Second, we have focused the Va health care system in the needs of the service-connected disabled veteran.  We initiated and are implementing the first reform of the Va vocational rehabilitation system since its inception in 1943.  Also, my Administration was the first to seek a cost-of-living increase for the recipients of Va compensation every year.  My last budget also makes such a request.  The Administration also launched the Disabled Veterans Outreach Program in the Department of Labor which has successfully placed disabled veterans in jobs.  Services provided by the Va health care system will be further targeted to the special needs of disabled veterans during the coming year.

Third, the Va health care system, the largest in the free world, has maintained its independence and high quality during my Administration.  We have made the system more efficient and have therefore treated more veterans than ever before by concentrating on out-patient care and through modern management improvements.  As the median age of the American veteran population increases, we must concentrate on further changes within the Va system to keep it independent and to serve as a model to the nation and to the world as a center for research, treatment and rehabilitation.

Government Assistance

GENERAL AID TO STATE AND LOCAL GOVERNMENTS

Since taking office, I have been strongly committed to strengthening the fiscal and economic condition of our Nation’s State and local governments.  I have accomplished this goal by encouraging economic development of local communities, and by supporting the General Revenue Sharing and other essential grant-in-aid programs.

GRANTS-IN-AID TO STATES AND LOCALITIES

During my Administration, total grants-in-aid to State and local governments have increased by more than 40 percent, from $68 billion in Fiscal Year 1977 to $96 billion in Fiscal Year 1981.  This significant increase in aid has allowed States and localities to maintain services that are essential to their citizens without imposing onerous tax burdens.  It also has allowed us to establish an unprecedented partnership between the leaders of the Federal government and State and local government elected officials.

GENERAL REVENUE SHARING

Last year Congress enacted legislation that extends the General Revenue Sharing program for three more years.  This program is the cornerstone of our efforts to maintain the fiscal health of our Nation’s local government.  It will provide $4.6 billion in each of the next three years to cities, counties and towns.  This program is essential to the continued ability of our local governments to provide essential police, fire and sanitation services.