Budget Proposal for VR&E

Budget Proposal

Executive Summary

The Veteran Benefits Administration (VBA) provides financial and other kinds of assistance to veterans, servicemembers, and their families. Over the past few years, the demand for these services has increased resulting in the need for expansion of this agency. VBA needs to expand across all its program offices including the Veteran Readiness and Employment (VR&E). VR&E expansion will involve creating a new office to improve the operational capability of the department in meeting the growing demand. Expansion of the organization through a new office would help address current issues in workload management, meet the increased demand for services, and improve effectiveness and efficiency across all operations.

The proposed budget for the expansion incorporates two major components i.e. capital expenses and operating costs. Capital expenses refer to expenditures for the purchase of fixed assets like a new building or office equipment, upgrades to current facilities, and the purchase of intangible assets like patents. Operating costs are expenditures incurred for the regular day-to-day operations and activities of an organization or business. For VR&E, capital expenses for the expansion amount to $1,012,500 while the operating costs are $470,200. These costs would play an important role in enhancing the capability of VR&E to provide critical public services to veterans, servicemembers, and their dependents.

To effectively implement the proposed budget, VBA’s senior leadership should mobilize for funds in order to minimize any interruptions to current projects and operations. Secondly, the department’s leadership should implement the proposed budget as part of strategic planning and management effort. This would ensure each component of the budget is implemented systematically and strategically. Third, budget appropriations and allocations for the expansion process should not be exceeded.

Budget Proposal

The Veteran Benefits Administration (VBA) is an agency of the U.S. Department of Veterans Affairs that provides financial and other kinds of assistance to veterans, servicemembers, and their families. Since its inception, VBA has continued to play a critical role in providing necessary help to veterans, their dependents, and survivors. As the demand for assistance continues to increase, VBA is expanding. The agency seeks to expand across all its major program offices including the Veteran Readiness and Employment (formerly known as Vocational Readiness and Employment). The expansion of VR&E department will entail creating a new office to enhance its operational capability in light of the increased demand for services and benefits by veterans, servicemembers, and their families. This budget proposal shows the costs of the expansion of this department office and the reasons for it.

Justification for the Expansion

VR&E department helps veterans and servicemembers with a service-connected disability to address training needs and explore employment options. Through its services and support, Veterans and Servicemembers with a service-connected disability can find a new job, learn a new skill, get educational counseling, start a business, or return to their former job (Veterans Benefits Administration, 2020). The U.S. Department of Veteran Affairs has undertaken various measures over the past few years to enhance the operations and performance of VR&E. These measures have focused on improved performance management, staff training, and workload management (Bertoni, 2014). However, weaknesses still exist, especially in workload management. The department is still experiencing issues in workplace accommodations and job placement assistance. VR&E offices are faced with heavy workloads as staff allocation formula does not consider other staff duties that affect workloads.

Based on the current situation at the VR&E department regarding heavy workloads, the department faces the need for expansion to enhance its operations. The establishment of a new office and hiring additional staff would help the department to improve effectiveness and efficiency across all its operations. A new office would help lessen the heavy workloads as the department will have additional staff to handle duties relating to the provision of benefits and support to veterans, servicemembers, and their families. Additionally, a new department office is required for VR&E to achieve diversity in handling caseload as well as improving case processing timeliness and job placement performance.

The need for expansion is also attributable to the increase in demand for VR&E services and benefits. Over the past few years, VR&E has witnessed an increase in demand for its services and benefits as more Veterans and Servicemembers need support. The program has also been undergoing modernization to enhance its effectiveness amidst the current global pandemic (Halvorson, 2020). VR&E program enhancements are geared toward improving its overall effectiveness and efficiency in providing support, services, and benefits to Veterans, Servicemembers, and their families. As a result, the expansion of this department’s office would play a critical in enhancing its overall effectiveness and efficiency in meeting demands for improved service delivery to veterans and their dependents.

Components of the Budget

The establishment of a new office in this department as part of the expansion will have some financial implications. The financial implications are attributable to the need for equipment and hiring new staff among other expenses. Capital expenses and operating costs are the two major components of the proposed budget. Capital expenses refer to expenditures for the purchase of fixed assets like a new building or office equipment, upgrades to current facilities, and the purchase of intangible assets like patents. In essence, capital expenses are expenditures an organization or business incurs to generate benefits in the future. On the other hand, operating costs are expenditures incurred for the regular activities of an organization or business. They relate to day-to-day operations of the organization and include general and administrative costs as well as research and development. The proposed budget is divided into capital and operating costs since these expenses are treated differently for accounting and tax purposes.

Capital Expenses

Capital expenses for the expansion of the VR&E department office include the costs of office equipment and other intangible assets as shown in Table 1 below.

Table 1: Capital Expenses for Expansion of VR&E Department Office

ITEM

COST

Upgrade of Current Facility

Computers

Furniture & fixtures

Office supplies

Technology licenses

Patents

Total

These expenses will play a critical in the establishment of the new office for the department and act as the foundation for its long-term operations. As evident in the table, capital expenses for the proposed new office relate to the purchase of fixed assets and the acquisition of intangible assets like technology licenses and patents.

Operating Costs

The second component of the proposed budget is operating costs, which will cover the day-to-day costs of the new office as shown in Table 2 below. Since these costs relate to the new office’s daily operations, they will be incurred on a monthly basis.

ITEM

COST

Wages & Salaries

Telephone

Utilities

Repairs/Maintenance

Advertising

Direct marketing

Press releases & media relations

Web hosting

Social media

CRM

Total

Operating expenses will include the costs of general and administrative issues, sales and marketing, and public relations. Wages and salaries account for a significant percentage of operating costs since the new office will require five additional staff. Sales and marketing costs will also include the costs of advertising for the new job vacancies in the department. On the other hand, public relations is an essential part of this budget since the new office will be involved in providing services and support to veterans and servicemembers directly.

Benefits for the New Department

The establishment of the new office will have significant impacts on the operational efficiency and effectiveness of VR&E. One of the benefits of the expansion initiatives for the department is an increase in the current workforce. While hiring new employees has some financial implications for the department, it would help increase the current workforce. This is a major benefit since the department is facing issues relating to staff allocation, which is contributing to heavy workloads. An increase in the number of employees would help address the staff allocation issues facing the department. The second benefit for the new department is enhanced management of the heavy workloads. As previously indicated, the demand for services and benefits offered by this department has increased. Consequently, the current workforce faces heavy workloads brought by the increased demand. Hiring additional staff for the new department office would help improve management of the heavy workloads. The other benefit is improved efficiency and effectiveness in providing services to the targeted population. Better management of the heavy workloads will contribute to improved efficiency and effectiveness in service delivery to veterans, servicemembers, and their dependents. Improved management of heavy workloads will help in the current program enhancements at VR&E to meet the increased demands for services and benefits.