Vocational Rehabilitation in the FY 2009 Budget

 (#s in Thousands)

2008

2009 Pres Budget

Change

VR Grants

2,874.043

2,874,043

0.0%

(COLA 3.5%)

 

(100,592)

-3.5%

Migrant and Seasonal

2,239

0

-100.0%

Recreational Programs

2,474

 

-100.0%

Projects with Industry

19,197

0

-100.0%

Supported Employment

29,181

0

-100.0%

Helen Keller Center

8,362

7,862

-6.0%

Assistive Technology

29,920

25,655

-14.3%

 

Nation-wide, nearly 1 million people with disabilities are receiving services through the Vocational Rehabilitation (VR) system to help them attain employment and live independently.  However, the unemployment rate for people with significant disabilities remains above 70%.  At the end of FY 2007, there were nearly 30,000 people on state agency waiting lists for services.  Approximately 40 state agencies are under an “order of selection,” requiring them to serve individuals with the most significant disabilities first because they can not train everyone who needs assistance.  Every dollar invested in VR returns $7 to the federal treasury in taxes paid and social services costs avoided.

 

Despite the need for additional services and the cost-effectiveness of the VR program, for the second year in a row the President’s Budget fails to provide the cost of living adjustment (COLA) mandated under the law for the State Grants program, resulting in the loss of more than $100 million to the states.  In addition, the President’s Request eliminates or cuts six smaller rehabilitation services programs, whose services will have to be picked up by the state VR programs.  While program improvement and research grants receive increases, in total the President’s Budget cuts funding for direct services to people with disabilities by nearly $160 million. 

ARAN urges Congress to restore the $159 million in losses to Vocational Rehabilitation programs to enable people with disabilities to obtain employment and live independently.

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