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CalVet outlines new Yountville skilled nursing facility and addresses tax-related W-2 corrections for employees

California State Senate Subcommittee 4, Budget and Fiscal Review Committee · May 7, 2026
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Summary

California Department of Veterans Affairs officials described progress on a 240-bed skilled nursing facility at Yountville, projected completion in the fall and licensing steps next; the department also explained it is addressing state-auditor findings that led to amended W-2s and tax liabilities for a dozen employees and providing interim salary advances.

The California Department of Veterans Affairs updated Subcommittee 4 on operational and capital items, including the new Yountville skilled nursing facility and steps to address audit findings that required amended payroll filings.

Secretary Lindsey Syn said the new 240‑bed skilled nursing facility at Yountville will replace the aging Holderman Hospital and deliver state-of-the-art skilled nursing and memory-care services, with construction nearing completion and licensing to follow. "At this point, we are nearing the end of construction. So we expect to see construction complete sometime around fall," Syn said.

Committee members also pressed CalVet about a state-auditor finding that fringe benefits had not been properly reported, leading to amended W-2s and tax liabilities for about a dozen current and former employees. The department said it has worked with the State Controller's Office and affected employees, advanced salaries to help those owed money and deferred repayment collection up to 24 months to reduce immediate hardship. CalVet said it has implemented standard operating procedures and training to prevent future reporting errors.

Members asked about staff vacancies at the new facility; CalVet said many positions will transfer from Holderman and that hiring plans are in place to meet required care ratios. The subcommittee held the items open for further monitoring.