Chairman Raggio, Chairman Arberry and members of the Committee:
My name is Tim Tetz. Last March, I was appointed to follow Chuck Fulkerson as Executive Director of the Nevada Office of Veterans Services. Chuck’s leadership and success have been extremely tough to match, and in order to make sure I did it correctly, he has joined us today. In addition, I am joined by the Nevada State Veterans Home Administrator Gary Bermeosolo. In Las Vegas, Darnell Bennett, our Agency’s Chief Financial Officer and Patricia Thorn the Director of Nursing Services stand by to assist. Finally, I’m happy to introduce my newly appointed Deputy Executive Director Carole Turner. She retired after 24 years of service with the Department of Veterans Affairs last Wednesday and is still packing up to move from D.C. I promise to have her and not just her photograph occupy this seat next month. Our mission today is simple, to outline our agency, its challenges and Governor Gibbons recommended budget. We’ve provided you with a handout outlining the key information.
When introducing my team, I did not mention, but certainly did not forget the veterans who stand with us. I have the distinct opportunity to honor America’s heroes every day as I serve Nevada. Joining us today, we have veterans from World War II, Korea, Vietnam, the Persian Gulf, and even today’s Global War on Terror. In each of their eyes, behind each of their solemn faces, rests the spirit and lives of the other 300,000 Nevada veterans. Their stamina, their passion, and their unrelenting efforts on behalf of all veterans, not just themselves, is truly inspirational. I thank them for being here today.
In 1789, President George Washington said, “The willingness with which our young people are likely to serve in any war, no matter how justified, shall be directly proportional as to how they perceive the Veterans of earlier wars were treated and appreciated by their country.” I would be willing to guess not a single veteran here today joined the military or served their country to receive veteran benefits after they were discharged. Not a single young man or woman joining or serving in our Armed Forces today, has done so with hopes of great veteran benefits in the future. Those serving today are there for the same reason others have yielded the call to service for generations, to serve the people, ideals, and promise of the United States.
The Nevada Office of Veteran Services was established in 1946 to demonstrate our state’s appreciation and support for those members of the “Greatest Generation” and their fathers who defended our nation against during the first two world wars. The names or beliefs of our foes may have changed, but the mission of my office remains the same . . . care for the veterans, family members, and those currently serving.
Nevada employs more than 215 people within the Office of Veteran Services. The role and mission of this staff is as variant as the locations. Outside of our primary mission, we have distinct roles and facilities. From the moment a young recruit raises her hand to take the oath of service until the last moment the veteran is laid to rest, we have the opportunity to serve them and honor their service.
Almost a decade ago, Nevada began a partnership with the Department of Veterans Affairs in the state cemetery grant system. It has evolved significantly since then. In Nevada, we have two state veterans’ cemeteries in Boulder City and Fernley. Between the two, we buried more than 2000 veterans and/or their spouses during 2006. The Southern Nevada Veterans Memorial Cemetery is in the final stages of a recent expansion that will make certain we have enough space for the next five years. The biggest challenges these two facilities face is satisfactory vehicles to accomplish the workload, significant increases in water rates, poor water quality, and hiring and retaining adequate staffing. In addition, as the second busiest state veterans cemetery in the nation, the Southern Nevada Veterans Memorial Cemetery will be challenged to maintain expansion efforts to meet the needs of the veterans and budgets/timelines of the VA and State Public Works Board.
This past August, the Nevada State Veterans Home celebrated its fourth anniversary. I don’t think many will forget the rocky start and challenges of the past, but I’m happy to point out the progress we’ve made. We are currently at capacity with 177 of the possible 180 residents. To fill these three and future openings, we are working from a waiting list. It was a combination of aggressive collection efforts and a higher than projected census that allowed the Office of Veterans Services to return over $1.9 million in general fund appropriations in 2006. The team of professionals Administrator Gary Bermeosolo has assembled is truly honoring the commitment of “Caring for America’s Heroes.”
The Veterans Home is not without some challenges as we go forward. An ever increasing average age coupled with meeting the ongoing requirements of the various oversight agencies will affect our budget. In addition to the necessary dining facility, we are still discovering and repairing various building flaws and construction defects. Finally our team is constantly looking at ways to improve services, decrease costs, and meet the daily needs of the residents. To accomplish this, we are seeking additional staff, billing and clinical software, and enhanced resident activity programs.
The biggest potential for growth and best capability for the Office of Veteran Services to serve the veterans of Nevada is through the Veterans Service Program. Currently, we have seven veteran service officers and two administrative assistants dedicated to assisting veterans and their families to compile the necessary information and applications to receive the benefits they have earned. Together, they were successful in obtaining over $20 million for the veterans of Nevada. This brings the annual benefits to Nevada’s veterans to more than $300 million each year.
I have reorganized my staff to create “Trinity Teams.” By combining two veterans service officers with an administrative assistant, I estimate we can almost double the production of the service officer and better serve the veteran community. Nationally, there is approximately one service officer for every 10,000 veterans. In Nevada, we are hampered by the overwhelming number of 1 service officer for every 30,000 veterans. Additional staff, increased production, and the opportunity to continue rural outreach programs will greatly enable our ability to support this underserved population.
Slide 7 outlines the General Fund expenditures for our Agency for 2006 & 2007. This slide demonstrates several observations. First, Nevada appropriated a little more than $12 per veteran for the last two years. That was before the return of nearly $1.9 million last year. Second, and most importantly, is the return on investment. For every dollar Nevada spent on it’s veterans through the Office of Veteran Services, Nevada and its veterans received over $425 of federal grants, medical benefits, and veteran related expenditures within our state. Clearly the mission of caring for Nevada’s veterans not only benefits the veterans but all of our communities.
Slide 8 provides a definitive illustration of the veteran population throughout Nevada and a general rule of thumb of the number of veterans within your constituency. For example, Chairman Raggio, your district predominantly falls within Washoe County, therefore 1 in 9, like yourself are veterans. 654 veterans may not seem like a lot in Storey County, but when you compare that more than 1 in 6 constituents are veterans, you begin to understand the impact a small amount of assistance or money can have on the veteran population and community.
Slides 9 and 10 are not something our office takes pride in. Based on 2006 VA information, only 9.77% of the veteran population receive compensation and pension benefits. Ranking 43rd in the nation, this is a number we need to change. We’ve provided the information for each county noting where they stand with respect to the state average and the national average of 12.13%. I’m sorry to note Slide 10 shows no better information. Our per capita compensation and pension benefits average $997. The $246 below the national average again puts Nevada as 42nd in the nation in per capita benefits. Keep in mind, the five states with the lowest benefits were included in a national policy review to determine what VA and the local veteran advocates could do to better assist the veterans.
I’m not a person who ever settled for “average.” If you’re average, you’re just as close to the bottom as you are to the top, but in this case, in the near future I’d settle for average. If Nevada can only meet the per capita average, we have the potential for compensation and pension benefits to exceed $375 million each year. An additional $75 million in tax free income may not have significant impact on the large scale economy of Nevada; however imagine the direct impact of an additional three million on Douglas County or over two million in Elko County. In the end, veterans can’t receive the benefits if they don’t apply and even then, they are twice as likely to receive benefits if they are assisted by a veteran service officer. Furthermore, those benefits are more than twice as much with the same assistance.
As we look forward, the next three pages outlines Governor Gibbons recommended budget for our Agency. Rather than spend too much time on the summary, I’d like to focus on the specific initiatives and funding programs within each account.
Budget Account 2560 covers all agency operations and facilities except the Veterans Home. The greatest percentage, $130,000, is to cover a 700% increase in water rates at the Southern Nevada Veterans Memorial Cemetery. Both the Veterans Home and State Veterans Cemetery in Boulder City were notified of 25% increases in electricity rates. These increases will have to be absorbed through other offsets.
Over 90% of the vehicles and equipment in use at the veterans cemeteries are beyond the serviceable life. The vehicle replacement program, E-710 will modernize the “fleet” of vehicles and equipment and maintain an ongoing rotation that is operationally and fiscally feasible without jeopardizing the safety of the staff.
As the Reno Office moves in the coming months, E-711 will help fund necessary IT and telephone needs during that move. In addition, this will also help maintain the service cycle established by DOIT and our agency IT personnel in meeting our technology needs. Finally E-806 will adjust the salary of the Executive and Deputy Executive Directors in accordance with State Personnel policies and guidelines.
Operations at the Nevada Veterans Home are funded through Budget Account 2561. With the beginning of the biennium, the home is expected to be at full occupancy. There are no new initiatives or programs, but we are seeking funding to expand existing programs. Included in the budget are five positions. Two LPNs, found within E-254 are in direct response to operational mandates issued by CMS. The addition of these positions will be completely funded by savings in overtime and contract nursing and is therefore a budget neutral request. E-250 proposes hiring a full-time occupational therapist to meet the needs of the residents. This will actually save more money as there will not be a need to contract this position. Finally, the two Activities Techs within E-251 are directly required by CMS in order to meet the activities needs of residents.
Organizationally, E-805 establishes a Certified Nursing Assistant career ladder which will help the Home increase the number of applicants for CNA positions and improve retention. As a result of the 2006 Salary and Benefits Survey, E-814 funds an approximate 10% salary adjustment for licensed nursing positions.
The Office of Veterans Services, specifically the Veterans Home was the beneficiary of several one-shot appropriations. Specifically, the replacement of billing and clinical software will be facilitated through Budget Account 1325. In addition, E-710, E-711, and E-712 continue the replacement of medical, facility, and IT equipment on the pre-established schedules. Finally, E-260 will fund the repair and replacement of 21 showers originally built to specifications, but have structurally failed since completion of construction in 2002.
The Agency is included on several CIP funding projects but most contentious is the dining facility. Through the CIP funding process last session, the state funded $564,944 towards the anticipated $1.2 million project. The remainder was to be funded through VA grant money. Due to the prioritization of funding on the Federal level and the increased costs of construction, Nevada was not selected to receive funding until December 2006. The State Public Works Board estimates the total project cost to now be in excess of $2.8 million of which an additional $593,114 will need to be funded during the 2007 session. This project has been designated a “life safety” issue and is currently receiving the highest priority available through the VA. Nevada must uphold our funding level of $1,158,058 and submit monthly progress reports in order to receive the matching federal funds. If progress or funding is not apparent to VA, they could de-obligate our Federal grant. The following slide outlines additional CIP funding that also impacts the agency. Rather than outline their specifics, I’d like to close after discussing two bills that will affect just about every other piece of veteran legislation before you this session.
The Office of Veteran Services submitted BDR 0-638 asking for a uniform definition of the term “veteran.” Depending on what section you are referring to within NRS, the definition of veteran changes. Sometimes women aren’t veterans. Sometimes those who served after Vietnam aren’t veterans. Most importantly, those currently serving are not always considered veterans thereby making it difficult to establish benefits to the survivors of those killed on active duty. This 80 page bill would uniformly apply the broadest description to the term and uniformly change other references. It may negate the need for several other pending bills.
And finally, I’m sad to report that we will again be haunted by the veterans’ license plates. No matter what the intent or wording of previous legislation, we have been unsuccessful in changing the NRS to reflect perception of the veterans’ license plates. Those who currently own a veterans’ plate are under the understanding a portion of the license and renewal fees go directly to benefit the Veterans Home. Imagine their disgust when they realize the money from only one in every three plates actually makes it to the Veterans Home Gift Account and that only began last year. Our proposed bill will forever change the use of these proceeds and guarantee those veteran supporters who have a plate are directly helping the veterans of Nevada.
My six-year-old son has figured out there’s a big effort underway and as he says, “We’re sending our soldiers to fight the bad guys.” As Nevadan’s, there is little we can do to affect a troop surge. There is little we can offer when it comes to directly helping the people of Iraq and Afghanistan. Our nation’s leaders will continue to justify our actions and our direction, but we, we as state representatives and veteran advocates can also have an impact. Once our troops deploy, we need to be there for their families. We need to support them when they come home and make certain we honor their sacrifices and contributions to our Country. If we fail to treat them fairly and respect the price they paid for our freedoms, the next generation of America’s Heroes will not be driven to fallow in the footsteps of the veterans here before you today. It doesn’t take ten million dollars, dozens of new employees, or gigantic efforts on anyone’s behalf. It requires us to not overlook the veterans as we focus on other looming crisis and problems and show through our funding, programs, and legislation we support the veteran and their family.
Within the Office of Veterans Services, we’ve enacted a new slogan. Every year, it becomes en vogue to thank veterans during Veterans Day. After a day of national tragedy, many of us were drawn to thank those who rushed to serve our country. But we’re asking that you go one step further. Sure, thank a veteran with the simple phrase, but more importantly thank the veteran with your actions. Whether you’re a legislator, veterans advocate, ordinary citizen, or even a child, thank a veteran through your words, your attitudes and your actions.
That concludes my testimony before you today. On behalf of the Office of Veteran Services, the Veterans Service Organizations and all of Nevada’s veterans and advocates, I look forward to working with you during the coming session and thank you for your support of America’s heroes.