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Veteran services seeks to convert contracted nursing work to temporary state positions; Build America, Buy America waiver stalls construction funding
Summary
The Idaho Division of Veteran Services asked the appropriations committee to approve transfers to hire temporary nursing staff to reduce costly contractor use and described delays to federally funded veterans home construction caused by Build America, Buy America compliance issues.
Frances Lippett, Legislative Services analyst, reviewed the Division of Veteran Services’ budget, and Mark Shample, the division’s chief administrator, answered questions about staffing and construction timelines.
The nut graf: the division wants to shift part of its contracted temporary nursing work into a temporary, benefited pool of state employees to reduce premium contractor costs and improve continuity of care, and it continues to await a federal waiver that would allow federal funding for rebuilds of veterans homes to proceed.
Lippett summarized the division’s responsibilities and noted the division operates four state veterans homes and two veterans cemeteries under Titles 65 and 66 of Idaho Code. She said the division is authorized 439.5 FTE and spends a substantial share of appropriations on personnel and that some dedicated funds show declining miscellaneous-revenue balances because appropriations are sometimes shown at full levels rather than anticipated revenues.
Administrator Mark Shample told the committee the division has used contract nursing at a premium because of national workforce shortages. "This will actually allow us to hire some of those folks that have expressed that interest and it should reduce our reliance on contracted staff, which cost about 3 times more than our state staff," Shample said, describing a pilot to convert roughly one-third of contracted hours to benefited temporary positions (22 positions planned in the request).
Shample and Lippett confirmed the division’s turnover for skilled nursing remains elevated (about 34–35%), though the administrator said the division’s rate compares favorably to national averages. Committee members asked for a more detailed comparison of contractor pay versus state pay; Lippett said she would gather and provide numbers.
On construction and federal funding, Lippett and Shample discussed the Boise and Lewiston veterans home projects and said the division has not yet received federal state-home grant funding in part because the federal Department of Veterans Affairs has required Build America, Buy America compliance. Shample said the division had requested a waiver and has demonstrated the difficulty of sourcing all required materials in the U.S.; he said the VA has been slow to grant the waiver.
Ending: The committee asked staff to provide additional cost comparisons between contracted nursing and state staffing; the division said it will provide follow-up materials and continue to press the federal VA for waivers so construction can move forward.
