Thursday, June 30, 2005 | 11:03 a.m.
WASHINGTON -- Veterans Affairs Secretary James Nicholson today asked Congress for $975 million to make up a budget shortfall estimated to be between $1 billion and $1.6 billion this year.
Nicholson has been under fire since last week when the department disclosed the shortfall, Much of the criticism has been about the fact that the disclosure did not come sooner. Nicholson has said an actuarial model that relied on three-year-old data did not accurately predict increased usage of the VA health system by Iraq and Afghanistan veterans, as well as increased use by veterans from other wars.
Lawmakers have said VA officials in their districts are bringing them stories about cutbacks, including cuts to non-emergency surgery, staffing, even patient meals.
Southern Nevada's sprawling system of clinics and the Mike O'Callaghan Federal Hospital at Nellis Air Force Base have not been hurt by department budget woes, director John Bright said in an interview on Wednesday.
Bright also said he still expects ground to be broken next year for a $295 million veterans medical complex in North Las Vegas, scheduled for a 2009 opening. The complex would centralize veterans services in a new hospital, outpatient clinic and nursing home. Roughly $199 million has been budgeted in the next fiscal year to begin construction.
At a House Veterans Affairs Committee hearing today, Rep. Shelley Berkley, D-Nev., sought additional assurances from Nicholson that the department's new construction money would not be used to cover budget shortfalls.
"We need to get our funding on sure footing," panel member Berkley told Nicholson, who was facing his third congressional hearing this week. "We can't rob Peter to pay Paul."
Nicholson said on Tuesday that he could make up the shortfall with $625 in equipment-purchase and maintenance money, as well as $375 million in surplus money he had expected to carryover into the next budget year. But today he formally asked Congress for an immediate infusion of emergency cash.
The Senate was already ahead of him, on Wednesday approving $1.5 billion to cover the VA shortfall. The House could act as early as today on Nicholson's request.
The issue of a VA budget shortfall has become a political one this week.
Democrats say they have known for months and long argued that the VA department faced a shortfall, based on budget analysis by veterans groups and independent research. Democratic attempts to approve more money were thwarted by GOP leaders, they say.
Leaders in both parties have placed some blame on the White House and its budget officers for setting an inadequate budget for the department.
Democrats also blame Nicholson for not acknowledging the shortfall when it became obvious.
"I am absolutely flabbergasted that the VA and the administration knew they were operating in the red in April and they let us go on with this charade until now," Berkley said.
There were several testy exchanges between Republicans and Democrats at the hearing today, as Democrats sought to lay blame on their GOP colleagues. Several Democrats were irked when panel chairman Rep. Steve Buyer, R-Ind., suggested that predicting the VA's budget needs was as difficult as predicting lottery numbers.
Rep. Bob Filner, D-Calif., asked Nicholson, who took the job in February, for his resignation. "No, sir" Nicholson replied.
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