Senate appropriations panel questions Veterans Home use of special funds, asks for five‑year Fund 380 balances before acting on transfer

The Senate Appropriations Committee, Human Resources Division, reviewed Senate Bill 2,007 on the budget for the Veterans Home and pressed staff for a five‑year accounting of the home’s special revenue account (Fund 380) before agreeing to an intra‑budget transfer.

The committee focused on how the home decides to use its own revenue — called "other funds" or Fund 380 in the agency accounting — versus state general fund appropriations. Kristen, a veterans home official who presented the budget, told the panel that "we generally try to spend special funds first before we kick in and start spending the general fund dollars." The committee asked for the ending balance of Fund 380 for the last five years before taking action on the budget.

Why it matters: The split between special funds and general fund spending affects the state’s general fund balance and the committee’s choices this session. Lawmakers said they want the full Fund 380 picture to judge whether the home should draw down reserves rather than rely on new general fund dollars.

Committee discussion and requests

Kristen said the Veterans Home uses revenue it collects from rents, meals and other services for salaries and operations and tries to exhaust those special funds before using general fund dollars. She told senators that only capital items and certain state‑tied costs (for example, some IT licensing, state fire and tornado insurance) are explicitly required to come from particular funding sources.

On a concrete request, the home asked to transfer $400,000 from a salaries line to an operating line in the current biennium to pay for contract nursing agency staff. "Contract nurses fall under operating expenses, not salary," Kristen said, explaining that the money represents savings from unfilled positions that must be reclassified to cover contract staffing costs.

The home also asked for several other changes or authorities in the bill, including: - $50,000 in special fund authority for marketing and advertising to raise awareness among veterans; - $275,000 in special fund authority for nursing wage equity; - adding language to allow provision of meals to staff in emergencies; - removing section 3 of the draft bill relating to a housing stipend; and - confirmation that $175,000 in Melvin Norgaard funding was included in the governor’s recommendation.

Kristen said the home expects to spend "probably over $800,000 as a biennium on contract staffing," and that vacancy savings from unfilled FTEs are the source of the requested transfer.

Accounting, reserves and next steps

Senator Davidson (first name not specified in the transcript) pressed for the five‑year Fund 380 ending balances and said the data would determine whether the committee reduces general fund support. Becky, an Office of Management and Budget analyst, provided the five‑year snapshot the committee requested: "2020, there was 4,400,000 in the fund. And 21, there was 6.8. 22 there was 7.5. 23 there was 8.7. And 24 was roughly 8.7 also." Committee members noted the roughly doubling of the balance since 2020 and discussed whether some reserves should be drawn down this biennium.

Adam, a legislative staffer, explained the mechanism the committee would use if it wanted the transfer to apply during the current biennium. "So that would just be a section in the bill with an emergency clause associated with it to allow them to move that money, so that they can spend it from the appropriate line item," he said.

Admissions, vacancies and possible program uses

The panel also questioned operational limits and admissions rules. Kristen and another member of the admission committee said the home reviews criminal histories and conviction details on a case‑by‑case basis; they testified there is specific language in admissions policy concerning felony convictions and that some convictions, such as dishonorable discharges, render applicants ineligible. The presenters said they have admitted some veterans with sexual‑offense histories after case‑by‑case review.

Committee members and the veterans home discussed using vacant rooms for veteran behavioral‑health residential services or other contracted programs, but both sides said the home’s outstanding obligations — the presenters noted the facility still owes approximately $15,000,000 to the U.S. Department of Veterans Affairs on the building — and staffing shortages limit near‑term changes in use.

Where the committee left it

No formal vote was taken. Senators told Kristen they were generally satisfied to proceed with the governor’s recommendation and the home’s requests but would not finalize action until the home provided the five‑year Fund 380 ending balances and clarified which authorities must be added with an emergency clause. Senator Davidson said, "So, mister chairman, I'm fine with their budget. I just wanna move around the general funds over to the other funds," indicating he would be prepared to act once the committee has the requested financial detail.

The committee directed staff and the veterans home to provide the Fund 380 ending balances and other clarifying information (including whether the requested $400,000 transfer should be limited to special funds authority) and said it would reconvene soon to finish consideration of Senate Bill 2,007.