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Background Briefing
Mark Wolf, Senior Fiscal Analyst
December 2013
MILITARY AND VETERANS AFFAIRS
The fiscal information in this background briefing is based on data through December 31, 2013.
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Military and Veterans AffairsThe Michigan Department of Military and Veterans Affairs serves the dual purpose of providing an operational military force in support of state and federal homeland security needs and providing a network of services and programs in support of the state’s veteran population and their families.
The Michigan National Guard serves to protect the lives and property of Michigan citizens during times of emergency response and civil unrest in order to preserve peace, order, and public safety under the direction of the Governor, and to assist the federal government in defending the sovereign interest of the United States.
Executive Order 2013-2 established the Michigan Veterans Affairs Agency, which has oversight responsibility over the delivery of services and programs to veterans, including the operation of the state’s veterans homes in Marquette and Grand Rapids.
House Fiscal Agency: December 2013 2
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Military and Veterans Affairs: Gross Appropriations
$37 $40 $39 $41 $37 $36 $36 $38 $46 $47
$117 $123 $124
$136
$195
$155 $156
$172 $185
$167
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Mill
ions
House Fiscal Agency: December 2013 3
Gross
GF/GP
Significant increase in FY 2009 is due to appropriations for capital outlay projects being included in thedepartment’s budget. Increase in FY 2012 is due to the inclusion foreclosure settlement funds, the pre-funding ofretiree health care, and one-time appropriation of $3.9 million. Increases in FY 2013 are due to the inclusion ofseveral “one-time” appropriations and the funding for the establishment and the Michigan Veterans Affairs Agency.
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Military and Veterans Affairs Share of State GF/GP
Community Health$2,747,583,600
29.9%
Corrections$1,958,053,600
21.3%
Other$1,403,508,400
15.3%
Higher Education / Community
Colleges$1,271,344,900
13.8%
Human Services$1,003,000,000
10.9%
Debt Service/SBA Rent
$409,758,600 4.5%
State Police$353,474,300
3.8%
Military and Veterans Affairs
$46,503,300 0.5%
Military and Veterans Affairs makes up 0.5% of the total state GF/GP budget
FY 2013-14 GF/GP Total = $9,193,226,700
House Fiscal Agency: December 2013 4
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SOURCES OF FUNDING
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Military and Veterans Affairs Funding Sources
Federal$89,782,700
53.8%
GF/GP$46,503,300
27.9%
State Restricted$27,554,000
16.5%
Local $1,500,000
0.9%
Private$740,000
0.4%IDG$650,000
0.4%
House Fiscal Agency: December 2013 6
FY 2013-14 Military and Veterans Affairs Budget = $166,730,000(Includes one-time appropriations of $5,500,000
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DEPARTMENT APPROPRIATIONS
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Military and Veterans Affairs Appropriations
Military– Unclassified Positions– Armories and Joint Force Readiness– Maintenance and Operations of National
Guard Training Facilities and Air Bases– ChalleNGe Program– Military Family Relief Fund– Support Services– Starbase Grant– Information Technology Services and Projects
Capital Outlay
– Special Maintenance – Headquarters and armories
– Special Maintenance – Veterans’ Homes
– Land Acquisitions and Appraisals
House Fiscal Agency: December 2013 8
The DMVA budget is allocated into the following major spending areas:
Michigan Veterans Affairs Agency– Veterans Affairs Agency Administration– Veterans Advice, Advocacy, and
Assistance Grants– Veterans’ Trust Fund Administration– Veterans’ Trust Fund Grants– Grand Rapids Veterans’ Home– Board of Managers (Grand Rapids Home)– D.J. Jacobetti Veterans’ Home– Board of Managers (Jacobetti Home)
One-time Appropriations– Veterans Service Delivery Initiative– County Counselor Education and Training
Expenses– Veterans Affairs Agency Computer
Upgrade
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Military and Veterans Affairs Appropriations
House Fiscal Agency: December 2013 9
FY 2013-14 Military and Veterans Affairs Total Budget = $166,730,000(Includes one-time appropriations of $5,500,000 GF/GP)
Michigan Veterans Affairs Agency
$81,309,800 48.8%
Military$58,069,000
34.8%
Capital Outlay$21,851,200
13.1%
One-Time Appropriations
$5,500,000 3.3%
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Military and Veterans Affairs Appropriations
House Fiscal Agency: December 2013 10
FY 2013-14 Military and Veterans Affairs GF/GP Budget = $46,503,300(Includes a one-time GF/GP appropriation of $5,500,000)
Michigan Veterans Affairs Agency
$26,302,100 56.6%
Military$11,150,000
24.0%
One-Time Appropriations
$5,500,000 11.8%
Capital Outlay$3,551,200
7.6%
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MAJOR BUDGET TOPICS
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Military – Michigan National Guard
House Fiscal Agency: December 2013 12
Funds the Michigan National Guard and military responsibilities of the department. Under the NationalDefense Act, the Michigan Army and Air National Guard are reserve components of the United StatesArmy and Air Force, apportioned and assigned to this state.
— Armories and Joint Force Readiness ($14,476,300) Supports Executive and general administrative functions for the DMVA and the National Guard. Includes the day-to-day operational maintenance of the 44 state-owned armories (readiness
centers) and other sites.
— Military Training Sites and Support Facilities ($31,734,300)Physical operations and maintenance of Michigan National Guard training sites:
Army National Guard (ARNG) Sites: Camp Grayling, Fort Custer Training Center Air National Guard (ANG)Sites: Alpena Combat Readiness Training Center (CRTC), Battle
Creek ANG Base, Selfridge ANG Base
The training sites are federally owned, with the federal government directly providing the equipment and personnel (technicians) to maintain the equipment.
The state maintains the physical properties, with state employees generally including buildings trades professionals, maintenance mechanics, other laborers, as well as environmental resource staff, and fire/crash rescue officers
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House Fiscal Agency: December 2013 13
National Guard Armories
44 State-Owned Armories• “Readiness Centers”• “Home Base” for MIARNG Units
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Michigan National Guard – Assigned Strength
House Fiscal Agency: December 2013 14
10,431
9,861
9,613
9,390
8,740
8,427
8,446
8,650
8,814
8,617
8,304
8,327
9,000
9,094
9,242
9,228
9,058
8,948
8,788
8427
2,751
2,802
2,702
2,634
2,469
2,451
2,453
2,574
2,766
2,689
2,613
2,798
2,768
2,768
2,749
2,589
2,842
2,556
2,368
2474
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13Army NG Air NG
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Michigan Youth ChalleNGe Academy
House Fiscal Agency: December 2013 15
– Youth ChalleNGe Program ($4,502,000) Voluntary boot-camp style program for 16- to 18-year old high school dropouts, 22-week residential program each year in Battle Creek and 12-month mentoring program. Academic, vocational, and fiduciary services are provided by the Marshall Public Schools Funded at a 75%-25% federal-state share.
1.6
2.2 2.2
2.8
2.1
2.8 2.8
2.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
MYCA Graduates Tests of Adult Basic Education (TABE)
Grade Level Improvement
Note: The TABE tests various subjects, including reading and mathematics, providing a Grade Level Equivalent (GLE) score that ranges from 0 to 12.9. (A score of 12.9 represents the student is proficient at the 12th Grade, 9 month level.) The chart above shows the increase in equivalent grade levels for MYCA cadets taking the exam when they enter and exit the program.
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Michigan Youth Challenge Academy
House Fiscal Agency: December 2013 16
85 89
86 84 87
73
89
97
105
127
107
121
129
78
89 89
103
81 87
116
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
0
20
40
60
80
100
120
140
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13
Gra
duat
ion
Rat
e
Gra
duat
es
Michigan Youth Challenge Academy Graduates
Graduates Grduation Rate
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Military Family Relief Fund
House Fiscal Agency: December 2013 17
Provides emergency grant assistance to families of members of the reserved component called intoactive duty, with revenue generated through voluntary contributions made through a check-off on thestate income tax. ($600,000)
$1,233.7
$549.2
$553.0
$473.5
$415.6
$264.7
$115.2
$170.3
$137.8 53,541
34,484
36,603
46,849
46,019
22,162
6,919
11,627
9,887
0
10,000
20,000
30,000
40,000
50,000
60,000
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
TY2004 TY2005 TY2006 TY2007 TY2008 TY2009 TY2010 TY2011 TY2012
Num
ber of ReturnsAm
ount
(Tho
usan
ds)
Income Tax Check-off ActivitiesTax Years 2004 - 2012 (YTD)
Amount Number
Source: Department of Treasury. Note: Figures shown as TY2012 returns represent all tax returns processed in calendar year 2013 through mid-September and, therefore, could include figures (likely a small amount) from prior tax years not just returns for TY2012.
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Military Family Relief Funds
House Fiscal Agency: December 2013 18
$12.0
$212.5
$266.2
$163.3
$141.4
$101.3
$215.1
$56.6
$89.0
117
147 91 79 47
117 26 26 41
0
20
40
60
80
100
120
140
160
$0
$50
$100
$150
$200
$250
$300
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
# of
Ass
ista
nce
Gra
nts
Expe
nditu
res
(Tho
usan
ds)
Military Family Relief FundExpenditures and Grant Awards
Fiscal Years 2005 - 2013 (YTD)
Expenditures Grants
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Military (Fund Sources)
House Fiscal Agency: December 2013 19
FY 2013-14 Total Appropriation = $58,069,000
Federal$43,051,200
74.1%
GF/GP$11,150,000
19.2%
State Restricted$1,517,800
2.6%
Local$1,500,000
2.6%
IDG$650,000
1.1%
Private$200,000
0.3%
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Military (Scheduled Programs)
House Fiscal Agency: December 2013 20
FY 2013-14 Total Appropriation = $58,069,000
M&O of National Guard Training
Facilities and Air Bases
$31,734,300 54.6%
Armories and Joint Force Readiness
$14,476,300 24.9%
ChalleNGe Program$4,502,000
7.8%Starbase Grant
$2,322,000 4.0%
Support Services$1,973,200
3.4%
Unclassified Positions$1,336,700
2.3%Information
Technology Services and Projects$1,124,500
1.9%
Military Family Relief Fund
$600,000 1.0%
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Michigan Veterans Affairs Agency (MVAA)
Established by Executive Order 2013-2 (MCL 32.92), effective March 20, 2013.
MVAA responsibilities include:
– Coordinating state services and benefits for veterans, and re-engineer processes and procedures where necessary. (New)
– Operating of the state veterans’ homes. (Existing)
– Administering the Michigan Veterans’ Trust Fund (MVTF) (Existing)
– Coordinating applications for federal benefits submitted through the state, counties, and veterans service organizations. (Expanded)
– Coordinating other community support programs available to veterans – “No Wrong Door” (New)
Appropriations
– FY 2012-13 Supplemental Budget – 2013 PA 9 (SB 233): Authorized $3.0 GF/GP for partial year operations.
– FY 2013-14 Enacted Budget – 2013 PA 59, Article XIV (HB 4328): Authorizes $8.6 million for on-going and “one-time” costs
House Fiscal Agency: December 2013 21
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Michigan Veterans Affairs Agency (MVAA)
MVAA Mission StatementTo serve as the central coordinating point, connecting those who have served in the United States Armed Forces and their families to services and benefits throughout the state of Michigan.
Goal 1: Develop and Maintain a Strong MVAA– Focusing on employee readiness, business processes, and infrastructure needs
Goal 2: Improve Communications– MVAA communications with veterans and their families, stakeholders, and partners– Defined communications plan and strategy
Goal 3: Improve and Enhance Veterans’ Service Delivery– Assisting the transition to civilian life– Improve claims process through accredited service officers and county counselors, standardized
submission process and management system,– Reviewing barriers to receiving available benefits– Central information portal – “One Stop Shop”
Goal 4: Enhance Interagency Collaboration and Leverage Partnerships– Improve coordination of services among public and private organizations.
Goal 5: Define and Promote Veterans Through Legislative Actions– Develop a legislative agenda
House Fiscal Agency: December 2013 22
MVAA Strategic Plan
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Michigan Veterans Affairs Agency (MVAA)
Director
Service Administration (Deputy Director)
Michigan Veterans’ Trust
FundD.J. Jacobetti
Veterans HomeGrand Rapids
Veterans’ Home
Targeted Initiatives (Deputy Director)
Strategy (Health Care, Education, Employment, and
Quality of Life)
Strategic Communications and
Customer Engagement
Targeted Outreach
Chief of Staff General Counsel
Senior Legislative and Policy
Advisor
House Fiscal Agency: December 2013 23
MVAA Organizational Chart
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Michigan Veterans Affairs Agency (MVAA)
House Fiscal Agency: December 2013 24
Michigan Veterans Population (est.)
39,574
70,341
245,197
90,588
38,264
81,059 95,751
0
50,000
100,000
150,000
200,000
250,000
WWII Korea Vietnam Gulf War(Pre-9/11)
Gulf War(Post-9/11)
Pre-Vietnam Post-Vietnam
Wartime Peace TimeSource: U.S. Department of Veterans Affairs, Office of the Actuary – VetPop 2011. Note: Veterans who have served in multiple theaters are counted only in the theater in which they first served.
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Veterans Advice, Advocacy, and AssistanceGrant assistance made to several Congressionally chartered veterans’ service organizations (VSOs), provided annually since 1927. No permanent statutory authority, just boilerplate requirements. FY 2013-14 provides no specific boilerplate requirements, giving MVAA significant discretion in awarding grants.
House Fiscal Agency: December 2013 25
$4,031
$2,905
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
FY95 FY97 FY99 FY01 FY03 FY05 FY07 FY09 FY11 FY13
Thou
sand
s
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Michigan Veterans’ Trust FundEstablished in 1946 with $50.0 million principal; trust fund investment earnings provide emergency financial assistance grants to veterans for temporary, unforeseen hardships – housing, utilities, food, medical, transportation, and taxes. .
House Fiscal Agency: December 2013 26
6,806
6,805
5,560
5,009
4,551
3,343
2,856
2,619
2,922
2,715
2,819
2,189
2,209
2,676
2746
5,097
5,154
3,292
2,828
1,958
1,231
1,332
1,402
1,577
1,647
1,512
1,182
1,395
1,650
1832
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
MVTF Application Activities
Processed Approved
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Michigan Veterans’ Trust Fund Distribution
House Fiscal Agency: December 2013 27
Emergency Grants
to Veterans
County-LevelAdministrative
Costs
Quarterly Payments to County Treasurers
(based on county veteran population)Retained by State Board of
Trustees forSpecial Allotment Requests
Remainder forEmergency Grant Program
Special Allotments
50% 50%
State-LevelAdministrative Costs
Annual Investment Earnings of Fund
VETERANS TRUST FUND$50.0 million principal
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Michigan Veterans’ Trust Fund Expenditures
House Fiscal Agency: December 2013 28
$598.4 $723.0
$873.2
$1,290.0 $1,396.0
$1,063.9 $865.9
$1,273.6
$1,715.6
$2,364.7
$496.8
$802.3 $405.7
$295.1 $308.9
$281.8
$304.5
$280.6
$281.2
$275.4
$458.6
$531.3
$579.3
$552.3 $586.7
$587.3
$530.3
$571.7
$611.9
$596.3
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
Num
ber o
f Gra
nts
Appr
oved
Thou
sand
s
Grants County Expenses State Expenses Number of Grants
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Michigan Veterans Affairs Agency (Programs)
House Fiscal Agency: December 2013 29
FY 2013-14 Total Appropriation = $13,114,900(Excluding the Veterans’ Homes)
MVAA Administration
$5,017,000 38.3%
Veterans Advocacy Grants
$2,904,600 22.1% MVTF
Administration$1,446,800
11.0%
MVTF Grants$3,746,500
28.6%
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Veterans’ HomesThe state’s veterans’ homes provide traditional skilled nursing care, residential domiciliary care, and other special needs care for residents with Alzheimer’s or dementia.
— Grand Rapids Veterans’ Home (GRVH): Established by 1885 PA 152, located on 90+ acres in north Grand Rapids.
Skilled Nursing Bed Capacity: 450 (incl. 115 special needs beds) Domiciliary Bed Capacity: 140
— D.J. Jacobetti Veterans Home (DJJVH): Established in 1981, at the site of the former St. Mary’s Hospital in Marquette.
Skilled Nursing Bed Capacity: 182 Domiciliary Bed Capacity: 22
Board of Managers – A 7-member board responsible for general oversight and supervision of the homes – setting policies and establishing rates.
Eligibility – Michigan residents who are veterans of the U.S. armed forces honorably discharged or released under conditions other than dishonorable. Veterans who served in active duty or enlisted since 1980-81 must have served 24 continuous months or the full period for which they were called to active duty.
Spouses of veterans may be admitted, subject to space limitations.
.House Fiscal Agency: December 2013 30
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Veterans’ Homes
House Fiscal Agency: December 2013 31
717 722 710 699 699 684 656 616502 477
178 194 188 197 192 191183
192
186188
0
100
200
300
400
500
600
700
800
900
1,000
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Fiscal Year End Population Census
GRVH DJJVH
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Veterans’ Homes
House Fiscal Agency: December 2013 32
76 7183
207
1327
63
47
25
44
2 70
50
100
150
200
250
WWII Korea Cold War Vietnam Gulf War Dependents
Population by Period of Service(as of September 30, 2013)
GRVH DJJVH
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Veterans’ Homes Funding Sources
House Fiscal Agency: December 2013 33
FY 2013-14 Total Appropriation = $68,194,900
Veterans Health Administration
$26,420,700 38.7%
Income and Assessments$19,430,700
28.5%
GF/GP$18,380,500
27.0%
HHS-Medicaid and Medicare
$3,010,800 4.4%
Post and Posthumous
Funds$540,000
0.8%Military Family
Relief Fund$400,000
0.6%
Lease Revenue$12,200
0.0%
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Capital Outlay
— Special Maintenance – Headquarters and Armories: $20,351,200
Includes basic facilities improvements, such as heating and air conditioning systems, parking lots, roofs, fencing, electronic security systems.
Costs generally shared on a 1:1 state-federal basis
— Special Maintenance – Veterans’ Homes: $500,000 Grand Rapids: $225,000 Jacobetti: $275,000
— Land Acquisitions and Appraisals: $1,000,000 Authorization to acquire new properties Future Project: Acquire a suitable facility to replace the Flint armory.
House Fiscal Agency: December 2013 34
FY 2013-14 Total Appropriation = $21,851,200
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One-Time Appropriations
— Veterans Service Delivery Initiative: $3,955,000 MVAA service delivery design and development
— County Counselor Education an Training Expenses: $45,000 Travel costs for county veterans counselors to attend the national conference of the
National Association of County Veterans Service Officers in Grand Rapids (Jan. 2014)
— Veterans Affairs Agency Computer Upgrade: $1,500,000 Integrate the Pure Michigan Talent Connect website into the Hero 2 Hired (H2H)
platform to translate veterans’ military education and experience into the education and experience for civilian employment.
House Fiscal Agency: December 2013 35
FY 2013-14 Total Appropriation = $5,500,000
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For more information about the Military and Veterans Affairs budget,
contact:
Mark [email protected]
(517) 373-8080
MILITARY AND VETERANS AFFAIRSMilitary and Veterans AffairsMilitary and Veterans Affairs: Gross AppropriationsMilitary and Veterans Affairs Share of State GF/GPSOURCES OF FUNDINGMilitary and Veterans Affairs Funding SourcesDEPARTMENT APPROPRIATIONSMilitary and Veterans Affairs AppropriationsMilitary and Veterans Affairs AppropriationsMilitary and Veterans Affairs AppropriationsMAJOR BUDGET TOPICSMilitary – Michigan National GuardSlide Number 13Michigan National Guard – Assigned StrengthMichigan Youth ChalleNGe AcademyMichigan Youth Challenge AcademyMilitary Family Relief FundMilitary Family Relief FundsMilitary (Fund Sources)Military (Scheduled Programs)Michigan Veterans Affairs Agency (MVAA)Michigan Veterans Affairs Agency (MVAA)Michigan Veterans Affairs Agency (MVAA)Michigan Veterans Affairs Agency (MVAA)Veterans Advice, Advocacy, and AssistanceMichigan Veterans’ Trust FundMichigan Veterans’ Trust Fund DistributionMichigan Veterans’ Trust Fund ExpendituresMichigan Veterans Affairs Agency (Programs)�Veterans’ HomesVeterans’ Homes��Veterans’ HomesVeterans’ Homes Funding SourcesCapital OutlayOne-Time AppropriationsFor more information about the �Military and Veterans Affairs budget, contact: