Quil Lawrence

The number of military veterans in the country's jails and prisons continues to drop, a new report from the Bureau of Justice Statistics shows.

It's the first government report that includes significant numbers of veterans of the wars in Iraq and Afghanistan — and the findings defy stereotypes that returning war veterans are prone to crime.

At the county court in Waukesha, Wis., in September, Iraq veteran David Carlson sat before a judge hoping he hadn't run out of second chances.

The judge read out his record: drugs, drunken driving, stealing booze while on parole, battery while in prison. Then the judge listed an almost equal number of previous opportunities he'd had at treatment or early release.

Carlson faced as much as six more years on lockdown — or the judge could give him time served and release him to a veterans treatment program instead.

The judge's tone was not encouraging.

After his son died fighting in Afghanistan, Phil Schmidt became a walking memorial.

"At the age of 52, I got my first tattoo. So I've got a total of five of em, and I'm not done," says Schmidt, who lives in New Mexico.

Schmidt has tattoos of his son Jonathan's face, and of his son's medals, and the date that he fell in combat, Sept. 1, 2012.

Jonathan Schmidt should have been coming home from Afghanistan that month. Instead two Army officers arrived at Schmidt's home bearing the news that Jonathan had died in a firefight.

This is a tale of two cities. In New Orleans, there are signs of hope that veteran homelessness can be solved. But Los Angeles presents a very different picture.

Under the deafening highway noise of the Pontchartrain Expressway in central city New Orleans, Ronald Engberson, 54, beds down for the night. Engberson got out of the Marines in 1979, plagued even back then by problems with drugs and alcohol. He says that's mostly the reason he's been homeless the past 10 years.

A decade ago, plans were drawn up for a huge Veterans Affairs hospital near Denver intended to replace old and crowded facilities for nearly 400,000 vets in Colorado and neighboring states.

The original budget was $328 million, but that was totally unrealistic, the VA now acknowledges. So how much did it finally cost?

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