Senate Appropriations reviews Veterans Affairs budget request, including one FTE, ARPA carryovers and commissioner pay

The Senate Appropriations Human Resources Division on an appropriations-day hearing heard testimony from Lonnie Wong of the Department of Veterans Affairs on the department’s budget request and program needs.

Wong said he was asking the committee to “support Governor Armstrong’s budget” and to consider continuing carryover authority for several ARPA-funded items and “any equity funding that you would like to provide” as well as an additional full-time position. He described the requested position as “one more Veterans Benefits Specialist,” who would help process compensation, medical and pension claims.

The committee focused on three funding questions: which portions of pay and benefits are funded with federal dollars, the department’s requests to carry ARPA-funded projects into the next biennium, and how a recent equity pay action for the agency commissioner was funded and authorized.

Why it matters: committee members said the additional FTE would reduce backlogs and speed claims work coming from new federal rules and outreach programs. Wong and staff described a recent increase in claims and appeals linked to the PACT Act and related outreach: in testimony Wong cited roughly 6,015 claims in the current biennium compared with about 3,841 in an earlier two‑year period, and about 1,303 appeals so far this biennium.

Federal funds and the State Approving Agency: committee members questioned how salary and insurance increases were split between general fund and “other funds.” Legislative staff and agency witnesses said two federal grant lines matter for the agency: the State Approving Agency (SAA) line (federal) and the highly rural transportation grant (federal). Staff gave the SAA line as $323,129 and the transportation program as $1,126,085. Wong described the SAA as a federally funded program that pays staff costs on a reimbursement basis and said his office requests federal reimbursements monthly.

ARPA carryovers and program work: Wong asked the committee to authorize carryover for three ARPA-related items: a veterans transportation pilot used for rides to appointments, a scanning project to digitize DD‑214 service records (the department reported the scanning work is nearly complete), and support for a local Fisher House land and build effort. On the scanning project Wong said the original estimate to write the program and migrate scanned records was “close to $30,000,” but the vendor bid came in near $6,000; he asked to carry remaining technology funds so counties’ remaining records can be digitized.

PTSD service dogs: Wong reported the department carried over roughly $75,000 for PTSD service dogs, has paid out awards for two graduates, and currently has three veterans “in the hopper” of training. He said the nonprofit Judd Service Dogs for America does supplemental fundraising to cover roughly half of a dog’s cost for individual veterans.

Claims, appeals and outcomes: Wong and staff described a heavier workload tied to expanded presumptive conditions under the PACT Act. He said the department wins a large share of appeals when they pursue them — about 84% in his summary — and that retroactive payments rise when appeals are successful because awards are paid back to the claim date.

Commissioner pay and governance questions: committee members pressed Wong and fiscal staff about a recent large equity-based increase in the commissioner’s salary approved by the agency’s governing board (the Administrative Committee on Veterans Affairs, often abbreviated as ACOVA or a similar acronym in testimony). Multiple senators questioned whether the board exceeded legislative authority by approving the pay increase without prior legislative appropriation. Staff explained the board researched compensation comparators for similar agency positions and worked with HRMS and OMB; the board’s action is subject to the “limits of a legislative appropriation” per North Dakota Century Code 37‑08‑18.1 (discussed in testimony). Several senators said they would not support funding a deficiency to cover that pay increase when the deficiency bill is introduced.

Committee direction and disposition: no formal appropriation votes were taken on the Veterans Affairs budget at this hearing. Chair and committee members said they would take the testimony “under advisement” and revisit the department’s request during later budget work; Wong was told he need not attend the next meeting if the committee acts in his absence.

Quotations (from hearing): "I'm asking support for Armstrong and for Armstrong, Governor Armstrong's budget and consideration of the carryover and any equity funding that you would like to provide," Lonnie Wong said. "It's all federal funds?" Senator Davison asked about portions of salary increases; staff confirmed many costs are reimbursed from federal grant lines.

Ending: The committee recorded program details and asked staff to return budget rollups and clarifications; members flagged the commissioner-pay issue for separate scrutiny when the deficiency bill is prepared. No final appropriation or formal committee action on the Veterans Affairs budget was taken at the hearing.