STATEMENT OF PURPOSE
RS27464 / SCR124
This legislation establishes the State of Idaho's commitment to request a federal grant(s) to construct and fund
the construction of a new nursing home to replace the 158-bed, 55 year old Boise Veterans Home at a new site
located on the State Chinden Campus in Boise, and construct a 40-participant adult day health care center at
either the existing Veterans Home property or on the Chinden Campus. This commitment is necessary for the
Idaho Division of Veterans Services (Division) to proceed with the application for the federal grant to provide
65% of the allowable construction cost for these projects. It is the intent of the Division to meet the April 15,
2020 and August 1, 2020 U. S. Department of Veterans Affairs (VA) grant application deadlines and be on the
federal FY2021 Priority List.
FISCAL NOTE
There is no fiscal impact at this time. When the request reaches near the top of the federal prioritization list
for construction, the Idaho Legislature will need to appropriate 35% of the federal grant matching funds.
The Division expects the fund source for the 35% match to be obligated by issuing state bonds by July
31, 2020. The preliminary estimate budget for a new replacement home and adult day health care facility
is approximately $107.8 mill in 2023 dollars. The federal Department of Veterans Affairs will provide
65% of allowable cost; approximately $70 million. Idaho will also need to appropriate the cost for any
non-allowable reimbursed cost, e.g. buses for resident transportation. Idaho's estimated 35% match, to include
the non-allowable costs, will be approximately $37.8 million. This cost includes an expected escalation rate of
5% each year. Although no General Funds will be used for construction of these projects, the Idaho Division
of Veterans Services may require minor increases in the General Fund appropriation for the operations during
the first year of operation/ramp up in 2024 or later.
Annual rent/service debt for the Home and day health care facility, once bonded, will be paid to the State
Building Authority from dedicated funds appropriated annually from the Permanent Building Funds. Annual
costs will be approximately $2.0 to $2.5 million (depending on interest rates at the time of bonding) per year
for 20 years.
Contact:
Senator Todd M. Lakey
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/03/2020, 9:43 AM