State and Territorial Support for Members of the Military, Veterans and Their Families A Report by the National Governors Association February 2015 State and Territorial Support for Members of the Military, Veterans and Their Families Every state and territory in the nation counts current or former members of the U.S. military and the National Guard as part of their population. The nation’s governors recognize the value that these men and women bring home as a result of their service and are implementing programs and investing in resources to support their needs and those of their families, according to a recently updated survey by the National Governors Association (NGA). While the federal government funds and manages numerous programs to support service members and veterans throughout the life cycle of their military careers, many of their needs must be ultimately met at the state and community level. As the following report shows, every state and territory is going well beyond the services provided by the federal government, offering expanded benefits in areas such as tax incentives, life insurance, professional licensure, scholarships, employment services and emergency financial assistance. The NGA survey places these benefits, services and programs into seven categories, with examples below: Support to State Employees. States and territories provide support to their state employees, such as paying the difference between their regular pay and their National Guard pay when they are on active duty. More than half of the states and territories provide health care and life insurance benefits for members of the Guard and their families who are state employees. A few states also offer assistance with private insurance. Education Benefits. Most states and territories offer some form of educational benefits to members of the Guard and their families as well as other military families, including: tuition assistance; refunds and reimbursement when activated; scholarships for spouses and children; and special recognition and support to families whose military service member died in the line of duty. Family Support. States and territories offer numerous programs and benefits to support military families, such as: hiring preferences for state jobs to spouses of military personnel; credit counseling to spouses and family members; family survivor benefit plans, similar to state veterans cemetery benefits; rosters of volunteers who will assist with family needs and organizing family support groups; free access to video teleconferencing centers for families of activated members; and unemployment benefits for spouses who transfer to states along with military family members. Tax and Financial Benefits. States and territories offer some form of tax relief or extension of filing deadlines for the National Guard and Reserve members on active duty. Several states exempt active duty service members’ salaries from state income tax. In addition, some states provide a check-off box on the state income tax form for citizens to donate to a relief fund established for military families. Licensing and Registration Benefits. States and territories extend or waive deadlines for professional license and driver’s license renewals, and exempt or extend deadlines for certain tax liabilities for members of the Guard who have been called to active duty. In addition, many states allow spouses of armed service members to practice in professional areas until they are licensed by the state; some states accept out of state licenses; and many states defer continuing education requirements until members return from active duty. Protections, Recognition and Employment Support. Many states and territories provide other benefits during activation such as: cost of living pay increases; sick leave and vacation time accrual; protection from foreclosure; and expedited absentee ballot procedures during activation. Other programs include: reemployment protection including seniority and pay upon returning from service; hiring preferences for state, municipal and county employment; and regulation of “payday lending” around military installations. Reintegration Programs/Initiatives. States and territories focus on various different programs and initiatives for reintegrating outgoing service members. States also have varying levels of participation and interaction with the federal Yellow Ribbon Reintegration Program which is used by National Guard and Reserve members and their families to connect them with resources during and beyond the deployment cycle. Service members and their Families have access to programs, services, resources and referrals. 2 ALABAMA Members Spouses Children National Guard 12,936 6,247 11,363 Governor: Robert Bentley Reserves 7,532 3,564 6,874 TAG: MG Perry G. Smith Total 20,486 9,811 18,237 Support to state employees When deployed, Reservists and Guardsmen receive a pay differential between military pay and their state salary. When deployed, Reservists and Guardsmen have options for continued health coverage. Reservists and Guardsmen may take up to 21 days of military leave annually and have an option available for reinstatement of annual leave. Veterans honorably discharged from the U.S. Armed Forces at any time receive 5 preference points added to any earned ratings in examination for entrance to the state classified employment service. Honorably discharged veterans with a service- connected disability and entitled to pension, compensation or disability allowance under existing laws receive 10 points added to any earned ratings. Spouses of certain disabled or deceased veterans may also have the 10-point preference extended to them and added to any earned ratings. Educational benefits The Alabama GI Dependents’ Scholarship program, managed by the Alabama Department of Veterans Affairs, pays 100 percent of the tuition, books, and fees for attendance at any Alabama educational institution by spouses and dependents of veterans with a 20 percent or greater VA rated disability, were a POW/MIA, and the veteran meets the 12 month state residency criteria immediately before entering the military. ALNG Education Assistance Program (ANGEAP) provides $2,000 in tuition assistance to ALNG members. Effective July 1, 2015, in accordance with the Veterans Access, Choice and Accountability Act of 2014, participating Alabama institutions of higher learning will offer in-state tuition to eligible veterans, dependent spouses and children who are receiving the Post 9/11 GI Bill and Montgomery GI Bill – Active Duty benefits. Public institutions of higher learning in the State of Alabama, including two-year and four-year postsecondary technical colleges, community colleges and junior colleges, may waive tuition and fees for recipients of the Purple Heart Medal for undergraduate studies. The State Superintendent of Education may award a standard high school diploma to any honorably discharged veteran who served in the U.S. Armed Forces at any time between the following dates: December 7, 1941- January 1, 1946; June 27, 1950 – January 31, 1955; November 15, 1961 – March 28, 1973. The veteran must have been a resident of Alabama prior to entry into the military and his or her entry into the military must have interrupted high school attendance and prevented him or her from graduating. Family support Family support for dependents of deployed military members is provided by the ALNG Soldier and Family Support Services Division. Families are provided with a comprehensive set of services including military life skills groups, consultations, financial and legal counseling, career opportunities and employment services, children and youth services and survivor outreach services. Family Assistance Center specialists are designated for each deployed unit and provide support to the families of deployed military members. A specialist is assigned to each family and the same individual makes telephonic contact with the family on a monthly basis, ensuring continuity and providing any assistance or support that might be required. 3 Tax and financial benefits All retirement or compensation received as retirement benefits by military retirees and survivor benefits are exempt from state income tax. Money paid by the U.S. as compensation to military active duty members in a combat zone designated by executive order of the President of the United States is not subject to income taxes levied by the state. Exemption is provided from ad valorem taxation of the home and an adjacent 160 acres of any veteran (or person) who is permanently and totally disabled or who is 65 years of age or older and has a net annual income of $12,000 or less for income tax purposes for the last preceding year. Alabama law prohibits a mortgagee from initiating a foreclosure against the surviving spouse or estate of a mortgagor who dies while deployed overseas on active duty military service for 180 days after the death. Alabama’s Heroes for Hire Act provides a $1,000 additional tax credit to employers for hiring recently deployed and discharged, unemployed veterans and provides a $2,000 income tax credit to recently deployed and discharged, unemployed veterans who start their own business. A recently deployed, unemployed veteran is defined as a veteran who has returned from active duty within the two year period preceding the date of hire or start date of a new business. A veteran who is unemployed may be entitled to unemployment compensation based on his or her honorable military service