Veterans Affairs seeks funds to finish homes, cover higher nursing costs and a potential $18M local match

Veterans Affairs officials told the budget subcommittee they need modest increases to stabilize pay for direct care staff and asked for targeted capital dollars to complete three remaining projects.

A Veterans Affairs representative said the department is requesting modest increases in general funds to allow pay raises and to stabilize workforce retention. The presentation identified three unfinished capital projects — new roofs at Kosciusko and Collins homes and a remaining HVAC project at Collins — with a combined estimate of about $8.5 million to finish them.

Officials also said the estimated cost for a Rankin County home rose from about $80 million to roughly $98 million because of inflation and Build America Buy America requirements; the VA will cap federal contributions at $50 million, leaving roughly $18 million the state would need to cover if the project is to move forward without delay.

The department described operating pressures: higher nursing wages, reliance on contracted nurses when shortages occur, a need to pay for COVID‑ and flu‑related healthcare costs since federal emergency funding ended, and recurring electronic health record and staffing costs. Officials noted recent recognition surveys and one failed recognition visit at a new coastal facility, and described ongoing remediation efforts.

Lawmakers asked whether the department must commit state dollars now to remain competitive for VA construction lists; veterans officials said a letter from the governor promising state match would be necessary if federal funds are awarded. Members also questioned vehicle and vendor costs; the department noted donations (Friends of Mississippi Veterans) helped offset vehicle purchases.

Committee members did not vote but asked for additional details about the Rankin County match requirement and the status of pending VA construction lists before further action.