FederalDaily.com > VA Announces $1 Billion Budget Shortfall

FederalDaily - June 27, 2005

VA Announces $1 Billion Budget Shortfall

The Department of Veterans Affairs (VA) announced last week that is has a $1 billion budget shortfall. After the announcement, Sen. Patty Murray, D-Wash., introduced an emergency supplemental bill that would provide the extra $1 billion. “The deficit could mean reduced veterans’ health care or longer waits for care as they return home,” said Sen. Jay Rockefeller, D-W.Va. “I find today's admission by the VA that they will need an estimated $1 billion more in emergency funding just to get through fiscal year 2005 appalling, but not surprising,” said Murray. In April this year, VA Secretary Jim Nicholson stated in a letter, “I can assure you that VA does not need emergency supplemental funds in FY2005 to continue to provide timely, quality service that is always our goal.” Rockefeller said the administration “has failed to admit the true state of the VA budget” for months.

Feds Sue over Locality Pay

Federal employees in Hawaii and Alaska on June 22 filed a class action lawsuit against the federal government challenging the fact that they do not get locality pay. They said government policies “unfairly and irrationally discriminate against federal employees who work and reside in Hawaii and Alaska.” They stated that federal employees in the other 48 states receive retirement pay that is about 12 to 26 percent higher than that paid to feds in Hawaii and Alaska. That is because feds living and working in Hawaii and Alaska are excluded from receiving any locality pay—their retirement pay is based solely on their base pay. The lawsuit seeks to include these employees under the locality pay program.

FAA Employees Covered Up Errors

According to the Office of Special Counsel (OSC), a Department of Transportation (DOT) report confirms that air traffic personnel systematically covered up operational errors at Dallas Fort Worth International Airport (DFW) for seven years, jeopardizing air traffic safety. A whistleblower, Anne R. Whiteman, an 18-year air traffic controller at DFW, alleged that other controllers and management at the DFW Terminal Radar Approach Control routinely covered up serious operational errors and deviations involving aircraft. She disclosed to OSC that many incidents involving aircraft flying too close to each other, on average once a month, were often neither reported nor investigated. The DOT Office of Inspector General investigated and substantiated Whiteman’s allegations. A local “honor policy,” which relied only on controllers’ honesty about errors, ran counter to FAA’s national policy, OSC stated.

FBI Agent Admits Illegal Snooping

Lynn Wingate, a former FBI special agent, pleaded guilty last week to obstruction of justice after interfering with an investigation relating to Amr "Anthony" Elgindy and former FBI Agent Jeffrey A. Royer, according to the Department of Justice. Wingate accessed the FBI's confidential law enforcement computer system and then relayed confidential information to Royer, who was one of the subjects of the investigation. In January 2005, Royer and Elgindy were convicted of racketeering, securities fraud and other crimes in connection with their scheme to steal confidential law enforcement information relating to FBI and Securities and Exchange Commission investigations of various companies, which they used to trade in the stock of those companies and make millions of dollars. Wingate admitted she was involved in a personal relationship with Royer, who had resigned as an FBI agent and was employed by Elgindy. She looked at FBI information relating to the investigation of Elgindy and she told Royer his name was included in the files.