Office of Legislative Services State House Annex P.O. Box 068 Trenton, New Jersey 08625 Legislative Budget and Finance Office Phone (609) 847-3105 Fax (609) 777-2442 www.njleg.state.nj.us LEGISLATIVE FISCAL ESTIMATE [First Reprint] SENATE, No. 3504 STATE OF NEW JERSEY 221st LEGISLATURE DATED: NOVEMBER 26, 2024 SUMMARY Synopsis: Establishes Office of Veteran Advocate and ombudsman for DMVA; appropriates funds. Type of Impact: Annual State expenditure increase. Agencies Affected: Department of Military and Veterans Affairs. Office of Legislative Services Estimate Fiscal Impact Annual State Expenditure Increase $1 million to $2 million The Office of Legislative Services (OLS) estimates that this bill will increase annual State expenditures by $1 million to $2 million due to the establishment of the Office of the Veteran Advocate. The increase could be more or less than this amount depending on the number of personnel required to facilitate the duties of the office. For comparison, the Ombudsman for Individuals with Intellectual or Developmental Disabilities and their Families has a staff of four and expended roughly $400,000 in FY 2024, while the Office of the State Long-Term Care Ombudsman has a staff of 40 and expended $4.2 million in FY 2024. BILL DESCRIPTION This bill establishes the Office of the Veteran Advocate in but not of the Department of Military and Veterans Affairs to support veterans and ensure veterans in this State are receiving high- quality services and care. This bill establishes the Veteran Advocate as the administrator and chief executive officer of the Office of the Veteran Advocate, who is to be a veteran appointed by the Governor, with the advice and consent of the Senate. The bill requires the salary of the Veteran Advocate to be minimum of $150,000 per year. The advocate will serve as an ombudsman for veterans and their FE to S3504 [1R] 2 families by investigating complaints from veterans and their family members, publishing reports regarding issues with veteran services provided by any State entity or any private entity that receives State funding, and providing recommendations to the Department of Military and Veterans Affairs to improve veteran services. The advocate is also responsible for the administration of the Office of the Veteran Advocate, including hiring personnel and adopting appropriate rules and regulations for the efficient conduct of the office. The bill requires the Veteran Advocate to report annually to the Governor, the Legislature, and the head of the Department of Military and Veterans Affairs on the activities of the office, priorities for veterans’ services, and recommendations concerning the provision of services by the department. This bill also requires the Veteran Advocate to make its significant findings of investigation reports or other studies undertaken by the office available to the public, which will then be forwarded to the Governor, the Legislature, and the head of the Department of Military and Veterans Affairs. This bill appropriates money from the General Fund to the Office of the Veteran Advocate, the amount of which is to be determined by the Legislature and sufficient to carry out the provisions outlined in the bill. FISCAL ANALYSIS EXECUTIVE BRANCH None received. OFFICE OF LEGISLATIVE SERVICES The OLS concludes that this bill will increase annual State expenditures by $1 million to $2 million due to the establishment of the Office of the Veteran Advocate and the employment of the Veteran Advocate as an ombudsman for the Department of Military and Veterans Affairs. The increase could be more or less than this amount depending on the number of personnel required to facilitate the duties of the office. The OLS notes that the State currently operates two similar entities to that of the office established under the bill, which are located in but not of the Department of the Treasury: the Long-Term Care Ombudsman and the Ombudsman for Individuals with Intellectual or Developmental Disabilities and their Families. The purpose of the Long-Term Care Ombudsman is to receive, investigate, and resolve complaints concerning long-term care facilities; to initiate actions to secure, preserve, and promote the health, safety, welfare and the civil and human rights of residents; and to oversee programs within the office. Meanwhile, the Office of the Ombudsman for Individuals with Intellectual or Developmental Disabilities and their Families is to serve as a resource to provide information and support to individuals with intellectual or developmental disabilities and their families. For context on the scope of these offices and the associated State costs, please see the following: FE to S3504 [1R] 3 Entity Year Established Population Served FY 2024 Actual Spending Office Staff Office of the State Long- Term Care Ombudsman 1977 242,000 elderly institutionalized in the State $4.2 million 40 Ombudsman for Individuals with Intellectual or Developmental Disabilities and their Families 2017 25,346 individuals served in community/948 individuals served in Developmental Centers $398,487 4 The OLS assumes that the Office of the Veteran Advocate will serve a population slightly larger than that of the Office of the State Long-Term Care Ombudsman based on the 2023 Census Bureau’s American Community Survey showing a veteran population of 258,485 in this State. The Veteran Advocate may also be of service to family members of veterans, further expanding the population served by the office. However, the Long-Term Care Ombudsman currently oversees more than 900 facilities, whereas the Veteran Advocate will oversee five facilities, likely resulting in a smaller number of staff and less spending for the newly established office. Finally, the OLS concludes that the Department of Military and Veterans Affairs will experience a potential increase in annual costs as it is required to implement the recommendations submitted by the Office of the Veteran Advocate. Section: State Government Analyst: Camryn Mathews Assistant Fiscal Analyst Approved: Thomas Koenig Legislative Budget and Finance Officer This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note. This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).