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Veterans Affairs seeks funding to stabilize veteran homes and finish Stone Pavilion upgrades
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Summary
The Department of Veterans Affairs asked the Constitutional Subcommittee for recurring operating increases and nonrecurring capital to support the six‑home veteran enterprise, including $14.4 million for Stone Pavilion conversion and an additional $4.3 million in capital work to complete previously identified repairs.
Secretary McCaffrey of the South Carolina Department of Veterans Affairs presented the agency’s budget to the Constitutional Subcommittee on Jan. 28, asking for recurring and nonrecurring funds to support the statewide veteran home enterprise and several legacy programs.
McCaffrey said the department’s total recurring request is approximately $30.8 million, with roughly $9.3 million of that tied to revenue authorization related to federal dollars for the veteran homes. Three of the department’s top six priorities are tied specifically to the veteran home enterprise: operating support for six homes (Anderson, Walterboro, Florence, Gaffney and Sumter plus Stone Pavilion), nonrecurring capital to complete Stone Pavilion repairs, and additional veteran home support to account for underestimated costs from the first year under agency oversight.
Why it matters: The department took responsibility for five veteran homes on July 1, 2024, and will assume one more on July 1, 2025. McCaffrey said the homes had previously been operated by the Department of Mental Health and by third‑party contractors; the shift in operational responsibility revealed additional operating costs and capital needs.
Key requests and details
- Stone Pavilion: The department requested a $14.4 million appropriation (with $2 million revenue authorization) to place Stone Pavilion into an operating posture under the veteran home enterprise. Of the $14.4 million, about $400,000 is intended to keep a separate “Fuel Pavilion” facility in readiness. McCaffrey requested an additional $4.3 million nonrecurring to finish capital work identified by a prior assessment: piping replacement, hot water system work, HVAC repairs, flooring replacement and a new perimeter security fence.
- Operating escalation and underestimates: The department asked for roughly $4 million in recurring operating escalation for inflation across the enterprise and identified a nearly $2 million shortfall from last year’s operating estimate tied to initial cost assumptions. McCaffrey said the agency is developing a demand history and adjusting requests accordingly.
- Legacy programs and other requests: The department requested $10 million recurring for the Military Enhancement Fund (grants to communities adjacent to active military installations), $182,000 recurring to expand the Military Child Education Coalition’s Purple Star School program into the Lowcountry, and $100,000 nonrecurring to update the statewide economic impact study of the military footprint.
What was not decided
No formal votes or motions were recorded on these requests during the briefing. McCaffrey said the department and legislative analysts are still refining provisos and revenue language (notably cemetery revenue and veteran home enterprise revenue authorities) and will provide final language to the committee staff.
Ending
McCaffrey closed by noting the strategic economic and readiness importance of the military and veteran home enterprise and offered to respond to any further questions and proviso language edits.
