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Veterans services seeks temporary nursing pool, highlights Build America Buy America delay on home rebuilds
Summary
Division of Veteran Services told JFAC it plans to pilot 22 temporary benefited nursing positions to reduce costly contract labor and said federal Build America Buy America requirements — and delays in a VA waiver — have stalled Boise rebuild and Lewiston renovation funding.
Mark Chample, chief administrator for the Idaho Division of Veteran Services, briefed the Joint Finance-Appropriations Committee on staffing and capital requests for FY2026, saying the agency would pilot a temporary nursing pool to reduce reliance on higher-cost contract nurses and that federally funded construction projects have been delayed by Build America, Buy America compliance issues.
Staffing pilot to reduce contracted nursing costs
The division requested a net transfer of about $1,200,000 from operating to personnel to create a pool of 22 temporary benefited state employees to perform nursing shifts now largely covered by contracted agencies. "This would allow the division to shift approximately one third of the agency's reliance on contracted temporary nursing staff to a pool of 22 temporary and benefited state employees," Frances Lippett said during the presentation. Administrator Chample told the committee the temporary pool is a pilot to reduce premium spending on contract labor. He said contracted staff can cost roughly three times the amount of state staff and that the pilot could save an estimated $600,000 per year if filled.
Committee members sought pay and market details
Senator Ward Engelking and others asked whether state-employed nurses are paid competitively versus contract nurses. Lippett and Chample said the division conducts regular market analyses and sets competitive wages regionally; Chample added that the division has been more competitive than national averages, pointing to a 34% turnover rate at the division compared with a national nursing turnover figure mentioned in the hearing. Officials acknowledged they would provide more detailed comparisons of contract rates versus state pay on follow-up.
Capital projects and Build America, Buy America
Lippett said the division received $43.1 million in federal appropriation for State Home Grant funding to rebuild the Boise veterans home and renovate Lewiston’s home, but the grants have not been received because the department has been unable to secure a waiver under the Build America, Buy America Act. Administrator Chample described the program goals: converting multi-bed rooms to single-bed, single-bath rooms to improve resident quality of life and infection control. He said the federal share is approximately 65% with a 35% state match. "The federal VA decided that they were not going to fund our projects if we were not Build America Buy America Act compliant," Chample said; he added the division has pursued a waiver and that the VA has indicated support but had not yet granted the waiver at the time of the hearing.
Other requests and operational context
The division also asked for ongoing IT maintenance and licensing costs recommended by the Office of Information Technology Services and one-time replacements across vehicles, medical equipment, kitchen appliances and building equipment. Lippett said the division averaged about $31.1 million in personnel cost appropriation over five years and spent about 84% of personnel appropriations on personnel in FY2024. She noted a 35% turnover rate for skilled nursing staff and that the division fully expended personnel costs from the general fund in FY2024.
Ending
Chample highlighted the division’s veteran advocacy work and high resident satisfaction rates, and thanked the committee for past support. He said the temporary-nurse pool is a pilot and the division will report back on results and provide requested contract-rate comparisons.
