Vets home plan rides on Vikings stadium account

A reserve account established to ensure debt gets paid on U.S. Bank Stadium is proving an attractive target for state lawmakers, who see it as an avenue to speed construction of a few long-sought veterans homes in greater Minnesota.

House Republicans have proposed shifting $30 million from that account, mostly to use as a state match toward skilled nursing facilities for veterans in Bemidji, Montevideo and Preston. The account, fed by some corporate taxes and proceeds from charitable gambling in bars and restaurants, sits at almost $40 million now and could triple in a few years, according to projections.

The reserve comes into play if established revenue streams to pay for annual debt payments on the Vikings stadium fall short. Those payments are roughly $30 million per year.

Gov. Mark Dayton and his administration voiced support for the goal of adding more capacity to the veteran care system but said they weren’t convinced the proposed approach is the right solution.

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But cheered on by veterans Wednesday, the House State Government Finance Committee worked to finalize a bill that would make the transfer.

“The $20 or 30 or 50 million or whatever this number ends up being is a small amount of money to put toward our veterans,” said Ron Scheevel, a Vietnam War-era veteran from Preston. “Especially the aging ones and the ones who don’t have the resources to care for themselves, it’s just huge. We just need it and need it now.”

Minnesota has five veterans homes now with a total of 824 beds. A waiting list is bulging and it can take more than a year for applicants to land a slot. The three new homes would add 72 more beds each.

Rep. Bob Dettmer, R-Forest Lake, is one of the most vocal advocates for the proposal.

“You think about the young veterans that are looking at what we’re doing right now or these young men and women who are coming out of high school and thinking about serving, they’re watching,” said Dettmer, himself a veteran and the father of twin sons in the military. “They’re watching what we’re doing with our veterans today.”

Committee Chair Sarah Anderson, R-Plymouth, said she prefers using reserve account money over borrowing for construction because it would save the state in ongoing interest costs.

Under the current system, the federal government pays two-thirds of the cost of new homes. Local and state contributions make up the rest.

Even if the money were approved this session, it could take five or more years to open the new homes.

The Minnesota Department of Veterans Affairs estimates there is a $38 million backlog in maintenance at existing facilities. Dayton’s bonding bill seeks $13.1 million for urgent fixes.

Dayton said he’s willing to work with lawmakers to get the new facilities built. But he is skeptical that the House Republican plan to draw from the stadium reserve would get the job done. He said the state match for each of the facilities tops $20 million, short of what is set aside in the bill.

“If we don’t have a sound proposal, we’re just putting it in for show,” Dayton said. “The veterans of Minnesota deserve more than that, they deserve better than that.”

Dayton said building the homes is one thing, but providing the ongoing fund to operate that is another. He said legislative Republicans must show commitment to paying for an expanded network so existing homes don’t get shortchanged in the process.

Another $4 million from the stadium account transfer would be used to fund another Dayton priority: A new state office to handle sexual harassment and workplace safety issues for the executive branch.