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Jenny Kouri
DOS 752
November 20, 2015
Veteran Affairs (VA) 2016 Budget
President Obamas Budget for the Fiscal Year (FY) 2016 was addressed in the latest State
of the Union and is designed to overcome challenges presented in the 21st Century such as
(broadly speaking) strengthening the middle class, making a high-quality college education more
affordable, creating a 21st century economy, keeping Americans safe at home and abroad,
creating a government for the future, achieving fiscal sustainability and promoting sustainable
growth. The budget achieves $1.8 trillion in deficit reduction, primarily from reforms to health
programs, tax code, and immigration.1 So, where does the VA fit in?
The president annually submits a VA budget request, which addresses the necessary
means to support Veterans, their families, and survivors with access to the highest quality health
benefits and services.2 In November of each year, The FY Agency Financial Report (ARF) is
published to inform Congress, the President, and the public results on the VAs financial progress
throughout the year. The budget is formulated and executed in a mannerly fashion as shown
below.3

Cycle
Internal
Budget
Review

Month
May

Description
The Department issues internal guidance

June

Offices submit preliminary budget requests and

legislative proposals
Internal budget discussions and final agency
decisions by Secretary
Prepare the budget submission to OMB
Budget request submitted for OMB

July

Budget
Formulatio
n

OMB and
President's
Budget
Review

Aug.
Sept.
Oct.
Nov.-Dec.

OMB conducts hearings and reviews the budget

request
OMB Passback and final decisions on appeals

Dec.-Jan.
Congressiona
l Budget
Review

Preparations of the President's budget and

Congressional Justifications
1st Monday in Submission of budget to Congress
Feb.

Feb/March
April &
Beyond
*OMB (Office of Management and Budget)
FY Quarter

Month

Description

First Quarter

Oct.

Fiscal Year Begins; prepare apportionments;

issue funding allocations
Submit budget and performance operating plans
within 30 days after enactment
Submit Performance and Accountability Report
of previous fiscal year
Submit quarterly budget status report to
Congress
Submit quarterly budget status report to
Congress
Issue instructions for preparations of annual
budget and performance operating plans for
next fiscal year
Close out Fiscal Year

Nov.
Jan.
Budget
Execution

Congressional hearings on VA's budget request

Congress completes action on the budget
resolution and enacts

Second
April
Quarter
Third Quarter July
Fourth
Quarter

Oct./Nov

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The VA is estimated to serve 9.4 million Veteran patients who are enrolled in VA Health
Care in the fiscal year beginning October 1, 2016. This includes 1.4 million Veterans who served
in Operation Enduring Freedom/Operation Iraqi Freedom/Operation New Dawn.4 The goal of the
2016 Budget is to eliminate the disability claims backlog and homelessness among Veterans.
President Obamas 2016 VA Budget purposes $168.8 billion, $95.3 billion is mandatory
(disability compensation and pensions) while the remaining $70.2 billion is discretionary funding
(primarily health care related). The 2016 discretionary funds have increased 7.5% from the 2015
Budget and total funding 73% from 2009.2,5 The health care funding allocation is as follows: 4

$7.5 billion for mental health

$2.8 billion for prosthetics
$556 million for spinal cord injuries
$232 million for readjustment counseling
$7.5 billion for long-term care
The Budget includes funding for construction of facilities/equipment, national

cemeteries, and information technology. The Budget covers all of the VA Medical Centers
nation-wide and is divided appropriately among size of the facility, number of patient beds, and
services provided. The Budget is regulated by the government and distributed from facility to
facility. The Minneapolis VA has a larger region, covering patients in the surrounding states of
Minnesota and is funded accordingly (Cat S, oral communication, November 20, 2015).

References

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1. The Presidents Budget for Fiscal Year 2016. Office of Management and Budget.
https://www.whitehouse.gov/omb/budget/. Accessed December 1, 2015.
2. Office of Budget: Annual Budget Submission. U.S. Department of Veteran Affairs.
http://www.va.gov/budget/products.asp. Updated September 28, 2015. Accessed
December 1, 2015.
3. Office of Budget: Generic Annual Budget Time Frame. U.S. Department of Veteran
Affairs. http://www.va.gov/budget/timeframe.asp. Updated September 28, 2015.
Accessed December 1, 2015.
4. Office of Public and Intergovernmental Affairs: Care and Benefits for Veterans
Strengthened by $169 Billion VA Budget. U.S. Department of Veteran Affairs.
http://www.va.gov/opa/pressrel/pressrelease.cfm?id=2675. Published February 2, 2015.
Accessed December 1, 2015.
5. VA 2016 Budget Request: Fast Facts. U.S Department of Veteran Affairs.
http://www.va.gov/budget/docs/summary/Fy2016-FastFactsVAsBudgetHighlights.pdf.
Accessed December 1, 2015.