Appropriations subcommittee reviews $275.9 million FY25 budget for Michigan Department of Military and Veterans Affairs

The House Appropriations Subcommittee on Military and Veterans' Affairs heard an overview of the Department of Military and Veterans Affairs' (DMVA) fiscal 2025 budget on a committee hearing convened by Chair Robinson. Aaron Meek, House Fiscal Agency analyst for Military and Veterans Affairs and the Michigan State Police budget, told members the DMVA gross appropriation for fiscal 2025 is $275,900,000, including $144,800,000 in federal grant and matching revenue and $117,700,000 in general fund (GF) appropriations.

"DMVA serves a sort of dual purpose. They provide both an operational military force . . . as well as a network of services and programs to support Michigan veterans and their families," Aaron Meek, House Fiscal Agency analyst, said in his presentation.

Why it matters: federal funding makes up roughly half of DMVA's budget for FY25, leaving services and facilities partly exposed to changes at the federal level. Committee members pressed for follow-up detail on Veterans Service Organization (VSO) grant sources, the status of a proposed northern Michigan veterans cemetery, and the effect of federal funding uncertainty on programs such as STARBASE.

Meek outlined the department's three core units and major allotments: the military unit (which supports the Michigan National Guard and related education programs), the Michigan Veterans Affairs Agency (MVAA), and the Michigan Veterans Facility Authority (MVFA), which operates the state's three veterans homes. He said about two-thirds of the military unit appropriation is federal authorization, and that general fund dollars cover much of MVAA's administrative costs and nearly all of several veterans grant lines.

Key program and line-item details provided by Meek included: - Overall gross appropriation: $275,900,000; federal and matching revenue: $144,800,000; general fund: $117,700,000; state restricted funds: $13,200,000; private donations ~ $100,000; interdepartmental grants $101,800. - Military unit highlights: $45,900,000 for training sites/support facilities; $24,400,000 for administrative functions (adjutant general office, HR, accounting, IT, facilities management); $11,200,000 for the Michigan National Guard State Tuition Assistance Program (MINGSTAP); $10,300,000 for the Michigan Youth Challenge Academy (MICA); $2,300,000 federal authorization for STARBASE; $2,800,000 GF for the state's military retirement obligations; $150,000 restricted from the Military Family Relief Fund (up to $2,000 grants per family per year). - MICA: 22-week voluntary program for at‑risk 16–18 year olds. FY25 gross appropriation $10,300,000 (about $3,400,000 GF and $6,900,000 federal) with a federal match structure; Meek estimated the GF cost per student at about $5,000 on average after accounting for federal dollars and program costs. - STARBASE: a nationwide Department of Defense STEM program that operates three Michigan sites (Selfridge, Battle Creek ANGB, Alpena). As of Feb. 7, Meek said, all STARBASE programs nationwide were closed due to paused federal funding disbursements tied to the congressional continuing resolution; the DOD comptroller had released about $20,000,000 for STARBASE nationally but not additional funds. - MINGSTAP: established 2014 to support tuition assistance for Michigan National Guard members; 2023 statute extended eligibility to spouses and dependents. Meek said the fund lapses excess balances above $15,000,000 to the general fund by statute; the available fund balance he cited was about $8,700,000 with FY25 expenditures/encumbrances ~ $2,800,000. - MVAA: FY25 appropriation ~ $24,800,000 gross. General fund pays most administrative costs (~$9,300,000) and funds multiple grants, including $4,250,000 each for county veteran service and VSO grants, $2,500,000 for Veterans Trust Fund (VTF) grants (plus $1,200,000 for VTF administration), and $2,500,000 in one‑time funding for eliminating veteran homelessness grants in FY25 (increased from $2,000,000 in FY24). - MVFA and veterans homes: MVFA accounts for about 38% of the DMVA FY25 budget (~$105,200,000 gross) and oversees veterans homes in Chesterfield Township, Marquette (D.J. Jacobetti Home), and Grand Rapids plus a 12‑acre veterans cemetery near Grand Rapids. About half of MVFA funding is federal (including Veterans Health Administration reimbursements and Medicare/Medicaid revenue), and the remainder is primarily GF and state restricted funds (residential assessments). Meek said populations at the homes have declined about 48% from FY2009 through FY24; the Chesterfield facility opened in 2021 and populations have shifted across homes.

Meek also identified three FY25 one‑time GF appropriations totaling $19,000,000: $15,000,000 for Selfridge related projects, $2,500,000 for eliminating veteran homelessness grants, and $1,500,000 for grounds/roads maintenance at the VFW National Home in Eaton Rapids. He said the legislature previously provided roughly $35,800,000 since FY23 for Selfridge improvements and a new 41,000 square‑foot hangar to attract future fighter missions and shift runway alignment away from nearby residential areas (an air installations compatibility use zone was cited).

Committee members asked Meek to follow up with departmental staff for more detailed accounting on VSO grant funding sources, the status and expenditures related to the proposed northern Michigan veterans cemetery, and an overall estimate of the percentage of federal "pass-through" dollars the committee oversees. Meek said he would coordinate with the department and provide additional detail.

Representative Cameron thanked Meek for the presentation and asked about the VSO grant funding sources; Meek said the specific VSO grant appropriation is GF but he would check for related federal amounts. Representative Rogers asked for an update on the cemetery procurement/RFP; Meek said he did not have the expenditure detail on hand but would follow up with the department. Representative Madick asked about reasons for the decline in veterans home populations; Meek said he could not speak to facility specifics and suggested MVFA staff could answer but his hunch was attrition and a shrinking veteran population.

No formal votes on budget bills or amendments were taken at the hearing. Near adjournment, Representative Rogers moved to excuse absent members; the motion was moved and adopted without objection and the subcommittee adjourned.

Meek closed his remarks offering to provide more detailed line‑by‑line information from the House Fiscal Agency writeup and to coordinate departmental testimony or follow‑up responses to specific member questions.