The House insists on taking $4.5 million from the state's savings account to fund the facility, but Senate leaders are balking, saying the nursing home may not be necessary.
Neither side would budge Tuesday, delaying passage of Senate Bill 1, which includes funding to construct new buildings and preserve open space.
Proponents for the veterans nursing home said the budget battle places them in a precarious situation.
"We feel like a 5-year-old who just picked up a squirt gun and stopped in front of two guys with fire hoses," said Frank Maughan, state commander of the Disabled American Veterans.
Legislative leaders met late Tuesday to try to negotiate a deal.
If the $4.5 million expenditure were approved, the state's money would be matched by $8.3 million from the Veterans Administration. The joint funds would create a 120-bed facility on 10 acres donated by the Army Reserve near the Weber County Fairgrounds. The home would take veterans not covered by Medicaid and those who can't afford private care. The feds would also subsidize costs so veterans would pay only $65 each day. Senators have said if the House gets its nursing home, they want $6.2 million for the Drug Offenders Reform Act (DORA), which would increase drug treatment in hopes of reducing the prison population.
In truth, Senate leaders have made a half-hearted effort to fund DORA and are using the program's defeat as leverage to try to get the House to drop the nursing home.
"We love the veterans, there's no question about that. It's just a question of how much the state can do," said Sen. Bill Hickman, R-St. George.
Senate President John Valentine worries about "hidden costs" in the proposal, similar to the $1 million in unforeseen needs when a 1995 bill created Salt Lake City's 80-bed nursing home. The Senate also believes vacant beds in private nursing homes can handle the veterans.
Supporters say federal rules prohibit using private beds, and the state will only be required to pay for one administrator.
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Tribune Reporter Thomas Burr contributed to this article.
