LEGISLATIVE HEARING ON H.R. 419,

H.R. 2046, AND TWO DRAFT BILLS

Hearing

before the

Committee on Veterans’ Affairs

House of Representatives

Subcommittee on economic Opportunity

one hundred ninth congress

first session

May 4, 2005

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Committee on Veterans’ Affairs

Steve Buyer, Indiana, Chairman

Michael Bilirakis, Florida Lane Evans, Illinois, Ranking

Terry Everett, Alabama Bob Filner, California

Cliff Stearns, Florida Luis V. Gutierrez, Illinois

dan burton, Indiana Corrine Brown, Florida

Jerry Moran, Kansas Vic Snyder, Arkansas

richard H. baker, Louisiana Michael H. Michaud, Maine

Henry E. Brown, Jr., South Carolina Stephanie Herseth, South 

Jeff Miller, Florida Dakota

John Boozman, Arkansas Ted Strickland, Ohio

Jeb Bradley, New Hampshire Darlene Hooley, Oregon

Ginny Brown-Waite, Florida Silvestre Reyes, Texas

Michael R. Turner, Ohio Shelly Berkley, Nevada

Devin Nunes, California Tom Udall, New Mexico

Mike Copher, Acting Staff Director

Subcommittee on Economic Opportunity

John Boozman, Arkansas, Chairman Stephanie herseth, South 

Richard H. Baker, Louisiana Dakota, Ranking

Ginny Brown-Waite, Florida, Vice Chairwoman Darlene Hooley, Oregon

Devin Nunes, California Lane Evans, Illinois

 

Michael F. Brinck, Subcommittee Staff Director

(II)
CONTENTS

May 4, 2005

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Legislative Hearing on H.R. 419, H.R. 2046, and Two Draft 

 Bills ..........................................................................................

OPENING STATEMENTS

Chairman Boozman .................................................................... 

Hon. Stephanie Herseth, Ranking Democratic Member, 

 Subcommittee on Economic Opportunity ..............................

Hon. Ginny Brown-Waite, Florida .............................................

STATEMENTS FOR THE RECORD

Hon. Michael K. Simpson, Idaho ...............................................

Witnesses

Magill, James N., Director, National Employment Policy, Vet-

 erans of Foreign Wars of the United States ..........................

Lawrence, Brian E., Assistant National Legislative Director, 

 Disabled American Veterans ..................................................

Prepared Statement of Mr. Lawrence .......................................

Blake, Carl, Associate Legislative Director, Paralyzed Vet-

 erans of America .....................................................................

Prepared statement of Mr. Blake ..............................................

Jones, Richard “Rick,” National Legislative Director, 

 AMVETS .................................................................................

Prepared statement of Mr. Jones ...............................................

Downing, John F., President and Chief Executive Officer, 

 United Veterans of America ................................................... 

Prepared statement of Mr. Downing .........................................

Boone, Linda, Executive Director, National Coalition for

 Homeless Veterans .................................................................

Prepared statement of Ms. Boone ..............................................

Pierce, Jack R.M., Director of Student Services, Maryland 

 Center for Veterans Education and Training, Inc. ...............

Prepared Statement of Mr. Pierce .............................................

 

(III)
Bascetta, Cynthia A., Director of Veterans Health and Bene-

 fits Issues, Government Accountability Office ......................

Prepared statement of Ms. Bascetta ..........................................

Duehring, Craig W., Principal Deputy Assistant Secretary for 

 Defense for Reserve Affairs, Department of Defense ...........

Prepared Statement of Mr. Duehring ........................................

O’Mahoney, T.P., Chairman, President’s National Hire Veter-

 ans Committee ........................................................................

Prepared Statement of Mr. O’Mahoney .....................................

McWilliam, John M., Deputy Assistant Secretary for Oper-

 ations and Management, Veterans Employment and Train-

 ing Service, Department of Labor ..........................................

Prepared Statement of Mr. McWilliam .....................................

INFORMATION FOR THE RECORD

DoD/VA Memorandum of Understanding .................................

(IV)

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(1)

LEGISLATIVE HEARING ON H.R. 419,

H.R. 2046, AND TWO DRAFT BILLS

Wednesday, May 4, 2005

U.S. House of Representatives,

Subcommittee on Economic Opportunity,

Committee on Veterans’ Affairs,

Washington, D.C.

The Subcommittee met, pursuant to notice, at 2:20 p.m., in Room 

334, Cannon House Office Building, Hon. John Boozman [Chairman 

of the Subcommittee] presiding.

Present: Representatives Boozman, Herseth, Brown-Waite, and Evans.

OPENING STATEMENT OF CHAIRMAN BOOZMAN

 Mr. Boozman. Let’s go ahead and get started. I apologize that we 

are getting started late. On the other hand, it surely worked out, because it is better to get started late than the votes interrupt us right 

in the middle, and then go back and forth. I think it is going to work 

to our advantage.

 The other thing is I want to apologize. We have had a little confusion over who is going to testify. Again, like I say, I apologize for 

that.

 Here I am, I am a new Subcommittee Chairman, and they won’t 

even give me a gavel.

 [Laughter.]

 Mr. Boozman. The Subcommittee on Economic Opportunity’s first 

legislative hearing will come to order.

 Today, we are here to receive testimony on several pieces of legislation relating to veterans’ employment. The proposed legislation we 

have before us today will strengthen the Uniformed Services Employment and Re-Employment Rights Act, commonly known as USERRA, to protect veterans’ rights regarding employer-provided health 

insurance, improve the Servicemembers’ Civil Relief Act’s protection 

against double taxation, reauthorize the President’s National Hire 

Veterans Committee, and finally, to reauthorize the Homeless Veterans Re-Integration Act.

 With the exception of the Civil Relief Act, or USERRA bill, the com-
2

mon thing in these bills is jobs for veterans. That’s what we are about. 

You are going to hear us say that a bunch. Jobs for veterans.

 The USERRA provisions will ensure that a returning veteran can 

re-establish his employer provided health insurance and is protected 

against cost increases.

 The President’s Committee was established to increase the visibility of the advantages of hiring veterans. The Jobs for Veterans 

Act, Public Law 107-288 established the President’s National Hire 

Veterans Committee within the Department of Labor.

 The Committee has two missions, to furnish employers with information on the training and skills of veterans and disabled veterans, and the advantages afforded employers by hiring veterans with 

such training and skills, to facilitate employment of veterans and 

disabled veterans through participation in America’s National Labor 

Exchange and other means.

 The Committee is comprised of leaders in industry and government, with such notable executives as Mr. Bob Lutz, Chairman of 

General Motors. We are grateful for the participation of all the members of the Committee and look forward to hearing about the work 

they have done.

 The Homeless Veterans Re-Integration program or HVRP is designed to take the men and women who are probably the most difficult population of veterans to serve off the streets and return them 

as productive contributors to society.

 It is a tall order and one that represents unique challenges to both 

the government and those who deliver the services to homeless veterans.

 It is a well-known fact that a very high percentage of homeless 

veterans have mental health and substance abuse issues and unfortunately, homeless veterans are not immune from these scourges.

 I suspect some are so debilitated that we will never return them 

to society outside of a very structured environment, but I am pleased 

there are two successful programs, and I hope that each of you will 

pay close attention to their testimony.

 I am also concerned about how we count for homeless veterans. 

For years, 250,000 has been the commonly accepted figure. Today, I 

believe the VA estimates the number at about 185,000. The number 

300,000 has also been used.

 Clearly, there is a wide divergence in the estimate of the number of 

homeless veterans. Certainly, if anyone has an idea on how to get a 

handle on that issue, we would be pleased to hear it today.

 Also, before I recognize Ms. Herseth, I want to remind the panel 

that we have a mark-up tomorrow, which really shouldn’t take very 

much time. Hopefully, we can get that done.

 I now recognize Ms. Herseth, who represents the whole State of 

South Dakota, for opening remarks.
3

OPENING REMARKS OF HON. HERSETH

 Ms. Herseth. Good afternoon, and thank you, Mr. Chairman. I am 

pleased we are meeting today for the Subcommittee’s first legislative 

hearing.

 I am particularly interested in working with you, Mr. Chairman, 

to reauthorize the Homeless Veterans Re-Integration Program, administered by the Department of Labor. As most of you know and as 

most of us know, HVRP is the only federal program aimed at providing employment services to our homeless veterans. Moreover, it is a 

very successful and cost-effective program.

 Additionally, I am pleased we will consider and soon mark up the 

Servicemembers Health Insurance Protection Act of 2005, of which 

I’m an original co-sponsor. This legislation is very important for the 

increasing number of activated National Guard and Reserve components.

 The legislation would prevent unfair premium increases or delays 

in reinstatement of a returning servicemember’s employer sponsored 

health insurance coverage.

 I look forward to the testimony of our witnesses today, and I appreciate your efforts to assist us in creating effective and fiscally responsible legislation. I hope that we will use the witness testimony 

to guide us in making helpful and reasonable improvements to the 

measures before us.

 Thank you, Mr. Chairman. I look forward to today’s testimony and 

yield back the balance of my time.

 Mr. Boozman. Thank you. Ms. Brown-Waite?

OPENING REMARKS OF HON. BROWN-WAITE

 Ms. Brown-Waite. Thank you very much. As you can tell, I’ve 

got laryngitis. I will do the best I can. As some would say, that is a 

husband’s prayers answered, but the bad news is he’s not here. He’s 

back in Florida. He can’t exactly benefit from it.

 I certainly want to thank all of the witnesses who are here to testify 

before the Subcommittee on Economic Opportunity. I am also pleased 

that this first hearing will cover the important topics of health insurance, homelessness, employment and taxes.

 This Subcommittee has been tasked with helping to ensure that 

veterans have a smooth transition back into society after Service. 

Time spent in Service is a life calling for some, but only a pause in 

time for others. Resuming normal activities back home can often be 

difficult.

 Not only must a veteran reconnect with family and friends, but he 

or she faces many other challenges after being away from home.
4

 The legislation we will consider here will bring relief to servicemembers and to veterans.

 I would particularly like to call attention to the Servicemembers 

Health Insurance Protection or the SHIP Act. While this bill merely makes technical corrections, those small corrections will make a 

great difference to military families.

 It will guarantee the servicemembers returning to civilian life get a 

fixed rate for their re-insurance coverage. It also entitles Reservists 

to reinstated insurance coverage after being called to active duty.

 By helping alleviate the problems these men and women face in 

transitioning to and from Service, it will be easing the burden of Service that lays heavily on separated families.

 I appreciate the attendance of each and every group here, and I

commend the chairman for having this hearing today. I look forward 

to your testimony.

 Mr. Boozman. Thank you. We have a special guest here today, 

Nick Bacon. Will you stand up, Nick? Nick is a dear friend. Nick 

was Director of the Arkansas Department of Veterans’ Affairs. Nick 

is a Medal of Honor winner. He distinguished himself on the field of 

battle. There are no if’s, and’s, or but’s about that.

 In fact, there was a great article about him in the Pride Magazine 

a year or so ago.

 Nick is also a hero in the sense that he performed those feats but he 

has also used his notoriety and performed countless hours of helping 

veterans, serving on various commissions, and is truly a hero in the 

sense of doing those things.

 We really appreciate you, Nick. It’s good to have you here. Thank 

you very much.

[Applause.]

 Mr. Boozman. Our first panel is Mr. James Magill, Director of National Employment Policy, Veterans of Foreign Wars of the United 

States. Mr. Brian Lawrence, Assistant National Legislative Director, 

Disabled American Veterans. Mr. Carl Blake, Associate Legislative 

Director, Paralyzed Veterans of America, and Mr. Richard Jones, National Legislative Director for AMVETS.

 Let’s go ahead with you, Mr. Magill. I know you have a train to 

catch. Go ahead and testify. If you need to leave, feel free to slip 

out.

STATEMENTS OF JAMES N. MAGILL, DIRECTOR, NA-

 TIONAL EMPLOYMENT POLICY, VETERANS OF FOR-

 EIGN WARS OF THE UNITED STATES; BRIAN E. 

 LAWRENCE, ASSISTANT NATIONAL LEGISLATIVE 

 DIRECTOR, DISABLED AMERICAN VETERANS; CARL
5

 BLAKE, ASSOCIATE LEGISLATIVE DIRECTOR, PARA-

 LYZED VETERANS OF AMERICA; AND RICHARD JONES,

 NATIONAL LEGISLATIVE DIRECTOR, AMVETS

STATEMENT OF JAMES N. MAGILL

 Mr. Magill. Thank you. What I would like to say first is a pleasant 

surprise to see us up here first. I can speak for myself. It’s very nice, 

instead of being last.

 I would like to just briefly comment on my remarks, because you do 

have a copy of my statement.

 The first thing I would like to address is H.R. 419, which extends 

the operation of the President’s National Hire Veterans Committee. 

Public Law 107-288, the Jobs for Veterans Act, one of the provisions 

was the creation of the National Hire Veterans Committee.

 We did testify in support of that bill, and of course, of the provision. 

We think it is probably one of the best kept secrets of the quality that 

veterans bring to employment, especially in the private sector.

 H.R. 419 would reauthorize this Committee until December 31, 

2008. Again, VFW believes there exists a genuine need for the committee to continue its objectives. We, therefore, support its extension.

 However, we do have concern with the way this bill would be funded. The funding as proposed would come through an one-half of one 

percent reduction in the funding for the DVOP and LVER programs. 

We do oppose that.

 The next draft bill that we have before us was addressing HVRP. 

We believe that this is probably one of the most beneficial and effective federally funded programs for veterans who are homeless. It 

provides counseling, job training, and the all too crucial job placement.

 As I said before, HVRP is due to expire. The VFW, recognizing the 

positive measurable results and critical need for HVRP, strongly supports its reauthorization.

 With respect to the other two draft bills, the Servicemembers 

Health Insurance Act of 2005 and the Servicemembers Taxation Act 

of 2005, we do support the enactment of these bills.

 That concludes my statement. I’ll be happy to respond to any questions you may have.

 [The statement of James N. Magill was not provided.]

 Mr. Boozman. Thank you very much. We have been joined by 

Mr. Evans, who is the Ranking Member on the full Committee, and 

a member of this Subcommittee. Mr. Evans, do you have a statement?
6

 Mr. Evans. At this time, I will pass, and I yield back my time.

 Mr. Boozman. Thank you. Next, Mr. Brian Lawrence, Assistant 

National Legislative Director, Disabled American Veterans.

STATEMENT OF BRIAN E. LAWRENCE

 Mr. Lawrence. Chairman Boozman, Ranking Member Herseth 

and members of the Subcommittee, on behalf of Disabled American 

Veterans, thank you for the opportunity to testify on the bills under 

consideration today.

 The DAV was founded on the principle that our nation’s first duty 

to veterans is rehabilitation of the full time disabled, along with quality health care and adequate compensation, this principle envisioned 

substantially gainful employment as a key step to helping disabled 

veterans obtain self sufficiency and rehabilitation.

 H.R. 419, the Hire Veterans Act of 2004, would reauthorize the 

President’s National Hire Veterans Committee. This committee was 

created to encourage employers throughout the nation to hire veterans by raising awareness of their high level skills and leadership 

abilities.

 Since its beginning, the Committee has listed a number of accomplishments. To remain on schedule, I will not reiterate those accomplishments, but I do wish to extend to the Committee the DAV’s 

praise for their efforts.

 This bill would provide a three year extension of the committee 

which was set to expire in December 2005. The DAV supports reauthorizing the Committee, but is concerned that this bill would fund it 

by taking a percentage from the DVOP and LVER programs.

 DVOP and LVER personnel provide important job services to disabled and other veterans by serving as intermediaries between them 

and employers. DAV is in support of the DVOP and LVER programs 

and it is based on resolutions adopted by our membership calling for 

protection and adequate funding for the programs.

 Support of this bill as currently written would be contrary to these 

resolutions because it would reduce such funding.

 DAV would support reauthorization of the Committee if its funding 

was not taken from another vital veterans’ program.

 The Homeless Veterans’ Re-Integration Program Reauthorization 

Act of 2005 would reauthorize HVRP for fiscal years 2007 and 2008 at 

$50 million per year. This important employment services program 

was established to help homeless veterans re-integrate into the labor 

force and obtain financial independence.

 The DAV is highly supportive of this program and other homeless 

veterans’ initiatives.

 Services provided by HVRP can mean the difference between a veteran living on the street or living in transitional housing and acquir-
7

ing skills that will enable them to provide for themselves.

 The DAV is pleased that this legislation would extend the program.

 In addition, on the legislative advocacy on behalf of homeless veterans, I’d like to note that the DAV also takes an active role in seeking 

to prevent and end homelessness among our nation’s veterans. Like 

HVRP, the DAV homeless veterans’ initiative promotes the development and support of housing and services to help homeless veterans 

become productive self sufficient members of society.

 Since 1989, DAV allocations for these projects have exceeded $2 

million.

 The Servicemembers Health Insurance Protection Act of 2005 

would limit premium increases on reinstated health insurance for 

servicemembers who are released from active Service, and it would 

preserve employer sponsored health plan coverage for certain Reserve members who acquired TRICARE eligibility.

 The Servicemembers Taxation Protection Act of 2005 would prevent double taxation of servicemembers from the laws of the tax jurisdiction and do not provide a credit against use, excise or similar 

taxes the servicemember previously paid in another jurisdiction.

 Mr. Chairman, in accordance with its constitution and by-laws, the 

DAV’s legislative focus is on the benefits and services for Service connected disabled veterans, their dependents and survivors, because 

the issues addressed within the last two bill mentioned are not specific to its legislative focus the DAV has in its resolutions that are 

related directly to the issues addressed.

 However, since they would both benefit members of the Armed 

Forces, the DAV has no objection to favorable consideration of either 

bill.

 On behalf of the 1.2 million members of our organization, I again 

thank you for this opportunity to present our views.

 [The statement of Brian E. Lawrence appears on p. 41]

 Mr. Boozman. Mr. Blake, of the Paralyzed Veterans.

STATEMENT OF CARL BLAKE

 Mr. Blake. Chairman Boozman, Ranking Member Herseth, and 

members of the Subcommittee, PVA would like to thank you for the 

opportunity to testify today on the proposed legislation.

 As mentioned, the President’s National Hire Veterans Committee 

was created by Public Law 107-288, the Jobs for Veterans Act.

 In testimony provided before the House Veterans’ Affairs Subcommittee on Benefits on April, 18, 2002, PVA supported the creation of 

the President’s Committee.
8

 The original purpose of the Committee was to raise employer awareness of the skills of veterans and the benefit of hiring benefits, as well 

as to bridge the gap in communication that exists between employers 

and veterans seeking employment.

 However, we believe that the President’s Committee has not lived 

up to expectations. After reviewing the Committee’s report for 2004, 

we see no tangible proof that this Committee has helped open doors 

to veterans seeking employment in the private sector.

 The report implies that the Committee played a major role in the 

creation of Home Depot’s Operation Career Fund, an initiative that 

seeks to attract military job seekers, but the report lacked detailed information regarding the real extent of the Committee’s involvement.

 Furthermore, we have not seen any other reports provided by the 

President’s Committee. In accordance with the provisions of 107-

288, the Committee was to have provided a report also for 2003 and 

is also required to do so for 2004. Yet, we have only seen the report 

for 2004.

 PVA is particularly concerned about the provision of the legislation that would allow the President’s Committee to be funded out of 

money provided by the Department of Labor for administration of 

DVOP and LVER programs.

 PVA believes that the current efforts to change the way employment services at DOL are funded jeopardizes DVOP specialists and 

LVERs. It seems unless there is a paradigm shift, the number of 

DVOP specialists and LVER staff will be reduced.

 Although we believe that the Committee’s purpose is genuinely a 

good one and it can serve a good purpose, we have to oppose H.R. 419 

because of the provision allowing the funding through the DVOP and 

LVER programs.

 The Homeless Veterans Re-Integration Program is a viable program 

focusing on employment of homeless veterans. This program has been 

a wonderful success since its inception almost 20 years ago.

 PVA supports the reauthorization of HVRP through 2008, and in 

fact, we would like to recommend that the legislation be changed to 

authorize it for five years, through fiscal year 2011. This is in accordance with the recommendations of the National Coalition of Homeless Veterans, which PVA is a member of.

 We also support the reauthorization of the program at the $50 million funding level.

 The HVRP is perhaps the most cost effective and cost efficient 

program within the Federal Government. In spite of the success of 

HVRP, it remains severely under funded.

 Even more tragically, DOL does not really request full appropriation in its budget submission. For fiscal year 2006, the administration only requested $22 million to support this program despite a $50 

million authorization.
9

 Enactment of this legislation would ensure that homeless veterans 

who need a high level of support get the support they need.

 PVA also supports the last two bills which are under consideration, 

the Health Insurance Protection Act and the Taxation Protection Act. 

We have no objection as they are considered.

 I look forward to working with this Committee to ensure that 

proper protections and services are put into place to allow Service 

men and women who are returning from Iraq and Afghanistan and 

who are coming off active duty transition smoothly back to civilian 

life and into the employment sector.

 Mr. Chairman, we would like to thank you again for the opportunity to testify.

 [The statement of Carl Blake appears on p. 46]

 Mr. Boozman. Mr. Jones, of AMVETS.

STATEMENT OF RICHARD JONES

 Mr. Jones. Chairman Boozman, Ranking Member Herseth, members of the Subcommittee, Ms. Brown-Waite, H.R. 419, the Hire Veterans Act of 2004, would extend the operation of the President’s National Hire Veterans Committee.

 While we support efforts to enhance the profile of America’s commitment to its veterans, we are really aware of no official account of 

any past achievement of this Committee. Reports of 2003 and 2004 

provide no insight to any substantial gain by this Committee.

 We are concerned further that the legislation would fund the President’s National Hire Veterans Committee through the Department of 

Labor’s administration of Disabled Veterans Outreach Program and 

Local Veterans Employment Representative Programs.

 If the House Committee believes the National Committee should be 

extended, AMVETS would hope that consideration be given to finding a separate funding source other than the DVOP and LVER programs. Taking resources from an effective DVOP program to fund 

one that is not would be a mistake that we trust the Veterans’ Affairs 

Committee would avoid.

 On the second matter, AMVETS strongly supports draft legislation to reauthorize the Homeless Veterans Re-Integration Program. 

Grants made through HVRP provide homeless veterans with occupational training, job search and placement assistance.

 HVRP has been a very successful program, broadly supported by 

local community groups and veterans’ service organizations, and we 

support the reauthorization.

 With regard to the Servicemembers Health Insurance Protection 

Act of 2005, while of course we would like to protect the possibility of 
10

returning troops finding steep increases in their private health care 

insurance due to a non-military related circumstance, we do not want 

private insurance to carry the national burden of health care for military personnel.

 As a member of the Military Coalition Guard and Reserve Committee, as a chairman of a committee in the National Military Veterans 

Alliance, we are not aware of this issue being on the radar of any 

organization representing Reserve components.

 We are aware of the importance of ensuring reinstatement when 

folks return from deployment, but we are not aware of private sector 

gouging of returning veterans. If we could be educated on that, we 

would be, and we would certainly support that.

 On the final draft bill before the panel, the Servicemembers Taxation Protection Act, AMVETS fully supports the legislation. Servicemembers relocate items subject to personal property tax, excise tax, 

use tax, sales tax, and should not be penalized, not be taxed twice. 

We certainly support that fully.

 Mr. Chairman, that concludes my remarks.

[The statement of Richard Jones appears on p. 55]

 Mr. Boozman. Thank you very much. Thank all of you.

 I mentioned earlier that we were having a problem really trying to 

figure out how many homeless veterans there are. Do you all have 

any figures from your organizations or is that something you feel like 

you can help us with?

 Mr. Magill. We do not have a number. We rely on what VA is coming out with. I hope you can imagine that with all our folks out there, 

we can get an idea individually sometimes, but as far as a whole 

number, we don’t know.

 All we do know is it’s a lot, and it’s way too many as far as even one 

would be too many.

 Mr. Blake. Mr. Chairman, we don’t have any kind of survey that 

could accurately reflect those numbers. I would submit that Ms. 

Linda Boone, who I believe will be testifying next, probably could respond to that question a little better, and being that we are a member 

of that organization, I would like to defer to her perhaps.

 Mr. Jones. Certainly, it is difficult to get a hold of that number. 

These folks are homeless and hard to account for, either them or their 

families. We rely on the number that comes out of the VA, a quarter 

million average. It could be higher. It could be lower. I’ve seen figures as high as half a million. We know there are many.

 We know the HVRP program is a program that attracts a great 

number of competitors seeking those grants to assist homeless in 

their local areas. These folks report to us that there are many homeless.
11

 Mr. Boozman. Ms. Herseth?

 Ms. Herseth. Thank you, Mr. Chairman. Thank you for your testimony. Just a couple of questions to follow up.

 Mr. Magill and Mr. Lawrence, given the statements you have made 

in terms of your organizations’ support of extending the authority of 

the Committee, and your concerns about the funding of extending the 

Committee.

 If we weren’t able to address your concerns with regard to diverting money away from the chronically under funded LVER and DVOP

programs to fund the extension of the Committee, would you then 

take positions similar to Mr. Blake and Mr. Jones and their organizations -- it sounds like you are more supportive of the work the Committee has done perhaps, or maybe I am misreading the testimony.

 It seemed like you were more supportive of the extension as long as 

we an address the funding concerns versus where Mr. Blake and Mr. 

Jones may be at this point. Is that true?

 Mr. Magill. Our concern, of course, is that employers recognize the 

attributes that are brought to the workforce. I have to agree somewhat with Mr. Jones and Mr. Blake that after reading the reports, I

expected a little more.

 What I am looking at is the potential that we hope this Committee can live up to. They have a wealth of knowledge that sits on the 

Committee. At the same time, I have fears that when you start taking money away from the DVOP and LVER program, such as taking 

one-half of one percent, which is a small amount, but it could open up 

the door for continued reduction in this program.

 We do support the Committee. Once again, we hope that what is 

said here today will get the message to the Committee that we are 

watching them and we do expect a lot more results for the money they 

are being supplied.

 I hope that answers you.

 Ms. Herseth. Yes, it does. If I mischaracterized the positions of Mr. 

Blake and Mr. Jones, I hope you will correct me.

 Mr. Lawrence, did you have anything to add?

 Mr. Lawrence. I would agree with Mr. Magill that we don’t want to 

open the door to taking money from the DVOP and LVER programs.

 I would say that the accomplishments of the Committee and the 

goal of the Committee are hard to measure. We do recognize that. It’s 

a noble goal. We just feel that it is kind of overlapping with the mission of the DVOPs and LVERs as well.

 Already the training program, NVTI, that provides education or 

training to DVOPs and LVERs has been flat lined for a couple of 

years. We just wonder if it might not be more efficient use of the 

money if NVTI was fully funded. We know these programs are efficient. We would like to make sure that the money is channeled 

accordingly.
12

 Ms. Herseth. Certainly. I think in terms of what we have seen in 

the Administration’s proposed budget, many programs that actually 

had been deemed to not be efficient, to be duplicative, are the ones 

that have been severely cut.

 Here we have again some difficult decisions about how we allocate 

limited resources. I appreciate the insights that you have offered.

 Mr. Blake, if you could elaborate just a little bit. You had mentioned in terms of reauthorizing HVRP for two years, that you would 

prefer a longer extension to five, perhaps to provide a level of stability, but could you elaborate on your reasoning in your advocacy for a 

longer extension period?

 Mr. Blake. Yes, ma’am. First off, we support the idea that it would 

be extended period. I want to make that clear. We take the position 

of extending it through 2011 because if I’m not mistaken, the National Coalition for Homeless Veterans has done the same.

 HVRP has been around for quite a long time, 20 years is a long 

time for a program that started out very small and has grown a little 

bit, but its services have outgrown the size of the program and the 

services it provides to homeless veterans.

 Over the last few years, we have seen homeless veterans become 

more of an identified problem and more efforts to try to go in the 

direction of helping them. I see no point in short term authorizing 

HVRP, which may be the best homeless veteran program on the market, so to speak.

 Ms. Herseth. My time is up. Just one last comment, particularly in 

light of what sounds like anecdotal evidence, either from members of 

your organizations or new members about the level of homelessness 

that we have of veterans of past wars with those returning from Iraq 

and Afghanistan.

 I appreciate your thoughts there, too. Thank you.

 Mr. Boozman. Mr. Evans?

 Mr. Evans. Thank you, Mr. Chairman. I also appreciate your leadership on this issue and thank all the witnesses for coming to be here 

with us today.

 I just wanted to clarify, and I think Linda may when she comes up 

give us some information in terms of homeless programs.

 One of the things is, and I haven’t had a chance to talk to my 

staff about it, the authorization of an incarcerated veterans program 

within HVRP. Incarcerated veterans are not a group I think we have 

heard much from. I believe we can do much more in that area, but 

we don’t want to take money from Peter to pay Paul. I hope we can 

clarify that.

 Secondly, I haven’t talked to my staff about when the hearing will 

be to mark up the first two bills. Is that tomorrow at 9:00? Are we 

going to have time to make sure everybody knows?

 I didn’t want anybody to leave here without knowing that. With 
13

that, I yield back my time, Mr. Chairman.

 Mr. Boozman. Thank you. I want to thank the panel very much for 

being here, appreciate your testimony.

 Yes, sir?

 Mr. Magill. If you don’t mind, sir, I just had one comment.

 Mr. Boozman. Yes, sir.

 Mr. Magill. If this bill would have provided for making HVRP a 

permanent program, we would not oppose that.

 Mr. Boozman. Again, thank you very much for your testimony and 

for your time. It’s greatly appreciated.

 Our second panel members come from groups serving homeless 

veterans. Ms. Linda Boone is Executive Director of the National Coalition for Homeless Veterans. Mr. Jack Downing is President and 

Chief Executive Officer of United Veterans of America. Dr. Jack 

Pierce is Director of Student Services, Maryland Center for Veterans 

Education and Training. We understand that Ms. Boone is not going 

to be with us any longer, and is going to be moving on. We want to 

send our best regards from the Subcommittee.

 I also understand that Colonel Williams, the Maryland Center’s director, was unable to be here, and again, we send our best regards.

 Mr. Downing, you are recognized. Thank you.

STATEMENTS OF JOHN F. DOWNING, PRESIDENT AND 

CHIEF EXECUTIVE OFFICER, UNITED VETERANS OF 

AMERICA; LINDA BOONE, EXECUTIVE DIRECTOR, NATIONAL COALITION FOR HOMELESS VETERANS; AND 

JACK R.M. PIERCE, DIRECTOR OF STUDENT SERVICES, 

MARYLAND CENTER FOR VETERANS EDUCATION AND 

TRAINING, INC.

STATEMENT OF JOHN F. DOWNING

 Mr. Downing. Chairman Boozman and members of the Committee, 

I’m honored to be here today on behalf of the 900 homeless veterans 

enrolled annually in the United Veterans of America program.

 Each day, 190 of our homeless veterans are assisted by the UVA

program, providing a continuum of care beginning with the treatment of trauma and mental health issues that result in substance 

abuse, shelter, food and other necessities, job training and counseling 

throughout their stay.

 We work in partnership with the Veterans’ Administration and the 

per diem program for homeless veterans.

 The United Veterans of America has 120 veterans in transitional 

living on site at the VA campus in Northampton, Massachusetts. We 

also have 60 veterans in transitional housing at the Berkshire Veterans Residence in Pittsfield, Massachusetts which opened in Septem-
14

ber 2004. We have ten new studio apartments funded through the 

U.S. Department of Housing and Urban Development, which provide 

permanent housing for homeless veterans with disabilities at the 

Pittsfield site.

 The UVA serves veterans who are primarily from Massachusetts, 

Rhode Island, Connecticut, New York, Vermont and New Hampshire.

 The average age of a homeless veteran in our care is 53 years. 

Approximately 85 percent of our clients have mental health and substance abuse issues. Eight percent are elderly, over the age of 70. 

Five percent are female. More than 25 percent are diagnosed with 

post-traumatic stress syndrome and 28 percent of our residents have 

come to us on parole or probation. We have just begun to serve some 

Iraq war veterans.

 The VA Grant and Per Diem Program provides the core funding 

for our veterans’ housing programs. Most recently, the UVA began 

a collaboration with the Northampton VA to develop intensive support services for 40 chronically mentally ill residents and 15 females 

annually that hopefully will result in permanent housing for all of 

them.

 The UVA is a participant in two Western Massachusetts HUDC 

funded continuums of care which provide additional support and 

funds for veterans at both the Northampton and Pittsfield facilities.

 The UVA received an HVRP intermediary grant of $220,000 in 

2004 to assist in employment of homeless veterans in our region. We 

commend the Department of Labor in its attempt to assist homeless 

and incarcerated veterans’ re-entry into the workforce.

 These programs acknowledge the difference between rural and urban communities and are beginning to foster collaborations between 

small communities and faith based organizations and mainstream 

service providers in the areas that we work in.

 Integrity is at the core of the UVA program, the integrity of the veterans, the integrity of our staff, and the integrity of our commitment 

to tirelessly work to improve the lives of homeless veterans.

 The UVA has implemented an integrity contract which is integrated into the treatment model that promotes social responsibility 

for the individuals in our care.

 Psychosocial services are augmented by employment, housing, 

educational and community service programs. Veterans develop self 

awareness and personal growth through volunteer and supported 

work placements with community agencies.

 Veterans receive services from these agencies, yet more importantly, are given the opportunity to serve others in need. This enhances 

their self respect, their personal dignity and pride. The program 

constantly evaluates veterans’ needs and is poised to assist veterans returning from Iraq with the opportunity to self determine their 
15

pathway to success.

 We perceive a gap between the skills of our veterans and the resistance of some employers to hire formerly homeless veterans. This is 

particularly true for those veterans who may have been incarcerated. 

This reality has led to significant shifts in our strategies on behalf of 

veterans in need of employment.

 The UVA practices employer oriented job development. We work to 

understand the needs of area employers, enabling the UVA to present qualified candidates ready to work.

 We have partnered with the Sheriff’s Office in Berkshire County, 

Massachusetts and the Pittsfield Community Television in Massachusetts to initiate a program produced, directed and filmed by formerly homeless veterans, such a tremendous project.

 When we walked into the first filming, we had Lieutenant Governor Carrie Healey from Massachusetts as the first guest. When she 

walked in and saw two chronically mentally ill formerly homeless 

veterans running t.v. cameras, she turned to me and she said, hey, 

you’re really doing what we want you to do, and I said to her, yes, 

that’s what it’s about, Ms. Healey, it’s really about getting veterans 

engaged in the process.

 We call that projection Operation Rising Star. This program presents the community employment experts candidates from our population that are ready to re-enter the workforce.

 This 30 minute weekly program premieres in June 2005 and we 

have all kinds of experts from senior government and business offices 

in the northeast working with us on this project.

 We are using Department of Labor funds to assist in this exciting utilization of media technology that allow veterans to learn new 

skills and experience a sense of ownership of their work.

 The United Veterans understands that our veterans do not necessarily seek full time employment. Therefore, creativity and flexibility 

are key factors in business opportunities for veterans.

 Two models of veteran owned businesses have been adopted. The 

vending operations in our existing three facilities has been converted 

to a veteran owned and operated business. Homeless veterans have 

purchased vending machines and inventory and serve our facilities. 

These businesses were funded with private sector funds.

 The United Veterans of America is currently acquiring a Juice and 

Java franchise for two formerly homeless veterans. This business 

will employ the two UVA owner veterans and four to seven other 

veterans part time as their employees.

 Additionally, we have been approached by area manufacturers to 

create an inventory measurement service employing homeless veterans to accommodate the seasonal and part time nature of particularly 

the plastics industry’s local demand for this type of service.

 As we look at the potential of the veterans we serve, we see no end 
16

to the possible solutions for improving homeless veterans’ lives in a 

way that encourages their particular abilities and career goals.

 We develop individualized programs for each veteran at the UVA, 

which identifies the potential of each veteran and helps to stabilize 

their lives.

 These include a personal resume development; issues related to 

past under employment; definition of their personal support network 

including counselors, advisors and family members; realistic career 

expectations; communication and presentation skills, and follow up 

support.

 The UVA program ensures that each homeless veteran has access 

to professional help while the veteran remains in control of his or her 

own life decisions.

 The United Veterans of America has accepted the challenge of 

President Bush to end chronic homelessness during the ten years of 

2002 to 2012. The UVA has implemented the strategy of changing 

the end of the story as our response to this challenge.

 A safe, sober environment in a transitional housing facility is no 

longer acceptable as a long term solution for homeless veterans. 

Rather, our goal has become safe, sober, permanent living facilities 

that allow veterans ownership of their housing.

 Employment and a stable income are essential to this goal. We 

have come to the conclusion that employment which is limited by 

disincentives and that eliminates entitlements for veterans must 

be restructured and re-thought. Programs that stress job readiness 

skills that are sensitive to the employer community are central to our 

strategy and present a realistic assessment of veterans’ abilities to 

enter the workforce. Business ownership by homeless veterans offers 

creative and flexible work alternatives for our veterans.

 As program development continues, we must create systems that 

provide easy access for veterans in all service areas.

 We are committed to work with the Department of Veterans’ Affairs, Housing and Urban Development, and Labor, and all interested 

members of the Congress, and organizations to help change the end 

of the story for all homeless veterans.

 Together, we can help our homeless veterans achieve integrity, 

dignity and hope. Thank you.

[The statement of John F. Downing appears on p. 62]

 Mr. Boozman. Ms. Boone?

STATEMENT OF LINDA BOONE

 Ms. Boone. Good afternoon. Contrary to the perceptions that our 

nation’s veterans are well-supported, in fact, many go without ser-
17

vices they are eligible to receive.

 One-and-a-half million veterans have incomes that fall below the 

Federal poverty level. Neither the VA, state, or county departments 

of veterans’ affairs nor community-based service providers have adequate resources to respond to these veterans’ health, housing, and 

service needs.

 For example, the VA reports that its homeless treatment and community-based assistance network serves 100,000 veterans annually, 

only 20 percent of those in need. 400,000 homeless veterans remain 

without services.

 Likewise, other Federal, state and local public agencies, notably 

housing and health services, are not adequately responding to housing, health care and supportive services of veterans.

 The National Coalition for Homeless Veterans is privileged to testify today on the reauthorization of the Homeless Veterans Re-Integration Program, privileged in that NCHV, commemorating its 15 

year anniversary this year, owes its founding to HVRP.

 It was at a meeting of HVRP grantees that our organization founders met each other and came to appreciate that they were not working in isolation, that there were others sharing their concern with the 

tragedy of homelessness among veterans and were taking action.

 At the same time we are saddened today, saddened that there is 

still a need 15 years later to hold another congressional hearing on 

homeless veterans. Saddened further that there is still a need for the 

Homeless Veterans Re-Integration Program.

 Frankly, our founders and our members thought we would be out 

of business by now.

 An immediate first step, shocking in the fact that it has not yet 

come to pass, would be the appropriate funding for HVRP in fiscal 

year 2006, a full authorization level of $50 million.

 DOL estimates that 14,750 homeless veterans will be served 

through HVRP at the fiscal year 2005 appropriations level of $21 million. This figure represents just three percent of the overall homeless 

population that will be serviced.

 We appreciate this subcommittee’s obvious interest in HVRP, to 

continue to set a $50 million authorization level. However, we recommend a five year period. A longer authorization period is particularly important given the current proposal by the Administration to 

restructure our nation’s veterans’ workforce program within its WIA

proposal.

 Expanding the eligible population for HVRP to also include veterans at imminent risk of homelessness enables grantees to use these 

funds for homeless prevention is something we also request.

 NCHV generally supports efforts that generate employment opportunities for veterans. Veterans with jobs are less likely to lose their 

housing than veterans that are without sources of income. As such, 
18

we have no reason to be anything other than supportive of Congress’ 

decision to establish the President’s National Hire Veterans Committee.

 We are now interested in knowing how the Committee is tracking 

specific and measurable outcomes of work. What are those outcomes? 

How many veterans have actually been hired due to the Hire Vets 

First campaign? What action is the Committee taking to promote 

hiring of veterans with serious barriers to employment?

 We are also concerned that funding for the Committee is drawn 

from VETS state grant program, as you have already heard, diverting 

precious resources that are known to put veterans to work compared 

to a public awareness campaign that has no evidence base.

 Given these concerns, we withhold support for the Hire Veterans 

Act.

 Current law requires the Department of Defense and Homeland 

Security to provide individual pre-separation counseling to each 

member of the Armed Forces whose discharge or release from active 

duty is anticipated.

 Current law authorizes the Department of Labor to furnish counseling and assistance in obtaining employment and training opportunities to members of the Armed Forces who are separated from active 

duty, known as the Transition Assistance Program. Participation in 

this program is not mandatory.

 Former servicemembers with whom our Coalition is in daily contact 

report that pre-separation counseling and the Transition Assistance 

Program are lacking in a number of areas.

 Among their concerns are the depth and content of the pre-separation counseling that is a variable cost at delivery sites. This counseling may be limited to brief group level presentations rather than 

individualized transition plans.

 Servicemember participation in TAP is at the will of the unit commander and often allowed only during off duty time. We need a program that includes content on homelessness awareness or housing 

and counseling assistance and referral.

 Weaknesses in both of the content and delivery of servicemember 

separation programs result in some servicemembers failing to receive 

information necessary to ensure their stable health care, steady employment, and secure housing upon their return to civilian life. This 

places servicemembers at an increased risk of homelessness.

 In response to these concerns, NCHV has developed a legislative 

proposal, the Servicemembers Enhanced Transition Services Act, to 

improve transition assistance provided for members of the Armed 

Services being discharged, released from active duty or retired.

 We urge this Committee members to introduce or co-sponsor this 

Act and to ensure its enactment this session.

 In addition to HVRP, many other programs that Congress has 
19

authorized to address homelessness among veterans are scheduled 

to sunset in 2006 and merit extension. NCHV urges Congress to reauthorize, strengthen and expand the specialized homeless programs 

and the authorities of the Department of Veterans’ Affairs.

 Thank you very much.

 [The statement of Linda Boone appears on p. 69]

 Mr. Boozman. Thank you.

 Dr. Pierce?

STATEMENT OF JACK R.M. PIERCE

 Mr. Pierce. You had mentioned, Mr. Chairman, about Colonel Williams was supposed to be here today. He asked me to come. Colonel 

Williams takes dialysis on Wednesdays and he couldn’t be here, so he 

asked me to pinch hit for him.

 Mr. Boozman. We appreciate that. Like I said, tell him we are 

thinking of him.

 Mr. Pierce. It’s my pleasure. MCVET was established approximately 12 years ago with a mission to provide homeless veterans and 

other veterans in need with comprehensive services that will enable 

them to rejoin their communities as productive citizens.

 MCVET operates a militarily constructed facility where veterans 

are reintroduced to the military type of discipline that they were accustomed to through their service.

 The re-awakening of the routine military discipline enhances 

MCVET’s ability to stabilize and reorder the lives of these veterans. 

Each student attends substance abuse classes and alcoholic and narcotic anonymous meetings, and work in conjunction with a case manager in the development of an individual service strategy plan, which 

is a long range plan used as a tool in remaining drug and alcohol 

free.

 Services include a day drop in, emergency, transitional and permanent housing, substance abuse counseling, assistance with physical 

and mental health issues including post-traumatic stress disorder or 

PTSD, job training and placement, and education.

 MCVET owes its very existence to the Federal grants and to community based 501(c)3 organizations.

 We have uniquely married the housing services available from 

HUD, the medical and social services support available from Veterans’ Affairs, and the job training education services available from 

the Department of Labor, in order to move homeless veterans into the 

societal mainstream as self supporting and contributing members to 

their families and their communities.

 From July 2004 to June 30, 2005, we received the amount of money 
20

that we have here in the testimony, and then we received a grant for 

the two fiscal years from July 1, 2003 to June 30, 2004.

 MCVET used these grants from DOL, the VA, and HUD to provide 

a complete continuum of care for veterans consisting of a 50 person 

capacity day drop in center, a 50 person capacity emergency shelter 

program, a 120 person capacity transitional housing program, and 

an 80 room permanent housing facility called SRO or single room occupancy, a complete dining facility, learning center, fitness gym, and 

classrooms.

 Thus, a veteran can go from being homeless to permanent housing 

within the same program while maintaining continuity of counseling 

and support.

 We are focused today on grants provided by the HVRP program 

and how they benefit homeless veterans. The HVRP funds from the 

Department of Labor has enabled MCVET during fiscal year 2003 to 

enroll 198 and during 2004, 214 veterans in education and training 

programs.

 MCVET placed 191 veterans in fiscal year 2003, and 188 veterans 

in 2004 in full time unsubsidized employment with an average salary 

of $12.08 per hour in fiscal year 2003 and $12.39 per hour in fiscal 

year 2004.

 During the same fiscal years, the permanent housing program 

serviced 116 and 88 veterans respectively. Case management and 

counseling are ongoing components of the veterans’ stay in permanent housing. Also, it is at this housing level that female veterans 

can access MCVET’s program.

 During fiscal year 2003, 22 percent of all the veterans placed in 

employment in the State of Maryland and 86 percent of all veterans 

placed in employment in Baltimore City came from MCVET’s job service office.

 The HVRP program coordinator, which is a position funded by the 

HVRP grant, enables MCVET to place veterans in the jobs I have 

listed here, just to name a few, drivers with CDL A and B class licenses, HVAC technicians, information technology, apprenticeships 

in painting. These are paid apprenticeships in painting, electricians, 

carpenters, elevator maintenance, sheet metal machinists. Full time 

positions have also been obtained in heavy equipment operator, substance abuse counselors, youth counselors, work with the Department 

of Public Works, Public Safety, Homeland Security, medical billing, 

medical coding, medical assistance, biomedical nursing assistant, 

phlebotomist, medical administration service, culinary arts, barbers, 

cosmetology, dental assistants and loan officers.

 Additionally, MCVET’s job office has placed veterans in high profile 

jobs, such as drafting, hotel/hospital management, and maintenance 

technicians for a municipal transportation system, master fitness 

trainer, and web master.
21

 MCVET strives to place veterans in situations where they can succeed rather than fail.

 For fiscal year 2003, the retention rate after 90 days for veterans 

placed in employment was 86 percent still working. For fiscal year 

2004, for those after 90 days still working, it was 96 percent. After 

180 days, the retention rate for fiscal year 2003 was 73 percent and 

for fiscal year 2004, it was 71 percent. This is six months out.

 We have placed 91 percent of the veterans seeking employment for 

fiscal year 2003 and 89 percent of those seeking employment for fiscal 

year 2004.

 We are committed to developing careers for our veterans rather 

than dead end jobs that tend to perpetuate the cycle of poverty.

 Veterans who are educated, gainfully employed and independent 

are assets to their communities. They are reunifying with families, 

purchasing their own homes, starting their own businesses, and participating in the economy.

 Because of our work with veterans, HUD declared our program a 

national model on 7 May 1997. This occurred after we had been serving veterans a little less than three years.

 In closing, I would like to thank you for this opportunity to appear 

before you and to share MCVET’s story.

 Homeless veterans are likely to face greater challenges in the years 

ahead, as scarce resources are strained and with a service delivery 

system that is already overburdened.

 I urge you, in your deliberations, to consider the plight of those 

young men and women who have been sent to defend the ideals of 

this country. Many of them are returning home broken of body, mind, 

and soul, and this country needs to provide them with resources to 

enable them to share in the American dream.

 I implore you to pass the legislation for reauthorization of the 

HVRP Act of 2005. Thank you.

 [The statement of Jack R.M. Pierce appears on p. 82]

 Mr. Boozman. Thank you. Again, we appreciate the testimony.

 Mr. Downing and Dr. Pierce, you all seem to have a substantially 

higher success rate not only initially but after 180 days or however 

you want to measure it than some of the other programs, maybe some 

of the other Department of Labor programs.

 What do you attribute that to? You work with lots of individuals 

and have seen lots of different programs come and go.

 Mr. Downing. From my end, Mr. Chairman, I think there are two 

things. I think you have to work with the complete fabric. You can’t 

be just doing employment and not dealing with substance abuse. You 

need to get the substance abuse, the site social services, you need to 

get the whole piece.
22

 The second thing is you need to have a vision that you communicate 

to the veterans. They have to know that you have their heart in your 

heart. You have to know that if you really believe in this process that 

there has to be an end of the story that works.

 Saying to people we are going to get you sober and safe and help 

you get employment and then ship you off to an SOR where loneliness 

and isolation start and you start cycles again, that’s what we saw we 

had to stop, number one.

 The second thing is we needed to build partnerships that worked. 

We had to stop being at war with funding sources. We needed to 

develop relations of respect and see that we figure out strategies that 

allows us to work together.

 We have been very successful building relationships with the VA. 

I testified in this room a couple of years ago, and I think Pete Doughtery said to me, you know what, Downing, if I ever see you again, 

you better have a vest on. We were joking about firing back at one 

another, because our program had been cut.

 The reality is we needed to build a relationship that worked. We 

had to be responsible for that. We have built partnerships both at 

the national level with the funding sources and in the community, 

where members of the Chamber of Commerce, if you want to work 

with employers, you have to go to their meetings. You have to know 

they know you.

 We are a member of the Berkshire Plastic Network funded by 

General Electric Plastics, 36 plastics companies pay $300 to $500 a 

year to be a member. We pay $300 a year to be a member so we can 

learn about their industry and their jobs and they would know us and 

understand us.

 I think the third component is you need to be able to start to show 

people that failure is never final. You have to remember that the 

people that we work with, every system built to help men and women 

has failed them. Community services has failed, military services 

fail, psych-social services have failed, family has failed, everything 

has failed.

 When they come to us, we need to be able to say this failure is not 

final. We are going to begin to build your dignity. We are going to 

begin to build your personhood. We are going to begin to give you a 

sense of purpose. We need to figure out strategies to motivate them.

 In our program, we decided that failure was our responsibility not 

our clients. When you leave the United Veterans of America, if you 

should leave us, we see that as our failure, that we didn’t develop a 

strategy, a sensitivity, an understanding or skill that could touch you 

in a way that you would want to stay and continue to work with us.

 We don’t even want your failure to be yours any more. We want to 

take that burden away and give you that possibility.

 I think those pieces work together. I think you have to have a pas-
23

sion and a commitment to stay in there.

 Mr. Pierce. We take a veteran into our program and try to look at 

the whole person, treat that person holistically, not just for the substance abuse, but we try to recreate and re-establish a healthy body 

and a healthy mind.

 We start that process with a shelter program where we require 

them to be with us at least 30 days when they come in. It’s not an 

emergency shelter. We call it the emergency shelter program because by contract, we are required or we are mandated to provide 13 

weeks of housing in our emergency shelter program.

 During this 13 weeks, we will begin to address barriers to recovery, 

barriers to employment, barriers to education. At that level -- we call 

it the first platoon. We have case managers. All our case managers 

are Master level case managers, social workers, with licenses, who 

are tasked to work with a person coming in off the street.

 That is an intensive kind of relationship that is developed at that 

level. All of these things they have them addressing, court issues, 

child support issues, education, getting over the effects of having 

been addicted to alcohol and narcotics and chronic mental illness. 

Some of them are dually diagnosed.

 We begin to work on those issues at that level. We begin to know 

who we are dealing with.

 During that first 13 weeks, and after 60 days, they are allowed to 

transition to our transitional housing program, we develop a service 

strategy plan. I call it a blueprint for success.

 The case management occurs at all levels of our program, so we 

know who we are dealing, when we send someone out to get a job. 

After the 91st day in our program, persons are eligible to apply for 

education, training, and employment.

 I don’t say they will, but they are eligible to do so because at that 

point, the case manager sits down with the veteran and decides are 

you ready to get involved in training? Are you ready to get involved 

in going back to college? Are you ready to get involved in going out 

to work?

 They make that decision conjointly. If that person is ready, then 

they are referred to our DVOP. We have a DVOP who is out stationed to MCVET five days a week, eight hours a day, with an office 

in our facility. He works for us, but is paid by the state with Federal 

funds. Our DVOP is here if you have questions for him.

 That person begins to work with our veterans in finding a job, finding a training slot, finding apprenticeships, right in our office.

 You heard the statistics that office placed for Baltimore City. Of 

the veterans who were placed in positions, our office placed 86 percent of them. For the State of Maryland, 22 percent. He is stationed 

right there with us.

 We know who we are dealing with. Our persons go out to jobs. 
24

Partnerships have been discussed. Our employers know that when 

we send someone to them, that person is ready to work, will be there, 

will show up, has developed the kind of work ethic that they need to 

have in order to come to work on time, be at work and put forth an 

effort.

 They trust us to send them the best. In fact, we have employers 

calling us for persons to employ.

 That is our success rates. Not only that, at every point in our 

program, the person is case managed. We never lose track of that 

person. We know after six months.

 In fact, we follow up ad nauseam. We never really lose contact 

with our people. Six months and three months is what the HVRP and 

HUD requires, but we go forever.

 Mr. Boozman. Very good. Ms. Herseth?

 Ms. Herseth. Thank you, Mr. Chairman. Thank you very much for 

your testimony.

 Mr. Downing and Dr. Pierce, I appreciate hearing more about 

the programs that you are involved with, the success rates you have 

had, the impressive records the Chairman has acknowledged and 

expressed, whether it is Operation Rising Star, as you mentioned, 

which is fascinating, as well as what you do with the MCVET center 

in Maryland.

 Before I ask a few questions of you, Ms. Boone, I would like for the 

two of you to address the intersection of mental health illness and 

homelessness. Many of us have expressed concern on this Committee 

and colleagues that serve on other committees about PTSD, mental 

health counseling and adequate resources to meet the needs of Vietnam combat veterans, Gulf War veterans, past wars even prior to 

those two, and of course, our returning veterans.

 I am wondering if in the counseling that your programs have provided, as you get to know and adopt a holistic approach to these veterans, to the extent that you can say, do you find that more often than 

not a mental health illness is one factor among many that creates the 

condition that leads to homelessness, or that the situation of homelessness exacerbates or creates circumstances that lead to mental 

health illness, to the extent that you can say.

 Mr. Downing. My best judgment would be mental health illness, I

think, is exacerbated by homelessness. I think mental health illness, 

because we don’t provide at the community level necessarily, they 

have de-funded a lot of services that touch people in the community, 

we have criminalized their behavior.

 Many people are forced into jails and prisons when they are not 

taking their medicines because of their behaviors, and we are picking 

them up on the back side as they re-enter. That’s number one.

 Number two is the chronically mentally ill that we work with, we 

found that the veterans were much better served than people who 
25

were non-veterans. They were able to get into facilities and get treatment, but the issues in some ways remain the same, when an individual refuses medicine and acts out, what happens.

 What we have tried to do is again work in a peer group and buddy 

up veterans with one another so they can -- we monitor taking their 

meds. We buddy them up during the day and have them track with 

one another to create the opportunity to help one another and to keep 

them stable.

 My experience has been that 80-some percent of our people come 

in with a mental health disorder. It’s serious. Combat related posttraumatic stress syndrome, it represents 28 percent of our people.

 I think the other thing we need to recognize, and I think this is 

a key factor in the work that I do, individuals who entered military 

service, their experience in being separated from the primary community of love that we normally call family, many of the individuals 

we work with came from very weak families, by being separated out 

and doing extended periods of time in service, and then facing combat 

and all the issues, it seems to me that veterans appear two to three 

times more homeless than non-veterans.

 If that is true, we must then continue to acknowledge that military 

service has a tremendous stressor attached to it that people seem to 

incorporate into their lives in a way that we don’t easily identify until 

separated from service for five, six, seven or eight years, and at that 

point, we begin to identify there’s a problem.

 We need to become more and more acutely aware. When I heard 

Ms. Boone talk about what we are doing at the point of separation, 

the hospital that we are attached to, the VA in Northampton, sends a 

team of people over to Westover Air Force Base, which is the primary 

point of discharge for the Reservists from our area, and we are working to get people in.

 The Iraq veterans that have come into our facility came in through 

that process. It is just a wonderful thing to see because we are able 

to get people back in the first three, five, six days, and not three, five 

and six years.

 That would also be my observation. Thank you, ma’am.

 Ms. Herseth. Thank you.

 Mr. Pierce. We have coming into our program in MCVET persons 

from Iraq that are suffering from PTSD, but not at a level that has 

become alarming. We do have a high figure of our people who do have 

chronic mental illness associated with an addictive kind of problem, 

either alcohol or drugs.

 What drove it? Did alcohol drive the mental illness or did the mental illness drive the alcohol?

 We do know also that persons who are homeless suffer from depression. If you are out there with nowhere to go, nowhere to live, you 

are depressed. I would be. It seems that these circumstances are 
26

exacerbating that problem.

 We deal with persons that are not VA eligible, and we have persons 

in our program that cannot access VA services, although they are veterans. We have to develop other services that will help them, provide 

the same services that VA provides.

 We are fortunate that we have VA medical centers, three of them, 

within our reach. For those persons who have certain kinds of other 

problems, PSTD is one, gambling is another, we can send those persons to other VA centers around the country and they can access services there.

 Iraq veterans, we have had three in our program since returning to 

this country. They are damaged, they are severely damaged. They 

are young, nothing older than 23 or 24, and cannot really exist in a 

facility because they are not able to access the services mentally.

 One young man, his job was to clear out Humvee’s after they were 

exploded in Iraq. He was unable to do that. He couldn’t stay in our 

program. He did not want to be around, did not trust people, could 

not sleep. We lost him. He just walked away one day.

 That’s the problem. I don’t know whether you can attach what 

starts it. I think other things may exacerbate each other.

 Ms. Herseth. Votes. Just one follow up quickly, Ms. Boone. In your 

statement for the record, you offer a very comprehensive list of legislative recommendations for strengthening and expanding the VA’s 

specialized homeless programs and authorities.

 Are they listed in order of priority? Are these recommendations the 

top priorities for the Coalition?

 Ms. Boone. Of those, reauthorization and expansion, the primary 

core program is the Homeless Providers Grant and Per Diem Program, which is a grant program that goes out to community based 

organizations. As they have testified, it is sort of the nugget that 

starts them.

 That is our primary. We want to get it reauthorized. We want the 

minimum level of authorization to be $200 million, and we want it to 

be through fiscal year 2011.

 If the authorization level does not go up from the $99 million it is 

now, then pretty soon, we are actually not going to fund any new programs and eventually because the per diem rate rises, we will have 

to de-fund programs.

 It is very critical that program gets authorized for a higher level.

 We also have some recommendations around how the payment 

process happens to community based organizations. Right now, it is a 

reimbursement process. The intent, when we helped write the legislation at the beginning, was make it a payment process.

 The other thing is you have heard about changing the end of the 

story from Mr. Downing. We believe there is an opportunity to make 

some of the allowed services to be permanent housing for a certain 
27

percentage, so that those veterans that may need that service, we 

would be able to provide that through the grant and per diem program.

 Ms. Herseth. Thank you. Thank you, Mr. Chairman.

 Mr. Boozman. Mr. Evans?

 Mr. Evans. Mr. Chairman, we have a vote, I will keep my questions 

in short order here.

 First of all, I didn’t realize, Linda, you were leaving us so soon.

 Ms. Boone. Yes. Later, December, or fall. 

 Mr. Evans. We thank you for all your years of service, not only with 

the homeless veterans program, but throughout your career.

 Ms. Boone. Thank you.

 Mr. Evans. You are one of the best cases I know of for helping our 

veterans, and I am very proud to have worked with you over these 

many years.

 Ms. Boone. Thank you.

 Mr. Evans. Thank you, Mr. Chairman.

 Mr. Boozman. We have votes. First of all, I want to thank you so 

much again for coming and contributing, appreciate your hard work 

here on the front lines, and truly are doing a tremendous job. We appreciate what you are doing for veterans.

 We can go ahead and get started with our next panel. We will 

recess. We only have two votes. It shouldn’t be bad at all. We will 

hop on over and get back. I apologize for the inconvenience. The only 

thing we have to do here is vote.

[Recess.]

 Mr. Boozman. Again, I apologize for the inconvenience. Our next 

panel is comprised of Mr. Craig Duehring, Principal Deputy Assistant Secretary of Defense for Reserve Affairs, Department of Defense. 

Mr. John McWilliam, Deputy Assistant Secretary for Operations and 

Management, Veterans’ Employment and Training Service, Department of Labor. Ms. Cynthia Bascetta, Director of Veterans’ Health 

and Benefit Issues, U.S. Government Accountability Office, and Mr. 

T.P. O’Mahoney, Chairman of the President’s National Hire Veterans 

Committee.

 Again, I welcome you and appreciate your being here. Let’s go down 

and start with Ms. Bascetta.

STATEMENTS OF CYNTHIA A. BASCETTA, DIRECTOR OF

 VETERANS’ HEALTH AND BENEFITS ISSUES, U.S. GOV-

 ERNMENT ACCOUNTABILITY OFFICE; CRAIG W. 

 DUEHRING, PRINCIPAL DEPUTY ASSISTANT SECRE-

 TARY OF DEFENSE FOR RESERVE AFFAIRS, DEPART-

 MENT OF DEFENSE; T.P. O’MAHONEY, CHAIRMAN, 
28

 PRESIDENT’S NATIONAL HIRE VETERANS COMMITT-

 EE, AND JOHN M. McWILLIAM, DEPUTY ASSISTANT 

 SECRETARY FOR OPERATIONS AND MANAGEMENT,

 VETERANS’ EMPLOYMENT AND TRAINING SERVICE, 

 DEPARTMENT OF LABOR

STATEMENT OF CYNTHIA A. BASCETTA

 Ms. Bascetta. Thank you, Mr. Chairman, Ms. Herseth.

 I am pleased to be here today to discuss GAO’s views on HVRP, a 

DOL VETS program targeted to homeless veterans.

 As you know, DOL’s spending on HVRP is projected to grow slightly 

from about $18 million in each of the last two fiscal years to a little 

more than $20 million in 2005 and 2006.

 According to VA, about one-third of homeless adults have served 

in the Armed Forces, almost half of homeless veterans have mental 

illnesses, and more than 70 percent have substance abuse problems.

 As you requested, I will focus my remarks today on what available 

data tell us about the effectiveness of HVRP.

 We examined DOL documents, interviewed officials, visited an 

HVRP grantee, and reviewed GAO’s past work on Federal efforts to 

address the needs of homeless veterans.

 While we did not independently verify DOL’s data, we did obtain 

program information on grantees, participants, performance measures, and goals.

 Starting with finding jobs for homeless veterans, DOL sat and 

entered employment goal is 58 percent for HVRP in fiscal years 2004 

and 2005. In other words, DOL expects its grantees to place at least 

58 percent of homeless veterans in jobs as a result of HVRP services.

 They reported to us that for program year 2003, the most current 

year for which data are available, the actual job placement rate was 

63 percent overall, which exceeds the current performance goal as 

well as the planned 61 percent performance goal included in DOL’s 

fiscal year 2006 budget.

 DOL also recognizes that sustained employment is another key 

measure of program effectiveness. In its March 2005 grant solicitation, for example, DOL states that 90 and 180 day follow ups with 

veterans after they enter employment are fundamental to assessing 

the success of the program.

 They emphasize that grantees must obligate sufficient funds prior 

to the end of the grant performance period to ensure that follow up 

activities are completed as well as reported.

 Two weeks ago, Mr. Chairman, you held another hearing on VA’s 

vocational rehabilitation and employment program, and for that program, we also discussed the importance of measuring program effec-
29

tiveness in terms of job retention, not just job placement.

 In fact, DOL, VA and other agencies are working together on common measures of job retention for up to 270 days.

 DOL’s requirement for grantees to measure job retention is an 

important step, but the Department has not yet established a performance goal for this outcome. Consequently, it’s difficult to know what 

success is. That is what percent of those homeless veterans does 

DOL expect to retain employment and for how long?

 For program year 2003, DOL data showed that almost 60 percent 

of veterans placed in jobs were still working after 90 days, but at 

180 days, the reported job retention rate had dropped to about 35 

percent.

 Our earlier work on homeless veterans could help explain this 

drop at least in part. For example, homeless veterans with substance 

abuse problems are likely to have high recidivism rates that could 

contribute to lower job retention over time.

 In addition, economic self support may not be a reasonable goal for 

all homeless veterans, such as those with serious mental illnesses 

that cannot be controlled with medication.

 Understanding the effects of factors like these on job retention 

could help DOL develop a basis for establishing reasonable performance goals in the future.

 DOL does plan to set a job retention performance goal for fiscal year 

2007, which could provide grantees with incentives to ensure that 

veterans receive longer term follow up services to help them retain 

their employment.

 The Congress has specifically recognized the importance of assessing the outcomes of services provided to homeless veterans by requiring DOL to report every two years on the effectiveness of HVRP.

 DOL has not met this reporting requirement, but told us that it 

plans to issue its first report by the end of this fiscal year.

 This report and an assessment of DOL’s progress in establishing its 

employment retention goal should help facilitate congressional oversight of this important program.

 That finishes my remarks, and I would be happy to answer any of 

your questions.

 [The statement of Cynthia A. Bascetta appears on p. 91]

 Mr. Boozman. Thank you.

 Mr. Duehring?

STATEMENT OF CRAIG W. DUEHRING

 Mr. Duehring. Thank you, Mr. Chairman, Madam Ranking Member, thank you very much for allowing me to come here today.
30

 Bottom line up front, the Department of Defense supports enactment of the Servicemembers Health Insurance Protection Act of 

2005 and the Servicemembers Taxation Protection Act of 2005, both 

of which would amend several provisions of the SCRA to reflect our 

experience with SCRA during the first 17 months.

 There are three areas. First, the Servicemembers Taxation Protection Act of 2005 would amend Section 511 (c) of the SCRA to make 

clear that a tax jurisdiction may not impose a sales, use, excise or 

similar tax on the personal property of a non-resident servicemember 

when the laws of the tax jurisdiction failed to provide a credit against 

such sales, use, excise or similar taxes previously paid on the same 

personal property to another tax jurisdiction.

 This technical correction is needed to protect servicemembers from 

double taxation. The problem was most notable when we had significant forces assigned to military installations in the Commonwealth of 

Puerto Rico. It also exists in other state and local jurisdictions.

 The Servicemembers Health Insurance Protection Act of 2005 addresses problems we have noted in the SCRA and in USERRA, both 

relating to health insurance.

 Section two of that Act would amend Section 704 of the SCRA to 

prevent unfair rate increases in a returning servicemember’s health 

insurance. The SCRA and USERRA both guarantee to a servicemember who is returning to civilian life the right to reinstate civilian 

health insurance policies he or she may have had before departing for 

military service.

 The SCRA is silent, however, as to the rate at which such reinstated coverage is available. Section two of the Servicemembers 

Health Insurance Protection Act would require reinstated coverage 

to be made available at either the same rate as pre-service coverage 

or at a rate no higher than general increases charged by the carrier 

for similar health insurance.

 Finally, Section three of the Servicemembers Health Insurance 

Protection Act of 2005 offers a technical correction to address two 

groups of servicemembers who fall into gaps in coverage provided by 

USERRA’s right to immediate reinstatement of health coverage.

 First, some Reservists who are notified or alerted that they may 

be called to active duty choose to terminate their employer sponsored 

health coverage early. That is before entering military service, and 

then enroll in the military TRICARE plan immediately upon notification.

 Since such Reservists technically have no employer sponsored 

health coverage when they actually leave to perform military duty, 

they are not entitled to immediate reinstatement when they return 

from military service.

 Second, other Reservists who are notified or alerted they may be 

called to active duty are not ultimately brought onto active duty. Un-
31

der existing law, such Reservists who terminate employer sponsored 

health coverage are not entitled to elect immediate reinstatement 

since they actually do not go onto active duty.

 The right of immediate reinstatement is predicated upon serving 

on military duty for some length of time.

 Section three of the bill corrects these gaps in coverage and makes 

clear that both these groups of Reservists are entitled to immediate 

reinstatement in employer sponsored health care plans under Title 

38 U.S.C., paragraph 4317.

 Immediate reinstatement under 4317 is important because it prevents gaps in coverage and the potential exclusions for so-called preexisting conditions that such gaps in coverage may create.

 The Department of Defense defers to the Department of Labor with 

regard to H.R. 419, the Hire Veterans Act of 2004, and to the Department of Labor and Veterans’ Affairs with regard to the Homeless Veterans Re-Integration Program Reauthorization Act of 2005.

 I stand ready to take any questions that you have.

 [The statement of Craig W. Duehring appears on p. 103]

 Mr. Boozman. Thank you.

 Mr. O’Mahoney?

STATEMENT OF T.P. O’MAHONEY

 Mr. O’Mahoney. Good afternoon, Chairman Boozman and Ranking 

Member Herseth. My name is Terry O’Mahoney. I am the Chairman 

of the President’s National Hire Veterans Committee, and it is my 

honor to appear before you today and discuss the mission, the goals, 

and the accomplishments of the President’s National Hire Veterans 

Committee.

 I appreciate the issues connected with transitioning from the military and the challenges our veterans face every day searching for 

employment. I, too, am a veteran.

 Also, I had the opportunity to appear before the House Veterans’ 

Affairs Committee in support of the Jobs for Veterans Act in 2002, 

the very Act that created the President’s National Hire Veterans 

Committee.

 The House Veterans’ Affairs Committee was right in understanding and raising the awareness of employers as to the benefits in hiring veterans, it was needed then and it is needed today, and will still 

be important tomorrow.

 The President’s National Hire Veterans Committee has been busy 

promoting veterans as the employee of choice to our nation’s businesses since its beginning.

 We have launched a national campaign to promote the hiring of 
32

veterans and transitioning of servicemembers. The strategy focuses 

on key decision makers and hiring authorities in business and the 

public sector. The strategy takes an unique approach rather than 

focusing on patriotic duty, it emphasizes veterans as a highly valued 

workforce asset.

 My experience as the Commissioner of Labor for the State of Texas, when I talked to employers, they wanted two things. Trained or 

trainable employees. That is exactly what the veteran gives them.

 The core of our campaign is the www.hirevetsfirst.gov website, 

which offers special zones for employers and veterans. The website 

and the value of hiring veterans has been promoted in banner ads on 

electronic job board websites and a series of advertisement in Business Week and HR Magazine for the value of veterans as a first employee of choice.

 Concurrent with the launch of a national marketing campaign, 

Committee members and staff have worked closely with state officials, local workforce boards, career one stop centers and veterans’ 

groups explaining the mission of the Committee, and the nature of 

the campaign.

 Coordinating through the veteran employment and training services regional and state directors, we encourage the issuance of proclamations by individual state governors for a Hire Vets First Month, 

and I would like to report to both the Chairman and Madam Herseth 

that the governors have signed those proclamations.

 Through the end of calendar year 2004, 16 governors proclaimed 

a Hire a Veteran Month and so far in 2005, we have 12 more state 

proclamations issued and others pending.

 This year, we expect all states, the District of Columbia, Puerto 

Rico and the Virgin Islands to issue a proclamation promoting Hire 

Veterans Month. We are on track to achieve this goal.

 Among our currently appointed Committee members, we have 

representatives from Home Depot, General Motors, Boeing, Regions 

Bank, Leo Burnett and Medco Health, as well as several small businesses.

 The Committee has held regional meetings with strong comments 

about hiring veterans from Ford, Diamler Chrysler, CALPINES, 

CISCO Systems and UPS. Also, the Committee has received significant assistance from our ex officio members from the Department 

of Defense, Department of Veterans Affairs, the Postal Service, the 

Small Business Association, and especially from the Office of Personnel Management.

 Our designated representatives from the VSOs, the SGR, the state 

and local workforce boards, have provided meaningful insight in our 

mission.

 In particular, we have already taken notice of our Committee member, Nick Bacon, who was a top notch soldier and has been absolutely 
33

an excellent member of our Committee.

 If I may, I would like to mention one incident that highlights the 

unique experience that we have had in placing veterans, and in this 

instance, a disabled Iraqi veteran, Sergeant Alfred Kalous.

 I think if you look at the GI Jobs Magazine, the article in particular 

is Leave No Man Behind, Corporate America Hiring Wounded and 

Injured Soldiers.

 Sergeant Kalous was severely wounded in March of 2003 in Iraq 

and lost his left leg. While he was back recuperating in Walter Reed 

Hospital, the local DVOP interviewed him. Sergeant Kalous wanted 

to return to Manhattan, Kansas where he could be an automobile 

mechanic. The Walter Reed DVOP contacted the Manhattan, Kansas 

DVOP and they arranged for Sergeant Kalous to be hired by Lear 

Seigler who had a maintenance contract at Ft. Riley.

 The unfortunate thing about it was that Sergeant Kalous didn’t 

have any tools. His grand daddy’s tool kit had just about given out, so 

he needed some tools. At that time, Mac Tools, the largest distributor 

of quality tools, had become a Hire Vet First employer. That designation was picked up off our website.

 I called Roger Spee, who was the marketing director for Mac Tools, 

to see if he couldn’t help us out. Mac Tools announced they would 

award Sergeant Kalous a $13,000 full mechanic tool kit, and they 

also announced that they would hire a similar veteran each quarter 

through the remainder of 2005.

 This is just one of many stories which we have been able to generate through the Committee.

 I fully support the work of this Committee. In closing, I commend 

you for your support in this initiative and the President’s National 

Hire Veterans Committee continues to look forward to a strong partnership with the House Veterans’ Affairs Committee and this subcommittee in its pursuit of creating more job opportunities for our 

nation’s veterans.

 I look forward to your questions.

 [The statement of T.P. O’Mahoney appears on p. 110]

 Mr. Boozman. Thank you, sir.

 Mr. McWilliam?

STATEMENT OF JOHN M. McWILLIAM

 Mr. McWilliam. Thank you. Chairman Boozman, Ranking Member Herseth, it is my honor to appear before this Subcommittee today 

on behalf of Secretary Elaine Chao. I am the first career Deputy 

Assistant Secretary for the Veterans’ Employment and Training Service. My position was created by the Jobs for Veterans Act.
34

 H.R. 419 would extend the President’s National Hire Veterans Committee through December 31, 2008. As you know, this Committee 

was authorized by the Jobs for Veterans Act to furnish information to 

employers with respect to the training and skills of veterans and disabled veterans, and to facilitate employment of veterans and disabled 

veterans through participation in the national labor exchange.

 We believe it is imperative to connect veterans and employers 

through the use of a nationwide network of one stop career centers.

 The mission of the Department of Labor’s Veterans’ Employment 

and Training Service is to help veterans get jobs, get good jobs, and 

the training needed for those jobs. We must commit our resources to 

best serve veterans.

 We constantly strive to do that. We believe that the President’s 

Hire Veterans Committee is fulfilling its mandates of raising employer awareness and improving the connectivity of employers with the 

one stop career centers.

 If the Committee decides to reauthorize the President’s Hire Committee, we will continue to take it in the direction intended by the 

Congress.

 Having said that, Mr. Chairman, the Administration has not taken 

a position on this legislation. I do want to reiterate that the Department of Labor believes in the work of the Committee.

 We appreciate the foresight of this Committee to introduce the 

Homeless Veterans Re-Integration Program Reauthorization Act, 

and we fully support the extension of this program.

 As you know, HVRP is the only Federal employment program designed specifically to address the employment problems faced by our 

nation’s homeless veterans.

 We at the Department of Labor share your commitment to the goal 

of ending chronic homelessness. Like you, we are deeply disturbed by 

the high number of veterans among the homeless population.

 The Department of Labor has made helping homeless veterans a 

top priority.

 HVRP is our hallmark homeless program within the Department. 

This intervention program provides counseling, job placement and 

training services, as well as helping deliver other funding streams 

that provide supportive services.

 While DOL is proud of the services it is providing to homeless veterans, we know that we cannot do it alone. Successful HVRP programs 

focus on partnering with the Departments of Housing and Urban Development, Veterans’ Affairs, and Health and Human Services, as 

well as local based and community based organizations, social service 

agencies, veterans’ service programs, and private organizations.

 Concerning the Servicemembers Health Insurance Protection Act 

of 2005, we would like to offer to provide technical assistance to the 

Committee on this issue, to clarify the protection from unfair rate in-
35

creases and to ensure that any amendment addresses both the front 

end and back end issues relating to extended TRICARE coverage.

 Concerning the Servicemembers Taxation Protection Act of 2005, 

the Department of Labor generally supports appropriate legislation 

to benefit servicemembers but respectfully defers to the Departments 

of Defense and Veterans Affairs on this matter.

 Mr. Chairman, that concludes my testimony. I am pleased to respond to any questions.

 [The statement of John M. McWilliam appears on p. 123]

 Mr. Boozman. Thank you all very much for your testimony. We appreciate you being here.

 You mentioned the Puerto Rico situation, the double taxation issue 

there. Can you give us some other examples where the double taxation has come up under current law?

 Mr. Duehring. I asked our folks that very question. They said it is 

resident in Puerto Rico right now. Apparently, there are some other 

states. I can’t give them to you, where this could occur but it has 

never happened to our knowledge.

 As I mentioned in my testimony, with the decrease in the number 

of soldiers that are going through Puerto Rico nowadays, the problem 

is actually very, very small, almost to non-existent. It’s a possibility 

it could happen, but there is really no track record now that I can 

point to.

 Mr. Boozman. What does the DOD recommend for an effective date 

for the USERRA amendment to limit premium increases on reinstated health insurance?

 Mr. Duehring. Mr. Chairman, we see two options on that. One is to 

implement it as of the date of enactment of the legislation. The other 

is to go back to the date of the effective date of order provision, which 

I think is November 24, 2003. That is the legislation that actually 

opened the gap that we are trying to close.

 Mr. Boozman. Ms. Herseth?

 Ms. Herseth. Thank you, Mr. Chairman, and thank you for your 

testimony.

 Mr. Duehring, I thank you for your testimony and I appreciate your 

support of the Servicemembers Health Insurance Protection Act, but 

on a related note, I think it was last week or the week before, the subcommittee held a hearing on VA’s vocational, rehabilitation and employment services that relates to seriously injured servicemembers.

 At the hearing, the VA testified that a memorandum of understanding would be signed shortly that dealt with collaboration between DOD and the VA, and it would improve the relief and recovery 

of our seriously injured servicemembers.

 I am wondering since the memorandum of understanding spells out 
36

the policies and procedures to allow the VA access to disabled servicemembers for purposes of providing early rehabilitation and recovery 

services, if you know the status of that memorandum of understanding.

 Mr. Duehring. I’m aware of the existence, but I’d like to defer to the 

Department of Labor to see if they have any information on it. If not, 

I’d like to take that question back and give you a proper answer.

 [DoD/VA Memorandum of Understanding appears on p. 132]

 Ms. Herseth. Thank you. If you could, I think the representative 

from the VA was going to do the same.

 Ms. Bascetta. I have some information. I received a letter today 

from the Deputy Secretary at VA acknowledging our January report. 

It was their 60 day letter reporting on how they would comply with 

the recommendation, and in that letter, he indicated that as of the 

25th of April, the MOU has still not been signed. I believe it is at 

VHA at this time.

 Ms. Herseth. Has DOD signed it?

 Ms. Bascetta. I’m not sure.

 Ms. Herseth. If we could ask you to follow up and then we will ask 

VHA to give us an update as well.

 Mr. O’Mahoney, if you could, just a couple of things. We received 

some information on the statement of income and expenses for the 

Hire Committee that was provided by the Department of Labor 

staff.

 I am wondering if either you or Mr. McWilliam could brief us. It’s 

not very instructive. It doesn’t provide as much detail perhaps that 

would be useful.

 A lot of the money here, out of the total resources for fiscal year 

2004 and anticipated expenditures for 2005, come under marketing 

and contract services and travel.

 I am wondering if you could spell a little bit of this out in terms of 

how the Hire Committee is utilizing its resources to fulfill the mission 

of the Committee.

 Mr. McWilliam. The marketing and contract services are just that. 

They are a contract with a contractor that was awarded on a competitive basis to provide marketing services to the Committee.

 I will ask T.P. to explain a little bit more of that.

 Mr. O’Mahoney. The contract was let with TMP for less than 

$500,000. With that, we were able to create the website. We were 

able to bring up the Business Week Wraps. We were able to go ahead 

and produce the folders which you had today.

 I would say that TMP has been about as gracious and efficient contractor I have ever worked with, and I think we are more than getting 

our money’s worth.
37

 Ms. Herseth. Mostly public relations, publications and documents?

 Mr. O’Mahoney. Yes, ma’am.

 Ms. Herseth. The travel, I see a significant increase in terms of 

anticipated expenditures from last year at $30,000, nearly $31,000, 

to this year at $116,000.

 Mr. McWilliam. Ma’am, I believe the $116,000 is an over estimate 

of the travel for the remainder of the year for the Committee meetings. That should be somewhere around $40,000. We submitted that 

in error.

 The next line down, the next $40,000 of the DVOP/LVER row, is for 

the travel of marketing representatives that we have.

 Ms. Herseth. We may want to seek some clarification after this 

hearing, just to spell this out a little bit more for us.

 On the lines of the DVOP and LVER programs, given the concerns 

that the first panel expressed as advocates on behalf of veterans, if 

the Committee is reauthorized, some of the additional funding would 

come from these chronically under funded programs that serve our 

veterans quite well.

 Mr. McWilliam, what are your thoughts on that? If you could also 

talk maybe about why -- you alluded to the fact that the Administration hasn’t taken a position on the extension, but is that why the 

Department of Labor didn’t request full funding for the Committee, 

and then also, if the Committee isn’t reauthorized, do you think the 

Department of Labor and the Veterans’ Employment and Training 

Service could continue as part of its own mission the work of the 

Committee in light of the prior existing relationship with the one stop 

career centers?

 Mr. McWilliam. Congresswoman, we see the work that is done by 

the Committee as extending the work, the business outreach work of 

the LVERs who are at the career one stop centers. It takes it from the 

grassroots level to the national level.

 The funding for the President’s Hire Committee has come as we 

submitted currently from the state grants of approximately $500,000 

a year, and the remainder from other internal sources that we have 

within Vets.

 The $500,000 from the DVOP and LVER program from the state 

grants, each year the states are unable to obligate 100 percent of the 

funds that we allocate to them through the service. The $500,000 

represents about three-tenths of one percent, and we don’t feel that 

has a significant impact upon the funding for that program.

 Ms. Herseth. Thank you. Thank you, Mr. Chairman.

 Mr. Boozman. Thank you.

 Looking at the financial report of the program and listening to Ms. 

Herseth and counsel, I think what I would like to see, and I think 

they would also, is a much more detailed report of this.
38

 If you all could provide that, it would be very helpful.

 Mr. McWilliam. We can, Mr. Chairman, certainly.

 Mr. Boozman. Thank you very much.

 The previous panel, one of the individuals, and if you all have any 

input into this, one of the things that came up was one of the gentlemen said he felt like it was difficult to provide services in such a 

way that he could really -- you almost really had to treat the whole 

person.

 That kind of resonated with me. It does seem like it is difficult 

to perform this part of the function and then somebody else is doing 

this, and yet, all that ties together with what is going on with them.

 Can anybody comment on that?

 Mr. McWilliam. Mr. Chairman, I think for the homeless programs, 

as you heard today from the two HVRPs that are very successful, 

they are masters at doing that, and integrating mental health, addiction problems, housing, and then finally, employment. They are real 

keys on that.

 We think there is a lot to be learned from these best practices from 

these certain HVRPs, and we are putting together a manual so that 

when we have our annual meeting of all the grantees, that we can 

provide the best practices to them.

 During the break, we were talking with your staff on exactly how 

to approach that and how to package that so that the really good best 

practices from these HVRPs can be used by all of them.

 Ms. Bascetta. I would agree with that. In our work not only on 

homeless veterans but on temporary assistance for needy families, 

other people with disabilities who are in programs to help them 

achieve self sufficiency, a case management approach where a team 

of people with different sets of expertise works together and help a 

person along all the milestones seems to be one of the most effective 

ways to achieve the goals.

 Mr. Boozman. Ms. Bascetta, you mentioned the absence of performance measures. When will the Department complete the requirements?

 Ms. Bascetta. They do have measures. They have job placement 

measures and they are actually measuring job retention at 90 and 

100 days. What they don’t have yet is a goal for retention, which 

means that in terms of overall performance, what percentage of the 

individuals who obtain jobs were able to retain that employment over 

some period of time.

 I believe they have indicated they are going to set such a goal for 

the 2007 program year.

 Mr. Boozman. We certainly appreciate all of the panels being here 

today and appreciate your testimony. It has been very, very helpful.

 I want to remind the Committee that we will have a mark-up in the 

morning. It shouldn’t take very long at all.
 The meeting stands adjourned. Thank you very much.

 [Whereupon, at 4:40 p.m., the subcommittee was adjourned.]

39
(40)

APPENDIX
41
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