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Committee backs Senate Bill 2265 to allow a $3 million line of credit for state veterans projects
Summary
The Government and Veterans Affairs Committee voted 10-4 to recommend Senate Bill 2265, which would authorize a $3 million deficiency line of credit for Department of Veterans Affairs projects meeting U.S. Department of Veterans Affairs oversight requirements.
Senate Bill 2265, which would authorize a deficiency line of credit of up to $3,000,000 for projects of the Department of Veterans Affairs that meet specified U.S. Department of Veterans Affairs planning and oversight criteria, received a favorable committee recommendation. The Government and Veterans Affairs Committee approved a motion for a due-pass recommendation on the bill, 10-4.
The bill would allow the Department of Veterans Affairs to access a contingency line of credit during the 2025–2027 biennium, and if the line is used the department would be required to request a deficiency appropriation from the next legislative assembly to repay principal and interest. Alan Knudson, legislative council staff, explained the process: "if they do access the line of credit, then they're required to request a deficiency appropriation from the next legislative assembly." Knudson added that agencies typically coordinate with the Office of Management and Budget before a session to prepare deficiency requests.
Representative Vetter moved the due-pass recommendation; Representative Schneider seconded. Representative Wolff said he would vote no, citing a broader concern about state funds being given to nonprofit organizations even when he described them as worthy recipients: "I am gonna be a no on this. This is the second bill we've heard today where we're giving money to non profit organizations," he said. The roll call recorded 10 yes votes and 4 no votes; the motion carried.
The legislation as discussed specifies that the authorization would be available only upon certification that the U.S. Department of Veterans Affairs will provide planning and oversight of the project and that access must occur by June 30, 2027, during the 2025–2027 biennium. If money is accessed, the sponsoring agency would seek a deficiency appropriation in the next legislative session to cover repayment of principal and interest, an action subject to the appropriations committees' approval.
The committee did not amend the bill during the hearing. Representative TJ Brown indicated interest in carrying the bill forward. The committee advanced the bill to the next steps in the legislative process with its favorable recommendation.
