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L E G I S L AT I V E N E W S
T H AT A F F E C T S Y O U
Making History
In addition to proposing the most VA funding ever,
President Obama’s budget includes funding to expand
concurrent receipt — a fi rst for any presidential budget.
A
t press time, only a gen- only effective option to ease deployment
$8,000 Tax Credit:
eral outline of the presi- stresses on troops and their families.
You Might Qualify
dent’s FY 2010 budget had Military pay raise: The budget proposes a73 The new law that
been made public, but a 2.9-percent pay raise for active duty and
allows a 10-percent-
its $3.6 trillion size and Guard and Reserve troops. That’s the same
of-purchase-price tax
sweeping health care and tax initiatives raise as the average American’s, as mea-
credit (up to $8,000 for a
married couple) for “first-
were making national headlines. sured by the Bureau of Labor Statistics
time home buyers” in
Here’s a summary of budget provisions employment cost index. MOAA is pushing 2009 defines that term
affecting military and veterans’ communi- for a 3.4-percent raise, to continue Con-
as anyone who didn’t
ties that you might not fi nd in your local gress’ nine-year effort to restore full mili-
own a home in the three
newspaper or TV coverage. tary pay comparability. Pay comparability
years before purchase.
The credit phases out
Concurrent receipt: For the fi rst time is a fundamental underpinning of the
for people with incomes
in defense budget history, the FY 2010 all-volunteer force, and MOAA thinks the
above $75,000 (single)
budget includes an initiative to ease the nation shouldn’t stop working to get back or $150,000 (married).
disability offset to military retired pay. to it, especially given the terrible wartime
According to the initial budget release, it stresses military families have endured for
would expand coverage to currently ineli- most of this decade.
gible medically retired servicemembers VA budget: The proposed $113 billion
who are highly disabled. Specifi cs are not VA budget assumes a gradual addition of
available yet, but it sounds like that means a half-million “priority group 8” veterans
authorizing concurrent receipt for medi- (nondisabled veterans with incomes above
cal retirees with less than 20 years and at certain locality-based thresholds) in the
least a 50-percent VA rating. MOAA took VA health system in the next four years.
pains to highlight that issue as a priority Additional funds would expand mental
for the incoming transition team, so we’re health care, promote electronic health
pleased to see it refl ected in the budget. records, and cover implementation of the
We’ll await the details to be sure, but any new GI Bill benefi ts.
expansion is good news for the disabled TRICARE fees: The budget information
retiree community. made public so far is silent on this issue.
Military manpower levels: The budget But it’s signifi cant that the chairman of the
proposes a 15,000 increase for the Army Joint Chiefs of Staff has been cited in recent
and 8,000 for the Marine Corps. MOAA press reports as supporting TRICARE fee
is concerned that some in Congress have increases for retirees. And budget pressures
talked about cutting back on that growth on the Pentagon aren’t getting any lighter
to allow more funding for weapons pro- under the new Obama administration, espe-
grams. These force increases are the cially given the national economic situation.
M AY 2 0 0 9 M I L I T A R Y O F F I C E R 2 9
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