Thank you, Mr. Chairman. I am pleased to be here today and join you in welcoming Secretary Brown and the other VA representatives. I regret that I will be unable to stay through the entire hearing, but I would like to welcome the VSO representatives who will be testifying later this afternoon.

Mr. Chairman, as we all know, providing discretionary funding for domestic programs, like veterans' medical care, is becoming increasingly difficult. Additional reductions in all domestic programs are expected in the future if we are to achieve a balanced budget in FY02. There is no doubt that we must reduce federal spending, but we must do so in a manner that ensures these reductions are conducted in a fair and sensible manner.

I have reviewed the Administration's budget proposal and have several concerns which I would like to outline here. The first is the VA proposal that seeks to retain third-party reimbursements to finance the additional $485 million in medical care funding. Third-party payments were previously proposed; however, the VA still has to resolve a number of concerns that were raised. VA has relied on this accounting change which may not materialize. I hope that the Secretary will share with us his thoughts on how the VA plans to provide the current level of medical care services to our nation's veterans if the third-party reimbursement proposal is not adopted in FY98.

My second concern is the proposed reductions in the Veterans Benefits Administration (VBA) personnel. For the past several years, I have raised concerns about the continuing backlog in veterans claims. In FY98, the VBA is proposing a reduction of 543 FTEE. Unfortunately, it seems that this personnel reduction will affect the very employees who are processing the claims. Thus, this proposed employee reduction would exasperate an ongoing problem rather than leading to its resolution.

Another concern I previously raised was the funding for the Centers for Minority and Women Veterans. Last year, these Centers were caught in a budget crossfire which inhibited their efforts to carry out their statutory responsibilities. I believe that the Centers for Minority and Women Veterans should remain under the Secretary's purview; however, ensuring adequate funding is provided to the Centers continues to be an issue.

Finally, I have a program which is very important to me and our Native Americans veterans, the Native American Veterans Direct Home Loan Program. Congress enacted this five-year pilot program in 1992. The Native American Direct Home Loan program is successful in providing housing benefits to Native American veterans who reside on reservation or other trust lands. The Native American Direct Loan Program allows Native American veterans the same access to VA home loan benefits enjoyed by other veterans. Over one hundred Native Americans veterans are now homeowners because of this program, with no defaults on any existing loan. This program has proven its viability and necessity. I understand that VA has requested a two-year extension of the program. However, I strongly believe that we have an obligation to ensure equal access to veterans home loan benefits for Native American veterans, and I hope that VA will support a permanent authorization of this vital program.

Thank you, Mr. Chairman. I look forward to working with you and other members of the Committee in addressing these concerns to ensure that VA is able to continue providing quality care and benefits to our nation's veterans. At the appropriate time, I would like to address a few questions to Secretary Brown.

Thank you, Mr. Chairman.