U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

49–012 2006

109th Congress, 2d Session – – – – – – – – – – – – House Document 109–120 

REQUEST FOR FY 2006 BUDGET AMENDMENTS 

COMMUNICATION 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

A REQUEST FOR A FY 2006 FULLY OFFSET PROPOSAL TO PROVIDE 

ADDITIONAL FUNDS FOR THE INFORMATION TECHNOLOGY SYSTEMS ACCOUNT WITHIN THE DEPARTMENT OF VETERANS AFFAIRS 

JUNE 29, 2006.—Referred to the Committee on Appropriations and ordered 

to be printed 


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THE WHITE HOUSE, 

Washington, June 28, 2006. 

Hon. J. DENNIS HASTERT, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MR. SPEAKER: I ask the Congress to consider expeditiously 

the enclosed fully offset FY 2006 request for the Department of 

Veterans Affairs (VA) to address the security of personal information of veterans and service personnel. 

I am requesting these additional resources for VA to cover the increased costs to the VA information technology account in FY 2006 

as a result of providing credit monitoring and fraud watch services 

for veterans and service members impacted by a security breach 

that occurred on May 3, 2006. The total cost of this effort, estimated to be $160.5 million in FY 2006, is fully offset. 

The details of these proposals are set forth in the enclosed letter 

from the Director of the Office of Management and Budget. 

Sincerely, 

GEORGE W. BUSH. 


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[Estimate No. 8, 109th Congr., 2d Sess.] 

EXECUTIVE OFFICE OF THE PRESIDENT, 

OFFICE OF MANAGEMENT AND BUDGET, 

Washington, DC, June 28, 2006. 

The PRESIDENT, The White House. 

Submitted for your consideration is a request for a FY 2006 fully 

offset proposal to provide additional funds for the Information 

Technology Systems account within the Department of Veterans 

Affairs (VA). This request supplements the $1.214 billion already 

appropriated for FY 2006 information technology costs. 

VA plans to provide one year of credit monitoring and fraud 

watch services to those veterans and service members whose personal identifiable information was exposed as a result of the theft 

of a personal laptop computer and external hard drive of a VA employee. The total cost of this effort is estimated to be $160.5 million 

in FY 2006. In addition to the new funding requested in this transmittal, VA has identified $29 million of excess FY 2006 funding in 

its General Operating Expenses that will be transferred to the Information Technology Systems account through existing transfer 

authority. 

Your Administration is committed to ensuring the security of the 

personal information of the veterans and service personnel who 

may be affected by the security breach. The offsets identified would 

not impact current operations and were not expected to be obligated this year. The $131.5 million in requested funding is fully 

offset by the proposals described below and in more detail in the 

enclosures: 

• Reductions of unobligated balances to the Food Stamp Employment and Training Program (¥$20.0 million) and the Trade Adjustment Assistance for Farmers program (¥$40.0 million) in the 

Department of Agriculture that are in excess of current requirements. 

• Cancellation of balances from the Health Professions Student 

Loans program (¥$6.7 million) in the Department of Health and 

Human Services. 

• Cancellation of funds in the Responsible Reintegration of 

Youthful Offenders program (¥$49.1 million) in the Department of 

Labor. 

• Reduction of unobligated balances in the Next Generation High 

Speed Rail program (¥$9.0 million) in the Department of Transportation. 

• Cancellation of funds in the Bureau of Public Debt (¥$1.4 million) and the Internal Revenue Service (¥$5.3 million) in the Department of the Treasury. 


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Recommendation 

I have carefully reviewed these proposals and am satisfied that 

they are necessary at this time. Therefore, I join the heads of the 

affected agencies in recommending that you transmit these proposals to the Congress. 

Sincerely, 

ROB PORTMAN, 

Director. 

Enclosures. 


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DEPARTMENT OF VETERANS AFFAIRS 

DEPARTMENTAL ADMINISTRATION

INFORMATION TECHNOLOGY SYSTEMS

For an additional amount for ‘‘Information Technology Systems,’’ $131,500,000, to remain available until September 30, 2007. 

The total estimated cost of providing credit monitoring and fraud 

watch services to those veterans and service members whose personal identifiable information was exposed as a result of the theft 

of a personal laptop computer and external hard drive of a Veterans Affairs (V A) employee is $160.5 million. VA has identified $29.0 million in current funds within the agency to partially cover the funds needed. This proposal would provide 

the remaining $131.5 million needed, fully offset by funds available 

in the Departments of Agriculture, Health and Human Services, 

Labor, Transportation, and the Treasury. Details regarding the offsets proposed are described in the accompanying proposals. 

DEPARTMENT OF AGRICULTURE 

FOREIGN AGRICULTURAL SERVICE

TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

Of the unobligated balances available under this heading of funds 

provided pursuant to section 298(a) of the Trade Act of 1974, as 

amended, $40,000,000 are canceled. 

This proposal would cancel $40 million in unobligated balances 

in the Trade Adjustment Assistance for Farmers program. These 

balances are in excess of current program requirements. 

DEPARTMENT OF AGRICULTURE 

FOOD AND NUTRITION SERVICE

FOOD STAMP PROGRAM

Of the unobligated balances available under this heading of funds 

provided pursuant to section 16(h)(1)(A) of the Food Stamp Act of 

1977, $20,000,000 are canceled. 

This proposal would cancel $20 million in unobligated prior-year 

balances in the Food Stamp Employment and Training program. 

These balances are in excess of current program requirements. 

DEPARTMENT OF HEALTH AND HUMAN SERVICES 

HEALTH RESOURCES AND SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES ADMINISTRATION

Of the unobligated balances of the Health Professions Student 

Loan program, authorized in subpart II, Federally Supported Student Loan Funds, of title VII of the Public Health Service Act, 

$6,700,000 are canceled. 


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This proposal would cancel $6.7 million in unobligated balances 

in the Health Resources and Services account. These funds represent collections of excess balances held by health professions 

training institutions. 

DEPARTMENT OF LABOR 

EMPLOYMENT AND TRAINING ADMINISTRATION

TRAINING AND EMPLOYMENT SERVICES

Of the funds provided under this heading in Public Law 109–149, 

$49,104,000 are cancelled. 

This proposal would cancel $49.1 million provided for the Responsible Reintegration of Youthful Offenders program in FY 2006, 

available for the period July 1, 2006, through June 30, 2007. 

Responsible Reintegration of Youthful Offenders is a narrow-purpose demonstration project that provides employment and training 

services to ex-offenders under age 35. Although it has been funded 

since 1998, the program has not demonstrated employment outcomes. Services would be better provided through the more comprehensive Prisoner Re-entry Initiative, which would offer a range 

of job training, housing, and mentoring services and harness the 

experience of faith-based and community organizations. 

DEPARTMENT OF TRANSPORTATION 

FEDERAL RAILROAD ADMINISTRATION

NEXT GENERATION HIGH-SPEED RAIL

Of the unobligated balances available under this heading, 

$9,000,000 are cancelled. 

No funding was requested for this program in FY 2007. This proposal would cancel a portion of unobligated balances in this account 

and would not impact program operations. 

DEPARTMENT OF THE TREASURY 

BUREAU OF PUBLIC DEBT

ADMINISTERING THE PUBLIC DEBT

Of the unobligated balances available under this heading, 

$1,400,000 are cancelled. 

Section 511 of P.L. 108–477 makes 50 percent of unobligated balances remaining available at the end of FY 2005 from this account 

available through September 30, 2006, of which $1.4 million are 

proposed for cancellation and would not impact program operations. 


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DEPARTMENT OF THE TREASURY 

INTERNAL REVENUE SERVICE

PROCESSING, ASSISTANCE, AND MANAGEMENT

Of the unobligated balances available under this heading, $5,300,000 are cancelled. 

Section 511 of P.L. 108–477 makes 50 percent of unobligated balances remaining available at the end of FY 2005 from this account 

available through September 30, 2006, of which $5.3 million are 

proposed for cancellation and would not impact program operations. 

Æ 


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