STATEMENT OF THE GOVERNOR, U. S. SOLDIERS' AND AIRMEN'S HOME PRESENTING THE FY 1979 BUDGET TO THE CONGRESSIONAL SUBCOMMITTEES PURPOSE The purpose of this statement is to furnish information on the Home which may be of interest during the committee's consideration of the Home's fiscal year 1979 appropriation request. Included is pertinent information on the Home: its mission, administration, physical plant, financing, and members. The statement also provides a general description of the fiscal year 1979 appropriation request as compared with the fiscal year 1978 appropriation. MISSION The Home was established by Congress in 1851 for the relief and support of old, invalid, or disabled soldiers of the Regular Army. Basic eligibility criteria have not been changed except to cover airmen and enlisted women of both services. The Home's name has been changed to properly reflect the airmen's eligibility and vested interest. Membership is a benefit for former warrant officers and enlisted personnel of the Regular Army and Air Force with the following qualifications: (1) honest and faithful service for twenty years or more as warrant officers or enlisted personnel, or (2) service-connected disabilities rendering them unable to earn a livelihood, or (3) nonservice connected disabilities rendering them unable to earn a livelihood, provided thay have had service during a war. These criteria are listed in this order, not as priorities, but because about eightysix percent of the membership is of the first group, and about fourteen percent is of the disabilities groups. ADMINISTRATION General supervision of the Home was placed by Congress in a Board of Commissioners now composed of the Governor of the Home, the Comptroller of the Air Force, the Chief of Engineers of the Army, the Surgeon General of the Army, the Judge Advocate General of the Air Force, the Adjutant General of the Army, the Assistant Deputy Chief of Staff for Personnel of the Air Force, the Sergeant Major of the Army, and the Chief Master Sergeant of the Air Force. Subject to approval by the Secretary of the Army and the Secretary of the Air Force, the Board has authority to establish regulations for the internal direction of the Home. Thw law provides for an annual report of inspection of the Home by the Army Inspector General and Auditor General to be submitted to Congress, PHYSICAL PLANT The Home is situated in northwest Washington, D. C. Facilities include four domiciliary and three hospital buildings, a service area, a The domiciliary heating plant, a laundry, and some minor structures. capacity of the Home is 2149 beds. Our hospital has a constructed capacity of 410 beds, with optimum usage of 348. Throughout the years, the loss of Home lands to other activities has reduced the acreage from about 500 to the present 300. The members of the Home are grateful for the support provided by committees of Congress for retention of the Home's land against proposals to further reduce it. FINANCING The Act of 1851 provided that the Home be supported from two principal Sources: (1) a monthly contribution while on active duty of twenty-five cents from each enlisted member and warrant officer of the Regular Army and Air Force, and, (2) fines and forfeitures imposed upon these personnel by sentence of courts-martial, The Act of 1883 established a Permanent Fund in the U. S. Treasury and provided for the payment of interest of 3% per annum on the fund balance. On December 15, 1973, the Act of 1883 was amended so as to increase the interest paid on our Permanent Fund balance. This increased rate is determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States. Under this amendment, the Home is now receiving about 6.5% interest on its fund balance. In addition, Public Law 94-454, October 2, 1976, authorized the collection of a fee from the members of the Home and an increase from twenty-five to fifty cents in the amount of the monthly active duty deduction. was $92 million. The Permanent Fund balance on September 30, 1977 MEMBERSHIP Our male members range in age from 39 to 100, with an average age of 64. Our female members range in age from 45 to 83, with an average age of 69. There are 81 female members. Average total membership during fiscal year 1977 was 2,308, including 2,206 present. Fiscal year 1978 average total membership is expected to be 2,270, including 2,175 present. The fiscal year 1979 budget is based on an average total membership of 2,225, including 2,130 present. Because Home membership was fast approaching full capacity, the Board of Commissioners'- approved priority system for admission to the Home was implemented in February, 1974. Our hospital is full, which accounts for our Waiting List of approximately 160 persons, all of whom require extended hospitalization. 25-260 (Pt. 7) O 78 - 66 THE FISCAL YEAR 1979 BUDGET FOR OPERATION AND MAINTENANCE The Home's fiscal year 1979 operation and maintenance appropriation request at $16,939,000 is $57,000 more than its fiscal year 1978 appropriation of $16,882,000, which includes a $526,000 pay raise supplemental. A detailed description of the $57,000 increase is included in the Home's justification booklet which has been submitted to the committee. In summary, this $57,000 increase is a net of the following additions and reductions in program changes: Additions of $328,000: $127,000+: 105,000+: 96,000+: In FY 79, the Home plans to spend $147,000 to replace two Increased reimbursement in FY 79 (over that of FY 78) to the Reductions of $271,000: $180,000-: A reduction of 15 man-years of employment in full-time permanent positions to be made through attrition and distributed in areas least likely to impact on the care of members. Because of large expenditures in FY 77 and 78 to compensate for past deferrals, the amount of routine painting and roofing is reduced in FY 79. 46,000-: 24,000-: A reduction in the average number of domiciliary members will decrease the cost of food and supplies. 21,000-: Miscellaneous program reductions and additions, respectively: $15,000 less severance pay, $3,000 less equipment repairs, and $11,000 increased QSL receipts, totaling $29,000, offset by a $6,000 increase in data processing and a $2,000 increase in employee tuitions. CAPITAL OUTLAY The Home is not requesting an appropriation for Capital Outlay in fiscal year 1979. |