Veterans services seeks temporary nursing pool, waits on federal waiver for veterans home rebuild

Frances Lippitt of the Legislative Services Office presented the Division of Veterans Services’ fiscal history and FY 2026 requests before Administrator Mark Shampel and deputy staff answered committee questions on staffing, construction and federal grant timing.

The division said it faces a persistent staffing shortage for skilled nursing positions at four state veterans homes. To reduce reliance on premium-priced contract nursing agencies, the division requested permission to transfer $1.2 million of operating appropriation into personnel costs to hire a pool of 22 temporary, benefited state employees to work shifts across homes.

Why it matters: Contract nursing has materially increased the division’s operating costs. The division said contracted staff cost roughly three times what in-house state staff do, and that a temporary pool would both reduce expense and improve continuity of care.

Details and context

- Temporary nursing pool and cost: Administrator Mark Shampel said the temporary pool would allow the division to convert roughly one-third of the contracted hours into state employment for 22 positions as a pilot. The division estimates savings (and said it spends significant sums currently on agency staff), and said the division will monitor results and may request further transfers if the pilot is successful.

- Staffing metrics: The division reported a roughly 35% turnover rate for skilled nursing staff in FY 2024 and used significant contracted labor to maintain resident-care ratios. The Boise veterans home is the largest (about 142 FTE), and other homes (Pocatello, Lewiston, Post Falls) each staff roughly 80 FTE.

- Facilities and federal funds: The division has federal Department of Veterans Affairs state home grant funding (cited about $43.1 million) to rebuild the Boise home and renovate Lewiston, but construction cannot proceed until the federal government approves waivers related to the Build America, Buy America (BABA) Act. Administrator Shampel said the division has demonstrated that many building components cannot be sourced entirely from U.S. manufacturing and is awaiting a VA waiver.

- Other FY 2026 requests: One-time requests include $588,400 for site equipment (shed and dump truck), $354,700 for replacement items (vehicles, medical and kitchen equipment), and about $100,300 for IT hardware. The governor recommended the division’s requested enhancements.

Questions and committee concerns

Committee members asked whether the state wage scale was competitive. Administrator Shampel said the division conducts market analyses and adjusts wages geographically; the agency believes it is competitive and noted its turnover rate compares favorably to national figures. Lawmakers also asked whether the temporary-pool approach will yield sufficient staff; Shampel said exit interviews show many nurses prefer part-time or occasional shifts, and the division expects to fill the initial pool.

Program outcomes and performance

The administrator highlighted production by the Office of Veterans Advocacy (about 13,000 claims filed and roughly $1 billion in benefits secured for veterans in the last year), expansion of outreach offices, cemetery stewardship awards, and near-capacity occupancy at the state veterans homes.

Ending

The committee requested additional comparative data on contract rates versus state pay. The division said it would provide follow-up materials to quantify potential savings from the temporary nursing pilot and to support the federal-waiver negotiations required before construction can begin.