$0

$550

$1,100

$1,650

$2,200

$2,750

$3,300

2015 2016 2017

Housing Loans and Insurance $138 $140 $170

General Operating Expenses $2,532 $2,708 $2,826

 $2,670 $2,848 $2,996

• 2017 request is $148 million (5.2 percent) over 2016

• Budget provides additional resources for non-rating claims and 

claims processing support

2015 2016 2017
Department of Veterans Affairs

VBA Mandatory 2017 Budget

and 2018 Advance Appropriations

($ in millions)

18

• This is the first year for a “second bite” for VBA’s Mandatory 

AAs – a $17 million increase above the enacted 2017 AA 

• The 2018 AA request is $1.4 billion above the 2017 request

• Any AA funds not needed in 2018, will be available in 2019

2/9/2016

2016 2017 2018

Mandatory Advance Appropriations Enacted Request Request

Compensation and Pensions 76,866 86,083 90,119 

Readjustment Benefits 14,313 16,341 13,709

Insurance 7 7 9 2 108

Insurance "Second Bite" 0 1 7 0

Total, Mandatory AA 91,256 102,533 103,936
Department of Veterans Affairs

Strengthening Veterans’ 

Benefits Programs

In addition to continued focus on disability claims 

backlog, VBA will also focus on other critical workload 

needs:

• Appeals: Improving timeliness of decisions by VBA

• Non-Rating Workload: Adding 300 claims processors to 

improve timeliness of non-rating claims

• Veterans Benefits Management System: $180.4 million 

(includes $143 million in IT and $37.4 million in VBA)

• Veteran Claims Intake Program (VCIP): $142.9 million to 

convert paper documents into eFolders – our scanning effort

People, Processes, Technology

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Department of Veterans Affairs

Board of Veterans’ Appeals Budget

($ in millions)

$0

$25

$50

$75

$100

$125

$150

$175

2015 2016 2017

 $99.2 $109.9 $156.1

• Budget proposes legislation to simplify the appeals process 

• An increase of $46.2 million (42 percent) and 242 FTE over 2016 as a 

down payment on a long-term, sustainable plan to provide Veterans 

with timely decisions 

• Veterans will receive a final appeals decision within one year by 2021

• Veterans would retain right to file a new claim 

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Department of Veterans Affairs

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National Cemetery Administration

Budget 

($ in millions)

$0

$50

$100

$150

$200

$250

$300

2015 2016 2017

 $256.6 $271.2 $286.2

Request is $15 million (5.5 percent) above the 2016 enacted level: 

• $6.3 million for increased workload and cemetery requirements

• $6.7 million for initiatives to improve cemetery operations

• $2.0 million for the National Shrine Program 
Department of Veterans Affairs

2/9/2016 22

Information Technology 

2017 Budget Request

Medical Programs

52%

Benefit & Memorial

Programs

Security 18%

9%

Enterprise Support

21%

2017 President’s Budget

$4.278 Billion

79% of VA’s IT resources directly supports delivery of 

Veterans’ medical services and benefits
Department of Veterans Affairs

2/9/2016 23

Information Technology Budget

($ in millions)

$0

$800

$1,600

$2,400

$3,200

$4,000

$4,800

2015 2016 2017

New Development $548 $505 $471

Pay/Administration $1,039 $1,116 $1,273

Operations &

Maintenance $2,316 $2,513 $2,534

 $3,902 $4,133 $4,278 

2015 2016 2017

• Budget strengthens Information Security ($370 M), an increase of 

105 percent over 2016; supports FMS Modernization ($44 M), 

Electronic Health Record ($260 M), and Veterans Benefits 

Management System ($143 M)

• Also supports Improve Veterans Experience initiative ($171 M)
Department of Veterans Affairs

General Administration Budget

($ in millions)

$0

$75

$150

$225

$300

$375

$450

2015 2016 2017

 $321.1 $336.7 $418.0

2017 Request is $81.3 million above 2016 enacted level:

• $72.6 million for a new Veterans Experience Office (VEO) to 

lead MyVA transformation

• $8.0 million for plan to modernize VA’s 30-year-old legacy 

financial management system

• $3.5 million to reduce improper payments and improve data 

accuracy and transparency

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Department of Veterans Affairs

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Capital Program Budget 

($ in millions)

$0

$500

$1,000

$1,500

$2,000

2015 2016 2017

Cemetery Grants $46 $46 $45

Extended Care Grants $90 $120 $80

Minor Construction $495 $406 $372

Major Construction $562 $1,244 $528

 $1,193 $1,816 $1,025

2015 2016 2017
Department of Veterans Affairs

Major Construction Projects

In 2017 Budget Request

($ in millions)

Location Description Request

Long Beach, CA Seismic Corrections – Mental Health and 

Community Living Center

$30.2

Reno, NV Upgrade B1 Seismic, Life Safety, Utility 

Correction and Expand Clinical Services

$192.4

Elmira, NY New National Cemetery – Western New York $36.0

Las Animas, CO New National Cemetery – Southern Colorado $36.0

Jacksonville, FL Jacksonville National Cemetery – Gravesite 

Expansion 

$24.0

South Florida, FL South Florida National Cemetery – Gravesite 

Expansion & Cemetery Improvements

$31.0

Major Construction 

Support

Advance Planning and Design, Resident 

Engineer and Contracting Officer support, US 

Army Corps fees, hazardous waste, etc.

$178.5

Total Request $528.1

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Department of Veterans Affairs

Inspector General Budget 

($ in millions)

$0

$50

$100

$150

$200

2015 2016 2017

 $126.7 $136.8 $160.1

2017 Budget requests an additional $23.3 million above 2016 for 

increased oversight of VA programs

• Budget will support an additional 100 FTE at both current and new 

locations nationwide to assist in identifying waste, fraud and 

abuse, and making recommendations to improve services

• Budget will ‘right size’ OIG staffing to oversee a growing VA budget 

and an increasing number of Veterans’ programs 

2/9/2016 27
Department of Veterans Affairs

The 2017 President’s Budget includes proposed legislative changes that will 

benefit Veterans and greatly assist VA operations, effectiveness, and 

stewardship of resources:

• Over 100 legislative proposals in the 2017 Budget – over 40 new for this year

• Legislative Proposal Priorities:

• General Transfer Authority for VA Accounts

• Consolidation of Care in the Community 

• BVA Appeals Process Changes: Closing the Record; transferring appellate jurisdiction to the Board following 

Notice of Disagreement; and elimination of optional Board hearings

• Legislation to authorize two FY 2017 major construction projects – Reno and Long Beach – and six 

replacement major medical facility leases 

• FY 2016 Budget proposals not yet enacted but remain priorities:

• Provider Agreement Authority

• Appointment and Compensation Changes for Medical Center Directors and Network Directors

• Flexible 80-hour pay period for Physicians and Physician Assistants

• Legislation to allow enhanced use leases (EUL) to implement the Master Plan for the West LA campus

• Authorization of 8 FY 2016 major construction projects and 18 major medical leases submitted in VA’s FY 

2015 and 2016 requests

• Legislation expanding the definition of “Medical Facilities” in support of the development of joint Federal 

medical facilities 

• Legislation to modify VA’s EUL authority to broaden re-use possibilities and further benefit Veterans and VA’s 

mission 

• Numerous other proposals that address access, hiring, and staffing shortages

Proposed Legislation

2/9/2016 28
Department of Veterans Affairs

MyVA 

2/9/2016 29

Providing Veterans . . .

• Easier Access to their benefits and greater Trust in their VA

• Employees Empowered by Leaders who take action to solve problems

• An Organizational Culture that places the Veteran’s needs first

While providing the tax payer... 

• Value from more efficient support services 

• A Respected and Principles-based 

 Federal Agency

...sustaining a “momentum of improvements” across the VA
Department of Veterans Affairs

Conclusion

2/9/2016 30

• The 2017 President’s Budget request for VA is a strong 

request in a tight fiscal environment 

• The 2017 Discretionary budget request is an increase of $3.6 

billion (4.9 percent) above the 2016 enacted appropriation 

• 2018 Medical Care AA requests $1.4 billion (2.1 percent) 

above the 2017 Budget request

• 2018 Mandatory Benefits AA requests $103.9 billion to fully 

support Compensation and Pensions, Readjustment Benefits, 

and Veterans Insurance and Indemnities programs 

• We will continue the largest Department-wide transformation 

in VA’s history through MyVA, which is changing VA’s culture, 

processes, and capabilities to put the needs, expectations, 

and interests of Veterans first 

Working together we can ensure Veterans and their families 

receive the very best in care and services -- that they have both 

earned and deserve
Department of Veterans Affairs

Questions?

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