TESTIMONY OF
JOHN J. DALY
LEGISLATIVE ASSISTANT
THE RETIRED ENLISTED ASSOCIATION
BEFORE THE
HOUSE VETERANS AFFAIRS COMMITTEE
SUBCOMMITTEE ON BENEFITS
CONCERNING THE
MONTGOMERY GI BILL
MAY 20, 1999
Biography of John J. Daly
Legislative Assistant
The Retired Enlisted Association
John Daly, a native of Woodbury Heights, New Jersey, first came to Washington, DC in the fall 1994 as an intern in the United States Department of Commerce. Following the earning of a Bachelor’s Degree in International Relations from St. Joseph’s University in Philadelphia, in May of 1996, Daly returned to Washington, DC as an intern in the White House, serving in the Office of Vice President Al Gore. After completion of the internship program, Daly became the Staff Assistant at American Defense International, Inc., a Washington, DC based government relations and business development firm.
In December of 1997 Daly joined the staff in the Legislative Affairs Office of The Retired Enlisted Association as the Legislative Correspondent. He presently serves as TREA’s Legislative Assistant, as well as co-chairman of The Military Coalition’s Committee on Morale Welfare and Recreation/Military Construction/Base Realignment and Closure.
John, and his wife Kerry, reside in Alexandria, Virginia.
DISCLOSURE OF FEDERAL GRANTS OR CONTRACTS
The Retired Enlisted Association does not currently receive, has not received during the current fiscal year or either of the two previous years any federal money for grants or contracts. All of the Association’s activities and services are accomplished completely free of any federal funding.
Mr. Chairman, distinguished Committee members, The Retired Enlisted Association appreciates the opportunity to come before you today to discuss one of the most important pieces of legislation ever passed by this body. When Congress passed the original GI Bill the face of America changed forever. While it is impossible to quantify, we can imagine the number of doctors, scientists and teachers, and members of this institution, who were able to pursue a college education because of the GI Bill. We can also imagine the number of quality personnel who served our nation in the Armed Forces in order to become eligible to receive the GI Bill. We come here today to discuss how we can improve on this tremendous program to guarantee that the youth of America are drawn to the all-volunteer force and to guarantee those who serve have a quality educational benefit.
The GI Bill is a unique program in that it is not specifically a recruiting tool. It is also a transition benefit for those transitioning from military service back to civilian life. Therefore, any changes to the GI Bill must be weighed by the impact they will have on the recruit and the veteran. The Retired Enlisted Association, along with all veterans organizations, anxiously awaited the report of the Commission on Servicemembers and Veterans Transition Assistance and the recommendations it would make concerning the Montgomery GI Bill (MGIB). We were pleased with the recommendations of the Commission and are grateful the Chairman Stump and Ranking Member Evans have introduced legislation which would carry out several of these recommendations. HR 1182 (Rep. Stump) and HR 1071 (Rep. Evans) underscore one primary realization - The GI Bill, in its current form, needs to be modified to continue to provide both a quality recruiting and transition benefit. I would now like to address specific issues involved in determining any recommended changes to the Montgomery GI Bill.
TUITION COSTS VS. GI BILL PAYMENT
Mr. Chairman, the Armed Forces of the United States are, in the eyes of many today, an employer. They provide job training, experience and associated benefits. Like any other employer, the Armed Forces must compete for high quality employees with other organizations. In the past, the military was able to attract these quality personnel by offering the GI Bill. Service in the military equated to a college education. Today, the military continues to offer this assistance, as do most large corporations. The concept of working to earn money for college is not a new one and not monopolized by the military.
Now, the GI Bill does not even offer a benefit that competes with some corporations.
Since the MGIB was implemented, the increase in cost of higher education has far outpaced inflation. Unfortunately, MGIB payments have not kept pace, thereby dramatically increasing the payment required from the veteran. Further, the number of married veterans has put an additional emphasis on the gap between college tuition and the purchasing power of the MGIB. An 18 year old who is trying to determine whether or not they should enter the service is going to compare the benefits with other potential employers. It would be foolish of us to think that the potential recruit will fail to recognize that the purchasing power of the GI Bill is going to be reduced every year. How can this compare with a corporation which offers a set percentage, regardless of tuition increases? Obviously it cannot, and our military is suffering because of it.
The recommendations of HR 1071, which recommends the GI Bill cover 100% of tuition, fees, books and supplies, and HR 1182, which recommends coverage of 90% of tuition and a reasonable cost of books and supplies will both certainly help alleviate this existing gap. Certainly, any increase in tuition payments will make the GI Bill a more attractive recruitment tool and a more efficient transition tool. However, we are concerned with the required off-sets for such increases. The MGIB, as you all know, is mandatory spending, and is therefore capped as a result of the Balanced Budget Agreement. Further, an increase would require an off-set which would need to come out of another Veterans Benefit account, an off-set which would likely harm another benefit program. While we would welcome any increase in GI Bill benefits, we must urge caution on the part of Congress to protect, and maintain, existing benefits.
As previously stated, the MGIB is not just about recruitment. By improving the reimbursement schedule of the MGIB, Congress will be helping veterans find it easier to attend college without worrying over how they would have to stretch often scarce resources.
If Congress determines that the GI Bill will pay a percentage of tuition and fees, we would recommend that this Committee consider implementing legislative language which would index the payments on tuition and fees an amount equal to the average increase in tuition at institutions of higher learning. This language would help avoid having the future version of the GI Bill lose its purchasing power in the not-too-distant future.
ENROLLMENT FEE
As previously stated, the MGIB is, essentially, an employee benefit. It is a benefit which the employee has to pay to be a part of. Currently, members of the Armed Forces pay $1,200 over the first year of their service in order to be eligible to receive the educational benefits of the MGIB. This fee is yet another deterrent to young people interested in military service. The Retired Enlisted Association supports legislation which will eliminate the present MGIB enrollment fee.
TRADITIONAL FOUR YEAR DEGREE VS. NON-TRADITIONAL SCHOOLING
As the face of society has changed, so has the practical definition of "education." No longer is a four year college degree the only available form of "higher education." In particular, servicemembers with technical or computer training may leave the service and take an intensive training program over several months. These programs may cost the same amount as college tuition but be required in a far shorter time frame. We would urge the Committee to consider developing an accelerated payment program whereby veterans who enroll in certified educational programs can receive payments at an amount equal to the schedule of their payments.
VEAP PARTICIPANTS
The Retired Enlisted Association strongly urges Congress to allow those servicemembers who are participants in the Veterans Education Assistance Program (VEAP) to be provided the opportunity to enroll in the program of basic education assistance as outlined in HR 1071. Many Vietnam-era servicemembers withdrew money from their VEAP accounts and, therefore, were left without any educational benefits. All (VEAP) participants on active duty as of Oct. 9, 1996, should be allowed to "convert" to the MGIB, without regard to whether or not they had previously withdrawn their
contributions to VEAP. VEAP conversion became a reality for some service members in 1996. Unfortunately, when the law was changed, a legal ruling determined that participants who had no balance in their VEAP accounts were ineligible to convert to the MGIB. TREA believes failure to correct this problem is unfair to the some 100,000 VEAP members on active duty "left behind" with an inferior education benefit, especially since most acted on their service's advice to withdraw their funds from their VEAP accounts. These improvements are estimated to cost approximately $200 - 300 million.
CONCLUSION
Mr. Chairman, TREA is pleased to here today to participate in the discussion of such an important benefit program. The GI Bill has made this country what it is today. From those who fought tyranny in the Balkans during World War II to those fighting for freedom there today, the GI Bill represented an opportunity to better yourself. It draws people into military service and provides those who serve this nation honorable an opportunity they may not have had. It has made the second half of the 20th Century in this country. Now, as we look into the 21st Century, we can envision the impact that the GI Bill will continue to have on future servicemembers. At the same time we must realize that the GI Bill needs to change so it may continue to provide a worthwhile benefit. By increasing the tuition reimbursement, eliminating the enrollment fee and guaranteeing that this benefit will not lose its value in future years, Congress will have helped guarantee that the Armed Forces of the United States continue to attract top quality personnel.
Mr. Chairman, thank you for your time. I will be pleased to answer any questions you may have at this time.