BILL ANALYSIS Ó
AB 1209
Page 1
Date of Hearing: April 26, 2011
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AB 1209 (Cook) - As Amended: April 11, 2011
SUBJECT : County veterans service officers ("CVSO"), funding.
SUMMARY : This bill would appropriate the sum of $7,300,000 from
the General Fund to the Department of Veterans Affairs for
disbursement to the counties to fund the activities of the
county veterans service officers to provide for specified
veterans' services. The bill makes specific allocations for
CVSOs, grants to counties and non-profit organizations for
veterans services, and for Operation Welcome Home or a successor
program.
EXISTING LAW/FACTS: CVSOs are local agencies established in 1946
to assist veterans and their families in obtaining benefits and
services accrued through military service. They act as the
Department's network for claim initiation and development and
draw down significant federal dollars annually.
CVSO funding is a combination of local and state resources. The
2009-10 Budget Act provided $2.6 million GF (a level static
since 2004) and $554,000 from the Veterans Service Office Fund
(veteran license plate funding restricted to CVSO's) to counties
toward compensation and expenses of CVSOs.
In 1997, the Legislature passed and the Governor signed Senate
Bill 608, enacted as Chapter 318 of the Statutes of 1997, that
amended Section 972.1 of the Military and Veterans Code. Chapter
318 requires the Department of Veterans Affairs to annually
determine the amount of new or increased monetary benefits paid
to eligible veterans by the federal government that were
attributable to the assistance of county veterans service
officers and requires the Department of Finance to consider an
increase in the annual budget for county veterans service
officers, in an amount not to exceed five million dollars
($5,000,000), if justified.
From 2007 until 2010, the annual subvention was increased to two
million six hundred thousand dollars ($2,600,000). In 2009, the
Legislature passed and the Governor signed Senate Bill 419,
enacted as Chapter 183 of the Statutes of 2009 that amended
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Section 972.1 of the Military and Veterans Code. Chapter 318
found and declared that 50 percent of the amount annually
budgeted for CVSOs is approximately eleven million dollars
($11,000,000). During Fiscal Year 2009-10 federal monetary
benefits obtained by CVSO's totaled $299 million.
FISCAL EFFECT : Unknown.
COMMENTS : According to the Author:
The current conflicts in Iraq and Afghanistan are creating
an entirely new generation of veterans who are eligible for
federal benefits because of their service. Californians
make up ten percent of the service members being used in
these conflicts. Most of these returning California
veterans are not aware of the federal and state benefits
that are available to them.
County Veteran Service Officers (CVSOs) are located in
fifty-six of California's fifty-eight counties, with the
only exceptions being the two with the smallest
populations: Sierra and Alpine. California has more
veterans than any other state, and is home to more than 2.1
million veterans and 7 million dependents of veterans.
CVSOs contribute to increased revenues and significant cost
avoidance for the state and its counties far in excess of
the amount of state general funding provided to them. Since
1995, at a cost to the state of $33 million from the
General Fund, the CVSOs have obtained over $2 billion in
federal veterans benefits for California veterans and their
dependents, thereby garnering the state a sixty-fold
increase on their investment.
The budget that was proposed in January would stop all
state support for the small, backlogged county offices
which currently connect veterans with federal benefits,
medical care, and counseling. For example, in Contra Costa
County the loss of these funds could result in the loss of
$90,000 and one of the four employees in that office. Given
the amount of federal money the county offices draw into
California for veterans, the cuts may hurt the state more
than they would help to ease the budget strain.
According to Assembly Budget Subcommittee No. 4 on State
Administration:
AB 1209
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"Governor's Budget. The Governor's Budget eliminates the
General Fund contribution to County Veteran Service Offices
(CVSO's), totaling $9.9 million ($7.6 million local
assistance and $2.3 million state operations) in 2011-12.
2010-11 Budget. A May Revision proposal in the 2010-11
Budget provided new funding to implement and sustain
Governor Schwarzenegger's Operation Welcome Home (OWH),
intended to assist veterans in receiving coordinated
assistance including job placement, unemployment benefits,
housing, healthcare, and federal, state, and local
veterans' benefits and services
The May proposal increased CVSO's as follows: (1) $5
million GF in ongoing operations funding for CVSOs; and (2)
a one-time VSOF augmentation of $768,000 to be spent over
three years to implement the Subvention Administrative
Information System - a hosted web-based service application
system that will help each of the 56 County Veteran Service
Offices with benefit case management.
2010-11 budget provisional language restricts expenditure
of the $5 million GF provided for CVSOs and OWH. The
language permits the DOF to authorize expenditure of the
funds subject to 30-day prior notification to the Joint
Legislative Budget Committee (JLBC) and the fiscal
committees of the Legislature. The DOF notification is
required to include a CDVA plan detailing: (1) the process
for awarding the funds; (2) how CDVA will measure
performance of funding recipients; (3) the related data
collection instrument; and (4) efforts to coordinate
funding recipients and other agencies working on OWH.
While CDVA submitted a plan to JLBC on December 22, 2011,
DOF has not provided notice of intent to authorize
expenditure of the funds. Without such DOF authorization,
the funds will not be spent by CDVA or CVSOs and instead
will be GF savings for 2010-11.
The Governor's Budget eliminates the $2.6 million base
funding for CVSO's and the $5 million OWH augmentation
first provided in 2010-11. The base funding of $2.6
represents a 15 to 17 percent reduction in CVSO funding."
According to the Legislative Analyst's Office November 18, 2009
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report, "The 2010-11 Budget: California's Fiscal Outlook":
Our forecast of California's General Fund revenues and
expenditures shows that the state must address a General
Fund budget problem of $20.7 billion between now and the
time the Legislature enacts a 2010-11 state budget plan.
The budget problem consists of a $6.3 billion projected
deficit for 2009-10 and a $14.4 billion gap between
projected revenues and spending in 2010-11. Addressing this
large shortfall will require painful choices-on top of the
difficult choices the Legislature made earlier this year.
REGISTERED SUPPORT / OPPOSITION :
Support
Monterey Cypress Unit 694-American Legion Auxiliary.
Veterans of Foreign Wars, Department of California
Maria Clara Carrancho
County of San Bernardino
The American Legion-Department of California
AMVETS- Department of California
California Association of County Veterans Service Officers
California State Commanders Veterans Council
The Military Officers Association of America-California Council
of Chapters
The Student Veterans of California
Vietnam Veterans of America-California State Council
Opposition
None on file.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550