military and veterans affairs - michigan house of ...michigan veterans affairs agency (mvaa)...

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.

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

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


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.

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


SOURCES OF FUNDING

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%


FY 2013-14 Military and Veterans Affairs Budget = $166,730,000(Includes one-time appropriations of $5,500,000

DEPARTMENT APPROPRIATIONS

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


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

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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%



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%


$5,500,000 11.8%

Capital Outlay$3,551,200

7.6%

MAJOR BUDGET TOPICS

Military – Michigan National Guard


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


National Guard Armories

44 State-Owned Armories• “Readiness Centers”• “Home Base” for MIARNG Units

Michigan National Guard – Assigned Strength


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

Michigan Youth ChalleNGe Academy


– 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.

Michigan Youth Challenge Academy


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

Military Family Relief Fund


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.

Military Family Relief Funds


$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

Military (Fund Sources)


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%

Military (Scheduled Programs)



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%

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



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


MVAA Strategic Plan


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


MVAA Organizational Chart



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.

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.


$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

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. .


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

Michigan Veterans’ Trust Fund Distribution


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

Michigan Veterans’ Trust Fund Expenditures


$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

Michigan Veterans Affairs Agency (Programs)


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%

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

Veterans’ Homes


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

Veterans’ Homes


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

Veterans’ Homes Funding Sources



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%

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.




— 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.



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:

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