Dept. of Veterans Affairs says it can handle strain of new GI Bill

WASHINGTON - The government sought yesterday to dismiss concerns that it might try to delay rollout of the new GI Bill, pledging to be ready to handle growing claims in veterans education benefits after abandoning plans to hire a contractor.

Testifying before a House panel, officials with the Department of Veterans Affairs acknowledged the potential for glitches as they scramble to upgrade government IT systems before the new legislation providing millions of dollars in new GI benefits takes effect next August.

But the VA contended it was on track to implement an IT system "in-house" just one month after abruptly scrapping plans to hire an IT contractor that the government previously contended was critical to get a system up and running on time.

"We have the resources. We have the working functionality," said Keith Wilson, the VA's director of the Office of Education Service, reversing course from earlier comments made by the VA. "We have a full pool of people to do the testing and manage all the efforts under way."

Congress voted in June to dramatically expand the GI Bill, which was first signed into law by President Franklin D. Roosevelt in 1944 for returning World War II veterans but hasn't been updated much since then.

Under the old measure, veterans can receive $1,321 monthly to cover all college expenses. Now, the new GI Bill will cover tuition and fees of any in-state public university. It also provides a monthly housing allowance and a $1,000 yearly stipend for books and supplies.

At least 520,000 veterans are expected to take advantage come next fall, up from about 250,000 who are currently attending colleges and universities on the GI Bill, drawing concern that the VA might not be able to keep up. In September the VA said it would hire an IT contractor due to inadequate staffing and "skill sets" to handle the education benefits at its agency. But amid criticism from veterans advocacy groups and then-Democratic presidential candidate Barack Obama, the VA abandoned those plans in October.

Yesterday, Wilson told the House Veterans subcommittee on economic opportunity that the VA would build on existing government systems to help deliver VA benefits for about two years beginning in August 2009. That process is fully under way with a timetable that will meet the August deadline, he said.