Arkansas veterans agency details budget strains, plans new Rogers home and cemetery costs

Deputy Secretary Scott Stenger of the Arkansas Department of Veterans Affairs told the Senate Children and Youth Committee that ADVA is managing two veteran long‑term care homes and a small operating budget while preparing to seek federal construction funds for a new Rogers facility.

ADVA receives about $3.2 million in state general revenue — roughly $13 per veteran annually — and relies on roughly $24 million in federal reimbursement to operate its two homes, Stenger said. He described North Little Rock’s facility as a 2016 village‑style home and said the Fayetteville location is an aging, hospital‑like wing that has lost money in recent years. Stenger said the department is prepared to seek a federal grant and a $15 million state match to build a new 100‑bed home on 65 acres in Rogers donated by the Waltons, with construction contingent on the federal grant award and standard A&E procurement timelines.

Why it matters: the mix of payer types and federal reimbursement rates determine whether the homes are financially sustainable. ADVA estimated an average operating cost of about $400 per veteran per day; federal reimbursement for veterans rated 70% or higher can be about $455 per day while Medicaid or private payers yield roughly $341 per day, creating shortfalls when a facility’s payer mix is unfavorable.

Stenger also described a 2023 federal rule change that shifted responsibility for cemetery 'improvements' — maintenance, drainage and road work — to the state; ADVA requested $100,000 from restricted reserve this fiscal year to cover immediate improvements and said it will likely return with the same request until the expense is built into the base budget.

On staffing and cash flow, Stenger said ADVA still uses contract nurses for roughly 90 RN/LPN positions because of statewide shortages, and those contract rates are roughly 40% higher than in‑house pay. He said ADVA has tightened financial controls and grown a cash account from low levels to about $1.9 million, cycling $500,000–$700,000 monthly as reimbursements arrive.

ADVA is also pursuing targeted outreach. Stenger said federal VA rolls list about 188,000 Arkansas veterans who receive federal payments, but ADVA is working with a nonprofit that purchased county‑level address data from TransUnion to locate an estimated 40,000 veterans who are not reflected in federal lists so the state can target services and benefits outreach.

Committee members asked for clarifications about which cemeteries are state vs. federal, the estimated completion timeline for the Rogers project (Stenger said early 2025 for project start if grant award and state match align), and how ADVA ensures quality of care at the aging Fayetteville site. Stenger said residents are being cared for to standards and the department is planning replacement rather than displacement.

Stenger pledged follow‑up reporting to the committee on grant notices and next steps if the GRAMA award is issued.