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Board of Directors Meeting Minutes July 22, 2006

Present: BG Robert V. Taylor MG Gus Hargett MG (ret) Claude A. Williams Maj Gen David Poythress Brig Gen (ret) Kenneth Ross COL Al Faber MG Glenn Reith LTC Catherine Corkery Brig Gen (ret) Robert Dutko MG Francis Vavala BG Norman Arflack LTC Stephen Joyce Lt Col Murray Hansen Maj Gen Tod Bunting Lt Col Darrell Loyd Brig Gen Joseph Veillon MG Marty Umbarger COL Bob Felderman Col Gunther Neumann COL Raymond Jardine Col Andrew Salas COL (ret) Don Deering Col (ret) Raymond Magill CW5 Larry Massey

Absent Capt Darrin Huss CPT Mike Taylor MG Edward Wright Col Allyson Solomon Maj Gen Roger Lempke

Others Present: CPT Eric Leckel CMSgt (Ret.) Edwin B. Brown Mr. Chris Small Ms. Marjorie Gutierrez Brig Gen (ret) Richard Green Brig Gen (ret) Stephen M. Koper Mr. John Goheen Mr. Ron Sutton

1 Ms. Pam Buckler Ms. Loretta Fills Brig Gen (ret) William Spruance COL (ret) Thomas Kirkpatrick MG (ret) James Hughes Mr. Lewis King Lt Col (ret) Pete Renaghan Lt Col Tony DeJesus Ms. Bernie Phelps LTC Wayne Hunt Mr. Scott Hommel Lt Col Richard O’Leary Andy Vandlandingham Emily Brietback Ms. Leslie Pine Brig Gen Hugh Broomall Ms. Hazell Booker MG Harry Burchstead Mr. Jason Hall Mr. John Goheen

Gen Taylor called to order the July 22, 2006, NGAUS Board of Directors meeting at 0810. Gen Hargett led the invocation and Gen Ross led the Pledge of Allegiance. COL Faber called the roll and reported a quorum was present.

Gen Taylor said he had been lobbied by the members to have an executive session to replace Brig Gen William Lynch, Vice Chair, Air, who had resigned to take a job in Iraq. The Executive session began at 0830.

Chairmans Report—MG Robert Taylor The Board ratified the appointment of members in the executive session Col Gunther Neumann was appointed to the Audit Committee. Maj Gen Poythress was appointed to serve out the unexpired term of Maj Gen (Ret) William Lynch. Brig Gen Hugh Broomall was appointed to replace Maj Gen (Ret) Tom Maguire as Resolutions Chairman.

Gen Taylor also appointed the Albuquerque Conference committee chairmen as follows: Brig Gen Joseph Veillon as Nominations Chairman, Brig Gen (ret) Robert Dutko as Area III Caucus Chairman, LTC Catherine Corkery as Area VI Caucus Chairman, CW5 Rhea Pruett as Warrant Officer Caucus Chairman, CPT Eric Leckel as Company Grade Caucus Chairman, COL (Ret) Don Deering as Retired/Life Chairman, and Col (Ret) Raymond Magill as Credentials and Rules Chairman

2 Gen Taylor said there would be a lot of discussion about membership, which is at 63% as of 30 June. He said that we have come to a point where our membership has bottomed out and we have to grow this organization.

Gen Taylor said the President and the Legislative staff have some initiatives in progress; TRICARE is still a priority for the Association. He reported the Finance Committee and the Task Forces have had recent meetings.

Gen Taylor reported that getting interested people to commit to serve on the Task Forces leaves room for improvement. He asked the members when talking to their area people, especially at the September conference, we have to get the right people who understand the issues, who have the passion, and who can devote the time to these Task Forces.

Gen Taylor commented that Gen Bunting would present the OPD report. He said that we are eagerly waiting to get that resolved. Gen Taylor said that last year the Chief authorized sending two Company Grade officers per state, who had been deployed in support of Iraqi Enduring Freedom. He said they are trying to get the Chief to allow the Adjutants General and the states to bring whomever they desire. He said there is a solid program in place and the agenda has been sent to the chief for approval. Gen Taylor said that the Chief, Gen Blum, would be here this afternoon and hopefully would give them the answer.

Gen Taylor reported the Guard Bureau has been asked to talk about Jump Start, ANG end strength, JCA, and a number of other issues. He said that Gen Vaughn would not be here due to his surgery.

Gen Taylor reported that the reception after the meeting would honor Gen Craig McKinley, the new ANG director, Sikorsky, National Guard Association of Tennessee, and the Adjutants General Association.

Audit Report – Leslie Pine Arge, Wiltse, Robinson- Independent Accountant for NGAUS

Ms Pine reported the audit began in April of this year and went very smoothly. She thanked the staff. She said the report is an unqualified or clean opinion, which is consistent with prior years. Ms. Pine reported on the comparative totals for 2004 and 2005. She said the total assets increased 4.5%, which is very healthy. Total liabilities decreased 3% due to pay-downs on the mortgage. The new category in the net assets called board-designated is a portion of the net assets set aside for a sinking fund of $740,084, for final pay-off of the mortgage. She reported that the unrestricted assets are those where the donor has placed a restriction and when used per the donors request they flow into unrestricted assets. She reported that the overall decrease in revenue is about 1.9%. Building operations are fairly consistent with last year. Expenses increased overall about 7% due to salaries and related expenses. Overall, the building expenses show a very good year for NGAUS.

3 The consolidated statement of cash flows shows the sources and uses of NGAUS cash, divided in three categories, operating, investing and financing activities. Overall, net decrease in cash is $735,000. Ms. Pine reported that the Notes portion of the report is a required portion of the audit. Note 1 is a description of the organization and all significant accounting policies. There were no new policies added and none added to the existing policies. Note 2 is a summary of investments by type. Note 3, 4, 5, 6, 7, and 8 are all disclosures Note 9 includes an amendment to the plan effective January 1, 2006 Note 10 is the expected cash leases and rentals for the tenants in the building Note 11 is required disclosure Note 12 is how and where the organization classifies its expenses

Gen Poythress asked a question about note 6 concerning the balloon payment. Gen Ross said the balloon payment is a 15-year mortgage and is about $9.5millon, and is well past 2010. Ms. Pine reported that pages 14 through 21 are supplemental information but not required, but presented for the readers of the statements. Pages 22 through 26 show the NGAUS investments.

Gen Ross moved the approval of the 2005 audit report by the independent accountant.

Col Loyd commented that the Audit Committee usually recommends the approval of the audit report.

Gen Ross withdrew his motion to approve the audit report.

Col Darrell Loyd—Audit Report AUDIT COMMITTEE REPORT 22 JULY 2006

BG Robert Dutko and myself met with Leslie Pine of the Auditing Firm of Argy, Wiltse & Robinson, PC. Leslie went over the draft of the financial statements and covered the required auditor communications.

Leslie indicated the audit went well and there were no problems encountered, and they felt the internal controls were adequate and working as designed.

The committee recommends acceptance of the annual audit.

Darrell Loyd Chairman

Col Loyd said the committee recommends the acceptance of the 2005 audit report. Gen Dutko seconded. Motion carried.

4 COL Faber made the Board members aware of the butcher-block paper that would be used for taskers for the NGAUS staff. He said the NGAUS staff would only be held responsible for the tasks that are recorded on the paper.

Col Loyd commented that the NGEF loss shown in the report might reflect to an outsider who we are asking to contribute, that this organization is not supporting the NGEF. He suggested that the rent payment be listed as an in-kind contribution to the foundation, which would create offsetting revenue.

Gen Ross said the focus is to get some attention to fundraising for the tax-exempt arm. He asked members to wait for the report on the planned fundraising project to make further comments.

Gen Dutko commented that the Museum was paid for and built by its members; and one of the NGAUS objectives is to educate the public, and NGAUS bears responsibility to support that. He said that he agreed with Col Loyd.

Treasurers Report—Gen Ken Ross Gen Ross reported the NGAUS ship is sailing in very calm waters and is doing quite well. He said we are prepared for any down years that will occasionally occur. He said that the insurance is doing as well as in other years but as a whole the organization is financially sound. Gen Ross reported that efforts are being focused on fundraising, but there is no organization within the NGAUS that is in financial trouble. He said that NGAUS is operating on current revenue not like ten years ago when we were almost out of reserves and spending money at a deficit. He said that NGAUS is building the reserve and has a sound financial plan in place. Gen Ross said that the financial picture is very good.

Finance Committee Report—Col Pete Renaghan Mid Year Budget Report

Col Renaghan reported that corporate dues was increased by $31,000, Annual dues increased $1000, Royalties projected decrease $38,000, projected increase in magazine advertising sales $185,000, General Conference income projected increase of $52,000, Affinity decreased $2,000, Interest and dividends increased $87,500. He reported the total revenue increase for mid-year of $317,000.

Col Renaghan reported decreases in the operating expenses, salary and related expenses of $1900, Communications $1500, Furniture/equipment depreciation $3500, business expense $100. Financial/legal for investment fees is $10,000 and Invested capital is $100,500 for IT proposal. In Association Headquarters, there is a decrease of $150 in general and administrative, travel decreased $3000, and staff expense accounts decreased by $500.

Col Renaghan reported departmental increases, membership by $4000 for the traveling booth, legislation by $9100 for marketing materials, magazine by $46,000 , $95,100 for

5 general conference due to cost of AV support, $47,700 Board of Director for the Bush bust reception, fund development and the Montgomery donation, for a total increase in expenses of $304,150 at a positive delta of $12,850.

Gen Ross moved to adopt the recommended changes by the Finance Committee to the Mid-year budget as briefed by the Chairman of the Finance Committee. Col Loyd seconded. Motion carried.

Gen Ross commented that there were a number of items to be approved by the Board that related to contracts over $50,000 as the By-Laws say the Board must approve them.

General Conference – Recommend that the Board of Directors support the additional funds added to the General Conference budget for both the $60,000 audiovisual requirements and the $15,000 for the pre-TAG Reception at the NGAUS Conference. The added audiovisual expense will enhance the relations between the host state and NGAUS. Additionally, the increased expense for the pre-TAG reception will encourage invitees to this reception to visit the exhibit hall prior to the Host State’s TAG Reception thus addressing one of the major complaints of our exhibitors.

Copy Machine leasing (multi year contract): Agree with the staff recommendation to enter into a three-year copier equipment contract when the current lease expires in September 2006 and recommend that the Board approve signing of a new multi-year lease with the staff’s recommended carrier. The recommendation to switch carriers and shorten the life of the lease will lead to a reduced contract rate and enhanced copier capability for the Association.

Pam said that we may enter into a contract, but there is a RFP pending on the contract for the vendor. Puerto contract/audio/ visual Gen Ross moved to approve all the contracts. Col Magill seconded. Motion Carried Discussion: Gen Spruance suggested that a search be made of the Industry partners to get advice on negotiating some of the complex contracts, especially in the information technology contract. Gen Koper commented that we seek the best advice we can get on modernization and applications. He said if it is the will of the Board to create a formalized structure to review such contracts, we could do that. Gen Koper said that he and the NGAUS staff need some flexibility, but he will do what is the will of the Board.

Gen Spruance commented that he wanted to make sure that we are getting the best advice for the information technology piece.

Gen Ross added to the list, the amended 401K plan. 401(k): The Committee recommends that the Board accept the proposal from ING to serve as plan sponsor for the staffs’ 401(k) plan. Changing from our

6 current plan sponsor, Mass Mutual, will reduce the fees paid by plan participants, provide increased financial advising services and increase investment options.

Information Technology Plan: Funding from Capital Reserves of $97,500 was included in the 2006 approved budget for an IT Upgrade Plan to replace antiquated systems and to enhance the audio/visual, teleconferencing and VTC capabilities in the Montgomery Room, Spruance Room and Hall of States. The 2006 mid-year proposed budget reflects an additional $100,500 to support the remaining portion of the IT package that was deferred until mid-year review where it was determined that these funds could be supported within the operating budget of the Association. After review of this proposal the Committee agrees with the NGAUS staff that the entire information technology plan should be implemented in 2006 using $97,500 from capital reserves and $100,500 from operating funds and that the Board approve signing of the contract for these services.

Gen Koper said the money is in the budget and it follows the plan presented by LTC Hunt at the Finance Committee. He said that the process has taken a significant amount of time, and will do exactly some of the things that Gen Spruance had pointed out. He said that the project is not quite ready to proceed yet due to slow response to the RFP for appropriate bidders.

Gen Ross moved to approve the budgeted amount of $198,500 for technology improvements to the building. Col Neumann seconded.

Discussion: Col Loyd inquired if the building would be wireless. Gen Ross said not at this time. Motion carried.

Gen Taylor thanked Col Renaghan and the Finance Committee for a job well done.

Gen Koper commented that the results of the new software that has been implemented by the finance department has a new format that is easier to read and has a larger typeface. He said that Pam and her staff had worked tirelessly to get the software system in place and ready in time to report to the Board. Gen Koper commented that the larger numbers made it easier for the Finance Committee meeting, because the numbers are larger and easier to read. He thanked the Board for their support in the acquisition of the software system.

Vice Chair, Army Report—MG (ret) Claude Williams

Gen Williams said that as he reported in March, PBD-753 is a $25 billion reduction in spending for the Department of the Army. He reported that out of that figure they wanted $12.5 billion in cost saving and another $11.1 billion would be a tax on the Army. He said that about $5.3 billion or 48% would have to come from the Army National Guard. He said that has not changed, and it continues to be a challenge to try to fund what we do.

7 Gen Williams said that the function of the Army National Guard is one of time and money, and if given those things readiness levels can be met. He said they, the AGAUS, continue to push for money to fund the Army National Guard. Gen Williams said it is important for the NGAUS to get the message to our membership through LEGIT so that they can call their congressional leadership.

Gen Williams reported that end strength is at about 342,000 of the 350,000 for the Army National Guard. He said that according to the information he got, if the 350,000 were not met the Army National Guard would lose another billion dollars from their budget.

Gen Williams reported that Gen Honoree` will be invited to speak at the Army Session in Albuquerque. He said that Gen Wallace and Gen Vaughn would also be there. He asked if anyone had topics of interest to be addressed at the session to let him know as soon as possible.

Gen Williams said there had been a Strategic Planning Committee meeting on Friday. The members of that committee are, Gen Williams, Lt Col Hansen, COL Joyce, COL Faber, Gen Dutko, Col Felderman and Gen Green.

Strategic Plan Report—COL Al Faber (See attached report)

COL Faber gave an update on the Strategic Planning Committee. He thanked the committee members for their efforts. He said to date they have a draft of the missions, values and goals. COL Faber said they had begun work with the NGAUS staff and committees to get their objectives to build them into the draft plan. He said that once those are complete and approved by the Board, they will get further into the action plan and the matrix that support those objectives from each of the staff directorates and committees. COL Faber said they would be talking to any committee or directorate that they had not talked to already.

COL Faber thanked Gen Green for his leadership in working with the committees to get their input into the plan.

COL Faber reported the next steps are, by September 06 hope to have all the consolidated committee comments in the document, by November 06 promise to have a draft document to the Board along with comments from the state associations at that time, and by March 07 hope to publish the plan contingent on Board approval.

COL Faber reported that once the plan is completed and approved, the committee hopes to publish a document similar to the Legislative Objectives that is published annually. Plans are being made to have a down loadable document on the website as well as a briefing so that state associations can project it at their annual conferences. The states will also be sent a tri-fold brochure referencing the strategic plan to show them what is being done at the NGAUS headquarters to become more efficient and effective.

8 Gen Williams commented that the committee had used as reference a strategic plan from years ago and the association has followed through on some of those plans that have already come to fruition.

Gen Williams welcomed Gen Poythress as the Vice Chair for Air.

Legislative Report – Gen Rich Green (See attached report) Gen Green introduced the new member of his staff, Emily Brietback, who is an Iowa Guardsperson, where she was airperson of the quarter. She graduated from Iowa State University with a degree in Political Science. Gen Green reported that his department is working on a matrix management tool. He said they are also working to improve the task forces. He asked members for their help if they knew of anyone who would like to serve on a task force, please let him know.

He reported that they are working the ongoing resolution process. He said that Gen Maguire had to resign as resolutions chair, and has been replaced by Brig Gen Hugh Broomall.

Gen Green reported his department is working on enhancing their lobbying techniques to become more active. He said they would become more results oriented, and work more with the states. He said they would work to become more visible on the hill and work to become more teamwork oriented. Gen Green reported they are exploring a new vision for equipment funding.

Gen Green reported on some of the top priorities: TRICARE: He said they are working hard to get the Senate on our side. He reported that Gen Koper has had meeting on the hill and Legislative Alerts have been sent out asking members to contact their congressional leaders for their support. Gen Green said the important point is to get the Senate to recede to the House position on TRICARE. The National Guard Empowerment Act: Gen Green reported that the House referred the Empowerment Act to the National Guard and Reserve Commission; the Senate has a great first step and the Legislative staff is working to get the House to recede to the Senate position. Joint Cargo Aircraft: He reported that the House has funded $113 million for JCA. He said the MOA was signed on 20 June and was delivered to Senator McCain, who is not satisfied with the current process. The Legislative department is working this issue very hard because the Guard needs these airplanes to replace those in the units where they are loosing their planes. Family of Medium Tactical Vehicles: He said DoD is reprogramming $456 million to pay for people. The Legislative staff will work this new issue.

Gen Green reported that due the complexities of the Army and Air acronyms they are working on a way to simplify that language.

9 Gen Green said that due to the fact that the Army manages the equipment accounts that the Guard will suffer. He said the equipment levels are at 40%. He said there is no funding for equipment for the Guard.

Gen Green said the resolutions process encompasses a number of different agendas that are used to try to get equipment. He said that the Task Forces established the top priority list for the resolutions process.

Gen Green reported that last year in the emergency supplemental bill was $1 billion, $900 million went to the Guard, $100 million to the Army and $200 million to the Air Guard. He said that everyone needs to work together to get the funds that are needed for the Guard.

Gen Taylor commented on the importance of the reprogramming FMTV’s issue and asked if that were the only account they would use. Gen Green said that it was a very new issue as Lewis King had bought the issue to his attention. Gen Green commented that the money is being used to pay for military personnel. He said the Army is using this as a ploy to get congress to give them more money for equipment.

Gen Koper commented that Gen Schoomaker has appeared on the Hill in the last ten days, which is unusual, and he is stressing to congress that we cannot go on like this, and that the Armed Forces have to have more resources or they will not be able to perform, as congress wants them to. Gen Koper said he personally applauded Gen Schoomaker for speaking frankly to congress.

Gen Green commented on the CSI and ROA documents and he said those papers do not specifically support what is in the best interest of the National Guard. He said he is writing a paper that is in draft on the NGAUS position awaiting approval. He said that it is imperative that NGAUS state their position so the someone else will not get engaged on our part and we will suffer the consequences because of it.

Gen Spruance commented that he thought that the Empowerment legislation is being misinterpreted. He said that in 1947 we started with two stars and he thinks the four star position will be a long uphill battle. He said the reason for the legislation is to point out and correct the errors of the BRAC legislation.

Membership Report—Rick O’Leary Col O’Leary reported that the Membership Committee is working to fulfill the goals of their mission statement. He said the committee is working hard on the topic of making sure they have adequate tools and resources in working with the state associations. He reported that the committee has been working with the states to give them whatever support they need to take a look at their membership. He said that the membership percentage is at 63%, which is where we were a year ago.

Col O’Leary reported on the strength report. There are 15 states that are at 100% or better. Alabama is the most improved state; they went from 54% to 80%. Vermont and

10 Oregon percentages went up more than 20%. He pointed out that by looking at the strength chart some states show some significant anomalies. He said that Hawaii had a significant increase in membership as a result of a letter written by Col Jardine in his state. He said that in addition to the committee’s interaction with the states, there is no substitute for leadership involvement. He suggested that something as simple as a phone call or an emotional driven letter could have an impact on the states where the percentage has shown a shift, and if those states could recover, some of that shift through the last half of the year, then we will significantly beat our current stated numbers. Col O’Leary requested the Board to engage appropriate states to see what can be done on that topic.

Col O’Leary reported for the upcoming conference the Membership Committee would be visible in the caucuses, active in staffing the booth, and offer Train-the-Trainer workshop. He said the workshop had a very positive outcome last year and the attendees found it very helpful. He said that he will ask some members who have healthy best practices or those who have made significant improvements to attend the workshop to offer personal testimony on what they did that mattered.

Gen Ross addressed the state association revenue sharing proposal. He said the Finance Committee was tasked to look at some actual some membership cost numbers to see how we could increase membership that is for a goal of 100%. Gen Ross said, starting in the fall of next year, September or October, when the second mortgage is paid off, $400,000 will become available. He said a plan was devised in full cooperation of the Finance Committee and the Membership Committee to devote those funds to improving membership..

Gen Ross said the recommended proposal basically states that the association will put some significant money toward the state associations to encourage them to partner with NGAUS to increase membership, by moving a 5% rebate proposal to a 25% rebate proposal. He said if a state reaches 100%, and they receive the early bird rebate, there is a opportunity for a 30% dues pay-out. Gen Ross said the proposal includes the first paragraph of the document presented which follows below.

Gen Ross moved to adopt as a trial program for the dues year 2008. The Finance Committee recommends an enhanced state association revenue sharing program whereby the Membership Improvement/Retention Program would be increased to 25% in 2008. The existing requirements of the current program, reproduced below, will remain in effect and govern the continued administration of the program. If all states took advantage of both the membership Early Bird program and increased their states’ membership to 100% then NGAUS would pay to the states’ associations’ rebates totaling $742,000 in 2008. The highest individual state would be $35,759. The average payout would be $13,729. Gen Hargett seconded the motion.

Discussion followed between members on the pros and cons of the proposal and the potential financial incentive.

11 Gen Dutko commented that he believes that we could hit a home run by lowering dues rather than all the gimmicks we come up with. He inquired as to the objective on how much money is needed to raise membership. He said if we go to a baseline dues that we can live with all the other things could be eliminated. He said this will cause more work for the in-house staff.

Gen Ross commented that this is not a big task, but getting into individual memberships would be. He said it would be making an assumption that lowering the dues would increase membership. Gen Ross commented that the members should vote their conscience, but the Finance Committee did not think that cutting dues would increase membership.

COL Faber commented that the proposal gives the states the flexibility to do what they want and he thinks it is a great way to go.

Col Felderman asked for clarification of the proposal and Gen Ross said the proposal only referred to the top paragraph of the document and the maximum that any state could get is 30%.

Col Jardine inquired about the task from the previous Board meeting to hire a professional marketing capability to help with the membership. He said it appears we are moving away from that task and coming up with something else. Col O’Leary said that action is with Gen Koper.

Gen Koper commented that we should defer those questions and we would speak to them at a later time. He said there is no report to give to the Board on a specific consultant today, but he would offer some other plans that are in progress.

Col Magill inquired if there is a specific reason why the proposal is projected for 2008. Gen Ross reported that the revenue stream to make the program possible starts in September 2007.

Discussion followed between members on the proposal projection year.

COL Deering commented that there are six states who have the potential to become the biggest contributors, and only one is at 100% in membership. The next is at 80% and the lowest is at 15% of membership. He said he thinks if the proposal would help those states that it is well worth the effort to do it. He said he gives his support to the proposal that could potentially add $700,000 in the NGAUS coffers.

Col Neumann commented that coming from a state with high membership percentage, they could use those extra funds to bring some people to the conference, who do not normally come, and realize the benefit through word of mouth to use that as another recruiting tool.

Gen Williams called for question . Motion Carried.

12 Gen Dutko said the decline in the New Jersey membership reflects the fact of deployments and he said they are trying to find here all of their troops have gone.

Resolution Committee Report—Gen Hugh Broomall/Brig Gen Richard Green (See attached report)

Gene Broomall thanked the Legislative staff for the work they do in the resolutions process. Gen Green thanked Bernie for her efforts in getting the CD’s ready for the Board. Gen Broomall reported that 40 states submitted resolutions and they received 56 resolutions compared to 80 last year.

Gen Broomall suggested a motion that the Board approve the block of 56 resolutions. Col Neumann so moved and COL Corkery seconded. Discussion followed on the Resolutions process.

Col Felderman commented there is a process in Iowa for emergency resolutions where, in addition to the motion on the floor, if a resolution comes to the floor, they allow the executive board to make the final decision to add the resolution to a packet and send it out. He said by the Board approval of the 56 resolutions and if there are things to add or change the Board would also have to give their approval.

Gen Koper commented there is an emergency resolution process in place that is in progress all the way up to two hours before the convening of the Resolutions Committee at the conference for that purpose.

Col Felderman commented that those emergency resolutions are not brought before the Board for approval.

Gen Hughes commented that could be done by telephone conference as a special meeting.

Gen Koper commented that is true, but our resolutions rules allow for up to two hours before convening and it would be difficult to find all the Board members at a conference to have a meeting.

Col Felderman suggested an amendment to the motion that if an emergency resolution comes in that the executive committee could have time to give their support or non- support.

Col Faber commented there is no executive committee; there are officers of the Board. Col Felderman said that the Officers of the Board are what he was referring to.

Gen Taylor asked Col Felderman if he was asking for an amendment.

13 Col Felderman made a motion that the officers be allowed for emergency resolutions that are presented, to be able to vote yea or nay, so that the members will know if the Board offers their support or non-support.

Gen Hughes commented the motion is contrary to the position that has been taken in the past by the By-Laws Committee, and feels it would not be legal. He deferred to the Parliamentarian.

Col Magill commented he was not sure if it was legal, but it was contrary to the concept the Board has taken in the past. He suggested that a conference call or an e-mail would perhaps work.

Col Felderman withdrew his amendment, but suggested that the Board look at that because it is the number one question asked at the conference. He also suggested that the Resolutions Committee report back in November on that issue.

Gen Bunting commented that he is willing to look at the disc containing the resolutions. He said the time was taken to walk through the budget, but not even time was taken to do a cursory summary of the resolutions. He said the resolutions are worthy of having more time to spend to review them.

Col Magill said in the past they had gotten a paper handout of the resolutions for the Board to review and that with the current process the Board is writing a blank check.

Gen Bunting commented that in voting for the resolutions without first reading them he is not sure he is doing what he is being asked to do.

Gen Koper commented that he was sensitive to the Boards desire to see the resolution first; however, the book containing the resolutions is very thick. He said that they would have to read the resolutions, the comments, and the tracking sheets because they would not be able to formulate an opinion from a summary of them. He said that is a process the Task Forces do and they only look at their subject areas. He said that when Bernie sends out the material to the designated state Resolutions Committee members who do the screening, they would get a copy of every emergency resolution up until the time that material is sent out. Gen Koper said that they have to take the time to read the resolutions.

Gen Koper commented that any member of the Board, like any other member, could raise objections or offer amendments to the Resolutions Chair or any member of the Resolutions Committee, and register their thoughts about any particular resolution.

COL Faber asked to revisit the resolution process, and he went through the steps. The 56 resolutions are draft resolutions that go to conference. The steps are: (1) in the resolutions meeting at the conference anyone can vote yea or nay; (2) NGB and Task Forces weigh in;

14 (3) discussion takes place and out of that meeting comes a recommendation to accept or not accept; (4) once passed they go to the Task Forces to be prioritized; (5) Then at the November Board meeting, they vote and that sets the agenda for the staff.

Col Felderman said he left out a step that the vote at this Board meeting could mean that the Board is supportive of the 56 resolutions.

Col Deering asked if the Task Forces had looked at the 56 resolutions and the answer was they have not yet done so.

Gen Taylor suggested rewording the text to read we will refer this block of resolutions. He said that the Board is not endorsing this.

Col Neumann commented that it is the Resolutions Committee at the conference who deliberates the resolutions. He suggested referring to the Resolutions Committee at the conference.

COL Joyce commented that NGB really does not participate and on many issues, they have no comment or position. He said that last year only one Task Force chair was present on the Army side. He commented that the Task Forces should be held accountable because the process is broken.

Mr. Small commented that he thought the Task Forces are responsible to the appropriate vice chairs to report on the actions they were taking in recommending resolutions for consideration to the Board and Resolutions Committee.

Gen Taylor asked if the members wanted to amend the motion to defer the block of resolutions.

Gen Hughes commented that the ultimate authority subject to the conference of this corporation (NGAUS) is this Board. He said it would be a nullity that this Board has never taken a position on something that is called a resolution. He mentioned that Gen Buntings position is that we are going to pass this resolution is our position without proper reflection. Gen Hughes said it would be a nullity to have an ultimate resolution that says this is the position of the NGAUS without this Board ever having said this is our resolution. He said that for the Board to pass it on or defer it is an abrogation of the authority and responsibility of this Board.

Gen Taylor questioned if the timing sequence is correct.

COL Faber commented that the members could not get past the word pass was the problem and for the last hundred years the resolutions had been looked at and passed on.

Col Felderman disagreed and said that in previous years the resolutions packet was given to the Board before the meeting so that members had time to read and review them. He

15 said there was a slide show of the summary of the resolutions, and many times some resolutions were taken off because the Board would not support them or others that were contentious.

Col Magill said the ultimate for passing resolutions lie with the Resolutions Committee at the conference, not this Board. He said he would like to defer this until he can look at the By-Laws.

Col Felderman said that having been a member of the team that wrote the SOP for the resolution, that this is the way it was designed and written to operate. He commented when he was the resolutions chair that they would present the resolutions to the Board and they would support or not support them or pass them on as a block.

Col Magill suggested a motion that the block of 56 resolutions be deferred to the Resolutions Committee to be convened at the conference. COL Faber seconded.

Col Magill amended his motion to change the wording to ask that you refer this block of 56 resolutions to the Committee on Resolutions to be convened at the 128th General Conference in Albuquerque, New Mexico.

Gen Hughes restated his position.

Gen Koper engaged in a colloquy with Gen Hughes. Gen Koper commented that what would be sent to the Resolutions Committee for consideration at the conference is a draft resolution. He said what would come back from that conference would be a resolution that the Resolution Committee will be recommending for adoption by the total conference and then it will come back to NGAUS Board for support or non-support. He said that a stated position from the Board ahead of time is not binding on the process at the conference. Gen Koper suggested that if you threw a whole resolution away without giving the Resolutions Committee a chance to read it, it would be an improper act on the part of the Board.

Gen Hughes commented that he did not disagree with Gen Koper.

Gen Koper commented that we needed to figure out a way for the Board to read the resolutions volume so they can have an opportunity to discuss each one, because obviously it is not a selective responsibility. He said that it is not the responsibility of the Board to accept debate, discuss, reject, and establish a position on selected resolutions. It is the obligation of the Board to read all information, debate it and come up with an answer. He said they could not just selectively decide what they want to look at.

COL Faber commented that he agreed and if the Board took that position, they would become a select resolutions committee in and among themselves. He said that would be inappropriate and unfair to the rest of the states, and the states would take exception to it.

16 Gen Koper said that the responsibility of the Board at this point is simply to say the process has been moved as directed, a package has been prepared and ready to go to the Resolutions Committee at the conference. The Resolutions Committee will review in detail; debate and provide a recommended resolution that will no longer be a draft that will ultimately come back to the Board. Secondly, Gen Koper said, every member of the Board has every opportunity to get input into the resolution process, as it is ongoing. He said that he wanted to make sure that the members understood that only the Resolutions Committee, designated and certified by the states, can participate in the debate, unless the Chairman recognizes someone to participate in the debate.

COL Faber reread the amended motion; to change the word pass to refer and to refer the block of resolutions for consideration at the 128th General Conference. The motion was made by Col Magill and seconded by COL Faber. Motion carried.

Discussion followed among members about the resolutions process.

Gen Taylor suggested that the Board get together at the Conference to look at the resolutions.

Gen Hughes said he thought that was a good idea and that at some stage the Board ought to take a position on the resolutions.

Gen Green commented that when he arrived into his position he assessed the Task Force situation. He said that some are run very well and some others that are not well staffed and dysfunctional. He said serving on a Task Force is voluntary and they are working hard to get them staffed and functioning, as they should. Gen Green commented that the Task Forces prioritize the approved resolutions and provide their expertise information.

Gen Dutko commented that what caused the confusion is that there was usually a reference packet to look at. He said the process should be consistent with the other reports, such as Audit and Budget, to be presented in advance.

Gen Koper commented on the time constraints. Resolutions are sent to the states 1 June for their input on their resolutions as well as the response on the drafts from NGAUS. So on 1 June if everybody reports, and some do not, then the Legislative staff starts to compile the resolutions that come by various methods. Gen Koper said it is a massive undertaking that takes the month of June to get it into a readable format. Then they go to the National Guard Bureau. He saluted NGB for their efforts, along with NGAUS, in developing a single tracking sheet. He said that the process at NGB for getting the tracking sheet completed has to follow a chain up to the Chief before it is finished and sent back. He said that all the 300 subject sheets are on the disc; the tracking sheets were not returned to NGAUS until Thursday night. Gen Koper said that was not ample time to get it to the Board for them to read it and make a decision, consult with colleagues, decide on a program and get it back to Gen Green and staff. He said he was not sure how we would solve that problem; but they will keep working on it.

17 Gen Koper commented that the resolutions process is tough. He said there is no intent to abrogate the rights of the Board to review and take positions on them. He said they would have to take some individual initiative to read the several hundred pages and give NGAUS some feedback so that the Chairman either can convene a meeting to handle specific objections or can approve the package.

Gen Dutko commented that he understood the process, but we are doing something different and without a reference document, they are not fulfilling their requirements of the Board.

Gen Koper said the disc is a reference document rather than a piece of paper.

Gen Dutko commented that the disc was no good at that point because they were not able to read it. Gen Broomall said they would work hard to get a process that the Board members are comfortable with.

Awards Report—Col Bob Felderman (See attached report) Col Felderman reported the vision of the Awards Committee is to focus on superior performance, acts of heroism, or service of a meritorious nature or a contribution to the goals of the association, the purpose and effectiveness of the National Guard or the stability and security of the United States.

The Awards Committee: Col Bob Felderman—Chairman- 2009 Brig Gen Hugh Broomall – 2007 Lt Col Murray Hansen—2006 Major Ed Graybill – 2006 Major Joe Jacobs – 2007 Col Felderman recommended that those members be maintained on the Committee for their knowledge and understanding of the awards process.

Col Felderman reported that in 2004 they passed 112, awards, 2005 108 awards, and on the current list there are 118 awards, however some of them will not get selected for the first or second award which will work out to about 114 awards. He said there were 130 awards from 35 states this year, which is the most states who have submitted awards as well as similar numbers of awards.

Awards Selection: The Harry Truman—given to an individual Col Magill made a motion the Harry S Truman is awarded to Representative Ike Skelton. Gen Hargett seconded. Motion Carried

The Montgomery Medal—recognizes an individual or an organization for providing outstanding support in the pursuit of NGAUS objectives.

18 Col Felderman said the recommendation of the Awards Committee is to not award the Montgomery Medal this year.

COL Faber made a motion to award the medal to Representative Dave Hobson. He said the MilCon budget for the Army National Guard has exploded in the last 5 years all attributable to his leadership. Col Hansen seconded.

Col Felderman asked to add to the motion that any of the three be moved down and given the Charles Dick Award, that being Governor Rendell. COL Faber accepted the amendment to the motion. Motion carried.

Charles Dick Medal of Merit—recognizes the contributions to the National Guard by elected representatives and legislative bodies at state and national levels.

Col Felderman recommended that the Board support the 30 names of the list to include Governor Rendell. COL Joyce so moved. Gen Hargett seconded. Motion Carried.

The Patrick Henry Award—recognizes local officials and civic leaders who in a position of great responsibility distinguish themselves with outstanding and exceptional service to the Armed Forces of the United States, the National Guard or NGAUS.

The Distinguished Service Medal-- can receive only one in a lifetime. It recognizes an individual who is a member of the Armed Services. Gen Lempke was added to the list. Col Felderman recommends this award be used recognize other Adjutants General who are retiring and that this Board include in the motion those who retire between now and the conference if there are any. Also for any departing member of the Board of Directors.

Meritorious Service Award Meritorious Service Certificate Valley Forge Cross for Heroism—presented to members of the National Guard Valley Forge Certificate Garde Nationale Trophy – members of the National Guard is their civilian endeavors

Company Grade Leadership Award—to recognize ARNG and ANG junior officers Col Felderman reported that the committee had asked the Company Grade Committee to report to the Board with a recommendation for the name and design for this award at the November meeting.

Col Felderman recommended that the list of medals from the Patrick Henry to the Company Grade awards that a motion be made to accept those awards and present them at the conference. COL Joyce so moved.

Discussion on the medals followed.

19 Gen Vavala asked if MG Don Morrow was on the list. Col Felderman said they did not have all the names at present but would add the other names to the list.

Col Magill commented that there should be a caveat to the motion that would clarify those Adjutants General who retire versus those who are asked to retire or retire under a cloud.

Col Felderman restated the motion to approve the list of medals from the Patrick Henry to the Company Grade including retiring TAG’s between now and the conference and using the Distinguished Service Medal for that, and also for the members of the Board of Directors who are leaving. COL Joyce seconded the motion. Motion Carried.

Col Felderman recommended that the members of the Awards Committee whose terms expire this year be reelected to serve for continuity.

Gen Koper commented that the Awards program was not put in place for the state associations to present the award but for this organization to have the honor of recognizing the people identified, who have made significant contributions to the National Guard and the National Guard Association. He said we are not maximizing the benefit that we can gain from our awards program. He said we want to recognize the individual but also want to maximize the impact of recognizing those individuals.

Gen Rieth agreed with Gen Koper and commented that Texas has three awards and yet they support us with 15% membership. He said that Pennsylvania has 45% membership, and has nominated someone for every medal. Gen Rieth commented it is a sensitive issue and that if those states with huge Guard members do not support NGAUS with Membership, then why should NGAUS support their state and their individual agenda.

COL Deering asked when the awards would be presented at the conference. Gen Koper said the awards would be presented September 16-18 at the conference. Gen Koper said the letters would go out on Monday to the awardees.

Col Feldernan commented that the awards are presented according to the awardees schedule.

Gen Koper said that NGAUS will do their best to accommodate their schedules and that arrangements for receiving the awards should be conducted with Rich Arnold.

Col Felderman commented the he agrees with Gen Koper and that members of the Awards Committee would be willing to travel to those individuals and present the awards if their budget were increased.

COL Faber said he agreed with Gen Rieth. COL Faber suggested a motion that for every state on the Awards list who submitted someone for an award who is less than 80% membership, they receive a letter from Gen Koper stating that the awards have been

20 approved and will be presented. However, NGAUS has grave concern with the lack of participation, and that it go the Adjutant General as well. Gen Rieth seconded.

Gen Koper commented that he agrees in principle with what Gen Rieth said, but that is a problem. He said the pronoun “they” don’t support, when used is very foggy and we do not know who “they” is. He said there are some states that might have strong state support but do not have a strong Adjutant General to support them for a national organization. He said there are a variety of reasons why there is no support. He said that is a tough thing to do, but felt it should come from the Chairman of the Board.

COL Deering commented we need to be very careful that we do not alienate anyone who is a member by sending a letter to chastise the states.

Gen Taylor commented that he agrees with COL Deering in that some of the awardees are in positions to make a difference as Kay Bailey Hutchinson. She has no control over who joins NGAUS, but as a member of the Senate Armed Services, she is in a position to control what happens in the Army and Air National Guard.

Gen Vavala agreed with Gen Taylor. He said the Gen Rieth is on target. He said he agrees in principle with Gen Koper with what he said, but said he thinks we risk alienating individuals. He said we have to be very careful in the message we send by doing this.

COL Faber said he was not trying to alienate anyone with his motion, that he wanted NGAUS to voice our concern that the awards are approved but pointing out that state has very low membership.

Gen Rieth commented that even the conference hotel selection does not offer an incentive to join NGAUS.

Col Loyd commented that he does not think a state should be held hostage to the fact that their state membership percentage is low. He said those individuals who are selected for awards are selected for their support on behalf of the National Guard, and their membership percentage should not be a factor.

COL Faber restated the motion, to congratulate the states on all of the awardees, and use that as an opportunity to say that while we have approved these awards we recognize the fact that you do have low membership participation in the Association and the Board of Directors have grave concern over that. The letter should be sent to the state association presidents as well as the Adjutants General.

Mr. King commented that in Texas it was the Adjutant General, two in a row, who destroyed the state association. He said they have a new Adjutant General and new state president and executive director who are working on improving membership as we speak.

21 COL Deering commented that the Executive Directors and the Secretaries should be added to the letter. COL Faber accepted that addition.

Call for question. Six people opposed. Motion passed.

By-Laws Report—Gen Harry Burchstead (See attached report)

Gen Burchstead reported the committee only has one issue, submitted by COL Deering, to make the General Conference a standing committee. He said that the content of the appendices of composition, membership and duties, is a Board of Directors issue and not one for the By-Laws Committee. COL Deering clarified by saying that he submitted that on behalf of the NGAUS Conference Committee that the Chairman of the Board selected.

Gen Burchstead said the By-Laws Committee only voted on was the creation of the committee. The By-Laws Committee recommendation is: I. to create the committee II. Size, composition and membership of the Committee is a duty of the Board of Directors Gen Burchstead moved on behalf of the By-Laws to adopt the recommendation that the By-Laws be amended to go forward to the General Conference to create a standing committee on the General Conference. Col Magill so moved. COL Joyce seconded. Motion carried.

General Conference Committee Report—Gen Norman Arflack

Gen Arflack reported they reviewed the proposal for the standing committee. He said the Conference Committee recommends amending Section 4a of the proposal. It currently reads: 1. The committee on the NGAUS General Conference shall: a. Evaluate bids to host the General Conference, keep the conference Standard Operating Procedures (SOP) current, look for ways to improve and enhance attendance, and make recommendations to the Board of Directors for the conduct of the Annual General Conference in a manner deemed agreeable with the Chairman of Board and the President. b. In conjunction with and support of staff, respond to suggestions, recommendations, and inquiries from NGAUS membership as to the methods to improve the conduct of general conference activities and attendance. c. Support the Association Staff in the organization and the conduct of the conference activities according to current Standard Operating Procedures (SOP). The recommended changes are: The committee on the NGAUS General Conference shall:

22 a. Evaluate bids to host the General Conference, insure the conference Standard Operating Procedures (SOP) is/are current, look for ways to improve and enhance attendance, and make recommendations to the Board of Directors for the conduct of the Annual General Conference in a manner deemed agreeable with the Chairman of Board and the President.

b. In conjunction with and support of staff, respond to suggestions, recommendations, and inquiries from NGAUS membership as to the methods to improve the conduct of general conference activities and attendance

c. Delete C totally because it is redundant.

Gen Arflack made a motion to adopt the recommended changes. Chief Massey seconded. Motion carried Gen Arflack reported there are 166 corporate members of which only 40% are corporate members of the association. He said a sub-committee was appointed chair by Chris Small to look into that issue. They discussed the 2008, in Baltimore, has some scheduling issues. He reported the new dates for the Baltimore conference would be 19-23 September and the committee concurs with the recommendation to make those changes. He reported the quoted rate for rooms was $141 or the current per diem. There will be nine hotels involved. He said there are major concerns for 2009 and 2010 as there are no active bids. He said they would continue to pursue efforts to get more incentives for states to offer bids and they will present some recommendations at the next meeting.

Officer Professional Development Report—Gen Tod Bunting (see attached report) Members: Maj Gen Tod Bunting LTC Catherine Corkery LtCol Tony Dejesus LtCol Amy Asher (ANG/DP) CPT Eric Leckel Gen Bunting reported they worked on this years agenda pending approval from the Chief which will then be sent to the Adjutants General.

He reported that the committee had worked up a template by which every year when you attend the conference you would know before hand what to expect.

Day I: ► NGB Army and Air (Service Directors “Hot Topics”) ► Host State Leaders (State JFHQ) . Business . Governmental . Army and Air Directorates . ESGR . JAG . IG

23 . Family Programs . Legislative Liaison

Day II: ► Day 2: NGB Joint staff . Joint Staff 101 . Yearly Activities Summary . Operations . Logistics . Personnel . State Input/ Training Sessions . General Scherling was asked to be a speaker . NGB Legislative Liaison should be involved to let members know about their visits to the Hill Gen Bunting said this is the only conference where all the grades of officers can be brought together as a joint force. He said NGAUS is the forum to bring everyone together. Day III: ► Day 3: Strategic Level (J-5/7, G-1, A-1) . Developing adaptive leaders - War College Participation . Visionary . Leadership now and then . Strategic Leadership competencies . Gen Shepperd and Gen Baca will be a speakers this year Current Issues: ► Current and future years budget for speakers . Travel and Per Diem . Speaking Cost ► Other Venues of OPD (VTC) ► Second OPD Opportunities

Gen Bunting said that this year LTC MaJellous is the most decorated airborne officer ever, who is 89. He said that in order to get him to the conference NGAUS would have to pay his airfare and housing.

COL Corkery commented that there might be a training budget at NGB that could help them with training cost and it is just a matter of finding the right person to talk too. Gen Bunting said that some of the General Session time would count as OPD. He said that the plan is built so that even if there is no general conference the OPD will still happen.

Discussion followed. Gen Umbarger asked if time is allotted for exhibit visits. Gen Bunting said there is. Col Loyd asked if the retirees were being left out of OPD.

24 Gen Koper commented that the plan developed by Gen Bunting and his group grew out of an effort to get our folks to the conference in a duty status. He said anybody can go to the exhibits, but the idea grew out convincing NGB that the conference is just not a party, but it is the only joint Army and Air venue. He said the benefit for NGAUS is to get officers to the conference who might not otherwise attend.

Discussion followed on the alienation of retirees.

Col Corkery added that the intent is that the OPD is not just for company grades, but also for all grade officers. She said that the objective is to have as many people attend as possible so that there would not be empty rooms when the speakers come to speak.

Discussion followed on the intent of approval from NGB.

Chief Brown commented that the approval that EANGUS received was one person per thousand members, thus over one thousand people could attend their conference. He said the constraints are different from those given to NGAUS.

Col Felderman moved that a maximum of $3000 be provided for this conference to be used for OPD travel, and also include retiree benefits. General Dutko seconded.

Gen Ross amended the motion to limit the travel and housing expense to speakers and not to committee members. Motion Carried.

Discussion followed on why NGAUS needed the approval of the Chief for OPD. COL Joyce said it was the Adjutants General budget, why they cannot just do it.

Gen Koper said that NGB has determined that they are going to give us the guidelines that pertain to what is going to occur based on history of who lets the state know what an Adjutant General can do with respect to a non-duty (private organization) like NGAUS. He said we are already authorized to send two Company Grade officers and the Adjutant General can send those people. He said when they decided to go after this; there were two purposes in mind, to increase the attendance and to break the paradigm of the long- standing history.

Gen Hargett commented that the letter stated that NGB had no legal objection but they had to go through OSD. Gen Koper said the Guard Bureau wanted to have OSD approval and that has been done this year also.

Corporate Advisory Panel Report—Chris Small Mr. Small reported they had a “Breakfast with the Leaders” with Gen Lempke and Gen Scherling who were speakers. He reported there are a number of people who want to become actively engaged in the activities with the CAP.

He reported that the CAP had met at the AGAUS conference in Williamsburg. He thanked Gen Williams, Gen Neumann and Don Sutherland for making an excellent

25 conference in Williamsburg. Mr. Small said there were 94 booths and they raised almost $200,000 through the corporate sponsored exhibits.

Mr. Small said they continue to push for incentives for recognition for corporate versus non-corporate issues.

AGAUS Report—Gen Frank Vavala

Gen Vavala reported on what the AGAUS has been working on since the March meeting. He reported the Spring AGAUS meeting was a success and thanked Generals William and Neumann for their planning.

He said the big items on their agenda are, the National Defense Enhancement and Empowerment Act. He said bill 2766 excludes the seat for the chief on the Joint Chiefs of Staff. He said they had to give that up to gain more support for the bill. He said he and Gen Koper had testified before the House Arms Services Committee on June 13 for support of the Empowerment Act. He said they have established groups who will meet with select congressional representatives before the next congressional break, consisting of Gen Lempke, Gen Rees, Gen Lowenberg and Gen Koper. He said they would be encouraging all members to meet with their representatives during the August break.

Gen Vavala reported their next big issue is the Commission on the National Guard and Reserve and Gen Lempke and Gen Blum had the opportunity to address the Commission. He said they had gotten great support from Governor Easley and Governor Ruth Ann Minter who testified before the Commission.

Gen Vavala reported that Gen McKinley and some enlisted members from Alaska and New Hampshire testified in San Antonio before the Commission.

Gen Vavala said that ROA and CSI have sent papers to the Reserve Commission that does not fit with what they are trying to convey to the Commission. He said they have a white paper in Delaware that they have sent out to all the Adjutants General asking that they receive input relative to issues that they will be able to use, and asking for feedback on what they should be concentrating on.

Gen Vavala reported there was a MilCon crisis. He said a letter had been sent to Congressman Hobson expressing concern on this issue. Also a letter had been sent to Gen Blum and the Senate and House Caucuses.

NGEDA Report—Marjorie Gutierrez

Ms. Gutierrez reported their NGEDA conference would be held in Puerto Rico in January 2007. She said she had attended a meeting in Austin. She reported she had sent message to the Executive Directors for feedback on topics for their conference workshops and had heard from 12.

26 COL Deering asked if there is a reason why PDC people are not invited to their meetings. Ms. Gutierrez replied that she did not know of any reason why anyone is being excluded and she would find out.

EANGUS Report—Chief Edward Brown

Chief Brown reported their conference is August 20-23 in Salt Lake City, Utah. He said that Gen Vavala would work the AGAUS session at the conference, held on Sunday and Monday. Gen Taylor will speak on Sunday afternoon. He said the agenda for the conference is on their website.

Chief Brown said in reference to the membership pursuit, speaking on behalf of Texas, at their last board meeting Texas approved that their membership will now constitute automatic membership in EANGUS.

Chief Brown said the proposal letter he presented was an issue of the Soldier and Airmen Relief Fund. He said that it had been discussed with the Chairman that NGAUS and EANGUS would have a joint fund. He said the proposal states the attributes associated with the current National Guard Soldier and Airmen Relief Fund, which is operated and administrated through EANGUS and does not carry their name, but is operated by a foundation called “We Care for America”. He said that up until Katrina, the fund was for soldiers and airmen who had hardships associated with deployments only, but they have revamped their SOP to include catastrophic financial hardships and personal property loss as well.

Chief Brown said the proposal on behalf of EANGUS and NGAUS is to appoint a member of NGAUS, preferable a company grade. He said the reason for that is that a company grade officer would be more in touch with some of the financial hardship needs of soldiers and airmen. He said the committee would consist of a corporate member, a member of NGAUS, and two members of the foundation. Chief Brown said that by placing a member of NGAUS on the committee, at that point in time further discussions or pursuit to stand up a NGAUS emergency relief fund would cease. Then both EANGUS and NGAUS would start to share in the advertisement, marketing, and contributions as friends of the association as necessary. The fund currently has $400, 000. They have awarded over $300,000 associated with needs from Katrina in the Gulf area at large. He said the EANGUS felt that another fund would create a wedge and create competition between friends and sources of the associations.

Chief Brown submitted the proposal to the NGAUS Board of Directors for consideration.

Col Magill moved for the adoption of the recommendation of the proposal by Chief Brown. Col Loyd seconded.

Discussion followed. Gen Ross spoke in favor of the proposal and suggested the motion be passed so that finance could start the budget process for next year.

27 Chief Brown said all the funds have been sponsored by contributions so far and not by EANGUS. Gen Vavala commended and thanked EANGUS. Gen Vellion inquired about the application process. Chief Brown responded that they apply through the process listed in the proposal. Col Loyd asked the name of the organization and if it were a 501(C) 19. Chief Brown responded it is the National Guard Soldier and Airmen Relief Fund and is 501 (C ) 19.

Gen Taylor called for question. Motion passed.

Company Grade Report—Captain Eric Leckel

Captain Leckel reported that Captian Taylor was not present as he was deployed and would be back by conference time. He thanked the Board for the opportunity to set on the appointed committees.

He reported that two areas of professional development the Company Grade Committee feel will greatly develop the officers are, the directors will speak at a round table at the conference on the second day and the senior NCO’s will also speak.

Capt Leckel reported the Company Grade Committee would conduct a conference call within the next two weeks to do an IPR on their taskers from the March meeting. They will conduct a NGAUS 101 with a focus on the committee. Some members of the committee are putting together a power-point presentation.

He said on day two of the conference they would distribute a survey for members to improve the way they conduct Company Grade sessions. In addition, they are adding five priorities for the Company Grade Committee. They want their members to prioritize those objectives for them so they can add them to the strategic plan. He said they would talk about the Company Grade mixer during the conference call.

Retired/Separated Report—COL Deering and Col Magill

Col Deering reminded members that the retired luncheon at the conference will be on Sept 17, at 1200 in Ballroom A of the convention center. The cost is $5 each for retired life members and $25 for all others registered through each state association. He said they have 10,743 retired life members and 6,705 active life members, totaling 17,448 members who participate in the association. He said that in the last two years the life members have increased by 300 members. COL Deering thanked the Board for their support of the retiree luncheon.

Col Magill reported he had received e-mails from two Air Force colleagues, who told him about an initiative that some high-ranking officers has started. He said that deals with people who, are in the military or former military members, when they attend functions where the National Anthem is played they do a hand salute rather than over the heart

28 salute so they stand out as people who have served their country. He said there is no prohibition on that, and he would like to get the sense of the Board if this is something we should pursue. He said he would like to get Michele Traficante to take it to the Military Coalition to get other like organizations to follow this initiative.

Gen Arflack said he supported the initiative. He said that he thought you would have to change the US code to have that happen. Gen Vavala commented that Gen Arflack was probably right, but many military organizations already do that.

Gen Koper commented there are many other heavy issues to deal with right now, and said if asked what the NGAUS position is on that he would say to the veterans that they have served honorably and no one is going to tell them what they can or cannot do.

NGEF Report—Jason Hall

Jason reported the Auditors report was accepted. He said Gen Dutko had given his last report as he resigned as Funds Development Director. He thanked Gen Dutko for his support.

He reported that three fundraising firms had been interview and of NGEF Board had approved that one of them should be hired. The decision was left to Gen Koper to choose the final firm.

He said that Gen Spruance had given $30,000 and Gen Ross had pledged $10,000 to become a Legion de Lafayette. He thanked them for their donations.

Jason reported he had presented three design bids for the OEF/OIF exhibit of which the Board approved, Hartman Exhibit Services. The exhibit will be dedicated on Industry Day on December 6, 2006.

He said the website had been moved and the problems are being resolved as they arise. He said Gen Spruance sponsored Gen McKinley for the Guard Muster.

Jason said the Normandy Monument had been inspected by the French War Museum and he would be working this project.

Jason reported the NGEF budget and the Audit report had been approved. He reported that the subject of a mailer to solicit donations was mentioned and approved by the Board. He said Chief Brown offered the EANGUS mailing list for that mailer. Jason said he will attend the upcoming EANGUS conference.

Jason thanked Hazell for assistance in raising the funds for the OEF/OIF exhibit.

29 Gen Ross challenged the Board to make a donation to the Education Foundation. He asked the members to contribute something so that as a Board they will be on record to show they have contributed.

Gen Dutko thanked the Board, Hazell, and Jason for their support and he said he looks forward to working with them in the future.

Col Taylor suggested a motion to approve the NGEF report. Col Felderman so moved. Gen Dutko seconded. Motion carried.

COL Faber commented that if every member, voting and non-voting, of the Board gave $15 apiece, they could be listed a contributor for 2006.

Warrant Officer Report—Chief Larry Massey (See attached presentation)

Chief Massey commented that CW5 Rhea Pruett would handle the warrant officers elections at the conference since he will be running for re-election.

He reported on the current legislative objectives that were sent out in January 2006 not the CD.

He said the pay raise is out of balance and he expects some changes will be made. He reported on bonuses for the Warrant Officers and said their position is that once a person thinks about becoming a warrant officer he should not think that he has to give up his bonus.

Chief Massey reported another issue is to get TRICARE for everyone. He said that retirees are not offered the option to purchase TRICARE insurance. He said they are either a member of the selective reserve or not.

Chief Massey reported that another resolution is the reduced age for retirement and the deployment length. He said the bonus amount that he saw was $8000 and the Bureau is looking for $15000 and he will talk to the Legislative staff to make sure they are matching those amounts.

Chief Massey reported that the word direct appointment should not be used. He said the only other alternate method to become a warrant officer is Officer Candidate School. He said there are 13 states participating in the pilot program and 125 enrollees.

COL Faber commented on the TRICARE issue for the retirees. COL Faber suggested that issues be built into a resolution to be passed at the conference. Chief Massey said that Indiana would work that resolution.

Gen Taylor commented on the motion approved that the chair would send a letter to the Adjutants General, the Presidents, the Executive Directors voicing our membership concerns for those that received awards but were less than 50% membership. He said he

30 had no problem as the letter could be written very tactfully. But he said that prior to that it was approved to give every Adjutant General a Distinguished Service medal upon retirement. Gen Taylor said that it seemed to be a conflict between the letter and the presentation of the award.

Col Felderman made a motion to amend the previous motion that if a retiring Adjutant General is determined that they would get a Distinguished Service award that this is the appropriate award that would be considered but not mandated. Col Loyd seconded.

Discussion followed.

Gen Ross said that why not use the criterion that in the year when the Adjutant General retires that his NGAUS association’s membership has a specified percentage of 50% or better. Gen Hargett suggested; tying it to the average percentage of the association of 63%, or whatever it is at that time.

Gen Ross offered a motion to the amendment that the retiring Adjutant General state dues membership is at least at the level of the average of NGAUS membership percentage.

Col Felderman suggested if we look over a state that has been above 100% for many years and because of one circumstance that may be beyond that Adjutant General’s control that we not tie it to anything specific other than performance and let the criteria fall where it may when the time comes.

Gen Hargett seconded the amendment.

Col Felderman restated the motion to read should a decision be made to provide an Adjutant General or Board of Directors member with an award upon retirement the Distinguished Service Medal would be deemed to be the appropriate one and that it must still be approved by the Board.

Gen Ross added an amendment to the motion that the state membership is at least at the percentage of the average NGAUS percentage.

More discussion followed on the criteria for the award.

Gen Ross moved to table the motion.

LTC Wayne Hunt—Conference Report

COL Hunt commended New Mexico on their preparations for the conference. He said that on 14 August, Pam, Gen Koper and he would travel to New Mexico for Rock Drill to meet with everyone involved in the conference. COL Hunt reported that on July 14, the first registrations were due and they have received 1406 attendees. By August 1, the numbers will start to be given to the hotels at which time they start to deal directly with the states.

31 He said to date there are 360 companies who have purchased around 713 booths for $1,665,000.

COL Hunt reported that the NGAUS staff would be staying at the Plaza Inn Hotel. He asked the Board members to register with their state and put in a voucher for reimbursement from NGAUS.

Col Salas commented that New Mexico is on track with the conference preparations. He asked the area reps to let them know as soon as possible, who will be using Mil Air because the sooner they know the better, so that they can schedule transportation.

Pam said that Maryland graciously agreed to host the conference when Iowa withdrew and recently they found out there were conflicts with the convention center for the dates so the date for the Baltimore conference has been changed to September 19-23, 2008. The core conference dates are 20-22 September. Pam proposed that at the will of the Board that we now change the 2008 Maryland conference dates to, 20-22 September, 2008. Colonel Loyd so moved. Chief Massey seconded. Motion carried. National Guard Bureau Reports: LTC H. Steven Blum (see attached presentation)

Gen Blum commented on the oath of office for a commissioned officer and said there are many people in the title 10 community who do not know what they have signed. He said there are many people who have taken that oath that never really thought about why they put their life on the line.

Gen Blum said that the operation on the border is how it should be done, to send federal resources, federal money, federally trained troops and send federal equipment and leave it to the Governors because the borders of California, New Mexico and California is both state and federal borders.

Gen Blum commented that the Militia Clause is a highly important clause and is why the Governors are the Commanders in Chief. He said that is why the Adjutants General exist, and are elected to function as they do.

Gen Blum reported on the catastrophe that happened in the Gulf States and New Orleans. He said that 80,000 citizens were displaced. He said that 14,000 guardsmen from those states were overseas at that time along with their equipment. There were about 15,000 soldiers who were not deployed overseas which left the area with diminished capabilities to respond to the hurricane. He said that the Guard responded to the largest military disaster and the fastest in the history of the world. He said that most of the medical, COMs and the entire airlift were Air National Guard. The Army Guard was responsible for saving 14,443 citizens with their helicopters. He said it might have been the finest moment for the National Guard since Lexington and Concorde.

32 He said this was accomplished with 70,000 troops deployed overseas. Gen Blum said the Adjutants General from all 54 states and territories responded by sending troops with no questions asked. He said no missteps were made by the troops who were sent; they acted with self-respect, discipline and professionalism.

He reported on where we are this year. He said there are still 68,000 in the war fight. He said the guard is getting prepared for hurricane season and because the ocean is warmer, there is the potential for more hurricanes in places where there were not hurricanes before. He reported on Operation Jump Start. There will be 6000 troops sent to the border by August. He said the operation is not National Guard mission or a military mission, but DHS or the border patrol mission. The National Guard will be the military support of the law enforcement operation. These troops are under the command of their states Governor. The troops are armed on a need to be basis when needed to protect themselves.

Gen Blum said the MOA for Operation Jump start was written by NGB and is a good deal, and he encouraged all the Governors and Adjutants General to sign up. He said that while the troops are on the border whatever state they are from that Governor has full control of his troops. He said they are paid totally by the federal government.

He said he had spoken to all Adjutants General on his mandate, which is, to save lives, evacuation and rescue, and to reduce human suffering is job number one. He said the second thing is to preserve order with a big show of force on the streets basically to act as a deterrent to civil disorder. He said the next thing is to maintain an establish communication and then to ensure continuity of operations in government.

Gen Blum pointed out the trip wires listed on the presentation and said if you fail in any one of these three things, you will have any president sending federal response. He said that we should make sure that does not happen.

Gen Blum commented that this group of Adjutants General is the tightest group ever and they are taking on anything and everything and getting results.

Gen Blum said that he has been given verbal authority, when a catastrophic event happens, he can call up the National Guard, without getting permission first. He said that a letter is being put together right now for the Secretary of Defense to sign.

Gen Ross asked Gen Blum if he had access to a timeline chart that states per day how many boots on the ground belonged to the National Guard. He said that the media does not know the Guard story (Katrina). He said that Gen Honore` did not save the world. Gen Blum said that Gen Honore` captured CNN. He said that we gave that to him. Now there is a team of PA people for events such as Katrina so that the Guard story will be told. He asked to have the sand chart given Gen Ross.

Air Director—Gen Craig McKinley (See attached presentation)

33 Gen McKinley said his first official act would be to present to Gen Spruance the BRAC document.

He reported that his title has changed and now he is the Vice Chief for Air for Gen Blum. He said he was glad to be back home and he talked about his history.

He reported that the Senior Leadership Conference would be in November during election. He said that they are looking at changing the date and Texas has volunteered to host.

Gen McKinley showed a short film clip on the capture of Zachawi, and how a multi-unit National Guard operation that produced the results. He said the film was shown at Corona, and will be shown again at Blue Summit. He said that Gen Blum and the Adjutants General will attend Blue Summit in August in St. Louis where Gen Mosley will give his State of the Union.

Gen McKinley reported that there are three things he has to do immediately. 1. Capture trust 2. reconnect with the Air Force 3. Get our organization in tact

He said if these things are not done situations like BRAC will continue to occur where there was not enough information early enough to make proper judgments.

He said that it is important for him to be visible, to field questions. He said he had many emails and phone from Gen Spruance.

Gen McKinley introduced his staff: Stephanie Walsh, Chief of Staff, Bill Albrough, Mark Susa, and Ralph Conte, Joy Bowie.

He said that they will answer all emails and he will actively seek the council of the National Guard Association of the United States.

He said that reconnecting with the Air Force is important because that trust has been broken. He said his goal is to regain the trust of the Air Force. He said we are no longer a strategic force but a war-fighting force that we have to learn.

Gen McKinley reported on Jumpstart. He said he had to make sure that a significant portion of the force on the border who is Air National Guard men and women. He said that if the Air Guard does not get into this fight they are in jeopardy.

Gen Blum commented that the National Guard is a dual mission force and the Air National Guard is a part of the National Guard. He said that 80% of the medical in Katrina was Air National Guard. He said that if the Air National Guard is not used it could find itself in a poor position for staying alive. He said that 25% of the force for

34 Jump Start should be Air National Guard. He said that he is committed to have a flying unit in every state. He said that he wants the Air Guard involved in joint force headquarters as well.

Gen McKinley said they are integrating as fast as they can. He said that we will have to get smarter and become more joint in reality.

He showed a video of Gen Shepperd from 1996. Gen McKinley said that since 9/11 the rate of change has happened so fast. He said the technology and the way we fight wars has changed so dramatically that he believes that 75% of what Gen Shepperd said in 1996 would happen in 2050 is already here.

Gen McKinley reported that Gen Shepperd said that for the Air National Guard to have a strong force we have to make sure the United States Air Force is strong; because the Guard receives its equipment from the Air Force.

Gen McKinley said Gen Mosley believes in the National Guard, and is opening his doors to them. He said the Gen Mosley’s three priorities are, to win the global war on terrorism, to take of airmen and to recapitalize the US Air Force.

He said that in every weapon systems the Air National Guard equipment is older than the active duty force. He said that we must have new equipment. He said that future missions are different today because they are transforming into space missions. Gen Mckinley said as a result of a persistent commander in Tennessee space missions got started. He said that now there 14 states and 806 people who are doing this technical work in those missions, which is less than one wing of people.

He said they are in the 8-13 PO now. He said Gen Blum asked him to take off some people because you cannot get the people back. He said they turned in their budget and it was accepted. He said that 35% of the Air Force is retirement eligible.

Gen McKinley reported on fighter procurement and that the years we have must be used wisely.

Gen McKinley said they think they can influence change better if they have officers inside the Pentagon in Air Force headquarters. He said that Air Force headquarters issued PBD 720 and they did not know about it, because there was no way for them to know. He said that is the need to have NGB staff within the Pentagon. He said he is moving some people back to the Pentagon. He said his office will also be in the Pentagon and will integrate some officers of the Air staff.

He reported on recruiting and retention. He said that as a result of BRAC young officers are not sure of their futures. He said they would use G-RAP to recruit. He asked NGAUS to make that a high priority. He said that the recruiting budget might have to be increased to get desired results.

35 Gen Bunting asked Gen McKinley, what is the latest information on when they would be able to get the new mission announcements, so they can get started in the training process. He said they are in phase three and they will release the announcements in order to retain control so they can get the maximum in the states. He said that the Secretary of the Air Force public affairs is slowing things down.

Gen Blum commented he is not going to announce anything without the funds to support it.

Gen Bunting commented that there are units with uncertain futures and that is what’s affecting recruiting and retention. Gen Blum agreed, and said that is why the Army Guard instituted G-RAP. Gen Blum said the Army Guard has just completed their 9th best month of recruiting ever with an increase of 10,000 new recruits. He said they will go to 357,000 end strength. Gen Blum said we have to fully leverage the forces here and abroad and integrate the forces as well as integrate the equipment. He said the National Guard will not reduce people, but will find other ways to pay the bills, because it makes no business sense. He said that he got that counsel from the Adjutants General. He said that NGAUS focus on the big stuff, and is making a difference.

Gen Hargett commented on the storefront recruiting and asked why couldn’t the Guard partner with those active duty recruiters.

Gen Spruance commented on the BRAC process. Gen Blum said that he thinks the BRAC will end up costing more than it was projected to save.

Gen Blum commented that NGAUS , AGAUS, and EANGUS has made it very clear to congress the right way to go and that Congress buys into it. He said there is resistence at the Pentagon.

Gen McKinley recognized Ralph ---- who will be leaving NGB in seventeen days. He said many of the air bases are built because of Ralph and his team.

Bill Susa—BRAC and MILCOM Assessment He said the bad news is we need $330 million to classify every TAG’s number one priority. He said that the good news is they just got word last night they are close to $170 million. He said they would get $330 million when the bill goes to congress.

Army Report—Gen Jim Nuttall, Deputy Director Gen Nuttall reported the success of G-RAP program. He said that at the end of June, the end-strength was at 330,000 and now they are at 346,000, about 2000 short of the end strength total. He said the target date is October 1.

He said that Gen Vaughn is doing well and gradually getting back to work.

He said that G-RAP is the Guard Recruiter Assistance Program. He said they assist recruiters. He said they make a contract with them. He said the person gets $1000 when

36 they first enlist. The total number to enlist to date is 10,250. He said the second $1000 is paid when they ship to basic training. He said the have recovered 7,000 in 10 months.

Gen Nuttall reported that congress has designated $21 billion for equipment, which the active Army will fence. He said they are negotiating with the Army on how they can watch that. He said the Chief of Staff of the Army has committed $1.9 million for aviation. There is $900 million in the supplemental, but has not been approved yet. He said there is $700 million in the NGREA fund.

Gen Nuttall introduced his staff: Dave Murtha, Ray Carpenter, Alberto Jimenez, and Greg from Texas.

Gen Taylor asked Gen Blum to address the issue of Officer Professional Development.

Gen Blum thanked Gen Taylor for his leadership and said he thought NGAUS was better off for his leadership.

Gen Blum said the Conference agenda is impressive and is the best content since he has been around NGAUS. He said he thinks it is immensely important that the young officers attend the conference. He said that the agenda includes good speakers as well as their topics.

He said he had read the letter and but was not prepared to respond today, and he and his staff would examine the policy and try to relax it. He said he was the one who added that the recently deployed soldiers should be included. He said he was not sure if he could increase the numbers substantially but would look at it. He said he would like to.

He said that he would like to have the Board consider, if the numbers cannot be increased, maybe piping out the OPD into distance learning so that anybody can take advantage of it. He said that he could certainly pay drill status for the distance learning to attend that. Gen Blum said he would look at the letter and maybe he could do a combination of the two things. He said that he and his staff support the NGAUS OPD program. Gen Blum said both the AUSA and the AFA have strong OPD programs that are underwritten and for NGAUS to not be treated the same way is a double standard. He said he will be addressing that very soon, because everyone should be held to the same standard.

Gen Blum said he and his staff would take a look at the numbers and the funds to see what he could do.

Gen Poythress asked if Mil-Air would be included. Gen Blum said yes and also commercial air could be included.

Gen Blum said he would try to get a response back next week.

37 Gen Bunting said the TAG’s unilaterally support more attendance for all grades not just company grades in a paid status. Gen Blum said he would give all the support he could.

Col Jardine asked Gen Blum his position on sanctioning the event. Gen Blum said he certainly sanctions the event.

Gen Taylor thanked the NGB staff for coming today, and invited them to stay for the reception.

Gen Taylor commented that there are two LDL’s and Gen McKinley who will be honored at the reception to follow.

The meeting was convened until 0800, July 23, 2006.

The Distinguished Service Medal was presented to Mr. Ralph Conte, NGB by Gen Koper and Gen Taylor.

Board of Directors Meeting Draft Minutes July 23, 2006

Present: BG Robert V. Taylor MG Gus Hargett MG (ret) Claude A. Williams Maj Gen David Poythress Brig Gen (ret) Kenneth Ross COL Al Faber

38 MG Glenn Reith LTC Catherine Corkery Brig Gen (ret) Robert Dutko MG Francis Vavala BG Norman Arflack LTC Stephen Joyce Lt Col Murray Hansen Maj Gen Tod Bunting (absent) Lt Col Darrell Loyd Brig Gen Joseph Veillon MG Marty Umbarger COL Bob Felderman Col Gunther Neumann COL Raymond Jardine Col Andrew Salas COL (ret) Don Deering Col (ret) Raymond Magill CW5 Larry Massey

Absent MG Edward Wright Col Allyson Solomon Capt Mike Taylor Maj Gen Roger Lempke

Others Present: CPT Eric Leckel CMSgt (Ret.) Edwin B. Brown Mr. Chris Small Ms. Marjorie Gutierrez Brig Gen (ret) Richard Green Brig Gen (ret) Stephen M. Koper Mr. John Goheen Mr. Ron Sutton Ms. Pam Buckler Ms. Loretta Fills Brig Gen (ret) William Spruance COL (ret) Thomas Kirkpatrick MG (ret) James Hughes Mr. Lewis King Lt Col (ret) Pete Reneghan Lt Col Tony DeJesus LTC Wayne Hunt Lt Col Richard O’Leary Brig Gen Hugh Broomall

39 Ms. Hazell Booker

Gen Taylor reconvened the meeting at 8:05 am. He commented there was some housekeeping to be done and he would have an executive session this morning.

Col Felderman said in reference to the previous motion on awarding of NGAUS Distinguished Service medal to retiring adjutants general, he would withdraw that motion according to Robert Rules of Order. Col Magill said the he did not have to withdraw the motion. Col Felderman said there was a motion on the table that has to be withdrawn from yesterday that was incorrect.

Col Felderman made a motion as one made for voting in favor of the awards from the Patrick Henry to the Company Grade and in regards to the TAG’s and the Board of Directors.

Col Felderman made a motion that we reconsider that vote that it only stipulates that those from the Patrick Henry to the Company Grade are approved including Gen Morrow and Gen Williams for the Distinguished Service but nothing to do with retiree for the TAG’s or the Board of Directors. Col Loyd seconded. Motion carried.

Col Magill said they had to restate the motion from yesterday and vote against it to nullify it. Then he said to make a new motion considering all the awards but exclude the part about the TAG’s and Board of Directors.

Col Felderman restated the motion; to approve the Patrick Henry all the way to the Company Grade including Morrow and Williams and including the Distinguished Service Medal would be for the retiring TAG’s and the members of the Board of Directors. He recommended the Board vote on that motion in the negative. Members voted no to the motion.

Col Magill said then a new motion had to be made.

Col Felderman moved that the awards list from the Patrick Henry all the way down to the Company Grade be approved and in addition the Distinguished Service Medal be awarded to Gen Morrow and Gen Williams. Col Magill seconded. Motion carried.

Presidents Report—Gen Koper

Gen Koper said he wanted to talk about some positive aspects that the full time staff was doing. He said the staff is being challenged and they are answering the challenge. He said all the full time positions are filled. He said the directors are challenging their staffs to meet the highest level of expectations, be creative, and to be empowered.

40 Gen Koper said the staff had attended 25 state association conferences this year which is about half of them. He said that they have a traveling road show that they take with them that they set up at the conferences.

Gen Koper said that Col Hunt is tasked with completing all the building improvements that the Board has approved through the finance and budget process. He said that the rewiring of the Montgomery Room has been accomplished. The next stage will be the installation of the new audio/visual and control equipment in the building. He said the outside walls that have the faux painting have taken a beating and the repair project will start soon. He said that has to be done by hand. Gen Koper said this building is a critical part of our image. Gen Koper said Col Hunt has an ethic for competitive pricing and he does not accept the first price.

Gen Koper commented on the new software in the Finance Department. He said the project took weeks to implement and train the staff, but it is now installed and working well.

Gen Koper complimented John Goheen and his staff and said that the external communications program has never been better. He commented that Gen Spruance had mentioned that the magazine had arrived on time. He mentioned the magazine made a profit for the first time. Gen Koper said the new advertising contract is in the process.

He thanked the Board members for their support. He said the tasker idea was a good idea. He said there was only one tasker from the last Board meeting that was not completed and it has to do with investigating a public transportation subsidy for members of the staff. He said they are continuing to look at it. There are seven members of the staff who use public transportation out of the 27 who do not drive regularly. He said that would be presented at the November meeting.

Col Deering commented that we needed to get the Baltimore conference date out as soon as possible. Gen Koper said the website would be changed as well as an email message will be sent.

Insurance Trust Report—Ron Sutton

Ron reported that the insurance profit news was not quite as good as we normally have for the 2006 insurance year. He said that 2005 was the highest profit year they ever had. The projection from ING on the Technician Plan refund is on the negative side, as a result of a high experience on claims from the disability side not the life side. He said there appears to be a ten-year trend where there is a bad year. He said they are about $600,000 behind last year. He said the John Breyer said that the trend is that the claims come in the first 6 months of the year and will pick up the last 6 months and come out of the negative. Ron said we would not have a two million dollar year this year.

Ron said the ING represents them well at the different conferences. He said ING did not attend and Open Enrollment in New York yet, but hopes to have it later in the year.

41 Ron said a highlight had been this year of reengaging the HRO offices. He commented that he and Jimmy Davis came to a mutual agreement to help each other on open enrollments. He said they have sponsored three events and have one more to do in September. He said the relationship with HRO’s has never been this good and he hopes it continues. He said he and Wanda would attend the HRO event in San Diego.

Ron said he would be attending the Georgia conference next week. He said they have had 10 open enrollments this year which is the highest in any year they have had.

Ron reported that the Insurance Trust is alive and well at this time.

Gen Ross commented that the impact of a bad year is okay because they budget 80% of the rolling average. He said they anticipate they will have a bad year and the reserve is used to cover that.

Col Joyce commented that Ron represents the organization very well and the money that is appropriated for that marketing is well spent.

Gen Taylor thanked Ron for his efforts in working with the HRO offices and for having done a great job at NGAUS. The Board applauded Ron’s efforts.

COL Faber said the March Board meeting minutes had not been approved. Gen Taylor suggested a motion to approve the minutes.

Gen Dutko made a motion to approve the March, 2006 Board meeting minutes. Gen Arflack seconded. Motion carried.

Gen Taylor called an executive session at 8:30am.

Col Faber reported on the Board approved the bonus package for Gen Stephen Koper in Executive session.

Col Faber said there were two taskers that came out of the Executive Session. (1) The Resolutions Committee will report to the Board of Directors on any contentious issues resolutions no later that 28 July (2) Seven days later the Board of Directors will meet telephonically to either concur or non-concur as those resolutions move forward to the 128th General Conference.

Col Joyce commented that there are vacant positions, Area III TAG and Area II rep, and they needed to come to some conclusion on the company grade rep.

Discussion followed on the vacant positions and their replacements. It was concluded that the positions would be voted upon and filled at the General Conference.

42

Gen Taylor commented that this would be Gen Hargett’s last meeting as past chairman and he thanked him for his leadership and friendship. He also thanked Gen Williams who was also attending his last meeting, who was not able to attend the Sunday meeting.

Gen Taylor suggested a motion to adjourn at 9:30am. Gen Hargett so moved. Col Felderman seconded. Motion carried.

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