Subcommittee advances Oregon Department of Veterans Affairs budget bill with dash-1 amendment

Co Chair Gomberg on May 27 moved the work session on House Bill 5,038, the Oregon Department of Veterans Affairs (ODVA) budget, and the subcommittee approved the Legislative Fiscal Office (LFO) recommendation and adopted the dash-1 amendment before forwarding the bill to the Ways and Means full committee with a due-pass recommendation.

The LFO analyst told the subcommittee that the recommended 2025–27 biennium budget for ODVA totals $10,173,865 in General Fund, $23,691,664 in other funds expenditure limitation (primarily lottery revenue dedicated under Measure 96), and $4,123,106 in federal funds, supporting 105 positions (103.75 FTE). "House Bill 5,038 is a budget bill for the Oregon Department of Veterans Affairs," the LFO analyst said while walking members through program-level packages and proposed adjustments.

The recommendation includes a restructuring that separates operations into its own program area and several staffing and one-time packages: permanent HR, finance and chief operating officer positions paid from other funds; a senior data engineer; legacy AS/400 application support; $115,000 for World War II Memorial work; and $2 million in home loan funds to finish a second-floor renovation at the Salem headquarters. The home loan program recommendation totals about $5.9 million in other funds and adds staffing tied to deployment of a new Midas loan-servicing system.

Members asked about two financing risks that the LFO highlighted. First, lottery revenue projections dedicated to veterans services fell in the latest forecast; the LFO projected total dedicated lottery revenue of $28,279,389 for 2025–27 and said the drop reduced available carryover and required trimming some lottery-funded grant programs. Second, several capital projects at the veterans homes—including air-handling work at the Dallas veterans home—are expected to be reimbursed by federal funds. The LFO told the committee the agency "expects to request and receive federal fund reimbursement by 12/31/2025," and a senator expressed concern about relying on that timing, asking for a written follow-up on the federal reimbursement process.

The subcommittee also reviewed and approved changes to the agency's key performance measures (KPMs). Notable KPM changes include lowering the delinquency target for ODVA home loans (from 1.4% to 0.75%), increasing the home loan origination target (from $65 million to $75 million per year), and revising two KPMs to give ODVA more control over measurement: tracking engagement of new women veterans (target: 500 new women veterans annually) and changing the homelessness-related KPM to use the Oregon Veterans Financial Assistance Grant Program application approvals as the tracking mechanism.

After no objections, a committee member moved the LFO recommendation; the motion carried. The subcommittee adopted the dash-1 amendment and voted to move House Bill 5,038 as amended to the Ways and Means full committee with a due-pass recommendation. Representative Meek and Representative Scarlato were identified as carriers to the Senate and House floors, respectively. The committee closed the session and scheduled further work the next day on other budgets, including the Employment Department and a Senate bill on a veterans dental program.

What the committee did not decide: the transcript records no final tally of roll-call votes and no additional statutory changes beyond the dash-1 amendment. The LFO committed to follow up in writing on the federal reimbursement timing for capital projects; that follow-up was not on the record at the meeting.