BILL ANALYSIS Ó AB 75 Page 1 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. AB 75 Page 2 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 AB 75 Page 3 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. AB 75 Page 4 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, AB 75 Page 5 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 AB 75 Page 6 None on file. Analysis Prepared by:John Spangler / V.A. / (916) 319-3550