BILL ANALYSIS Ó
AB 171
Page 1
Date of Hearing: March 10, 2015
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Irwin, Chair
AB
171 (Irwin) - As Introduced January 22, 2015
SUBJECT: Department of Veterans Affairs: veterans' services.
Appropriates money to the California Department of Veterans
Affairs (CDVA) for allocation to the County Veterans Service
Officers (CVSOs) as specified. There are currently two Military
and Veterans Code sections 972.1, one is applicable until the
end of 2015, another applies January 1, 2016. As to the current
section, this bill deletes language pertaining to a $500,000
appropriation and other obsolete references that would conflict
with the intent to raise the appropriation to $5.6 million
dollars.
Specifically, this bill :
1)As to the section 972.1 taking effect January 1, 2016, deletes
conflicting or obsolete references and raises the annual
appropriation minimum to $5.6 million.
2)Adds section 972.3. This new section:
a) Continuously appropriates five million six hundred
thousand dollars ($5,600,000) annually from the General
Fund to CDVA for allocation to counties to fund the
activities of county veterans service officers pursuant to
subdivision (a) of Section 972.1.
AB 171
Page 2
b) Directs the Department of Veterans Affairs to, no later
than July 1, 2016, develop an allocation formula based upon
performance standards that encourage innovation and reward
outstanding service by county veterans service officers.
Moneys appropriated for this purpose shall be allocated
each fiscal year in accordance with that formula among
those counties that have established and maintained a
county veterans service officer pursuant to Section 970.
c) Contains an urgency clause. The basis for the urgency
is stated as : "Approximately 50 percent of the current
General Fund 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."
EXISTING LAW :
1)Provides for annual appropriation to the CVSOs as determined
in each year's Budget Act.
2)Requires annual reporting by CDVA to the Department of Finance
The department must annually determine the amount of new or
increased monetary benefits paid to eligible veterans by the
federal government attributable to the assistance of county
veterans service officers.
3)Mandates that CDVA 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 the Department of Finance to review CDVA's
determination in time to use the information in the annual
Budget Act for the budget of CDVA for the next fiscal year.
FISCAL EFFECT : Unknown at this time.
COMMENTS :
AB 171
Page 3
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.
The cost of maintaining a CVSO is primarily a county general
fund expense; however, counties with an established CVSO receive
some State reimbursement funds as authorized by the California
Military and Veterans Code. Depending on the revenue source,
these funds are distributed either based on specific performance
measurements or as a percentage of net county cost. It is
important to emphasize that while state general funds and
federal pass-through funds distributed by the California
Department of Veterans Affairs (CalVet) assists counties in
maintaining their CVSOs, the primary cost of the CVSO program
statewide is a county expense, as opposed to a State expense.
Funds received by CVSOs are subject to both internal county
audits and regular audits by the CalVet in accordance with the
California Code of Regulations.
According to the California Association of County Veterans
Service Officers 2015 Annual Report and Directory, in FY
2013-14, when CVSO state local assistance funding was
temporarily increased from $2.6 million to $5.6 million, the
CVSO's were able to increase federal benefits to California
veterans by over $100 million.
The total state audited amount of federal compensation and
pension payments to veterans and their families rose from $445
million in FY 2012-13 to $545 million in FY 2013-14. The
majority of those payments are paid monthly to the veteran over
his or her lifetime.
CALIFORNIA'S UTILIZATION OF VETERAN BENEFITS
AB 171
Page 4
California's utilization of the primary monetary veteran
benefits, referred to as compensation and pension (C&P), has
historically lagged behind the nation as a whole. Recently,
however, California has improved its utilization rates though
there is still work to be done.
In 2007 CalVet recommended several strategies to correct the
underutilization including:
"? providing resources in support of additional full time
professional service representative staff with a focus on areas
with large veteran population and lower than average benefit
participation rates.
a. Subvention funding for county veteran service offices
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.
b. 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."
Currently subvention funding in support of CVSO operations is
temporarily at $5.6 million but is scheduled to revert to the
historic level of $2.6 million unless action is taken to set a
new minimum funding level. Many counties used this temporary
increase to add additional staff but also report that those
positions are temporary and most will be eliminated if the
funding is not made permanent.
REGISTERED SUPPORT / OPPOSITION:
AB 171
Page 5
Support
American Legion, Department of California
AMVETS, Department of California
California State Commanders Veterans Council
County of Butte
County of El Dorado
County of Fresno
County of Plumas
County of Santa Barbara
County of Shasta
County of Sierra
County of Tehama
County of Ventura
County of Yuba
Military Officers Association of America, California Council of
Chapters
Veterans of Foreign Wars, Department of California
Vietnam Veterans of America, California State Council
Opposition
None on File
Analysis Prepared
by: John Spangler/V.A./(916) 319-3550
AB 171
Page 6