Summary: The results of a review of the Veterans Administration's (VA) vocational rehabilitation program are discussed. The program's purpose is to restore employability lost due to a service-connected disability. Program expenditures for fiscal years 1978, 1979, and 1980 are averaging about $100 million annually. Analysis of the available data showed that the program was much less effective than it could have been because of several factors. The most significant problem has been a lack of strong central management and accountability for program results; specifically, fragmented program responsibilities, inadequate goals and objectives, and an inadequate management information system. Competition from other VA benefits has also hampered the program's effectiveness. A veteran may receive directly more money under the GI bill than under the rehabilitation program, and financial disincentives may cause many seriously disabled veterans to avoid employment even after training as they could lose large portions of their disability compensation and other benefits. A further problem with the program is that, while VA is not contacting and enrolling all potentially eligible veterans through outreach, lenient entry criteria have allowed veterans into the program who do not need vocational rehabilitation. Finally, there is a lack of comprehensive rehabilitation services over and above financial assistance, particularly for those with severe employment handicaps. An amendment has been proposed which would revise existing legislation to improve, expand, and modernize the program. However, the extent to which these provisions would ameliorate or solve some of the problems will depend in large part on the manner in which VA implements the legislative changes since sound program management cannot be legislated. Some reservations about certain provisions of the proposed amendment are expressed.
