BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 75


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          Date of Hearing:  April 28, 2015


                       ASSEMBLY COMMITTEE ON VETERANS AFFAIRS


                                 Jacqui Irwin, Chair


          AB 75  
          (Mathis) - As Amended April 13, 2015


          SUBJECT:  Veterans


          SUMMARY: Appropriates $3,000,000 to the Department of Veterans  
          Affairs (CalVet) for the purpose of funding certain Veteran  
          Claims Representative positions. Specifically, this bill:  


          1)Continuously appropriates the sum of three million dollars  
            ($3,000,000) to CalVet for the purpose of permanently funding  
            36 full-time equivalent Veterans Claims Representative  
            positions in the CalVet Veteran Services Division. 


          2)Directs that these 36 Veterans Claims Representatives shall  
            have oversight by CalVet, and ensure the quality and  
            timeliness of claims filed through the United States  
            Department of Veterans Affairs (USDVA) on behalf of California  
            veterans and their families.


          EXISTING LAW:  The Budget Act of 2014, appropriates $3,000,000  
          to CalVet for the purpose of assisting the USDVA in processing  
          veterans' claims. 










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          FISCAL EFFECT:  Unknown, although this bill does make an  
          appropriation of $3,000,000.


          COMMENTS:  According to the Author:


            [CalVet] works to serve California veterans and their  
            families. With nearly 2 million veterans living in the State,  
            CalVet strives to ensure that its veterans of every era and  
            their families get the state and federal benefits and services  
            they have earned and deserve as a result of selfless and  
            honorable military service. CalVet strives to serve veterans  
            and their families with dignity and compassion and to help  
            them achieve their highest quality of life

            In 2013, California Governor Jerry Brown's budget authorized  
            $3 million and 36 limited-term positions that allowed CalVet  
            to coordinate with the federal VA to assist in reducing its  
            massive veterans' claims backlog.

            The funds appropriated were  used to hire a "Strike Force"  
            team of 12 Veterans Claims Representatives (VCR) for each of  
            VA's regional offices in San Diego, Los Angeles and Oakland to  
            focus on backlogged claims, ensuring they are properly  
            developed and have all necessary documentation needed for  
            adjudication.

            At the time the Strike Teams were initially deployed in the  
            Fall of 2013, the national average wait-time for benefits from  
            the federal government was 349.6 days. Meaning the average  
            veteran waited nearly a year before receiving benefits that  
            are considered a right. The average wait times in Los Angeles  
            and Oakland were significantly worse than the national  
            average, at 619.4 days and 617.8 days, respectively.

            As of January 29, 2015, CalVet Strike Team claims review  
            efforts in San Diego, Los Angeles, and Oakland have reviewed  
            44,921 claims, resulting in lump sum payments to California  








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            veterans totaling $45,603,451, monthly award payments totally  
            $5,878,940, and an annualized monthly awards payment total of  
            $70,547,276 going to California veterans every year for the  
            rest of their lives.

            While the Strike Teams have done remarkable work, the mission   
            is not complete as the federal VA is still not on pace to  
            fully eliminate their claims backlog by the end of next year,  
            a goal long promised by department officials.

            California veterans have served their country and their  
            communities with honor and distinction, and deserve the  
            benefits which have been promised to them.

          CalVet issues monthly Joint Claims Initiative Reports (Report).   
          The Reports include status updates on the work of the Strike  
          Teams.  The March 26, 2015 Report confirms the success of the  
          Strike Teams which is noted by the author.  The Report states  
          that the Strike Teams will continue to be needed for an extended  
          time:


            The USDVA's claims inventory continues to grow on an annual  
            basis: In 2013, the USDVA surpassed 1M claims filed for the  
            first time in history. In 2014, they surpassed 1.3M, and in  
            2015 they are expected to exceed previous record again. Keep  
            in mind claims are much more complicated and time consuming to  
            adjudicate than they were as recent as 2010; therefore, County  
            Veterans Service Office Veteran Service Representatives who  
            submit claims must be more astute in the development.  
            Oversight by CalVet must also be more prudent to ensure  
            claims, which are now averaging 12-15 issues per claim opposed  
            to 4-7 just a few years ago.


          If, as noted, it is too early to declare "mission accomplished,"  
          then the original rationale for funding the Strike teams still  
          applies and a further round of funding is merited.   









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          Furthermore, the Strike Team positions are limited in term, and  
          the end of that term is approaching.  It is only natural that  
          staff in these positions might begin to look elsewhere.  This  
          situation poses a problem for the continued success of the  
          Strike Teams.  In fact, CalVet says:





            CalVet currently faces significant challenges with retaining  
            the highly skilled and trained staff because of the limited  
            term status of the 36 positions.


            ?


            Attrition is a significant challenge and issue with the  
            current 3-year program. Although the program is approved  
            through June 30, 2016, the well-trained and highly skilled  
            staff are now seeking permanent employment with the USDVA and  
            other VSOs because their employment with the State will end in  
            June 2016. Starting in October 2014 and continuing into 2015,  
            CalVet has lost eight Veterans Claims Representatives on the  
            Strike Teams, which they have been unable to replace. Moving  
            into the third year of this current program, recruiting  
            qualified personnel for a less-than-one-year limited term  
            position will pose an even larger task.





          Another round of funding should reduce, but not eliminate,  








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          further attrition due to the limited term of the program by  
          pushing the program horizon date out farther.


           Policy question for members  : Should the Legislature consider a  
          longer term funding solution for these positions?


          Periodic limited-term funding for the Veterans Claims  
          Representatives retains maximum control in the Legislature and  
          builds-in an automatic mechanism to reevaluate the necessity for  
          the expenditure.  


          However, it also means that the program is always temporary.   
          Being temporary creates uncertainty, the staffing issues noted  
          above, and a lack of ability to make long term plans, etc.   
          Given that California has more veterans than any other state,  
          there is still a huge volume of claims, and that these Claims  
          Representatives have received absolutely unique training and  
          experience working within the USDVA offices, should the  
          Legislature consider a longer term funding solution for these  
          positions?  


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Disabled Veteran Business Alliance




          Opposition








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          None on file.




          Analysis Prepared by:John Spangler / V.A. / (916) 319-3550