Instead, VA staff continue to focus on providing training services because, among other reasons, they lack adequate training and expertise in job placement. In addition, our analysis of national program data revealed that the percentage of veterans in the program with serious employment handicaps has been steadily declining over the last 5 years. VA Continues to Place Few Veterans

In our 1992 report, we noted that approximately 202,000 veterans were found eligible for vocational rehabilitation program services between October 1983 and February 1991. VA rehabilitated 5 percent of the eligible veterans, while the remaining veterans (24 percent) continued to receive program services. VA Does Not Emphasize Employment Services

VA’s vocational rehabilitation program is primarily focused on sending veterans to training rather than on finding them suitable employment, according to VA officials. Moreover, our analysis of national program data on current program participants showed that the vast majority of veterans in training were enrolled in higher education programs. VA Does Not Have Readily Available Data on the Cost of Providing Rehabilitation Services

VA headquarters and regional agency officials did not know the costs associated with providing rehabilitation services to individual veterans. Our analysis also showed that, generally, over half of the total cost of rehabilitation services consisted of subsistence allowances. VA spent over $6,000 on a 20-percent-disabled veteran who dropped out of the program after about a year. State Vocational Rehabilitation Program Provides a Mix of Services

The state vocational rehabilitation program provides a wide range of services designed to help people with disabilities prepare for and engage in gainful employment to the extent of their capabilities. Cost Varies Slightly Among Rehabilitated and Dropouts

Our analysis of national program data showed that in fiscal year 1993, the state vocational rehabilitation agencies spent, on average, about $3,000 on each client who was rehabilitated. The national data also showed that the state program spent, on average, about $2,000 on each client who did not complete the program after receiving a plan. The client was deaf and classified as severely disabled. VA Has Begun to Take Steps to Improve Program Effectiveness

In response to prior GAO and VA reports that recommended that VA emphasize finding jobs for veterans, VA has begun to reengineer its vocational rehabilitation program. The overall objective of VA’s reengineering effort is to increase the number of veterans who obtain suitable employment through improvements in program management. VA’s design team has identified several key initiatives aimed at improving program effectiveness. At each VA regional office and state agency visited, we randomly selected and reviewed 9 to 12 case files of program participants who had been rehabilitated or had dropped out of the program between January 1 and June 30, 1995.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of Veterans Affairs' (VA) vocational rehabilitation program, focusing on: (1) the percentage of rehabilitated veterans; (2) the services provided; (3) the characteristics of clients served; (4) the cost of rehabilitation; and (5) VA efforts to improve program effectiveness.

What GAO Found

GAO found that: (1) despite the 1980 legislation requiring VA to focus its rehabilitation program on finding disabled veterans suitable employment and subsequent GAO reports recommending that VA implement this legislation, VA continues to place few veterans in jobs; (2) VA officials told GAO that the percentage of veterans classified as rehabilitated is low because the program does not focus on providing employment services; (3) instead, VA continues primarily to send veterans to training, particularly to higher education programs; (4) GAO's analysis of national program data showed that the characteristics of program participants are changing and that VA does not have readily available cost data associated with providing rehabilitation services to individual veterans; (5) GAO's review of over 100 case files, however, showed that VA spent, on average, about $20,000 on each veteran who gained employment and about $10,000 on each veteran who dropped out of the program; (6) generally, over half of the total costs of rehabilitation services consisted of payments to assist veterans in covering their basic living expenses; (7) with regard to Education's state vocational rehabilitation program, GAO's analysis of national program data showed that over the last 5 years (1991-1995) state agencies rehabilitated 37 percent of the approximately 2.6 million individuals eligible for vocational rehabilitation program services, while about 31 percent continued to receive program services; (8) the state agencies provide a wide range of rehabilitative services, from physical restoration and transportation to college education and on-the-job training; (9) in addition, a majority of the program participants had severe disabilities; (10) moreover, national program data showed that state vocational rehabilitation agencies spent, on average, about $3,000 on each client who achieved employment and about $2,000 on each client who dropped out of the program; (11) the state program does not provide funds to cover client living expenses; (12) in response to prior GAO and VA findings and recommendations, VA recently established a design team to identify ways of improving program effectiveness; (13) the team's overall objective is to increase the number of veterans who obtain suitable employment through improvements in program management; (14) the team is also looking at ways to improve staff skills in job finding and placement activities; and (15) VA hopes to begin implementing program changes in fiscal year 1997.