AB 171 (Irwin) Page 2 of 2
SENATE COMMITTEE ON VETERANS AFFAIRS
Senator Jim Nielsen, Chair
2015 - 2016 Regular
Bill No: AB 171 Hearing Date: 6/23/15
Author: / IrwinVersion: / 5/28/15 Amended
Urgency: / Yes / Fiscal: / Yes
Consultant: / Wade Cooper Teasdale
Subject: Department of Veterans Affairs: veterans’ services.
DESCRIPTION
Summary:
Appropriates $5.6 million annually to the California Department of Veterans Affairs (CalVet) for allocation to counties to fund county veterans service officers (CVSOs).
Existing law:
1) Provides for annual appropriation to the CVSOs as determined in each year's Budget Act.
2) Requires CalVet to determine and report to the Department of Finance (DOF) the following: The amount of new or increased monetary benefits paid to eligible veterans by the federal government that is attributable to the assistance by CVSOs.
3) Mandates that CalVet must, on or before October 1 of each year, prepare and transmit its determination for the preceding fiscal year to the Department of Finance and the Legislature.
4) Directs DOF to review CalVet's determination in time to use the information in the annual Budget Act with regard to CalVet’s budget for the next fiscal year (FY).
This bill:
1) Appropriates $5.6 million annually from the General Fund (GF) to CalVet for allocation to counties to fund the activities of CVSOs.
2) Clarifies that this money shall be available for encumbrance and expenditure for only one year from the date upon which it first becomes available for encumbrance.
3) Directs CalVet to develop, no later than July 1, 2016, an allocation formula based upon performance standards that encourage innovation and reward outstanding service by CVSOs. Moneys appropriated for this purpose shall be allocated each FY in accordance with that formula among those counties that have established and maintained a CVSO office.
4) Contains an urgency clause. The basis for the urgency is stated as: "Approximately 50 percent of the current GF appropriation in support of county veteran service offices operations expires on June 30, 2015. In order to provide for continuity of services critical to the successful reintegration of California’s veterans, to increase California’s utilization of veteran benefits, and to ensure veteran’s claims for benefits are processed in a timely manner, it is necessary that this act take effect immediately."
5) Deletes existing references in statute that are obsolete or conflict with this bill’s provisions.
BACKGROUND
County Veterans Service Officers
CVSOs are trained, accredited professionals, who may legally represent veterans in the federal benefits claims process, and also help connect veterans with state- and locally-provided benefits. Fifty-six of California’s 58 counties have CVSOs, whose professional interests are represented by the California Association of County Veterans Service Officers (CACVSO).
The California CVSO model requires close partnership between state and county governments through the auspices of CalVet and the various CVSO offices. Collectively, the CVSO, through claims initiation and development, and CalVet, through claims development and representation, provide assistance to veterans and their dependents in preparing and submitting claims and in representing claimants before the federal, state and local agencies providing veterans benefits. CVSOs use the CalVet-sponsored VetPro software program to enhance their claims reporting and tracking.
California’s Utilization of Veteran Benefits
California’s utilization of the primary monetary veteran benefits, referred to as compensation and pension (C&P), has historically lagged behind that of the nation as a whole. Recently, however, California has improved its utilization rates.
In 2007, CalVet recommended several strategies to address benefit underutilization, including providing resources in support of additional full time professional service representative staff with a focus on areas with large veteran populations and lower than average benefit participation rates. The primary strategies are:
1) That subvention funding for CVSOs should be increased to support an expansion of county veterans service office staffing. The additional funding shall be directed to expanding the staff dedicated to full time outreach and claims work.
2) That resources are needed to fund additional professional service representative staff at CalVet district offices in support of claims representation (appeals), local training, and local outreach. Outreach should specifically increase in areas where the state can provide economy of scale.
According to CalVet’s latest annual report (October 20, 2014), CVSOs brought in approximately $546 million in new, recurring veteran benefits into the state’s economy.
CVSO Funding
While CVSOs are independent local agencies, funding is derived from a combination of local and state resources. The state provides limited local assistance funding from various sources, including the GF (subvention), Veterans Service Office Fund (VSOF), and reimbursements (Medi-Cal cost avoidance). The subvention funding is appropriated to CalVet, which allocates the funds to the CVSOs.
Although Military and Veterans Code (MVC) Section 972.1 sets a target of $11 million dollars for subvention funding, actual funding has never reached that level. Since 2004, the state’s contribution to CVSO funding has languished at $2.6 million with two temporary exceptions. The exceptions occurred recently, when the Legislature enacted two consecutive single-year augmentations of $3 million, which were included, respectively, in the 2013-14 and 2014-15 state budget bills.
The two additional single-year augmentations were dedicated to one of three main themes from the CalVet/CVSO best practices manual:
• Contacting veterans.
• Connecting veterans to their benefits and services.
• Continuous communication with veterans.
The funding increase boosted the abilities of CVSOs and CalVet to connect veterans in their communities with the expansion of outreach activities, thereby linking more veterans with their community-based system of care and local service providers. The funds have allowed for the deployment of 32.5 additional professional veterans service representatives and 30 support staff to connect veterans with their compensation and pension benefits available through the USDVA, resulting in an increase of federal dollars drawn down to the state this year and continuing into future years.
COMMENT
Author Statement
"California is home to an estimated two million veterans, and their widows or widowers, who are often unaware that they may be eligible for benefits or federal pensions and California’s CVSOs are the initial local point of contact for these potential claimants.
“According to CalVet reporting, it has been determined that from 1995 to 2013, the state had cumulatively budgeted $41.4 million to CVSO funding, an investment that helped local veterans obtain $4.1 billion in new federal moneys. This is a return of about $98 for every $1 the state allocates to CVSOs. Furthermore, the $4.1 billion in new funding reflects benefits that veterans and their dependents may continue to receive for the rest of their lives.”
Committee Comments
Without permanent legislative recalibration or another temporary, annual Budget augmentation, State GF funding for CVSOs will continue at $5.6 million only through June 2015, then will revert back to $2.6 million. During the period 2007 to 2013, the Legislature considered numerous bills, which would have increased state subvention funding to CVSOs, but none were enacted. If enacted, AB 171 would break through that wall.
Related Legislation
AB 2703 (Quirk-Silva, 2014): (1) requires CalVet, no later than January 1, 2015, to develop an allocation formula based upon performance standards that incentivize CVSO performance; and (2) declares the Legislature’s intent to fund specified CVSO activities and to provide an additional $400,000 for disbursement to the counties to encourage innovation and reward outstanding service by CVSOs. (Held, suspense, Senate Committee on Appropriations)
SB 419 (Senate Veterans Affairs Comm, Chapter 48, Statutes of 2009) (1) revises findings and declarations in existing law by declaring that 50 percent of the amount annually budgeted for CVSOs is (should be) approximately $11 million (rather than the existing $5 million); (2) sunsets after January 1, 2016; and (3) only becomes operative if SB 418 (Senate Committee on Veterans Affairs, 2009) is chaptered. This majority-vote bill contained no appropriation, and was not keyed fiscal.
SB 418 (Senate Veterans Affairs Comm, Chapter 48, Statutes of 2009) revises legislative findings and declarations in existing law with regard to the use of General Fund monies for services provided by veterans service organizations by clarifying that the General Fund monies shall not be allocated until the annual budget for CVSOs reaches $5 million. Contained no appropriation. Nonfiscal.
SB 1778 (Senate Committee on Veterans Affairs, 2008) changes findings and declarations by increasing the amount budgeted for CVSOs from $5 million to $11 million. This bill was not an appropriation. (Vetoed)
SB 1222 (Cedillo, 2008) (1) increases funding for veterans outreach by appropriating three dollars for every California veteran; and (2) requires that each three-dollar appropriation be disbursed as follows: CVSOs - $2.35; veteran service organizations - $0.50; and the Veteran Services Division/CalVet - $0.15. (Held, suspense, Senate Committee on Appropriations)
AB 1814 (DeVore, 2008) “The Veterans Benefit Recovery Augmentation Plan” facilitates CalVet contracting with veteran services organizations to augment the outreach services provided CalVet’s Veterans Service Division. (Held, suspense, Senate Committee on Veterans Affairs)
AB 2577 (Salas, 2008) supports reinstating funding cut by the Governor for the CVSOs as well as the State Veteran Service Officers. (Held Assembly Committee on Rules)
AB 389 (Salas, 2007) appropriates $5,000,000 from the General Fund to CalVet for disbursement to the counties. (Held, suspense, Assembly Committee on Appropriations)
AB 2268 (Samuelian, Chapter 804, Statutes of 2004) authorizes CalVet to contract out services to VSOs and, with the approval from the Department of Finance, to reimburse those organizations for services rendered on a formula/performance basis starting in fiscal year 2006-07.
SB 608 (Johannessen, Chapter 318, Statutes of 1997) approves a CVSO funding level of up to $5,000,000 of which only approximately $2,500,000 has traditionally been funded.
POSITIONS
Sponsor: California Association of County Veteran Service Officers (CACVSO)
Support:
Amador, County of
American Legion, Department of California
AMVETS, Department of California
California State Association of Counties (CSAC)
California State Commanders Veterans Council
Butte, County of
Colusa, County of
Contra Costa, County of
Del Norte, County of
El Dorado, County of
Fresno, County of
Glendale City Employees Association
Kings, County of
Placer, County of
Los Angeles, County of
Madera, County of
Mariposa, County of
Merced, County of
Plumas, County of
Marin, County of
Military Officers Association of America, California Council of Chapters
Napa, County of
National Guard Association of California
Rural County Representatives of California (RCRC)
San Bernardino Public Employees Association
San Joaquin County Health Care Services Agency
San Luis Obispo County Employees Association
Santa Barbara, County of
Shasta, County of
Sierra, County of
SMUD Employees
Tehama, County of
Tulare, County of
Ventura, County of
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America, California State Council
Yuba, County of
Oppose: None received
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