Veterans services seeks temporary nursing pool and reports construction delays under federal Buy America rules

BOISE — The Idaho Division of Veteran Services told the Joint Finance‑Appropriations Committee (date not specified) it is piloting a temporary nursing pool to reduce the agency’s reliance on costly contract nursing and described continued delays to construction projects for the Boise and Lewiston veterans homes tied to federal Build America, Buy America (BABA) rules.

Administrator Mark Shample said the division has struggled to hire and retain skilled nursing staff and that contracted nursing agencies currently supply a substantial portion of staffing at a higher cost. The division’s FY2026 request includes a net transfer of $1.2 million in appropriations from operating to personnel to fund a pool of 22 temporary, benefit‑eligible state employees — a pilot meant 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,” according to the analyst’s presentation.

Why it matters: State veterans homes provide skilled nursing and long‑term care for a vulnerable population. Staffing and construction decisions affect resident care quality, infection control and long‑term capacity at city hospitals and regional homes.

Staffing and costs

- Turnover and contracted staff: The division reported a 35% turnover rate in fiscal 2024 for skilled nursing staff and told the committee contracted nurses cost “about three times more” than state employees. The administrator said the division believes it can recruit a pool of part‑time or temporary staff based on prior outreach and exit interviews where candidates said they preferred shift work rather than full‑time work.

- Pilot and estimated savings: The proposed temporary pool of 22 positions aims to reduce the premium paid to contracted staffing agencies; the analyst and administrator estimated substantial savings if the pilot succeeds but final figures depend on hiring outcomes.

Construction and Build America, Buy America

- Federal grant funding and delays: The division reported $43.1 million in federal appropriation for rebuilding the Boise veterans home and renovating the Lewiston home, but said progress is stalled because the Department of Veterans Affairs (federal) requires compliance with Build America, Buy America rules for funded projects. The division applied for a waiver and said it has documented that many required building components are not available from U.S. sources; the VA had not granted the waiver by the time of the hearing.

- Project goals: The agency said the rebuilds aim to convert older homes to single‑bed, single‑bath units to improve resident quality of life and infection control following COVID‑19.

Other FY2026 requests

The division also requested $120,600 ongoing for IT maintenance and licensing and $588,400 one‑time (shed and equipment, dump truck for Boise Veterans Cemetery) plus replacement items and re‑appropriation authority for federal construction grants. The governor recommended the requested enhancements.

Discussion vs. decisions

Committee members asked about pay competitiveness and whether the division is able to offer market wages. Administrator Shample said the division tries to remain competitive; higher personnel costs reflect geography‑based market adjustments. No committee votes or final appropriations were recorded in the transcript.

Ending

Administrator Shample said the division will pilot the temporary nursing pool and continue to press the federal VA for a BABA waiver to allow federally funded construction to proceed.