VAAC Staff Report June 2020

JUNE 24, 2020

REPORT TO THE ADVISORY COMMITTEE

Oregon Army National Guard Soldier Spc. Sara Thomas inventories items in preparation for shipment and delivery at the Oregon Department of Administrative Services in Wilsonville, Ore., April 1, 2020. The DAS facility is organizing supplies that will be delivered to counties across the state in response to the COVID-19 situation. Oregon Army National Guard photo by Sgt. 1st Class Zachary Holden, Oregon Military Department Public Affairs.

ADVISORY COMMITTEE June 2020 ADVISORY COMMITTEE John Howard, USN, Chair .................................................................................. Medford Reyn Leno, USMC, Vice Chair ..................................................................... Grand Ronde Christine Gittins, USA, Secretary...................................................................... Redmond Dennis Guthrie, USA ........................................................................................ Redmond Vacant………………………….......................................... CURRENTLY ACCEPTING APPLICATIONS James Gardner, USA ........................................................................................... Eugene Robert “Bob” Van Voorhis, USA ....................................................................... John Day Nell Stamper, USCG………………………………………………………………………………………...Astoria Vacant……………………………………………………….…..CURRENTLY ACCEPTING APPLICATIONS ODVA STAFF Kelly Fitzpatrick, USA ......................................................................................... Director Martha-Estela Garcia, USA ........................................... Special Assistant to the Director Sean O’Day, USA ....................................................................................Deputy Director Vacant……..……………………………………………….Executive Assistant to the Deputy Director Jennifer Donovan ...........................................................................Senior Policy Advisor Lisa Durden ................................................................................... Chief Audit Executive Aaron Hunter ............................................................................... Chief Financial Officer Sheronne Blasi, USN............................................. Director, Statewide Veteran Services Ana Potter ................................................................... Director, Aging Veteran Services Kelly Breshears.…………………………………….…… Assistant Director, Aging Veteran Services Nicole Hoeft .......................................................................... Director, Communications Cody Cox ........................................................ Veteran’s Home Loan Program Manager John Osborn, USN ................................................. Facilities and Construction Manager Julie Owens ......................................................................... Human Resources Manager Vacant ............................................................................ Information Services Manager

The Following Pages Includes June’s Meeting Reports

ODVA Director’s Message Three months ago, when we had our most recent in-person Veterans Advisory Committee meeting, I highlighted the many annual outreach events that ODVA had in various stages of planning. However, as we have all experienced, these unprecedented times have confronted us with many unique challenges. The fact that we had to delay, then cancel, the Veterans Advisory Committee meeting normally held in June is just one example of these challenges. I’m proud to say that the ODVA team has risen to every challenge in order to continue to serve and advocate for Oregon veterans and their families.

Before the COVID crisis, ODVA was not a remote-work capable agency, unlike most other state agencies. In a matter of days during the final two weeks of March, ODVA transformed into an agency where on any given day at least 75% of ODVA staff are working remotely to maximize social distancing while continuing our agency’s essential work. That transformation is a result of creative thinking and fast action by ODVA’s procurement section, IT team, and managers.

Since that time, the quality of the work being performed has been impressive.

ODVA staff have found innovative ways to use technology to continue to provide service to Oregon veterans and their families. For example, ODVA’s Communications Team created a section of our website specifically tailored to help veterans impacted by the COVID virus or COVID-related economic challenges find the help they need as quickly as possible. They also produced our virtual Memorial Day video, and are producing our ongoing virtual commemoration of ODVA’s 75th anniversary. ODVA’s Veteran Services Training Team has been using Adobe Connect to continue their classes without missing a beat despite travel prohibitions, and has produced training online videos that are available upon demand. Members of our Statewide Veterans Services Appeals Team, normally co-located with the USDVA regional office in Portland, excel in remote support of tele-hearings conducted by the Board of Veterans Appeals by consistently continuing to have the highest number of veterans who show up for their hearings. Moreover, that team produced an appeals training video of such high quality that the USDVA Board of Veterans Appeals has started to use it across the

country. ODVA’s new grant team was able to continue work to develop and launch the first Educational Bridge Grant to student veterans who are temporarily unable to continue their degree due to unavailability of courses, which is especially relevant during the pandemic. ODVA’s Veterans Home Loans Division team has dealt compassionately with borrowers in need of temporary assistance due to financial challenges, in an effort to help those borrowers avoid losing their homes while dealing with unforeseeable economic problems. These are but a few examples of how ODVA is continuing to perform its mission even during these exceptionally trying times.

Sadly, our two state veterans’ homes were ODVA’s central focus from the onset of the COVID crisis. As public health experts learned that people over the age of 60, those with underlying medical conditions, and especially those living in congregate care settings are most vulnerable to COVID, the management company operating the homes and their staff demonstrated their ongoing excellence and dedication by ensuring that they followed or exceeded the emerging public health guidelines as those played out in real time. We mourn with and for the family and friends of the eight honored residents of the Lebanon Veterans Home who died from COVID. Despite social distancing requirements, management and staff at the home ensured each of them received the same Walk of Honor tribute as has traditionally been done before the COVID crisis. We also celebrate the fact that 14 residents who fell ill to the virus overcame that terrible illness. Both homes have been free of COVID for nearly two months as of this writing, due to the continued heightened vigilance of management and staff at the homes. Their efforts ensure that both homes remain “The Place Where Honor Lives.”

I look forward to our next Veterans Advisory Committee meeting, which I hope will once again be an in-person meeting, in September.

AGING VETERANS’ SERVICES

Ana Potter, Director Kelly Breshears, Assistant Director General AVS Update When Ana last spoke with the Advisory Council, COVID-19 was not in Oregon. Things have changed dramatically since then. Ana has been part of ODVA’s COVID-19 Response Team which included continuity of operations planning during the pandemic for AVS staff, as well as various reports and recommendations to the Director. In addition to the COVID-19 Response Team, Ana has been very involved in the changes in the rules and regulations as it pertains to our aging veteran population, especially ODVA’s two nursing homes. There have been significant changes in both state and federal regulations for nursing homes. Many of these changes pertained to personal protective equipment (PPE), infectious disease protocols and resident rights.

Ana has been in constant communication with the management companies for the homes, Veterans Care Centers of Oregon (VCCO) and Westcare during the pandemic and is pleased to report that at this time, there are no active cases of COVID in either home. In addition, Oregon Health Authority when they initially entered the Lebanon home indicated that the home “set the bar very high” for the rest of Oregon’s facilities in our infection control practices. As of May 1st, only 3% (27) of Oregon’s long-term care facilities (670) have a confirmed case of COVID-19.

There has been a significant outpouring from across the state and nation for our veterans and their struggle with COVID-19. Children have written letters, done videos etc. ODVA is grateful for the messages of hope.

Special Projects: • Kelly Breshears continues to work with the IT and Communication units as well as the Project Management team to move forward with the replacement of the existing IT Conservatorship System.

Aging Veteran Outreach Lacey Carter Just as we were coming into the busiest time of year in terms of outreach, the COVID-19 pandemic dramatically changed everything. Many outreach events that were scheduled for the spring and summer months of 2020 have been cancelled or postponed indefinitely.

AGING VETERANS’ SERVICES

Ana Potter, Director Kelly Breshears, Assistant Director Outreach typically targeting veterans and their families with regard to benefits has been shifted to outreach targeting veterans and their families with regard to COVID-19 communications and information. The Aging Veteran Outreach position has been intimately involved in regular communications with the loved ones of residents in the Oregon Veterans’ Homes through telephone calls with real time updates as well as daily recorded messages for both OVHs’ Information Lines and daily Coronavirus update calls with LeadingAge advocacy.

Participation in meetings with community partners is still occurring (virtually) to include the Roseburg VA Medical Center Mental Health Advocacy Council, Social Services Fraud Working Group, DHS Stakeholders, VA Congressional/VSO Committee and VA Town Halls. Live webcasts on “Keeping Oregonians Financially Safe During the COVID-19 Crisis: Partnership of the US Attorney for Oregon and the Oregon Attorney General”, “Disruptive Innovation in Aging: Reacting to the COVID-19 Crisis”, “Mental Health and COVID-19: How the Pandemic Complicates Current Gaps in Care and What Can Be Done” and “SNAP Outreach to Rural Seniors: Challenges and Best Practices” are all examples of informative events we are seeking and involved in to evolve our service delivery while continuing to serve aging veterans well during this unprecedented time.

Claims work, benefit access and advocacy, on behalf of aging veterans and their families, continues to occur, with assistance provided to the Conservatorship Program, Veteran Volunteer Program, Program Directors of the OVHs, County Veteran Service Officers, and community partners.

Veteran Volunteer Coordinator Mark Newell The Oregon Department of Veterans’ Affairs (ODVA) Veteran Volunteer Program is an outgrowth of our commitment to ensure every Oregon Veteran is connected to the benefits they have earned through their military service. The role of the volunteer is to help aging Veterans and their family members learn about county, state and federal Veteran benefits to which they may be entitled. Working through ODVA and in collaboration with our community partners, volunteers work to locate Veterans who have not accessed their Veteran benefits.

AGING VETERANS’ SERVICES

Ana Potter, Director Kelly Breshears, Assistant Director After the initial pilot program of 17 volunteers and three counties we expanded the program. We held our first statewide training for Washington, Multnomah, Columbia, Marion, and Yamhill counties. We now have a total of 36 volunteers located in 8 counties.

Prior to COVID-19 we had reached almost 1400 people and informed them of their earned benefits and where to get help connecting to them.

Unfortunately, due to the recent pandemic, volunteers are not able to visit long term care facilities at this time and the Veteran Volunteer Program has been temporarily suspended.

With a fairly aggressive plan to get this program statewide the next trainings were scheduled to happen in Deschutes, Crook, and Jefferson counties in March. These training have been postponed until an appropriate time.

We are currently developing a distance training program to help train volunteers when we are ready to move forward again.

Conservatorship Helen Ireland, Conservatorship Manager During this quarter, the payee program had a caseload of approximately 103 cases and the conservatorship program had a total caseload of 109 active cases. The Conservatorship and payee teams have settled into their new location on the first floor.

All staff attended the quarterly Guardian/Conservator Association of Oregon meeting/training. Starting in March in response to the Governor’s Executive Order, the majority of the staff has been working from home. Despite working from home and the challenges that has presented, the team has been still been able to provide excellent service to our veterans with minimal disturbance on their lives.

Conservatorship and Representative Payee Demographics

AGING VETERANS’ SERVICES

Ana Potter, Director Kelly Breshears, Assistant Director 4 12

5

20

21 34

7

9

28

64 40

99

50

11 8

Nursing Home

Residential Care Facility

Adult Foster Home

Assisted Living Facility

Room & Board Facility

Hospital

Independent Living

Relative Care

Incarcerated

Homeless

WWII

Korea

Vietnam

Peace Time

Gulf War

Other (non-veteran)

(Note: some veterans have served in multiple campaigns of war/branches.)

Oregon Veterans’ Home, Lebanon Jeremy Woodall, Program Director On March 8th, LVH experienced a cluster of residents who were experiencing respiratory symptoms. Shortly thereafter, the first confirmed case of COVID-19 was confirmed at the facility. A recent infectious disease practices survey indicated that facility was in compliance with the rules and regulations regarding this particular area. The current COVID numbers for the facility are as follows: • Total residents with COVID-19: 21 • Resident deaths from COVID-19 (includes death where COVID was a contributing factor) = 7 • The remaining 14 residents are recovered.

There have been several local community members who have supported the home throughout the pandemic. This support helped uplift staff and residents at the home. Due to COVID-19 many events at the Home have been cancelled or postponed. This year’s Spring Fling event, previously scheduled for April 18th was cancelled. The activities staff at the Home continues to try to find innovative ways to have activities for residents to keep them engaged

AGING VETERANS’ SERVICES

Ana Potter, Director Kelly Breshears, Assistant Director during the quarantine while practicing safe social distancing and PPE protocols. Hallway Bingo, room Yatzy, and iPads are some of the ways staff have been able to keep veterans engaged and connected with each other and loved ones during this time.

There have been several “pet parades” at the Home. The pet parade is where pets, including Caesar the No Drama Lama, have walked through the grounds in between the houses so veterans are able to look out their windows and see the animals as they pass by.

Construction at the Home Beginning Tuesday, 05 MAY 2020, an internal construction project began to widen the doors of the Barber Shop and the Therapy Gym. This will provide easier and safer access for our veteran residents to enter and exit these rooms.

OVHL Demographics 1 13

8

23

23

16

39 23

56

65

5 1

WWII

Korea

Vietnam

Air Force

Army

Coast Guard

Peace Time

Gulf War

OIF/OEF

Marine

Navy

Spouse

(Note: some veterans have served in multiple campaigns of war/ branches)

AGING VETERANS’ SERVICES

Ana Potter, Director Kelly Breshears, Assistant Director Oregon Veterans’ Home, The Dalles Melissa Craig, Program Director Training Melissa Sanders attended the National Association of State Veterans’ Homes Conference in Washington DC from February 10th through the 14th. As a step toward VSO accreditation, she has attended round one of Veteran Service Officer Regional Training in March, and has a Milestone Exam scheduled in the month of May. COVID-19 The CNA training facility (a separate structure) was converted into an Isolation Unit if needed.

We have had one case of COVID-19 in the facility. As of 7 May, 2020, this resident remains COVID-19 positive.

The Dalles has been inspected by the Safety, Oversight and Quality Unit to review infectious control practices and no citations were issued. The facility has received generous donations from the community to support staff in their endeavor to safely care for the residents.

VA Listening Session OVHTD hosted a Veterans’ Resource Fair/VA Listening Session on February 26, 2020 from 5:30 pm to 7:00 pm in Stan’s Room. There was an informative presentation from the Veteran’s Administration, and VBA personnel were on hand for specific questions and claims assistance. This event was well-attended by local veterans and family members.

New Construction Our construction project is currently several weeks ahead of schedule. The new Smoke Shack is completed, the roof/awning construction continues to progress, and work has recently begun on the new Courtyard outside of Charlie and Delta wings.

AGING VETERANS’ SERVICES

Ana Potter, Director Kelly Breshears, Assistant Director OVHTD Demographics 1 13

17

22 14

28

54

15

50 7 2

WWII

Korea

Vietnam

Air Force

Army

Coast Guard

Peace Time

Gulf War

OIF/OEF

Marine

Navy

Spouse

(Note: some veterans have served in multiple campaigns of war/ branches)

FINANCIAL SERVICES DIVISION

Bruce Shriver, Chief Financial Officer

Development of the Department’s 2021-2023 Biennium Agency Request Budget The Department continues to work on developing its 2021-2023 biennium Agency Request Budget (ARB). In March 2020, budget instructions were released by the State of Oregon Department of Administrative Services (DAS) giving specific guidance to all of the state agencies for putting together their ARBs. A number of policy option package concepts are being evaluated for potential inclusion into the Department’s ARB, while also being cognizant of the expected economic environment that will likely exist during that time period. The Department’s budget development efforts will continue through the month of July, culminating with the submission of the Department’s ARB to DAS no later than July 31, 2020. DAS and the Governor’s Office will then likely take between 60 to 90 days to review all of the state agencies ARBs before deciding on each individual agency’s recommended budget. All of the state agencies’ budgets will then be incorporated into the 2021-2023 Governor’s Budget (GB), likely scheduled for release in December 2020. The 2021 State Legislature will then review, deliberate on, and finalize each agency’s budget (called the Legislative Adopted Budget) that will be effective for the 2021-2023 biennium.

2019-2021 Biennium Budget Reduction Planning Oregon’s June 2020 Economic and Revenue Forecast was recently released and projects a significant decrease in State Net General Fund resources (~$1.8 billion) and Lottery Fund resources (~$0.4 billion) for the 2019-2021 biennium, when compared to the March 2020 Economic and Revenue Forecast.

Anticipating a decline in these revenues, the Governor’s Office and DAS had previously asked each Agency to prepare for potential General Fund budget reductions to their 2019-2021 Legislative Adopted Budget (LAB). The Governor directed DAS to work on an allotment reduction plan of up to $1.847 billion. Under ORS 291.261, the allotment reductions if implemented, must be implemented equally across General Fund appropriations. DAS and the Governor’s Office cannot however, reduce moneys allotted for the payment of debt obligations incurred by the State. In order to implement an allotment reduction of up to $1.847 billion, each agency General Fund appropriation would need to be reduced by just over 8.5 percent of its biennial total. Each Agency’s proposed General Fund reductions have now been provided to the Governor and Legislature for them to deliberate on and ultimately make budgetary decisions relating to the remainder of this biennium.

As mentioned above, projected lottery resources are also anticipated to decrease over the remainder of the 2019-21 biennium. Agencies (like the Department) whose budgets receive lottery fund allocations will also likely be negatively impacted by the projected reduction in lottery funds and may need to further adjust their 2019-21 biennium LABs. To-date, the Governor and DAS has not yet requested any specific budgetary information from the Department relating to potential lottery fund reductions.

Potential 2020 Special Session of the Legislature

FINANCIAL SERVICES DIVISION

Bruce Shriver, Chief Financial Officer State leaders are discussing whether a Special Session should be held in 2020. To-date, no Special Session has been scheduled. The Department will however, closely monitor developments relating to the potential scheduling of a 2020 Special Session.

Anticipated Issuance of State of Oregon, General Obligation Veteran Bonds The Department had previously planned on entering the capital markets in the April/May 2020 timeframe to issue approximately $65 to $75 million (par value) of general obligation veteran bonds.

That sale got delayed due to the economic fallout arising from the corona virus outbreak across the United States. The Department is now anticipating issuing approximately $70 million (par value) of general obligation veteran bonds in the month of June, but will continue to monitor the condition of the capital markets going forward. As a reminder, the purpose of this bond sale is: (1) to refund some existing higher cost debt to replace it with lower cost debt; and (2) to raise funds for originating new veteran home loans. The lendable funds will be used to originate or purchase home loans for veterans that apply for their home loan within 25 years of their date of discharge from military service.

FY 2020 Unaudited Financial Statements The unaudited financial statements show an overall increase in net position in the Veterans’ Loan Program of approximately $0.7 million for the first six months of fiscal year 2020. The same period for the prior fiscal year showed an overall decrease in net position of approximately ($0.4) million. The current fiscal year increase in net position is primarily attributable to an increase in interest and investment income.

The Veterans’ Home Program unaudited financial statements show an overall increase in net position of approximately $1.5 million for the first six months of fiscal year 2020, compared to an increase in net position of approximately $1.3 million for the same period of the prior fiscal year. The improved financial performance is primarily attributed to higher overall census levels resulting in a net increase in operating income, compared to the prior year operating results.

The Changes in Net Position for both the Veterans’ Loan Program and Veterans’ Home Program are shown in comparative form in the chart on the following page.

FINANCIAL SERVICES DIVISION

Bruce Shriver, Chief Financial Officer

Change of Responsibilities for Aaron Hunter and Rich Kline: I will be retiring from the Department effective July 1, 2020. It has been an honor and a special privilege to have served as the Department’s Chief Financial Officer (CFO) for the last 29 years.

However, I am very pleased to report that Aaron Hunter was recently selected by the Director to be the Department’s new CFO. Aaron has worked at the Department for approximately the past 16 years, of which the past 11 years he has served as the Controller and Assistant Director of Financial Services.

As a result of Aaron moving to the CFO position, Rich Kline was recently selected to be the Department’s new Controller and Assistant Director of Financial Services. Rich has worked at the Department for the last 4 years and previously served as the Department’s Lead Accountant in the Accounting Section. With both Aaron’s and Rich’s skills, experience and sound professional judgement, the Department will be well served at the CFO and Controller positions in the years ahead.

Congratulations to both Aaron and Rich!

Other Financial Services Division Activities: Over the past several months, the Financial Services team worked on contracting, procurement and grant related efforts, helped participate in selected recruitment efforts, conducted post-issuance bond compliance activities, exercised early bond redemptions, worked on a potential Summer 2020 bond sale, interacted with the Department of Administrative Services - Chief Financial Office and the Legislative Fiscal Office on budgetary & legislative matters, and performed other related financial activities as needed.

Veterans’ Home Loan Program First Quarter 2020 Cody Cox – Home Loan Program Manager

Production Review • •

The interest rate environment for the Home Loan Program for calendar year 2019 was challenging, and continued on into the 1st Quarter of 2020. Production levels for the 1st Quarter 2020 were at 38 loans for $12,116,070. For the same period in 2019, production volume was 33 loans for $9,837,513.

The chart below shows a 2014 - 2020 YTD monthly production comparison of dollar volume funded for the OrVet Home Loan program. $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $-

•

2014

2015

2016

2017

2018

2019

2020

At the end of the 1st Quarter 2020, ODVA has a total of 1,824 loans in portfolio, with a total dollar amount under servicing of $355,701,237. Of these, 1648 units and $348,636,034 are new loans. Old loans were at 176 units totaling $7,062,202. At the end of the 1st Quarter 2019, the ODVA had a total of 1,968 for $373,102,493 under servicing; with 1,735 units at $364,207,780 as New loans and 233 units at $8,898,413 were Old Loans. Portfolio runoff continues due to a favorable rate environment in the private sector combined with a reduction in new originations.

Loan Delinquency Review • • • • •

For the reporting period of 03/31/2020, there was no State-Owned Properties/Real Estate Owned (SOP/REO) in inventory.

At the end of 1st Quarter 2020, there was 1 loan in a Foreclosure status, with an outstanding UPB of $162,225.

At the end of 1st Quarter 2020, ODVA has 3 loans in a bankruptcy status; no change from the prior quarter.

The total of all loans reporting in the 90-day or greater delinquency position was at 10 units, expressed as 0.5% in unit delinquency on a portfolio of 1,845 loans and at 0.1% per total UPB amount under portfolio.

The actual total amount of payments delinquent in the 90-day plus category was $19,575.

ODVA portfolio performance shows a continued reduced delinquency rate as compared to other Government Residential Loan Programs. The Mortgage Bankers Association publishes a quarterly National Delinquency Survey and the following represents Oregon specific comparative data from the most recently available First Quarter 2020 report. The delinquency rate expressed as a percentage of total loans (units) past due for the Federal Veterans Affairs home loan program in Oregon was 2.90% (up slightly from the previous quarter), FHA home loans in Oregon were at 5.78% (down slightly from the previous quarter) and

Veterans’ Home Loan Program First Quarter 2020 Cody Cox – Home Loan Program Manager

Conventional Prime home loans Oregon were at 1.63% (up from the previous quarter). For this reporting period, the total delinquency for the ODVA home loan program was 1.2% at 21 units.

Quarterly Staffing News No changes to staffing in the 1st Quarter 2020 Cody L Cox Home Loan Program Manager

FACILITIES AND CONSTRUCTION John Osborn, Program Manager

THE DALLES VETERANS’ HOME Griffin Construction is currently about 2 weeks ahead of schedule on the re-roof of the facility. A mockup installation will be done on Delta wing to validate that the installation complies with the intended design and to identify and possible issues. Once our envelope/ roofing consultant has approved the mockup installation all remaining work can proceed. Work has started on the garden area between C and D wings. In addition, minor exterior upgrades at various locations around the home are proceeding on schedule; they include canopies at Alpha, Bravo and Charlie dining areas, a canopy to protect a primary exit at the community center and sidewalk repairs at two garden courtyards. The total project cost has been reduced and now represents a total of $3,878,372 with a federal share of $2,519,642. and a State is $1,356,730.

LEBANON VETERANS’ HOME We are waiting to hear from USDVA on final funding for the construction of the D wing activity room and new classroom and storage building. We are now on the 2020 project list and will receive funding once all approvals have received. The project is to further develop the area west of the new parking lot adding a storage area and classroom building. The activity room will be built off the existing D-wing spine, similar to the one constructed at The Dalles veterans’ home. The storage/ classroom building will be erected directly west of the new parking area and will provide much need storage space for operational equipment. The total project cost is $3,649,000. Federal share is $2,371,850. State share is $1,277,150.

ODVA Building All remodels on the first, second and third floor are now completed. Oregon Housing and Community Services (OHCS) will be moving into space on the first and second floors and Early Learning Division (ELD) will take over the remaining space vacated by OHCS on the third floor. At this time OHCS and ELD have migrated most of their staff to telework, so they will not be occupying the new spaces until after the Governor allows state employees to return to normal operations. We are working to finalize the new signage package for the building and anticipate that installation to begin by the first part of July.

Legislative Affairs 2020 Session The 2020 legislative session came to an inconclusive end with a walk out of the Republican House and Senate members to deny quorum for a vote on SB 1530, popularly called the “Cap and Trade” bill. At the conclusion of the 2020 session only 3 bills had become law. Of these three bills none were part of the legislative slate ODVA had been tracking for their effects on veterans.

COVID-19 In early March the Lebanon Veterans’ Home reported their first cases of COVID-19. This ushered in a time of constant change in protocol and guidance for the homes from state and federal agencies. ODVA’s support of management and staff at the home took on a much closer relationship and required constant diligence and communication from all parties. During this time frequent contact with many members of the legislature, along with local elected officials, partner state agencies, and our congressional delegation became and essential, and almost daily occurrence. Thankfully, the Directors position as the Veterans Policy Advisor to the Governor provided a direct channel to timely communications. The ODVA COVID-19 Response Team was set up at this time to facilitate emergency level reaction to the hour-by-hour changes we were experiencing. As a new member of the ODVA staff I was supremely impressed by the unwavering commitment and adaptability of the ODVA staff.

Interim Legislative Activity The COVID-19 has brought many challenges to the legislature’s normal mode of operations.

Most notably, the ability of committees to meet. Legislative Days, generally scheduled in midMay were cancelled this year. The normal three-day meeting scheduled was replaced with a two week schedule beginning in late May and concluding the first week of June. ODVA presented to the House Committee on Veterans’ Affairs and Emergency Preparedness on May 27, 2020. The presentation focused on the budget reduction exercise requested by the Governor’s office earlier that month. You can view the video of the presentation here.

During this interim period the legislative Emergency Board has met four times to allocate funding. The first meeting to make funding allocations subsequent to the close of the 2020 session. The three following meetings were to allocate funding from Federal Cares Act in response to COVID-19, and to hear reporting on that funding. You can find the agendas and videos for those meetings here.

Legislative Concepts ODVA submitted our legislative concepts (LC) to the Governor’s Office through the Department of Administrative Services on April 17, 2020. The concepts must be approved by the Governor before they can move forward into session. At this point these concepts are not yet approved.

LC 1 - Loan Program Housekeeping Clean-up Bill • Senate Bill 36 (2019) eliminated a number of statutory provisions that were outdated or no longer in use in administering the Loan Program. Inadvertently however, the Department’s explicit statutory authority to offer certain types of lending products was also removed (eg. limited loan refinances permitted under federal tax law). This concept would reinstate that explicit authority.

LC 2 - Veterans’ Educational Bridge Grant •

House Bill 2201 (2019) created the Veterans’ Educational Bridge Grant Program to provide grants to individual veterans experiencing a gap in GI Bill benefits due to a course/class not being available. The bill sets the program to sunset on January 2, 2022.

ODVA is tentatively moving forward with a POP to continue funding for this program.

This LC moves the sunset date of the program to January 2, 2024

LC 3 - Rural Veterans Health Care Transportation Grant •

This program was created via POP in 2019. There is no statutory authority for the program. This LC will codify the bill in statute. This will add stability to the program as we continue it into the next biennium.

COMMUNICATIONS AND INFORMATION SERVICES Nicole Hoeft, Director Communications For the duration of this last quarter, ODVA Communications has primarily focused on ensuring clear and timely communication about the impact of COVID-19 on our veterans and residents at both Oregon Veterans’ Homes. In the early weeks of the pandemic, the need for accurate, broad and timely information was critical in responding to the rapid pace in which the virus was spreading. The ODVA team worked closely with the Office of Emergency Management, governor’s office, Oregon Health Authority and the Department of Human Services communication teams to ensure the state of Oregon as a whole was communicating urgent information needed to ensure Oregon’s public health was protected and accurate and timely information was provided our partners and veteran community. These joint communication efforts continue today as the state begins to deal with the economic impact of COVID-19.

As Oregon was the first veterans’ homes in the nation to deal with COVID-19, ODVA implemented a communication plan from day one to ensure transparent, clear and broad communication to families, residents, the veteran community and partners. Later into the pandemic, Director Fitzpatrick shared with other state DVA’s our communications plan in responding to this crisis and lessons learned. We were pleased to be able to assist even more veterans and their families across the nation by sharing this early work with our partners.

Veteran Resource Navigator In an effort to assist Oregon veterans who have been impacted by the pandemic and the economic impacts that shortly followed, ODVA established a microsite to list resources and information about benefits and services that can help veterans and their families during this time. ODVA also provided staff to speak directly with veterans to assist them to find resources by phone. The site’s content focuses on economic, education, health/behavior health, housing stability, and other helpful resources. ODVA’s homepage prominently features a Veteran Resource Navigator banner to link viewers to the microsite. ODVA communicated broadly with partners and the veteran community about this new resource and continue to update it daily to ensure veterans have access to the most accurate information available to ODVA at this time.

Other Comms Activities Due to social distancing, all major ODVA events in 2020 were canceled. The Women Veterans’ Conference will be held at the same location in Bend in May of 2021. ODVA’s Veteran Benefit Expo is being rescheduled to take place in July 2021 at Chinook Winds in Lincoln City. ODVA will begin to communicate information about the rescheduled events as appropriate.

ODVA held a virtual Memorial Day celebration by posting a special video message from Director Fitzpatrick and joined by Gov. Kate Brown and other Oregon officials. ODVA also helped

COMMUNICATIONS AND INFORMATION SERVICES Nicole Hoeft, Director Oregonians honor individual servicemembers who paid the ultimate sacrifice with a video montage made from photo submissions from the Oregon community.

ODVA launched a 6-month social media campaign to mark the 75th anniversary of ODVA. An anniversary webpage was created to share the history of events that led to the creation of this agency and later this summer, ODVA plans to release a short historical documentary highlighting the many changes the agency has seen in serving our nations veterans.

Information Services Information Services was an integral part of enabling a majority of agency staff to telework.

The team implemented new applications, procured hardware and trained users to use their equipment for teleworking. The team also quickly expanded video conferencing capabilities to ensure teams and staff could still continue to meet. In the weeks that have followed, the IS team continues to play an important role in supporting the technology and applications that all agency staff needs to work remotely and in the office.

INTERNAL AUDIT Lisa Durden, Chief Audit Executive

I’d like to take this opportunity to introduce myself. I joined the agency to serve as it’s Chief Audit Executive in mid-March of 2020. I am very proud to be serving at the Oregon Department of Veteran’s Affairs, and I am genuinely passionate about improving the performance and accountability of government programs, especially those which directly support people who have served our country. My audit values include being focused on strategic audit impact and collaborative and consultive in my approach, while maintaining my audit independence and objectivity.

As the agency’s Chief Audit Executive, I am responsible for developing and implementing an effective internal audit function for the agency, and this includes standing up an independent audit committee. My role as an internal auditor is to provide independent and objective audit services designed to improve ODVA operations. My duties as a “single person” audit function include conducting performance, financial, and compliance audits, an annual risk assessment, and special projects as requested by management.

Much of my work as an internal auditor is regulated by Oregon law and administrative rule. The Oregon revised statute concerning the internal audit function, ORS 184.360, outlines the requirements for internal auditing in state government, including the coordination and oversight by the Department of Administrative Services (DAS) and annual work and reporting requirements for internal auditors.

Notably, ORS 184.360 (4) requires “each agency of the executive department required to have an internal audit function shall produce a risk assessment of the entire agency that conforms to audit standards established by nationally recognized entities such as the United States Government Accountability Office (GAO) or the Institute of Internal Auditors (IIA). The agency shall use its risk assessment as the basis for the selection and performance of at least one internal audit per calendar year.” Essentially, this statute defines an expectation for the internal auditor to produce an updated risk assessment and at least one audit annually. Both of these work products must be produced according to professional audit standards and externally peer reviewed.

The Oregon Administrative Rule concerning internal auditing, (OAR 125-700), outlines the policy and procedures the internal auditor must follow, and covers such topics as audit function governance, auditing standards, reporting requirements, and internal auditor independence.

In addition to these requirements, internal audit has the ability to be more than a compliance function, and can be used to enhance an organization’s ability to achieve its strategic objectives. I am available to ODVA’s leadership team for short consulting engagements upon request.

INTERNAL AUDIT Lisa Durden, Chief Audit Executive This is a basic overview of my role and responsibilities. Currently I am focused building the audit function at the agency and this includes forming an audit committee and conducting the annual risk assessment.

I look forward to meeting each of you in person, or remotely as conditions allow, and discussing this information in more detail.

Lisa Durden, MPA, CGAP Chief Audit Executive, Oregon Department of Veteran’s Affairs Lisa Durden serves as the Chief Audit Executive and is responsible for developing and implementing an effective internal audit function for the agency. Her primary role as an internal auditor is to provide independent and objective consulting services designed to improve ODVA operations. Her duties include the performance of operational, financial, and compliance audits, risk assessments, and special projects requested by management. She joined ODVA as Chief Audit Executive in March 2020.

Prior to joining ODVA, Lisa Durden worked at the Oregon Secretary of State’s Audits Division where she was responsible for conducting performance audits of major state agencies on a variety of topics, including criminal background checks, the foster care system, and the delivery of contract review services. Her prior professional experience also includes program evaluation and strategic planning for Portland State University’s School of Business, Tualatin Hills Park and Recreation District, and the Center for Public Service.

Lisa is genuinely passionate about improving the performance and accountability of government programs, especially those which directly serve Veteran’s.

Lisa Durden earned her Master’s Degree in Public Administration and her Bachelor’s Degree in Business Administration from Portland State University. She earned her Associates Degree from Portland Community College and is a strong supporter of community colleges. She is a member of the Institute of Internal Auditors (IIA) and a Certified Government Audit Professional (CGAP).

STATEWIDE VETERAN SERVICES Sheronne Blasi, Director

PROGRAMS Statewide Veteran Services (SVS), Portland Office—Martin Ornelas During the quarter, SVS Portland staff attended 134 Travel Board, Video, and Virtual hearings, as well as 101 Decision Review Officer and Pre-Determination hearings, and reviewed 4,029 Ratings Board decisions. The Portland office hired a temporary position to perform administrative support for the period of January – February 10th. For this quarter, the Portland office scanned and uploaded 11,918 documents for Veteran Service Officer (VSO) support.

On February 18th, 2020, the Portland office recruited and hired a new VSO to assist the team in conducting VA appeals work for veterans and their eligible dependents. This VSO has already successfully completed the milestone test and while under instruction, has been conducting virtual hearings before the Board of Veterans Affairs.

Blue Water Navy Act Claims Since the signing of the Blue Water Navy Act, Oregon veterans and families have benefitted greatly. To date, there have been 601 claims files, completed within an average of 111 days.

There are 884 claims still pending. There have been $12.9 million in total awards to Oregonians including both retroactive recoveries and monthly awards.

As of June 9, 2020, below are the top 10 largest retroactive payments made to Oregon veterans and one surviving spouse.

1. $336,777 2. $254,897 3. $238,487 (Awarded to a surviving spouse) 4. $238,084 5. $215,882 6. $210,976 7. $187,318 8. $186,005 9. $170,946 10. $161,836 Training, Certification and Outreach (TCO)—James Connolly, Joseph Bell and Kendele Miyasaki Earlier this year, ODVA added two new members to the Training, Certification, and Outreach team. These two individuals have deep experience in training and event planning backgrounds.

During this period, they have worked hard to integrate themselves into an already strong network.

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STATEWIDE VETERAN SERVICES Sheronne Blasi, Director

The training team has been busy conducting training and outreach. This quarter, the training team completed two training sessions, one new VSO Training Course and one Admin Training Course. Four, one-day regional trainings in Multnomah, Polk, Curry, and Jefferson Counties have also been completed.

The team has transitioned to conducting training online via Adobe Connect as a way to continue working with the counties and tribes during COVID 19. Many milestone and accreditation exams have been taken by leveraging this digital technology using remote proctoring. The team has also conducted regional VSO remotely during this time, and is in the process of planning for a remote version of its annual Fall VSO Training Conference.

Women Veterans Coordinator—Liz Estabrooks The Women Veterans Coordinator has worked with eleven women veterans and attended five veteran events. She also attended five meetings regarding housing specifically for women veterans, conducted three trainings, had two meetings with VA representatives, participated in two professional development sessions, attended twenty-five partner meetings, and participated in five planning sessions. Due to Executive Orders concerning public gatherings due to COVID-19, the 2020 Women Veterans Conference was cancelled and rescheduled for 2021.

Success Story: Once the COVID-19 Stay at Home order occurred, it became evident that veterans needed to be informed of community resources. In order to help women veterans around the state, the Women Veterans Coordinator developed a short list of community resources to be shared in a newsletter. This newsletter focused on information concerning: how to connect with Returning Veterans Project to obtain mental health and alternative care, how to access telehealth through the VA, information on VA apps such as PTSD Coach and Mindfulness Coach, and the value and importance of MyHealtheVet. These community resources are also listed now on ODVA’s website for COVID 19 supports to veterans.

In May, Liz resigned her position with ODVA, and has begun a position of Deputy Director at the Center for Women Veterans at the Department of Veterans Affairs in Washington D.C. Liz served as ODVA’s first ever Oregon Women’s Veteran Coordinator (since 2015), and her passion and commitment to women veterans will be missed. ODVA is currently recruiting for the vacated position.

Incarcerated Veterans—Pat McGuffin and Shane Hagey

By March 15th the Oregon Department of Corrections restricted visitors to all their facilities due to COVID-19 precautions. This significantly impacted the team’s ability to serve incarcerated veterans. Immediately, the team began working to find innovative ways to serve veterans in ODOC facilities. Agreements with ODOC staff were established to meet the most pressing needs. First, intake staff at Coffee Creek Correctional Facility agreed to assist selfidentified veterans complete a new questionnaire created to help the team determine veteran status without face-to-face interviews. DOC staff have also begun to facilitate phone interviews 2

STATEWIDE VETERAN SERVICES Sheronne Blasi, Director

with the team to follow-up with veterans facing compensation reduction/ overpayments, as well as, assistance with filing to transfer some monetary benefits to family members.

The second agreement focused on veterans transitioning back to the community in the next 612 months. DOC release and re-entry staff are helping the team identify veterans in need of reentry assistance and have assisted the team to coordinate phone interviews. The team has used the information gathered by the release and re-entry staff and the phone interviews to facilitate follow-up actions with County and Tribal VSOs. Last quarter the team successfully advocated for veterans in custody to be able to use the prison Telemate phone system to call important USDVA phone numbers. Recently, the team was notified that veterans in at least one facility were not able to call the phone numbers as advertised. Both program coordinators worked with the facilities’ ODOC manger to fix the problem within a couple days.

Success story: The team assisted a veteran whose VA disability payment was wrongfully reduced because of an error by the USDVA. The veteran had only been incarcerated for 3 days, well under the 61 days required before his compensation payments must be reduced. The veteran’s only source of income for he and his family was his 100 percent monthly disability payment, the loss of the full compensation payment would have put the veteran and his family at risk for losing their housing and cause other negative financial impacts. The team coordinated with the CVSO, the county jail (where the veteran was supposedly still incarcerated) and DOC to get the documentation required to show the error. The teams also filed for expedited processing of the claim. In the end, the USDVA reinstated the veteran’s full compensation within 20 days, the veteran missed only one full monthly payment. Immediately, the veteran received a retroactive payment to rectify his financial loss before his credit rating or housing status were impacted. This was a great example of multiple agencies working together to assist a veteran in need.

Tribal Veteran Coordinator— (roles currently assumed by SVS Director) The position of Tribal Veteran Coordinator is still unfilled. At the end of three sets of interviews, the recruitment team composing of Mitch Sparks (Director of the Legislative Commission on Indian Services), Leslie Riggs (Tribal Liaison/Native American Program Coordinator, Oregon Youth Authority), Terry Bentley (USDVA Tribal Relations) and Sheronne Blasi (Director Statewide Veteran Services, ODVA) unanimously agreed that neither candidate under consideration would be qualified for the position. Neither candidate had: • • •

a strong enough understanding of Government to Government relations, a strong enough knowledge of VA benefits and/or other benefits available to veterans and dependents, specificity on how to establish a statewide program.

Recruitment has been temporarily suspended due to COVID-19.

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STATEWIDE VETERAN SERVICES Sheronne Blasi, Director

Since the previous quarter, a Memorandum of Understanding (MOU) with the Confederated Tribes of Grand Ronde has been signed. ODVA now has an MOU established with three of the nine federally recognized tribes in Oregon to include: The Confederated Tribes of the Umatilla Indian Reservation, the Confederated Tribes of Warm Springs, and the Confederated Tribes of Grand Ronde. In March, a Permanent Administrative order was filed for Pass-Through funding for Tribal Veteran Service Officers/Offices in order to make the rules permanent.

Both the Confederated Tribes of Warm Springs, and the Confederated Tribes of Grand Ronde are in the process of recruiting Tribal Veteran Service Officer (TVSO) positions in order to apply for remaining 2019-2021 pass through funding. Once recruitment for these positions are completed, ODVA will provide training, certification towards accreditation, counsel, and outreach (as it does with CVSO’s).

State Approving Agency (SAA) – Kim Douthit, Eboni Frederick- Pettway, Lisa Deneen The SAA staff has continued the approval and compliance work for Oregon’s 220+ approved colleges, universities, apprenticeships, on-the-job-training programs, and flight schools. This quarter, the team hired a permanent SAA Director: Eboni Frederick-Pettway (Kim Douthit had assumed the role in an interim capacity). Eboni contributes to the team substantial knowledge and experience with higher education, to include previous experience as a School Certifying Official at an Oregon Community College and as an Assistant Registrar at an Oregon University.

Eboni was a founding member of the Oregon Association of School Certifying Officials (ORAVSCO) and is well connected to the Oregon SCO network.

The accommodations put in place in response to COVID-19 have instituted a number of changes in Oregon’s educational facilities. The SAA team has been in constant contact with Oregon’s schools and training facilities to ensure they are kept informed of changes to VA education benefits to ensure that veterans and beneficiaries continue to receive benefit payments while schools remain compliant with VA regulations. The COVID response has also put a stop to all visits to facilities for the foreseeable future. As a way to continue compliance surveys, the Oregon SAA team received permission from the VA to begin the process of remote surveys.

Remote surveys will allow the SAA to continue the important work of monitoring and coaching schools to remain in compliance with VA regulations during this ever-changing time.

Another exciting development in the Veterans’ Education program – ODVA has hired a Campus Veteran Coordinator. Joe Mah was hired in March to come to start up the Campus Veteran Program. Joe is an Army veteran who has previous experience as a Campus Veteran Coordinator for one of Oregon’s Community Colleges. The Education Team is excited to welcome Joe to the agency and to provide support to the network of Campus Veteran Coordinators across the State.

Veteran Education Bridge Grant-Scott Salazar 4

STATEWIDE VETERAN SERVICES Sheronne Blasi, Director

The 2019 Oregon State Legislature passed House Bill 2201 (Chapter 527, Oregon Laws 2019), establishing a $300,000.00 Veteran Educational Bridge Grant for the purpose of providing financial assistance to veterans who are unable to complete an academic program within the expected completion period due to the timing of course offerings. The Educational Bridge Grant is regulated by Oregon Administrative Rule Chapter 274, Division 36. This grant is specifically designed to provide support to student veterans that find themselves unable to progress in their academic programs due to unavailability of a required class. This situation may cause financial strain and barriers to student veterans’ successful attainment of educational goals.

The grant alleviates some of the financial stress and incentivizes veterans to continue their degree or training program by offering grants of up to $5,000 to applicants that meet the eligibility requirements. Applicants must be a veteran per ORS 408.225, eligible to receive G.I. Bill® Benefits (Chapter 30, 32, 33), an Oregon resident as per OAR 575-0300-0005, enrolled in a VA approved Oregon based program, and unable to complete an academic program due to the unavailability of one or more required courses.

The Veteran Educational Bridge Grant is currently conducting stakeholder outreach and is projected to begin accepting applications in May 2020.

Grants Management—Brenna Bandstra Emergency Financial Assistance In this quarter, 34 applications were submitted for emergency financial assistance. 16% of veteran applicants were awarded funds equaling a total of $15,201.41. The most requested assistance type was paying rent followed by assistance paying for car repair/payments, dental/medical expenses, and utility bills. The majority of applications were from Lane and Multnomah counties. ODVA spent 100% of the funds allocated for the quarter. Notably, ODVA has begun to work more closely with Oregon’s Community Action Agencies to assist caseworkers in helping veterans apply for this grant.

Success story: ODVA received an urgent request from Lake County Veterans Service Office to assist a veteran pay for an emergency dental procedure. ODVA was able to respond to this need immediately and completely cover the expense of the procedure.

Highly Rural Transportation Grant Ten highly rural counties are receiving assistance for transporting veterans to VA medical appointments. In March, Governor Brown released Executive Order 20-10 eliminating all elective and non-urgent procedures that use PPE and limited visitation to health care facilities.

This action caused many veterans to postpone their reoccurring appointments and cancel transportation services. As the Covid-19 crisis grew, multiple grantees began transporting veterans to urgent appointments only, enforced social distancing during transport, began allowing staff to telework, and provided drivers with face masks and hygiene products (i.e. hand sanitizer) as needed.

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STATEWIDE VETERAN SERVICES Sheronne Blasi, Director

Success story: This quarter, counties reported over 2,141 miles driven, on 825 separate trips, taking 157 Oregon veterans to vitally needed medical appointments.

Grants Management- Jacqueline Kemp, Campus Resource Center and Veteran Services Grants Campus Veteran Resource Center Grants The 2018 Campus Resource Center grant concluded March 31, 2020, an extension was granted to allow colleges to complete spending and serve campus veterans. The Grants Coordinator prioritized the release of the 2020-21 Campus Veteran Resource Center Grant, which closes June 17th. This work included updating Administrative Rules for the grant program, re-writing the Request for Grant Proposal, developing an evaluation rubric, and developing a guidance presentation. We anticipate making grant awards in late summer. Thank you to John for a agreeing to serve on the evaluation team!

Veteran Services Grants Grantees utilized this quarter to continue spending down their funds from the 2018 Veteran Services grant. Many of the grant contracts were extended to give grantees until March 31, 2020 to fully expend their funds. The Grants Coordinator is preparing to release the Request for Grant Proposals, and will be reaching out to Advisory Committee member regarding your interest in participating as a member of the evaluation team.

Grants Management – Rural Veteran Medical Transportation Grant During the 2019 Legislative Session, the Legislature allocated $500,000 in Lottery Funds to ODVA for the Rural Veterans’ Healthcare Transportation (RVHT) Grant Program for delivery in the 2019-2021 biennium. This grant program will provide free transportation to veterans in rural areas seeking healthcare (physical or mental) at Veterans’ Administration (VA) facilities, VA-authorized health centers, and other healthcare facilities.

In order to leverage ODOT Public Transportation Division’s mobility expertise, ODVA invited ODOT to develop and implement the RVHT Grant Program. ODOT determined that the Special Transportation Fund (STF) Discretionary Grant Program offered a compatible framework for the creation of RVHT and the distribution of resources. ODOT and ODVA signed the Interagency Agreement on March 16, 2020 for a revenue transfer to ODOT in the amount of $500,000 in Lottery Funds to develop, implement, and administer the RVHT Grant Program under its STF Discretionary Grant Program.

ODOT is currently in the process of finalizing and awarding initial grants to eligible rural transportation districts in support of veteran’s access to healthcare and behavioral healthcare.

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STATEWIDE VETERAN SERVICES Sheronne Blasi, Director

During January 1, 2020 to March 31, 2020, Lines for Life’s Military Helpline received 1,010 distinct contacts. 982 were calls and 28 were texts. Approximately 90% (782) of callers were calling about themselves. A portion of the calls, 73% (642), came from those affiliated with the military as a family member, active duty, National Guard, or veteran. A portion of the callers, 14% (214), struggled with mental health challenges such as depression; 8% (114) reported PTSD-like symptoms; 6% (92) reported addiction and substance abuse concerns; 4% (58) reported concerns about finances; and 2% (29) stated homelessness as their main concern.

Other prominent problems stated were relationship issues 5% (73), family issues 6% (91), grief and loss 4% (60), a physical illness 10% (149), and 1% (13) reported legal issues. With regards to suicide crisis, 9% (74) callers shared that they were thinking about suicide. Calls to Emergency Services were notified on 7 Military Helpline calls. During the period, 19% (166) of Military Helpline calls were given referrals. Overall, 277 referrals were given.

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