Final
STAFF SUMMARY OF MEETING

COMMITTEE ON JOINT STATE VETERANS & MILITARY AFFAIRS COMMITTEE

Date:01/20/2006
ATTENDANCE
Time:10:07 AM to 11:56 AM
Cadman
X
Carroll T.
A
Place:HCR 0107
Coleman
X
Crane
*
This Meeting was called to order by
Fitz-Gerald
X
Senator Tupa
Gallegos
X
Groff
X
This Report was prepared by
Johnson
X
Leslie Herod
Lamborn
X
Liston
X
Lundberg
X
May R.
X
Ragsdale
X
Schultheis
X
Todd
A
Windels
E
Weissmann
X
Tupa
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Department of Military and Veterans Affairs
Division of Veterans Affairs
Dept. of Military and Veterans Affairs State Board of Vet Affairs
Office of State Planning and Budgeting		-
-
-

10:07 AM -- Call To Order

The meeting was called to order by Representative Weissmann.

10:08 AM -- Division of Veterans Affairs

Bill Belz, director of the Colorado Division of Veterans Affairs, briefed the joint committee on the state of veterans affairs in Colorado and distributed a handout (Attachment A). Mr. Belz provided an overview of the mission of the Division of Veterans Affairs, which is to ensure that Colorado veterans and their eligible dependants or survivors are aware of, and receive, the benefits they have earned. Once the division receives a power of attorney, the Division of Veterans Affairs is able to act on behalf of the veterans and assist in acquiring the documentation needed to support a veteran's claim to receive benefits. Further, the division works with various veterans organizations to support the needs of the veterans of Colorado, including the United Veterans Committee. The division also provides oversight for the Veterans Trust Fund. Mr. Belz responded to a question regarding which veterans receive Veteran's Affairs(VA) benefits. All veterans are eligible for benefits, but the level of benefits they receive depends on where they fall within eight benefit categories. Beginning in 2000, benefit categories six, seven, and eight were excluded from receiving full benefits. Mr. Belz reminded the committee that the Department of Veterans Affairs does not administer veterans' benefits; they assist in filing the claims.


10:15 AM

Mr. Belz commented on the growing needs of the Veterans Memorial Cemetery in Grand Junction. Additionally, the Division of Veterans Affairs provides a considerable number of outreach programs throughout Colorado. Mr. Belz provided the specific example of a town hall meeting that was held January 22, 2006, in Fort Morgan, Colorado, in which 80 veterans and their families were in attendance. Mr. Belz pointed to the upward trend in number of claims, and discussed the departments five-year plan for handling these claims. Presumptive illness is a big factor among veterans. Many veterans who served in the first Gulf War are facing medical issues such as diabetes, cancer, and various undiagnosed stomach ailments. Mr. Belz emphasized the growing need for staffing and the need to have General Fund support restored. The department is not sure if the Veterans Trust Fund (currently used to offset some of the budget deficit) will have the needed funds to continue to support the department in subsequent years. The department also needs a new management system. Currently, veteran service officers receive a stipend of $100 per month for part-time service, and $200 for full-time service. Many of the service officers are volunteers. The department would like to see an increase in payments to the veterans service officer program. Mr. Belz noted that the department will be receiving General Fund dollars, but that the funds still cover the operating expenses incurred by the cemetery.

10:21 AM

Senator Tupa asked a question about supplemental funding and the department's discussion with the Joint Budget Committee. Mr. Belz responded that the reaction the department has received from the Joint Budget Committee has been favorable; however, their needs continue to grow. Senator Tupa asked further questions about the growing number of claims handled by the department and the federal government's responsibility to increase funds to the department. Mr. Belz affirms that they do receive federal money for programs, however, the programs are becoming increasingly restricted. The department expressed concern about complications that have arisen around the claims of veterans with post-traumatic stress syndrome. According to the department, the federal government is making it increasingly more difficult to prove these sorts of claims by veterans. The department estimated that one out of eight people have some form of post-traumatic stress disorder. Again, the department noted that they do not provide any type of health care funding.


10:26 AM

Senator Fitz-Gerald asked questions about the salary of service workers. Mr. Belz responded that the pay for the veteran service officers was decided in the 1990s. General Whitney added that while he is not sure how the figures were determined, the intent of the pay was not to augment salary, but instead to offset operating expenses. However, because of this, some of the counties remain under served. Mr. Belz responded to a questions about veterans' nursing homes in Colorado. He noted that currently there are five nursing homes in Colorado that serve veterans. Senator May asked if any of the nursing homes were in danger of closure. General Whitney responded that while none of the facilities in Colorado are in danger of closing, they can be placed on restrictions by the federal government if they do not reach full census. The Fitzsimons facility is almost up to full census, and the Walsenburg facility has been mandated to put together a public relations program to reach full census. A brief discussion on Medicaid and Medicare coverage in these nursing homes ensued. General Whitney expressed that he would like to see Referendum C money used to reinstate programs and services the Division of Veteran's Affairs has lost.

10:34 AM

Mr. Belz responded to a question regarding the specific nursing home figures and statistics, stating that he would not be able to answer such questions, but that the Department of Human Services handles this data. He does know however, that there are a number of retirees in nursing homes. They are primarily private-pays, in which care is paid out of the patient's retirement pay. Senator May pointed out that the veterans who are not retired are a bigger strain on Medicare.

10:37 AM

Mr. Belz closed by asking the committee if there were any other questions, noting that the State Board of Veterans Affairs will address the trust fund at greater length.

10:38 AM -- Board of Veterans Affairs

Ralph Bozella, chairman of the Board of Veterans Affairs, briefed the committee on the state of the board. Mr. Bozella introduced members of the board who were present in the audience, and passed out a copy of the 2005 Annual Report of the Board of Veterans Affairs (Attachment B). Mr. Bozella outlined the mission of the board, which is to identify and represent the needs of the veterans of Colorado. The board also advises the Governor's office and oversees the Veterans Trust Fund. Mr. Bozella distributed a handout (Attachment C), and provided an overview and history of the Veterans Trust Fund. Mr. Bozella pointed out that due to the budget crisis in 2003, the board had to spend 75 percent of the trust's funds, and only 25 percent of those funds went into savings, inverse from previous years. Primarily, the funds have gone to the support of the Division of Veterans Affairs office, the Veterans Memorial Cemetery, and grants. The board would like to see the restoration of funds appropriated by the state.

10:46 AM

Mr. Bozella discussed the current balance of the trust fund, saying that the board would like to see the Veterans Trust Fund dollars reinstated. Mr. Bozella continued by discussing other functions of the board, specifically networking. Further, the board acts as an advisory board to the County Service Veterans Office and veterans nursing homes. Mr. Bozella clarified that there are five plus one nursing homes in Colorado. The board is working hard to establish strong connections with the VA, and closely monitors the Tobacco Settlement Funds.



10:52 AM

Mr. Bozella echoed the Division of Veterans Affairs' concerns about the maintenance of the cemetery, and the need to increase funding to manage this issue. The board is also working to carry out legislation mandated to them by the legislature. Mr. Bozella highlighted the board's veterans graduate program. Since 2002, the program has graduated between 4,000 and 5,000 veterans, granting them each high school diplomas. Mr. Bozella commented on issues the board would like to see the legislature consider. Mr. Bozella highlighted the improvements made by the Fitzsimons facility, and areas of concern for the department.

11:00 AM

Former Representative Sinclair addressed the committee and discussed his concerns about funding for veterans. Former Representative Sinclair referred to the State Veterans General Fund Appropriation State Comparison (2004 data) sheet (Attachment C). These figures are from 2004, the most current year for comparable data. Former Representative Sinclair stated that 9.3 percent of the Colorado population are veterans; however, Colorado's average expenditure per veteran is extremely low, less than one dollar per veteran. Former Representative Sinclair urges the members of the committee to address their respective caucuses on veterans' issues.

11:07 AM

Representative Gallegos asked Mr. Bozella to clarify the use of veteran's preference points for state employment. Senator Tupa asked about state monitoring and compliance around this issue, and asked if there has been any instances of willful noncompliance. Mr. Bozella said the problem is not willful noncompliance, but instead that the state agencies and their respective hiring departments may need to be attentive to preference points. Further discussion around veteran's preference points ensued.

11:15 AM

Senator May told the committee that he has not heard many complaints around the issue of veteran preference points. Senator May asked about the $8.5 million dollar federal appropriation to the department and asked if the board has any involvement in the appropriation of those dollars. Mr. Bozella stated that originally the board was not involved in that process; however, it has been able to increase its involvement.

11:24 AM

Senator May stated that he would like to see the board have oversight in the appropriation of the federal dollars; however, Mr. Bozella did not believe the board would be able to give much input. Senator Tupa thanked the department and the Board of Veterans Affairs for the work they have done on these issues and many others. Senator Tupa also stated that he hoped the legislature would be able to repay some of the depleted funds in the Veterans Trust Fund. Representative Gallegos welcomed newest member to the board, Mr. Atencio.



11:28 AM -- Office of State Planning and Budgeting

Henry Sobanet, Director, Office of State Planning and Budgeting, briefed the committee on the operations of the Office of State Planning and Budgeting. He provided a memorandum reviewing items of note since January 2005 (Attachment D). Mr. Sobanet stated that a bill will be introduced regarding reform of the Office of Innovation and Technology (OIT). He further noted that the office is working on an e-mail consolidation program in an effort to increase cost savings for the state. He indicated that the office is seeking to identify future cost savings for the state. Mr. Sobanet noted that the Governor has approved the hiring of a chief information security officer, vital in the protection of citizens' personal information. Mr. Sobanet referred to HB 06-1157. Mr. Sobanet discussed the transition the office went through when converting the staff from a civil service staff to an appointed staff, and noted that staff attrition is a major concern.

11:36 AM

Mr. Sobanet continued by reviewing the goals of the office, followed by the role and mission of the office. These include developing reliable revenue estimates, developing a budget within revenue constraints, developing proposals for new legislation, tracking legislation, monitoring the legislative budget process, advocating for the Governor's priorities, addressing issues of concern, monitoring budget implementation, anticipating issues and developing solutions, and providing accurate and concise public information. Senator Tupa asked if there was a long-term forecast comparison from his office to compare to the forecast Legislative Council Staff provides. Mr. Sobanet stated that the two offices forecasts are very similar, and said both are below the expectable forecast error margin, and that while he realizes that this margin of error is low, it does still represent a significant amount of money over a period of years.

11:42 AM

Mr. Sobanet referred to his document as he reviewed the statutory responsibilities of the office. Mr. Sobanet responded to questions from the committee, specifically regarding the line itemization of Referendum C dollars. Mr. Sobanet clarified that his office's forecast does not show a Senate Bill 1 transfer. Mr. Sobanet and the committee further discussed the use of Referendum C dollars as reflected in the Governor's budget.

11:49 AM

The committee discussed Referendum C. Senator Johnson asked about the General Fund Exempt Account and how it is to be appropriated. Mr. Sobanet clarified that the expenditures will happen simultaneously, and the General Fund line item should reflect the $114 million from Referendum C. The committee asked about available funds specifically for the Department of Military and Veterans Affairs.

11:58 AM

The committee adjourned.