We encourage members to share this information with their TAGs, state Executive Directors, Association Presidents and Area Representatives.

Transcription

1 NGAUS Executive Council Meeting Approved Minutes March 17 to 18, 2001 NOTICE These minutes have been captured to the best of my ability and are as accurate as possible. A taped recording of each session (except for Executive Sessions) is on file and may be used to dispute any inaccurate statement. The tapes are also being transcribed and will be kept on file at the NGAUS headquarters. We encourage members to share this information with their TAGs, state Executive Directors, Association Presidents and Area Representatives. Please contact COL Mike Ross at george.ross@ar.ngb.army.mil or ( ) for additional information, questions, or comments. APPROVED National Guard Association of the United States Executive Council Meeting Minutes March 2001 Saturday, March 17, 2001 Members present: MG Ronald O. Harrison Brig Gen Gus L. Hargett Maj Gen William B. Lynch Brig Gen Kenneth L. Ross COL George M. Ross Brig Gen (Ret) Robert Dutko MG John R. Groves BG Ronald G. Young Col Ronald Shultz MG Willie A. Alexander COL David Greer Brig Gen Douglas Burnett LTC Darrell D. Loyd COL(P) Brod Veillon MG James G. Blaney Brig Gen Al Wilkening COL John R. Penebacker Lt Col Andrew E. Salas COL (Ret) Tipton Lewis Col (Ret) Raymond W. Magill CPT Don Mercer

2 Capt Karin Sullivan CW5 Howard C. Haider Absent Members: Maj Gen E. Gordon Stump MG Reginald A. Centracchio MAJ Harry Gim MG Bennett C. Landreneau BG Robert V. Taylor Maj Gen Mason C. Whitney Also present were: Maj Gen Stephen Cortright Brig Gen William Spruance MG Warren Lawson MSG Mike Cline CPT Mark Ruane CPT Aaron Schultz Capt Kat Coffman Capt Kerry Lovely CPT Kay Spear MAJ Clarence Bowser LTC Basil Haunn Brig Gen Robert Sullivan SFC (Ret) Delano Kerby MG (Ret.)Robert Ensslin MG (Ret) Charles Kiefner COL (Ret) Don Stagg Mr. Bill Kelly Mr. Dan Whiteside NGAUS Staff Gen Harrison called the meeting to order at President Harrison called on COL (Ret) Lewis for the invocation. Gen Ross led the group in the Pledge of Allegiance. President's Report Gen Harrison welcomed the members of the Council. He called on MG Willie Alexander to introduce COL Don Stagg, the new President of NGEDA. Gen Harrison continued his report by saying that the NGAUS staff is fully engaged with Congress and staff members. The new administration is taking shape and the various positions relating to defense are being filled. MG Harrison asked the Council members to think about what the group wanted to hear from NGB before the Executive Council meetings in order to give NGB some direction.

3 Gen Harrison called on Gen Ross for the Treasurers Report. Treasurer's Report Gen Ross stated that since NGAUS is in the process of the annual audit, all the numbers in his report are pre-audit numbers. Gen Ross stated that good progress was being made to put certain financial information on the website. This should be accomplished by 1 Jun 2001 and will be preceded by an article in the May magazine. He said there would be information on five year rolling averages - from , along with expense summaries. Only audited figures would be placed on the website. Also on the website will be the Charter of the Finance Committee and Treasurer, bios of the Finance Committee, a depiction of investments, explanations of each category of revenue and expense in the graphs, near term challenges and future challenges. Gen Ross emphasized that this would be a work in progress as information is constantly being updated. The Finance Committee has been tasked with providing a Long Term Financial strategy and will be presented at the July meeting. The Building is still at 100% occupancy. All of the excess cash flows go into an interest bearing account. The U.S. Mint has indicated that they might not renew their lease in 2002, but will give us an answer in late summer. The Building board and Donohoe (Building manager) are closely monitoring this situation and have begun looking for potential replacement tenants in the event they do not renew. Gen Cortright asked if the market value of the NGAUS building was staying in line with the rest of the market. Gen Ross replied that the building brings rent in the range of the high 20s to the mid 30s. He stated that all of the leases had escalator clauses that should bring rents up to the mid 30s. Gen Ross said that there was new construction being built in the area that had been pre-rented at about $50 per sq. ft. Gen Ross stated that it has been the NGAUS philosophy to try to attain 100% occupancy with stable tenants and not to push the envelope trying to get the highest rent. Gen Dutko asked about the deficit shown in the Educational Foundation's budget for the last two years. Gen Ross said that this was due to the fact that the NGEF had not been actively asking for money because nothing was being done with the museum. Now, however, the NGEF is moving full speed ahead with plans for the Grand Gallery, and this will probably be the last year of insufficient revenue for the NGEF. Gen Ross stated that in the NGEF meeting, Gen Spruance had challenged the NGEF board members to make a contribution to the Foundation. His rationale was that before going out and asking for contributions, that it would be advantageous to be able to say that the NGEF board are all contributors.

4 Gen Lynch asked about restriction on giving out the information on the Consolidated Statement that Gen Ross presented. Gen Ross stated that there was no restriction, as long as it was noted that these were unaudited figures. Col Shultz asked if it was feasible to have a standardized budget briefing that could be presented to the State Assn conferences. COL Ross added that a fact sheet on all NGAUS operations would be helpful. Gen Ross said that the information going up on the website could be the basis for this, and that since so many state conferences were being held within the next few weeks, he would have that as a goal for next year. Gen Harrison called on LTC Basil Haunn for the Membership Report. Membership Report Slides LTC Haunn stated that the Membership Committee had met in Indianapolis on 25 Jan The minutes of the meeting were ed to the Council members last week. The Jan meeting was the kickoff of the 01 membership campaign. Ron Sutton gave an overview of the new benefits, the 01 and 02 budget was discussed, along with the dues freeze and the Early Bird campaign. LTC Haunn said that 38 states are now on DataGuard, which has improved information flow. They are also working on a strategic plan for the next 5-10 years. He said that the committee talked about the importance of having an article about membership in every issue of the magazine. The committee is also working on a benefits presentation which will be exportable and applicable to NGAUS, EANGUS and the state associations. LTC Haunn stated that as of 31 Dec 00 the NGAUS membership was at 51,000, but that he felt that K was attainable. He said that one of the areas they wanted to concentrate on was bringing the retired members back into the membership. LTC Haunn presented the recommendations of the Membership Committee. Recommendation # 1 (Early Bird Program)- States that pay 69% or less prior to 28 Feb receive a 2% rebate. The Early Bird program currently gives a 5% rebate on 90% dues paid by 28 Feb; 4% rebate on 80% dues paid by 28 Feb, and 3% on 70% dues paid by 28 Feb. The rationale was that it creates competition, provides NGAUS early funding, and benefits the states that participate. LTC Haunn reported that the results of this year's Early Bird program are: 100% - MS, LA, OK, WI 90% - HI, IA, NC 80% - GA, NE, SC, SD 70% - MI, NJ. OR Total of $475,000.

5 Recommendation #2 (Free Membership) - Increase the free membership for all new accessions from 12 months to 18 months. The rationale is that ROTC graduates in Jun and most of the academies graduate in Aug therefore, new accessions do not get a full year's free membership. Since some states do not turn in their new accessions until the first of the year, this would be a more realistic way of handling this. Recommendation #3 (Life Installment Plan) - Allow Junior officers to pay the $1000 life membership over 4 installments of $250 each. Rationale: Other organizations have an installment plan. This would encourage Junior officers to join. Recommendation #4 (Change 30 Jun cutoff to 31 Dec) - Moving the dues deadline to 31 Dec would allow the NGAUS Staff more time to assemble information. Information from 31 Dec would be used for the next years' delegate count, conference & banquet seating, so that the entire year would be used to collect dues. Rationale: Under current system, states submit dues right at the end of Jun, which determines the delegate authorization, conference and banquet seating at the annual conference. This date would provide the NGAUS more time to calculate the numbers, provide constant cash flow, eliminate the 30 Jun rush, and be an incentive for the Early Bird program. Recommendation # 5 (5-year rule for Retired Life) - Eliminate the 5-year rule to become a Retired Life member. Currently, retired members have to be a NGAUS member five years prior to retirement in order to be eligible to be a Retired Life member. Rationale: Elimination of this rule would bring in more members. Recommendation # 6 (Create a new category of Retired Annual member) - To create a new category of Retired Annual member with an annual dues of approximately $45 per year. Rationale: Would increase membership and increase retiree involvement. Recommendation # 7 (Strategic Plan) - Develop a 5-year Strategic Plan along with a long range fiscal plan to support NGAUS goals Rationale: Would allow for better planning and support of NGAUS goals LTC Haunn reminded the Council that the Membership committee recommended that the time for collection of the non-paid life dues be extended until 30 Jun 01. Last Jul the Executive Council gave NGAUS 90 days to collect these funds, but more time is needed

6 to do a thorough job. As of 14 Mar 01, $52,384 has been collected. LTC Haunn stated that after 30 Jun 01, those who have not paid or are not paying in installments will be dropped from the rolls. Col Shultz made a motion to extend the deadline for collection of the non-life plus dues until 30 Jun 01. Gen Willie Alexander seconded the motion. The motion carried. LTC Haunn reported that the goals of the Membership Committee are: Quarterly contact with the State Executive Directors and Presidents Increase membership Finalize benefits presentation Work with states who are below 50% membership Post yearly milestones on website (done) Gen Ross stated that since some of the membership recommendations had some fiscal impact, such as the Early Bird program, he would recommend that the Finance Committee review these recommendations before adopting them. COL Loyd brought out that since the states collect the dues for us, that rewards like the Early Bird program were an incentive for them. Gen Cortright agreed but added that he did not think the 2% was nearly enough and did not go far enough to provide an incentive to the states. He praised LTC Haunn on his work, stating that he thought the Membership Committee was on the right track, but that they ought to go farther. Col Shultz stated that he thought the premise for the rebate program should be reviewed and that dues should be due on a fixed date. Gen Dutko and COL Loyd said that they thought the Early Bird program was good because it increased the cash flow to NGAUS. Ms. Johnson stated that the rebate program did not actually increase cash flow to the Association. Col Magill moved to accept the content of the Membership report. Col Shultz seconded the motion. Gen Harrison pointed out that acceptance of the report did not mean that the recommendations were accepted, that more discussion was necessary, but that the report could be accepted. The motion carried. Gen Harrison called on Gen Hargett for a Dues Management report.

7 Gen Hargett stated that the newly formed Dues Management Committee had met in Jan and again on 16 Mar 01. He said that the dues were tied to the budget - in 1998 dues were 52% of the budget and in 1999 the dues were 42% of the budget. After several motions and amendments to motions, which were later withdrawn, Gen Burnett made a motion to maintain dues at the 1998 level. Gen Hargett seconded the motion. Col Shultz stated that he thought it should be for a period of time and not open-ended. After a discussion period, the motion carried. Next on the agenda was Gen Mike Nelson from TROA. Gen Nelson said that TROA has over 391K members, and a staff of 92. Gen Nelson said that he was very proud of the TRICARE for Life legislation and that while TROA was very involved, that The Military Coalition, of which NGAUS is a member, was instrumental in getting this passed. Goals this year for TROA are the implementation of TFL, concurrent receipt, elimination of the SBP offset, and tax issues affecting the Guard & Reserve employees. Gen Nelson said that TROA has started an officer placement service and plans a Job Fair in May in Washington, DC. 175 employers have signed up so far. Gen Nelson said that anyone could sign up for the TROA Weekly update and could order free publications through their website Gens Harrison and Alexander thanked Gen Nelson for his time and said that we look forward to working with TROA and The Military Coalition on mutual issues. Gen Harrrison called on Gen Hargett for the Vice-President, Army report. Gen Hargett reported that the Task Forces were doing well and proceeding with the Resolutions process. Gen Rataczak's Avn TF is extremely busy with aviation issues. Gen Reid Beveridge needs help with the newly formed C4I TF. Also an Info Tech TF has been formed and they have lots of ideas. The CSS TF is working data with the help of Ron Stokes at the 167th in AL. All of the TFs will meet between now and Jul to review the Resolutions. Gen Hargett expressed his concern over who was going to handle Jon Eisberg's issues when he deploys to Bosnia later this year. CPT Mercer asked what the criteria was for becoming a member of the Task Forces and asked if Company-grades could be involved. Gen Hargett said that indeed Company grade officers would be welcome to become members of Task Forces. Gen Lynch next gave the Vice-President, Air report. Gen Lynch reiterated that Company grade officers would be very welcome on any of the Air Task Forces. He reported that the Air TFs were facing challenges and were trying to stay focused. Gen Lynch said that the Resolution process was cumbersome and they were working to get it lined up with the AGAUS process. Gen Dutko asked the status of the KC-135 reengining. Gen Lynch replied that NGB considered several options and decided on the E to R model. New tankers are probably 10 years away. Gen Lynch stated that there were 12 Squadrons in the Guard. It will cost $28B for the AF to recapitalize and they are exploring leasing options. Company Grade Report

8 Gen Harrison called on Capt Sullivan and CPT Mercer for the Company grade report. CPT Mercer stated that the Company grade area reps had met the day before. The area reps were introduced. CPT Mercer reported that the committee had recommended LT Mark Amberg of the DC ANG, to fill the company grade vacancy on the Insurance Trust, and that the Trustees had accepted that recommendation. Capt Sullivan said that they had been asked to provide a company grade rep for the Time and Place committee and that Kerry Lovely had agreed to be part of that committee. Capt Sullivan said that the committee would like to explore the possibility of having a chat room through the NGAUS website to improve communications. Capt Sullivan stated that great things were being planned for the Company grade officers at the Conference in Indianapolis. She offered assistance as escort officers or facilitators at the Conference. Capt Sullivan asked if NGAUS could make a map showing the areas and distribute it, so that people could become more familiar with it. She also asked if the nametags at the Conference could be color coded to correspond with their areas. Lastly, Capt Sullivan stated that Gen Burnett had offered to take the Company grade officers to the Hill next year. Gen Harrison asked if Capt Sullivan had a list of all the Company grade POCs. She said she was working on it. Capt Sullivan also said they were working on visits to AMS and OCS next year. Retired/Separated Report Gen Harrison called on COL Lewis and Col Magill for the Retired/Separated Report. COL Lewis said that the retirees were making plans for a luncheon at the War Memorial on Sun, 26 Aug at the Conference. COL Lewis also asked if the NGAUS magazine could do an article on TRICARE for Life. Gen Alexander indicated that they could. Col Magill stated that he had two inquiries to bring before the Council. The first question was why the POW/MIA flag was not on the podium at the Conference. The other inquiry concerned the use of Officers' clubs by Guardsmen. This issue was sent to NGB for research. Col Magill stated that the French government was offering a medal to all soldiers who were involved in the Normandy invasion. He asked that this information be put in the magazine. Col Magill also brought up another issue of interest to retirees. He said that some of the NGAUS Term Life policies expire at the end of the year that the member reaches age 70

9 while others at the end of the year that the member reaches age 80. (The date that the coverage changed was October 1, 1987). Col Magill stated that although his coverage ceased 31 December 2000, he continued to be billed. After contacting ING ReliaStar several times, the error was corrected. Col Magill's concern is that other members who are not aware of the details of the coverage may be getting billed and paying premiums for coverage that has expired. Col Magill felt that Ron Sutton should pursue this issue to ensure that people were not paying for non-existent coverage. Gen Harrison called on CW5 Haider for the Warrant Officer Report. Warrant Officer Report CW5 Haider said that on 2 Feb 01, the first all National Guard WO class graduated, and that the first National Guard Command Chief Warrant Officers' conference will take place the week of Mar 01. CW5 Haider said that the USAWOA along with ROA and the Coast Guard gave testimony to the Quadrennial Defense Pay commission on Warrant Officer pay compression. This is an issue impacting recruitment of new Warrants because the pay differential between enlisted and Warrants has moved closer together, making it less desirable for senior NCOs to decide to become Warrants. CW5 Haider asked for NGAUS support on the pay compression issue. CW 5 Haider asked for NGAUS' support to push for direct appointment of senior NCOs to Warrant Officer, and support to change the MRD of Warrants from 60 to age 62 plus 2 months as stated in public law. He stated that the USAR leaves it at 62 plus 2, but that NGB requires a request for extension. Gen Burnett asked CW5 Haider how many Warrant Officers are eligible to be NGAUS members. CW5 Haider answered that about 9,800 are eligible and that about 4,000 are members. Ms. Johnson added that approximately one-third of the eligible Warrants are members. Gen Willie Alexander stated that he sensed a change in attitude at the school at Ft Rucker and that he thought there would be a change in policy in days. He said that NGB should partner with career centers and work to be part of the solution. Gen Harrison called on Gen Cortright for an AGAUS Report. AGAUS Report Gen Cortright reported that the AGAUS mid-winter conference Feb 01 was a great success. He stated that reorganized the AGAUS committee structure to be more in line with NGB and NGAUS. They brought the by laws up to date. The number one issue remains FTM. Aviation is a hot topic and is being worked. Gen Cortright said that he has called a TAG meeting in Chicago on Monday, 19 Mar and hopes to give direction to

10 NGB after this meeting. Gen Cortright reported that they are working with the National Governor's Association linking their leadership with ours. He said that DoD is making changes and that we have to know what we want to look like and how to get our wants and needs together. Gen Cortright stated that his tenure as AGAUS President runs out in May. Next on the agenda was the EANGUS Report. EANGUS Report SFC Kerby expressed his regret over the loss of the 21 National Guard soldiers in the recent aircraft accident. SFC Kerby said that EANGUS had increased their dues in 1999 but membership had increased by 6500 members - or about 10% per state. SFC Kerby thanked NGAUS for the use of the NGAUS building for the Legislative Reception held on 13 Mar. He said it was the best-attended reception they had ever had. MSG Cline reported on the Legislative goals for EANGUS. The number one issue remains Full-time Manning. Another top priority is elimination of controlled grade promotion restrictions, which would require a change to Title 10. Equitable retirement for dual status Mil Techs is a continuing goal. TRICARE for Guard and Reserve members will be pushed this year. Other issues are equitable Flight Incentive pay for National Guard and Reserve Aircraft members, changes in the Youth ChalleNGe program to eliminate the DoD cap and change in matching state funds and changing the Montgomery GI Bill licensing and Certification 1606 benefit to include Guard and Reserve members. MSG Cline also said that Congresswoman Jo Anne Davis introduced a bill to increase SGLI to $250K retroactive to 1 Nov This would make the recent aircraft victims' families eligible for the higher amount. Gen Blaney praised EANGUS for their great Legislative goals. MSG Cline said that personnel issues were their main priority, but they supported NGAUS in other issues such as MILCON. COL Stagg followed with the NGEDA report. NGEDA Report COL Stagg said that they had a very successful NGEDA conference in Indianapolis in Jan. He said that all the hotels were attached to the civic center. He reported that Gen Harrison spoke and he thanked him for the proactive actions he had taken with NGEDA. COL Stagg stated that Gens Alexander and Cortright gave updates and that Gen Ross

11 gave a financial update. Col Goss gave a Legislative update and SFC Kerby reported on EANGUS. COL Stagg announced the following slate of officers for the year: - President - COL Don Stagg (AL) - 1st Vice-President - Wayne Hunt (NJ) - 2d Vice-President - Luke Goodwin (MS) - Secretary/Treasurer - Dale Pyeatt (TX) COL Stagg said that he had had numerous requests for training for NGEDA Executive Directors and the he planned to respond by having several "How to" sessions. COL Stagg pointed out that he was about the most senior Executive Director after being in that position for 6 years. After a lunch break and a tour of the building, the meeting reconvened at Legislative Report Col Bill Goss gave the Legislative Update. Col Goss stated that he had gotten a consensus of support from the Executive Council members on the F-15 IFF issue from FL. Other due-outs from the Executive Council include pros and cons for MILCON procedures and TRICARE for Guardsmen and Reservists. Col Goss reported that the Resolutions Process Study Team met on 7 Jan. Members are: Gen Tuxill, (MD ANG); COL Felderman (IA ARNG); Gen Koper (NGA OH ED); COL Stagg (NGEDA President); Col Barry Johnson(NJ ANG); COL J.W. Noles (TN ARNG); and Jack Griff (Industry Rep). They are looking at ways to streamline the Resolutions process. Col Goss said that Appropriations plus-ups in FY 01 to the Guard were $1.52B. He said that out of the Armed Services Committee & Appropriations Committee the ARNG got +526 AGRs (88 for CST) and +771 additional Miltechs, and +22 AGR's ANG CST. The number of non-dual Techs for FY 2001 is 1600 ARNG and 326 ANG. Personnel and benefits highlights include TRICARE for Life for all military retirees and their dependants beginning in FY 02; and increase in annual limit on IDT days creditable towards Reserve retirement - from 75 to 90 points; authorization of Space A travel for National Guardsmen in AT or IDT status; and authorized up to 5% contribution of basic pay into their TSP account. Col Goss reported that Joint programs include MILCON, with 33 states receiving one of their top priority projects listed in the NGAUS LAP, WMD, with an additional $15.7M authorized for 5 additional WMD- CSTs, and authorized additional funding of nondefense related monies to be expended notwithstanding the $62.5M limit in defense funding for Youth ChalleNGe.

12 Col Goss reported that the Task Forces are hard at work. There are 11 TFs - 6 Army, 3 Air and 2 Personnel. There was a discussion about the different figures being used for FTM and what formula was being used. There was agreement that the same numbers should be used and a consistent message put forth. Col Goss stated that there was a factoring error for ARNG MILTECHs last year, so we are requesting an additional $44.3M for FY 02. Gen Alexander stated that in a recent visit to Charlie Abell in Sen Warner's office, the numbers that were briefed were the 02 budget and that ramps were not used. He said that ramps were built into the POM. Gen Willie Alexander stated that we should not be concerned about affordability, that we should put the requirement out there and let Congress fund it. Army Legislative priorities for FY 02 include Aviation Modernization, Fire Support Modernization, Combat Vehicle Modernization, Combat Support & Service Support Modernization, Engineer Modernization, and Command, Control, Communications, Computers & Intelligence Modernization. Legislative priorities for the ANG include, Fighter/Bomber Modernization, Airlift/Tanker/Rescue Modernization, and C31 Modernization. Legislative priorities for FY 02 for Joint programs in Personnel and benefits include TRICARE for National Guard and the Reserve, making the VA home loan permanent (expires in Oct, 07), Aviation career incentive pay equity, restoration of tax deductibility of non-reimbursable expenses, and tax credits for employers of National Guardsmen. Legislative priorities for FY 02 for Joint programs and activities include MILCON and WMD. The legislative cycle is in full swing, started with Industry Day and the CACO seminar last Dec. The FY 02 LAP has been distributed to Congress. The call for Resolutions has gone out. The Legislative staff has been validating fact sheets and setting up meeting with key staff. The fact sheets will be posted on the website behind the firewall. The House & Senate MLA breakfasts were held recently, the Military Coalition met here at NGAUS last week and the 107th New Members Reception was held in the Dirksen Building in late Feb. There were over 300 attendees at this reception and Sen Warner was awarded the Truman Award and Sen Leahy was given the George Washington Freedom Award. Col Goss stated that Gen Alexander had received a letter from Sen Voinovich expressing his concern over Aviation safety and they had met with the Senator. Col Goss said that five states had visited (122 people) in the past few weeks. Col Goss emphasized that the FY 02 strategy is to have a consistent message and unified theme by NGAUS, EANGUS, Industry, TAGs, State Associations and NGB. Gen Harrison called on Col Magill to report to the group on his research about the membership recommendations. Gen Harrison reiterated that it was important to vet these recommendations with the state associations.

13 Col Magill reported that recommendations 2, 4, 5 and 6 require by-law changes and the others are policy changes. Recommendation #2 concerns increasing the free membership for new accessions from 12 to 18 months. Recommendation # 4 concerns changing the cutoff date from 30 Jun to 31 Dec. Recommendation #5 concerns the 5-year rule for Retired Life membership. Recommendation # 6 concerns adding a new category for Retired Annual member. Col Magill stated that recommendations for by-law changes have to be submitted to the President, who in turn sends to the Chairman of the By-Law Committee, 90 days prior to the conference, or 24 May 01, in this case. The other recommendations can be acted upon at the Jul Executive Council meeting. Gen Harrison announced that the meeting would start Sunday morning at 0730 with Executive session first on the agenda. Gen Harrison said that those pictures were being taken of those who had made contributions to the Educational Foundation. Gen Ross added that the contributions this weekend were almost $3K. After a break, Gen Harrison introduced Gen Rees, Vice-Chief, National Guard Bureau. NGB Report Gen Rees opened his remarks with an expression of regret and to recognize the efforts of the people involved, over the loss of the 21 National Guardsmen who lost their lives in the recent airplane accident. Gen Rees stated that the President has delayed any additional funding increases until a review is conducted. Secretary Rumsfeld has tapped Mr. Andy Marshall, in the OSD Office of Net Assessment, to conduct a preliminary review and report back his recommendations the third week of March. Gen Rees and Gen Davis met with Mr. Marshall recently and were well received. Gen Rees stated that Mr. Marshall is looking more at the far term and that several panels will deal with near term issues. He went on to say that the Bush administration in its campaign positions has endorsed a more selective engagement of our military, but President Bush does recognize a crisis in readiness, recapitalization, infrastructure, and tempo, both in operations & personnel. The administration has also been an ardent supporter of a more robust National Missile defense system. Also noted is a subtle shift in outlook from Europe to the Pacific rim. The Hart-Rudman report, which describes structural and organizational changes needed to address the strategic environment has received a lot of notice lately. He went on to say that there is little doubt that the Phase III report will result in greater defense emphasis on Homeland Security. While there is an implication that Homeland Security should be our primary mission, we have responded by making it clear that Homeland Defense would be a mission, but not the mission for the National Guard. The National Guard is currently in the process of transforming its organization at NGB, in the states and in our channels of

14 communication in addressing the threats to America's Homeland. We are drawing on the lessons learned in our counterdrug program regarding how to resource and operate a joint operation in the field and still respond to our wartime mission Gen Rees continued by saying that in addition to the current WMD Civil Support Teams, the NG is actively working with Joint Forces Command and JCS to formally apportion and mission the 54 STARCs to provide planning and Command and Control elements for Homeland Security requirements. The NG stands by to build additional structure to respond to the evolving needs. Gen Rees reiterated that we must still keep a wary eye on the mandated 25K reduction from the 1997 QDR. Depending on the Strategic Review this may come back to haunt us. Gen Rees stated that our legislative priorities must focus on FTM relief, recapitalization of our infrastructure, and modernization of our equipment. The Army Aviation program is in particular need of a major fix to maintain a useful capability. We also need additional MILCON and greater flexibility of our AGRs. Gen Rees went on to say that we are always concerned about morale and must find ways to shorten our non-wartime deployments to ease the burden on our soldiers and airmen. Always a concern is end strength, which is our most important readiness indicator. We cannot do our mission with the people to do the job. Gen Rees closed his remarks by saying that he was optimistic that as the Strategic Review unfolds, the National Guard will have a prominent role to play that takes full advantage of our strengths, and that with NGAUS on the team, we can excel in our endeavors. He said that we must continue to communicate the Guard message to the public. Gen Squier started off addressing issues that had been sent ahead. One issue concerned AGRs on state active duty - this is a work in progress and is undergoing a legal review. Questions about deployment flexibility and Aviation modernization will be covered later in the presentation. There was a question about service credit for attending association meetings. Gen Squier stated that in general, the answer was yes, and that he had an info paper to leave with the group. Gen Squier also emphasized that we should get our message to the Hill and speak with one, consistent voice for our three National Guard requirements - FTM, MILCON and Modernization/Avn Mod. We have a total FTM validated requirement of $83,895 for the structure of 388K soldiers we have today, but as Force Structure changes, so do the requirements. The FY 01 FTS authorizations were 47,702 or 57% of the requirement. We are asking for a plus-up this year of 724 AGRs and 487 Miltecs which will go toward the goal of 71%. Gen Blaney questioned the formula used for Miltechs and how that figure was derived. Gen Squier said that the Army had made an error last year in the costing model for Miltechs and that for 02 we have to bridge the gap. The full bill for the plus up of 724 and 487 plus the costing error is $82,200M.

15 Gen Squier next spoke about MILCON and said that they are trying a new format and are working with the Army to build a facilities strategy. He stated that MILCON has been a bill payer for modernization the Army far too long. Gen Squier stressed that we need help on the Hill for MILCON, that about $400M per year would help get us out of our big shortfall. Gen Squier said that on the subject of Force Modernization, that we were looking very hard at what transformation is going to mean to the ARNG how we are going to be a part of that objective force and how we are going to change. Principal concerns are readiness, recapitalization, sustainment, interoperability, Aviation and AR-1R funding. Gen Squier stated that the legacy force systems would be around for 30 years and that we are going to have to continue to recapitalize, sustain and modernize. Aviation modernization continues to be a hot issue. AH-1s are supposed to go out by Jun of this year, but Gen Squier stated that it would not happen. The UH-1s are scheduled to go out by 04. He stated that they were looking for a solution to that and it was going to mean Force Structure changes in the ARNG. The goals of modernization are to upgrade the legacy systems until the next generation of combat vehicles are available, to maintain command and control interoperability through the application of digital technologies, and to fully participate in the Army's transformation. Gen Squier stated that they were working for a solution on the frequency and duration of involuntary deployments. A model that is being used today is that a unit can be expected to be called up every 5 years (1 to 5) in an involuntary status. Using this model approximately 20% of the force could potentially be deployed at one time as opposed to 3% -5% used in the past. As far as length of deployments, the Army has said that 120 days is about right, and that after that time degradation of skills and family problems started to surface. Train up time for deployments is a concern and we must find better, smarter ways to get our Guardsmen trained up. Gen Squier said that QDR was in a holding pattern until after the Strategic Review. He said that NGB is fully engaged in the POM. We have just finished our requirements drill last week. Gen Squier closed by stressing the importance of speaking with a consistent message to Congress. Col Scherling followed Gen Squier with the ANG update. Col Scherling stated that Gen Weaver was recovering from knee surgery. She said that the Air Guard had been heavily involved in the aftermath of the recent aircraft accident that took 21 lives. She said that the Chaplains office, Family Support volunteer, a family liaison from the unit and a Summary Courts Officer from Langley AFB, as well as the TAPS program were all involved. There were two teams who went to visit employers of the victims and ensured them a place at the funerals. Col Scherling stated that the employers were very appreciative of these actions. She also reported that the Funeral Honors program was very involved and that a day's pay in compensation was given to those who participated.

16 Col Scherling continued by saying the ANG is providing about 19% of the aviation support to the AEF and are providing 8% to 10% of the support portion toward the AEF. On a recent visit to SWA she was told that the mission could not be done with out the ANG. Col Scherling stated that QDR efforts have slowed down for now because of the transition to the new administration. The pace should pick up because we are entering the "hearing season". Col Scherling reported that Gen McKinley is in his new assignment in the AF IG office. Gen Sullivan from OH is coming to Washington several times a week in the interim. Col Scherling also announced that CMsgt Broadbent is retiring in Jun and his replacement as the Command Chief Master Sergeant is Chief Valerie Benton, who is currently on a stat tour at Maxwell, AFB. She added that they are continuing to focus on modernization efforts to include the combat quadrangle, with the combat ID, night vision capability countermeasures and targeting pods. Acquisition efforts are being focused on those areas. Col Scherling also reported that the message had been sent out announcing the 2001 George W. Bush Award. This award is sponsored by the Aerospace Education Foundation (AEF) and the National Guard Educational Foundation (NGEF) to recognize the Traditional ANG members who have participated in Air Expeditionary Force (AEF) deployments, and their employers. The sponsors will present a $500 check to 3 officers and 3 enlisted members and their qualified employers. Nominations are due by 29 Jun 01. Col Salas asked Gen Rees what the future of the Counterdrug program. Gen Rees stated that he thought the Counterdrug program was in good stead, but does face funding challenges and might surface in the ongoing review process. Gen Squier added that they had learned that the new administration was not so interested in the counterdrug program, but more in the drug reduction program. Col Shultz asked Col Scherling if there was any projected crack in our ability to support the AEF at the current level. Col Scherling answered that right now the current levels seem sustainable, but is somewhat dependent on the different career fields and they must make sure the career fields are tasked and rolled into the AEF. She added that there is some concern in the medical field, and that there is constantly a balancing act that takes place. Gen Rees concluded with the National Guard Strategic Talking points: National Guard is integrated as primary ready reserve force in support of the war fighting CINC's, whether expeditionary forces overseas or defending the homeland. Provides reach-back augmentation.

17 Natural lead in DoD for homeland security because of joint Guard capabilities and perspective at the state level; forward deployed, immediate response to governors, as well as unique core competencies of people, presence, and purpose. Economically efficient; large capability/low cost = cost-effective security (example: ARNG = 9.7% Army budget, 54% combat capability, 46% combat support, ARNG soldiers at 1/5 the cost of AC soldiers). Gen Harrison announced that breakfast would be at 0630 and Executive session would start at 0730 on Sunday morning. Gen Harrison thanked Gen Cortright for his service as AGAUS President. A new AGAUS President will be elected at the AGAUS Conference in May. Gen Lynch moved that the meeting be adjourned. COL Ross seconded. The meeting was adjourned at Sunday, 18 March 2001 Members present: MG Ronald O. Harrison Brig Gen Gus L. Hargett Maj Gen William B. Lynch Brig Gen Kenneth L. Ross COL George M. Ross Brig Gen (Ret) Robert Dutko MG John R. Groves BG Ronald G. Young Col Ronald Shultz MG Willie A. Alexander COL David Greer Brig Gen Douglas Burnett LTC Darrell D. Loyd COL(P) Brod Veillon MG James G. Blaney Brig Gen Al Wilkening COL John R. Penebacker Lt Col Andrew E. Salas COL (Ret) Tipton Lewis Col (Ret) Raymond W. Magill CPT Don Mercer Capt Karin Sullivan CW5 Howard C. Haider Absent Members: Maj Gen E. Gordon Stump

18 MG Reginald A. Centracchio MAJ Harry Gim MG Bennett C. Landreneau BG Robert V. Taylor Maj Gen Mason C. Whitney Also present were: Maj Gen Stephen Cortright Brig Gen William Spruance MG Warren Lawson MSG Mike Cline LTC Basil Haunn Brig Gen Robert Sullivan SFC (Ret) Delano Kerby MG (Ret.)Robert Ensslin MG (Ret) Charles Kiefner COL (Ret) Don Stagg NGAUS Staff The Executive Council met in Executive session from Gen Harrison called the meeting to order at Gen Ross made a motion to approve the bonus amounts for the Executive Director decided in Executive session and the staff, which were within the budgeted amounts. COL Lewis seconded the motion. After a discussion, the motion carried. Gen Harrison then called on LTC Haunn to inform the Council as to what he planned to do about the membership recommendations. LTC Haunn stated that he would mail out an info paper early next week to the State EDs and Presidents along with the supporting minutes outlining the recommendations of the Membership committee and what action was needed. There will be a suspense date of 1 May in order to comply with the requirements of getting the information to the President and Chairman of the By-laws committee. The remaining recommendations not requiring a by-law change will be discussed at the July meeting. Under new business, Gen Harrison said that he had received a letter from the Chairman of the Corporate Associate Panel requesting that the position be given a seat on the Executive Council as a voting member. Gen Harrison went on to say that there are three ex-officio members of the Executive Council, the President of NGEDA, President of EANGUS and the President of AGAUS. He pointed out that the by-laws would have to be changed to the Chairman of the CAP to be a voting member.

19 Col Magill made a motion that the Chairman of the CAP be an ex-officio member of the Executive Council. COL Loyd seconded the motion. In discussion the motion was amended to say that there would be no cost to NGAUS. The motion carried as amended. Gen Harrison called on Gen Alexander for the Executive Director's report. Executive Director's Report Gen Alexander stated that one of the taskers from the last meeting was to provide the Council with a NGAUS staff wiring diagram. Gen Alexander said that there had been some reorganization in the Executive Office to provide a more efficient flow of work. There is still a vacancy in the Legislative Department of the Deputy Director, Air. The job announcement is on the website and some applications have been coming in. They hope to have that vacancy filled soon. In the Communications Department, Susan Cathcart has just come on board as a Staff Writer/Photographer. She comes from the AK Air National Guard. Ms Johnson gave a briefing on NGAUS & related entities Employee Benefits. (slides) Ms. Johnson stated that the Employee Manual was being updated and would be distributed before the July Council meeting. In addition, a financial policy update, which brings all financial policies into one document, will be distributed before the Executive Council meeting in Jul. John Goheen, Director of Communications, followed with an update on the search for a replacement for thetruman Award. Mr. Goheen said that there were two options: 1. To start from scratch, using the same specifications. He said that some carvers/sculptors have been identified and he is awaiting bids. 2. Create figurine molds from the original figures. Mr. Goheen said he thought there should be some way to do this on the computer. Mr. Goheen continued by saying that Gen Harrison had directed the formation of a Communications Plan Committee. Members are: Gen Willie Alexander, (AL) Chairman; Ms. Marjorie Gutierrez, Maryland ED; Mr. Dave McDonald, CALIBRE Systems; LTC David Super (ret), SD; LTC John Maietta, PA; MAJ Robert Gould, Maryland; CPT Brian Ray, FL; Maj Russ Krause (Ret), CO; & John Goheen. The mission is to improve formal and informal communications among the NGAUS EC, the staff, the State Associations and the membership. Gen Alexander next covered the issue of how to communicate the status of the loan to GA for the 121st Conference. Gen Alexander read a letter from GA stating that they were forwarding a check for $1100 and that it was doubtful that the remaining $38,813 could be raised. Gen Burnett stated that the Audit committee had written off the debt in the year that it occurred (1999), which is standard accounting practice. After some discussion, Gen Alexander said that he sensed that the Council is aware of the unpaid balance and are aware of GA's response that they are unable to raise the funds to pay the loan back. Gen Alexander recommended that he and Gen Harrison write a letter to the GA Association

20 that they should still pursue to repay the debt over time, and that while it has been expensed, and we do not plan to pursue, it is still a debt. Gen Dutko made a motion to provide GA written notification of the money due and that it was considered to still be an obligation. Gen Willie Alexander seconded the motion. The motion carried. Gen Alexander continued his report by furnishing the Council members with a letter from NGB-JA concerning membership recruiting protocol. Gen Alexander stated that Gen Ross was working on an article for the magazine about the NGAUS building success story. Gen Alexander reported that Industry Day held in Dec lost $30K. They plan to meet with Bill Kelly, CAP Chairman, to see how to reduce costs. Options include moving it back to the NGAUS building or discontinuing it. Ms Johnson stated that this loss was balanced by the $20K through membership of the Corporate Associate members. She added that it was not marketed very effectively last year. Also, she stated that it was not supposed to make money, but break even. Gen Harrison said that Industry Day should be reviewed and studied and come back with recommendations. Gen Alexander gave the Insurance Trust update. He stated that Ron Sutton, Member Benefits Coordinator, has visited seventeen states since May These trips have resulted in numerous invitations to attend and set up Member Benefits booths at individual state conferences. Technician enrollment has increased in several states that Ron has visited during the past ten months. The Insurance Trust benefits are accessible on the Internet from the NGAUS and the EANGUS website. The brochures and forms can be downloaded from the web page. This simplifies the process and makes it more time efficient for members and technicians to enroll in our programs. Also, an Open Enrollment was done in CA during the month of Feb in cooperation with ING (formerly ReliaStar). Next on the agenda was the Educational Foundation report. The NGEF met yesterday with two main objectives: to approve the deliverables for Phase II of the design of the Grand Gallery and approve the hiring of a temporary curator. Each of these objectives was accomplished. The Foundation is currently seeking artifacts from the states so that each state is represented in the museum. Each TAG has been contacted and 15 states have responded with nominations of artifacts. The Foundation is also identifying specific artifacts needed and plans to contact Divisions and state historical societies in search of them. Also, at the meeting, the Board accepted reports from the Friends of Normandy Monument Committee and the MINDS program, and heard updates on the modernization of the library and the Corporate Associates Program.

21 A report was given on the Foundation's fundraising initiatives. A fundraising task force has been formed and is beginning to make solicitations to potential donors. Corporations are also being contacted and several have stepped forward and offered financial support. The Operating Endowment has raised $388,020 since its inception. The campaign for the Minuteman Trust raised $2,023,903, enough to build the Grand Gallery, and has been successfully completed. Twenty-eight states contributed 100% or more of their goal to the Minuteman Trust Campaign. The Board voted to begin a new initiative to encourage states to contribute to fund the operation of the Grand Gallery. It was also noted that $4600 was raised over the weekend from Executive Council members. COL Ross asked who is paying for the salary of the temporary curator. Ms. Johnson answered that it was in the Educational Foundation's budget. Col Magill asked the status of the survey about holding conferences during the week as opposed to the weekend. Gen Alexander replied that this issue had been incorporated in the Time and Place committee. Gen Alexander stated that the Executive Council had to make a decision regarding charging a fee for late registration at the Annual Conference. Col Magill said that it was announced at the NGEDA conference that there would be a $10 late fee imposed for registration after 1 Jul 01. Gen Alexander stated that the Executive Council makes this decision. Col Magill made a motion that a late fee of $10 be imposed on registrations after 1 Jul 01. Capt Sullivan seconded. In discussion, Col Magill said that names could be changed, but that it was important to get the numbers in. Col Magill amended his motion to approve a $10 late registration fee for the IN conference after 24 Jul 01. COL Lewis seconded the amendment. The motion carried as amended. CW5 Haider asked about the refund policy for the Conference. Ms. Johnson stated that there will be a memo out about the refund policy. Gen Harrison stated that the Minutes from the Nov Executive Council needed to be approved. Col Magill made a motion to approve the minutes. Gen Young seconded. Motion carried and the Nov minutes were approved. Gen Lynch asked that a tasker be added for the next meeting to explain the process of how things get put on the agenda for the conference and the whole conference process. Gen Harrison said that the Time and Place committee is being restructured. The Time and Place committee was comprised of six area TAG representatives, President of NGEDA and the Chairman (Gen Landreneau, currently). The reorganized committee will have a Representative from each NGAUS area (Chairman to be an Executive Council member), President of NGEDA, Executive Director, Company Grade Representative, State Association President, and Former General Conference Chairman/Coordinator - for a