EXHIBIT 1

WISCONSIN DEPARTMENT OF VETERANS AFFAIRS

WDVA Briefing of June 15, 2006
King, Wisconsin
Board Members Present WDVA Staff Members Present
Mack Hughes John A. Scocos, Secretary
Peter Moran Bill Kloster, Deputy Secretary
Marv Freedman Anthony Hardie, Executive Assistant
Ken Wendt Bill Crowley, Commandant, King
Don Heiliger Chris Wrolstad, Deputy Commandant, King
Walter Stenavich Glen Brower, Commandant, Union Grove
Colleen Holtan, Budget Office
Legislative & Program Review Members Present Ken Abrahamsen, Budget Director
Marv Freedman Rich Calcut, WVH King PIO
Vera Roddy Shari McCann, WVH Exec. Staff Secretary
Josh Sniegowski Attendance Via Videoconference:
Lewis Harned (via videoconference) Ken Black, Veterans Benefits
Duane Miskulin John Rosinski, Chief Legal Counsel
Steve Lawrence Kathy Scholl, Public Relations
Jim Young Seth Perelman, Administration
Bill Hustad Patrick Shaughnessy, Deputy Commandant, U.G.
Paul Weprinsky Mike Sievert, IT
Tim Thiers Julie Van Metre, Ex. Staff Assist

Long Term Care Committee Members Present Council on Veterans Programs Present
Ken Wendt Russ Alsteen, NCUSA
Walter Stenavich Paul Bialk, MCL
Ken Koon Cleon Brown, USSVWWII
Arnold Miller Rick Cherone, MOPH
Jerry Rabetski Steve House, VVA
Robert Morzenti Bill Hustad, WVV
Jerry Polus Steve Lawrence, VFW
Alan Walker Walter Peterson, Am ExPOWs (via videoconf.)
Mary Meyer (via videoconference) Jerry Rabetski, PLAV
Vera Roddy, UWV
Financial Committee Members Present William Sims, NABV
Pete Moran Tim Thiers, AMVETS
Don Heiliger Paul Weprinsky, JWV
Connie Allord (via videoconference) Ron Rutkowski, VVAW
Mike Demske
John O’Brien Others Present
Jim Gausmann Rock Larson, Wood CVSO
Bill Bottoms Jon LiDonne, Waupaca CVSO
Joe Campbell Scott Berger, Marathon CVSO
Fred Kaiser, Waushara CVSO
CVSO Advisory Council Ann Stenavich
Holly Hoppe, Oconto CVSO Mary Lex, Langlade County
Mark Grams, Dodge CVSO Tom Lois, Kenosha CVSO
Don Lander, Clark CVSO Larry Danielson, WVH Member
Nick Benzinger, Shawano CVSO
Ted Mynyk, Iowa CVSO
Jim Young, Vernon CVSO
Mike Haley, Chippewa CVSO

The briefing session by WDVA staff for Board, Council and Committee members
commenced at 12:30 pm.

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1. Certification of Notice of Meeting and Roll Call
Roll call of Board members: 6 members present; 1 member excused. Quorum present.
Roll call of CVSO Advisory Council members: 7 members present; 2 members excused.
Quorum present.
Roll call of Legislative and Program Review Committee members: 10 members present, 2
members excused. Quorum present.
Roll call of Long-Term Care Committee members: 9 members present; 3 members
excused. Quorum present.
Roll call of Financial Committee members: 8 members present; 2 members absent.
Quorum present.
Roll call of Council on Veterans Programs members: 14 members present, 6 members
excused, 4 vacancies. Quorum present.

2. Legislative Report—Anthony Hardie

The state has concluded its legislative session. Mr. Hardie provided committee
members with a list of all the 2005-06 veterans bills that were signed into law.
Wisconsin Act 468 (Senate Bill 613) was the veterans omnibus bill. Most of the
provisions in the bill become effective July 1st with the exception of the increase in
tuition remission which will be delayed for budgeting purposes until the fall semester of
the 2007 academic year. The WDVA on line publication BO105, the brochure for
Wisconsin Tuition Programs for Veterans and Dependents, has been updated to reflect
the changes as a result of Wisconsin Act 468.

The Qualified Veterans Mortgage Bond legislation at the federal level was signed
into law. There is a WDVA public hearing scheduled for June 19th to obtain testimony
and comments pertinent to the proposed issuance of state general obligation bonds to
finance veterans housing loans. The normal cycle is between 60 to 120 days from the
time we request a bond until we actually have the money to lend. This issuance should
be received by the end of August.

The Department has been actively involved in helping inform state veterans in
regards to the veteran data theft. Secretary Scocos participated in a hearing of the
Senate Committee on Veterans, Homeland Security, Military Affairs, Small Business
and Government Reform. He provided an overview of what we know about the data
loss from the federal VA. The information on how to report a fraud alert is on the WDVA
web site.

A Veterans Benefit Information Fair is scheduled for Friday, September 1st at Ft.
McCoy in the Rumpel Fitness at 11:00 a.m. The Wisconsin State Fair is August 3-13
with Veterans Day at the State Fair being on August 13. On June 17 there is a
Women’s Health Conference at the Madison VA Hospital from 8:30 a.m. to 2:30 p.m.
The Stakeholders Conference is June 28th at WDVA headquarters in Madison.
Milwaukee County Operation Freedom is being held at the Milwaukee Zoo on July 2nd.
The Wisconsin Veterans Museum Foundation’s annual golf outing is on July 18th. The
Service Officer Training is being conducted by the WDVA on July 25-27 in Madison.

Q: What about the sales tax on veterans home exchanges? Do you have any
status on that?
A: It did not make it through the legislative process this session.

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 Q: What is the fiscal year as it relates to the caps for the next five years on
QVMB?
A: The final bill is a $25 million phase-in over five calendar years. $5 million for
2006 and sunsetting in 2010. Texas and California were successful in being struck from
QVMB.

Q: Is there a way to go into a web site to find out for retired people if you happen
to be on that identify theft list?
A: There is a data base for active duty and air force. We are not aware of one
for retirees. It is recommended that you contact the fraud department of one of the
three major credit bureaus and ask for a 90 day restriction.

3. Programs Report—Ken Black

Bulletin Update: On April 21st CVSO and Lender Bulletins 734 and 374
respectively were issued setting a new PML interest rate of 7.0%. On April 27th CVSO
and Lender Bulletins 735 and 375 respectively were issued once again setting a new
PML interest rate of 7.5%. On April 28th CVSO Bulletin 736 went out announcing the
new interest rate policy for HILP and PLP loans. On May 10th CVSO and Lender
Bulletins 737 and 377 respectively were issued announcing the fund outage for the PML
program.

Cemetery Report: There were 106 burials for the month of May. Construction
projects at NWVMC for the columbarium and private vault garden are delayed pending
the approval of the plans from the National Cemetery Grants Administration. Memorial
Day Events at the cemeteries went very well. At Northern Wisconsin Veterans
Cemetery (NWVMC) about 800 attended and at Southern Wisconsin Veterans
Cemetery (SWVMC) 1,200 attended the service. As part of the Memorial Day
Ceremony at the Southern Cemetery, the administrative building was renamed and
dedicated the Edo Maccari Administrative Building.

Veterans Assistance Program: We continue to focus our efforts on filling the

beds at all three sites (Union Grove, King and Ft McCoy), reducing our expenses as
well as increasing the number of veterans we are serving. Currently, we have 66 of the
70 available beds filled, which gives us a 94% fill rate. WDVA has an agreement with
the Milwaukee VA to provide Alcohol & Drug testing supplies resulting in a cost savings
of $5,000 per year. At Union Grove we have started our own cooking on the weekends
versus receiving the cook-chill food from the state. That, in conjunction with donations,
has resulted in a savings of just over $1,500 in just a few months. In other veterans
assistance areas, we are servicing more veterans—65% increase in service provided to
incarcerated veterans, 14% increase in assisting veterans in obtaining updates on their
military medals and records, and a 350% increase over last year in assisting the veteran
in obtaining a discharge upgrade (608 verses 133).

VetEd Program: Currently processing grants for the spring semester and
processing pre-applications for the summer session. About 100 grants and pre-
applications are received a day, which should continue for two more weeks.

Assistance to Needy Veterans Report: To date we have received 601 ANV

applications with an average of 72% approval rate and 28% denial rate.

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 Loan Report: On May 10th a funding outage in the PML program was declared
and announced in CVSO and Lender Bulletins 737 and 376. Resources will be worked
in order to acquire funds for the Primary Mortgage Loan Program. Currently marketing
the Personal Loan Program. Finally, the delinquency rates for the previous two months
were 2.01% and 2.07% respectively, which is well below the established cap of 3.0%.

4. Veterans Homes Report

Commandant Crowley said that the average length of time for admission to the
Home is 33 days. There are 59 applications pending. The census at the end of May
was 704 with a total of 45 vacancies (15 of those are in the cottages). The categories of
care shows a high level of care needs for most of the members being admitted to the
King Home. For the month of May, the Home Exchange reported receipts of
$17,985.93 and expenses of $18,127.38 for a net loss of $141.45. Cumulative sales
were $248,460 for a net gain of $20,716 over the course of the past 12 months. The
balance in Gifts and Bequests funds is $47,158.

General Activities at King: Well #1 is in full operation with final approval from the
DNR. It is being operated in conjunction with the water treatment plant which draws
fresh water from Rainbow Lake. The test results for Well #2 have come back and it will
become fully operational in mid to late summer of 2007. The grant application for Well
#2 is on the federal VA priority list and we anticipate approval for 65% of the cost to put
that well into operation. The nurse call system upgrade is completed in all the nursing
care buildings and Marden Center. The VA has been billed for 65% of the cost and to
date $400,514 has been received. The ventilation system upgrade at MacArthur Hall
has been completed. We can bill the federal VA for up to $264,000 and to date we
have received $249,000. The steam condensate line upgrade and replacement has
been underway since last fall and should be completed in the fall of this year. Additional
funds will be requested at the State Building Commission meeting to locate the lines
either above or below an underground electrical conduit. The VA was billed $442,000
and we have so far received over $300,000. Projects to be considered by the VA for
Fiscal Year 2007 will be replacement of the windows in Olson Hall and placement of
Well #2. New projects being considered for 2007 will be the ceiling lifts and the Olson
Hall domestic water piping.

The annual open house was held on May 21st. The Memorial Day program saw
a great turnout. The 51st Annual American Legion King Day Pilgrimage is this Father’s
Day, June 18th; followed by the DAV King Day the next weekend. Member Council
Independence Day is celebrated on July 4th. The VFW King Day is July 16th and on
August 12th the Green Bay AMVETS King Bicycle tour.

At this point, Mark Grams, Dodge County Veterans Service Officer presented a
check in the amount of $200 on behalf of the Watertown Marine Corps League for the
Bus Fund.

Commandant Brower reported that the census at Union Grove is 107 as of the
end of May. An average daily census of 105 is the break-even point.

The new Deputy Commandant began June 12th. His name is Patrick
Shaughnessy. The Union Grove Home is presently at 110 employees or 45% of the
anticipated end strength once skilled nursing facility is totally up and running. The
Boland Hall dedication on May 20th went very well. The anticipated opening date for the
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new facility is July 10th. Mr. Scocos said WDVA is working with the DOA Secretary on
the construction punch lists.

The food service project in the activity center is substantially completed. About
$1.3 million of the $1.6 million federal grant for that project has been received. The
Fairchild and Shemanske remodeling project of converting 12 double rooms into single
rooms is still being worked. Construction on that project should begin this fall with a
completion date of summer of 2007.

Events: On July 4 some members of the Home will be involved in the Union
Grove parade. October 1st is the annual family picnic. November 11th Veterans Day
Program at the Home. December 10th is the member Christmas party sponsored by
various veterans’ service organizations.

A check in the amount of $500 was presented on behalf of the Oregon/Brooklyn

VFW Post 10272 for the Bus Fund.

Q: How close are we to our goal in the Bus Fund?

A: We have $320,000, about $50,000 short of the goal.

5. Financial Report—Colleen Holtan

Ms. Holtan presented financials as of May 31, 2006. King had an operating
income of $1,331,455. The cash increased to $19,412,554 at the end of May. The
cash balance includes approximately $9,150,000 of retrospective Medical Assistance
payments for fiscal years 2002 and 2003 that were received in error from DHFS as the
result of programming errors. King may be required to return the overpayments to
DHFS before the end of the fiscal year even though it is approximately $14.5 million in
retrospective payments for fiscal year 2004 and 2005. Those payments are being
delayed while programming errors are resolved. If these adjustments were all finalized
today, DHFS would pay King an additional $5.4 million, which would increase the case
balance to $24.8 million and the fund equity at $38.3 million.

Union Grove had an operating loss for the month of May of $352,547. March
and April revenue transactions of $289,859 and $305,813 had not been posted in the
state accounting system. Had they been posted the net loss would have been $56,704
and the year to date operating loss would have been $2,610,000. Cash increases have
exceeded receipts by $8,774 for the month of May and approximately $2.5 million for
year to date.

The Veterans Trust Fund had an operating loss before transfer of $337,419 for
the month of May. The fund equity is $77,660,000, which is a decrease of $7.5 million
from the beginning of the fiscal year. Loan collections exceeded operating
disbursements by $7,186 and investment income of $114,901 was received. The
month-end cash balance was $29,664,759.

The mortgage loan repayment fund had a net income of $1,173,906 for May.
The cash balance in the mortgage loan repayment fund exceeded $100 million at month
end, which was an increase of $3.3 million from the prior months. The increase in cash
is attributed to loan collections exceeding operating disbursements by more than $2.9
million and the receipt of almost $400,000 in investment income last month. The
Department is actively working with Capital Finance on two new financing sources for
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new loans from the mortgage loan repayment fund. The first is a $2 million bond sale to
the Land Commission which would fund HILP loans. The second is replacement
funding for the $61 million commercial paper issued in 2005. With the passage of
QVMB last month, bond counsel is reviewing the law and is expected to provide an
opinion as early as this week regarding our ability to use these funds to make loans to
veterans to meet the new definition of qualified veteran.

The May reported delinquency rate for the personal loan program loans was
2.02% and for all Veterans Trust Fund loans it was 2.07%. The Primary Mortgage Loan
delinquency rate for April 2006 was 0.26%.

6. Recess/Adjournment
It was moved, seconded and carried on a voice vote to adjourn the Board
meeting.
It was moved by Mr. Freedman, seconded and carried on a voice vote that the
Legislative and Program Review Committee stand in recess until 3:00 p.m.
It was moved by Mr. Miller, seconded by Mr. Morzenti and carried on a voice vote
that the Long Term Care Committee stand in recess until the adjournment of the
Legislative and Program Review Committee.
It was moved by Mr. Moran, seconded and carried on a voice vote that the
Financial Committee stand in recess until the adjournment of the Long Term Care
Committee.
It was moved by Mr. Alsteen, seconded and carried on a voice vote that the
Council on Veterans Programs adjourn.
It was moved by Ms. Hoppe, seconded and carried on a voice vote that the
CVSO Advisory Council stand in recess until 2:00 p.m.

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 MINUTES
CVSO ADVISORY COUNCIL
June 15, 2006
King, Wisconsin

Members Present Others Present

Holly Hoppe, Oconto Rick Cherone, MOPH
Don Lander, Clark John O’Brien, MOPH Adjutant
Nick Benzinger, Shawano Vera Roddy, UWV
Mike Haley, Chippewa Jim Endres, AMVETS
Ted Mynyk, Iowa Jim Gausmann, LaCrosse CVSO
Jim Young, Vernon Jon LiDonne, Waupaca CVSO
Mark Grams, Dodge Rock Larson, Wood CVSO
Ken Koon, Long Term Care Committee
Members Excused Cleon Brown, Sub-Vets WWII
John Solis, Rock Scott Berger, Marathon CVSO
Rick Gates, Polk Larry Smerling, Winnebago CVSO
Jerome Rabetski, PLAV
WDVA Present Russ Alsteen, Navy Clubs
John A. Scocos, Secretary Fred Kaiser, Waushara CVSO
Bill Kloster, Deputy Secretary Robert Morzenti, Iron CVSO
Anthony Hardie, Executive Assistant Mary Lex, Langlade County
Bill Crowley, Commandant, King Mike Demske, Finance Committee
Glen Brower, Commandant, Union Grove Tim Tiers, Manitowoc CVSO
Colleen Holtan, Budget Office Steve House, VVA
Ken Abrahamsen, Budget Director Arnie Miller, AMVETS
Rich Calcut, PIO Ken Wendt, Board Member
Shari McCann, WVH Exec. Staff Secretary Marvin Freedman, Board Member
VIA VIDEOCONFERENCE: Mary Meyer, Via Videoconference
Ken Black, Division Administrator
John Rosinski, Chief Legal Counsel
Seth Perelman, Division Administrator
Mike Sievert, Information Technology
Julie Van Metre, Ex. Staff Assistant

1. Call to Order and Roll Call.

The meeting of the CVSO Advisory Council was called to order at 2:00 p.m. A quorum
was present.

2. Certification of Notice of Meeting.

So noted.

3. Approval of Minutes of April 27, 2006.

It was moved by Mr. Young, seconded by Mr. Mynyk and carried on a voice vote to
approve the minutes of the April 27, 2006 CVSO Advisory Council meeting.

4. Announcements and Introductions

Ms. Hoppe attended the DAV State Convention where Secretary Scocos received an
award for supporting not only the DAV members but all veterans of Wisconsin.

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5. WDVA Responses to Questions Asked at the CVSO Association Conference
Mr. Hardie said one of the questions had to do with veterans applying on line for benefits
and not having established eligibility. If a person tries to log on to one of our on line
applications and they don’t have a password or ID, they are directed to the CVSO page which
instructs them to visit their CVSO to establish eligibility. Mr. Mynyk said veterans read the
benefits book where it describes eligibility for benefits and from that they determine that they are
eligible and don’t do anything more. They will walk into the CVSO office and say I’m an
eligible veteran and I want this benefit now. The brochures should say eligibility is determined
by filling out a form and getting an eligibility certificate even if you are a Wisconsin resident and
have done the proper amount of active duty.

The second question had to do with clarifying the requirement for the Wisconsin G.I. Bill
that veterans need to apply to the schools directly but to request certification from WDVA. The
Department has been working closely with the UW System and there is now a Frequently Asked
Questions page on the UW Systems web page. This information is also going out in a CVSO
Bulletin. Additionally, there was some discussion about whether or not we could have a list of
CVSOs in the BO105. We are currently doing that. Mr. Perelman added that he is meeting with
both the UW System and the Technical Colleges on June 20th in order to discuss this issue with
them and to include the CVSO listing with the need to contact the CVSO first to establish
eligibility and fill out the form WDVA 001.

The third question had to do with property tax credit and the annual recertification
requirement. That requirement came from the Department of Revenue in terms of needing to be
certified on an annual basis. CVSOs concerns were that a veteran’s disability could change. The
law is very clear that a veteran must be 100% service-connected disabled and the surviving
spouse must be unremarried.

The fourth question had to do with the history of veteran’s disability determinations with
regard to the Wisconsin G. I. Bill. Mark Rutberg has been working with the federal VA
Regional Office in Milwaukee to develop form letters when the veteran requests a letter
indicating a history of his or her disability determination. One letter is for the property tax credit
disability determination and another letter for the Wisconsin G.I. Bill. The USDVA accepted the
letter that was proposed for the property tax credit disability history determination but they did
not accept the one relative to the Wisconsin G.I. Bill because they felt that those determinations
were too complex. They felt they were better off writing a letter unique to each individual.

The fifth question had to do with distinguishing in the Wisconsin G.I. Bill between a
temporary and permanent disability. That is not relevant because individual unemployability can
be either permanent or temporary, either way it is very clear in the statutes that IU does not
qualify.

Another concern was with the on-line VetEd application print screen button. Mr. Black
said if you are filling out an application with your veteran, at the bottom of the application there
is the statement “create grant application” and if you hit that button it will bring up the
application on the screen and at that point you will be able to print out the application.

Several questions dealt with Assistance to Needy Veterans and Military Families Grant.
In the last budget the Joint Committee on Finance included a provision in the statutes that
designated that within the Assistance to Needy Veterans Grant Program would be specific
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provisions to provide assistance to military families. The Department has received some
donations that are specifically for military families. The grant is available to families who have
economic emergency needs. Relatively few Assistance to Needy Veterans applications have
been received. The CVSOs asked for a Bulletin explaining the procedure to apply for those
funds.

With regard to Assistance to Needy Veterans, a question came up about whether or not
the Department could consider a partial loss of income. The Department is discussing how it
might go about doing that. With regards to a single $5,000 grant for dentures, we are currently
considering that. It would require statutory change. The final question had to do with the
Retraining Grant and Assistance to Needy Veterans Grant Programs and income limits. While a
single income limit might be easier administratively, the Department sees these two programs as
being distinct.

The Department has spent many months developing recommendations for the budget.
The Board will then approve and direct the Department to submit the budget to the Department
of Administration in September. The Governor issues the Executive Budget based on the
recommendations of each agency. In February the process continues with hearings before the
Joint Committee on Finance and the budget will come before the Legislature in about April or
May with passage of the budget in July.

7. Secretary’s Matters
The Secretary said it has been an exciting year for veterans and their families in
Wisconsin. He is looking forward to the June 28th Stakeholders Conference to get more input
from the community on the Department’s upcoming budget goals. Education and health care
were of the highest priority for veterans. The Secretary said major advancements in those areas
were made with the Governor signing into law 100% tuition and fees and the recent dedication
of the 120-bed skilled nursing facility in Union Grove.

The Secretary has attended several public hearings across the state. The biggest issue
he’s hearing about is property tax credit for veterans. Mr. Scocos spoke at the Veterans
Committee hearing on the theft of veterans records on the federal level. On the state level, the
Department’s headquarters office suffered water damage in the records area. Damaged files will
be restored. He is looking forward to the Service Organizations summer and fall conventions.

Mr. Kloster will provide additional information in regard to the three credit agencies and
individuals being able to get a credit report once every four months. It is his understanding that
the reports of the three credit agencies are never merged unless a home mortgage loan is being
sought. Mr. Hardie said there is legislation pending in Congress to provide veterans with one
year free monitoring. You can request a 90-day fraud alert more than once. In Wisconsin, Act
40 provides authorization for Wisconsin consumers to put a freeze on their credit reports. This
law will become effective January 1, 2007.

8. Public Input
Q: A veteran files a claim and dies—does the claim stop or go to completion?
A: The claim will be processed if there is enough evidence already submitted. No
further evidence can be submitted on that claim but if there is enough information to render
judgment, it will be done and the surviving spouse will get the benefit. The claim does stop if
there is no surviving spouse or dependents.

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 Q: If that veteran applied for a service-connected claim and died due to that service-
connected condition, what will happen?

A: If there was enough information and the claim was successfully granted to prove
benefits were established and it was determined to be a service-connected cause of death, the
surviving spouse, attaining the age of 57, would be eligible for DIC.

Q: Can the spouse remarry and still claim the benefits?

A: There was a time period where the surviving spouse who had already remarried could
apply for the benefit; however, that window has passed. At this point, if the surviving spouse
does remarry after the age of 57 they will not lose the benefit.

9. Council Members’ Matters (Not Subject to Adoption)

Ms. Hoppe said the WDVA puts out an RVSP notification to all the County Veterans
Service Officers of new veterans that includes their name, address, and social security number.
CVSOs are worried about including the full social security number. Mr. Kloster said that issue
was under review and the lists you receive in the future will not have the social security number
on it.

Mr. Grams passed on a compliment from a funeral director in his county who said that
the staff at the Union Grove cemetery is outstanding. From the groundskeepers, to the staff in
the office and the honor guards—thank you.

10. Next Meeting Schedule

August 17 in Spooner at the National Guard Armory in Spooner.

11. Adjournment
It was moved by Mr. Grams, seconded, and carried on a voice vote to adjourn the
Council meeting; the time was 3:00 p.m.

Holly Hoppe
Chair

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 MINUTES
LEGISLATIVE AND PROGRAM REVIEW COMMITTEE
WISCONSIN DEPARTMENT OF VETERANS AFFAIRS
Meeting of June 15, 2006

Committee Present WDVA Present

Marvin Freedman John A. Scocos, Secretary
Lewis Harned William Kloster, Deputy Secretary
Vera Roddy Anthony Hardie, Executive Assistant
Josh Sniegowski Bill Crowley, Commandant, King
Duane Miskulin Glen Brower, Commandant, Union Grove
Jim Young Colleen Holtan, Budget Office
Steve Lawrence Ken Abrahamsen, Budget Director
Bill Hustad Shari McCann, Executive Staff Secretary
Paul Weprinsky Jackie Moore, Adjutant
Tim Thiers Colleen Roemer, Executive Staff Secretary
Chris Wrolstad, Deputy Commandant
Committee Excused Sandy Mosher, DON Olson Hall
Kathy Marschman Beverly Przybylski, DON Ainsworth Hall
Bud Mautz Sally Herek, DON MacArthur Hall
Nancy O’Connell, Materials Management
Others Present Shannon Hardel, DON Stordock Hall
Kevin Kavanaugh Marge Maroney, Director of Admissions
Rick Cherone Steve Stead, Director of Finance
John O’Brien VIA VIDEOCONFERENCE:
Jim Endres Ken Black, Division Administrator
Mike Haley, Chippewa CVSO John Rosinski, Chief Legal Counsel
Ted Mynyk, Iowa CVSO Seth Perelman, Division Administrator
Mark Grams, Dodge CVSO Mike Sievert, Information Technology
Rock Larson, Wood CVSO Julie Van Metre, Executive Staff Assistant
Jon LiDonne, Waupaca CVSO
Ken Koon
Jim Gausmann, La Crosse CVSO
Cleon Brown, WWII Sub Vets
Larry Smerling, Winnebago CVSO
Jerome Rabetski, PLAV
Russ Alsteen, Navy Clubs
Roger Fetterly, MOAA
Fred Kaiser, Waushara CVSO
Walter & Ann Stenavich
Robert Morzenti, Iron CVSO
Mary Lex, Langlade County
Mike Demske
Ken Wendt, Board Member
Mary Meyer, via videoconference

1. Call to Order and Roll Call.

The meeting of the Legislative and Program Review Committee was called to order at
12:30 p.m. to hear a WDVA briefing (see Exhibit 1). The Committee stood in recess after the
WDVA briefing. A quorum was present at the WDVA briefing and upon reconvening at 3:10
p.m.
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2. Certification of Notice of Meeting.
It was certified that proper notice of the meeting occurred.

3. Approval of Minutes.
It was moved by Mr. Lawrence, seconded by Mr. Miskulin and carried on a voice vote to
approve the minutes of the April 20, 2006 meetings.

4. Consideration of CVSO Association Resolutions

S06-001—Individual Income and Property Tax Benefits for Veterans. Mr. Freedman
explained that the CVSO Association is on record asking for a modification of current law that
requires a rating of 100% in order to qualify for the property tax relief. They are asking to
include veterans who are compensated 100% based on determination of unemployability.
This resolution represents a good initial step in addressing the ways in which the current
property tax relief for veterans should be expanded.

It was moved by Mr. Hustad, seconded by Mr. Thiers and carried unanimously on a voice
vote to go on record in support of S06-001 and forward it on to the Board with the understanding
that this is not definitive as far as the extensions that need to be addressed in the upcoming
budget process.

S06-002—Change to Wisconsin G.I. Bill. Mr. Freedman said the resolution asks that the
requirement for full time student status be dropped for eligible dependent children to allow them
to attend part time. Currently surviving spouses can attend part time but children cannot. Mr.
Rosinski said that the definition of a student is a full time student up to the age of 26.

It was moved by Mr. Sniegowski, seconded by Mr. Weprinsky and carried unanimously
on a voice vote to go on record in support of S06-002 and forward it on to the Board.

S06-003—Assistance to Needy Veteran Disaster Grant. Mr. Freedman said the

resolution recommends that the loss of income requirement for ANV disaster grant be removed
from the statute. The CVSO Association points out that the predecessor program, the
Subsistence Aid Grant Program, did not have the requirement in place.

It was moved by Mr. Lawrence, seconded by Mr. Young and carried unanimously on a
voice vote to support this resolution and forward it to the Board of Veterans Affairs.

S06-004—VetEd Reimbursement Grants Pre-Application Requirement. The Resolution

asks for a change in the pre-application requirement so as to allow an applicant who has been
denied to have due process and/or realistic appeals to be able to pursue the benefit. Mr. Scocos
said the Department is looking at this issue and would like to come back to the Board in August
with a recommendation.

Mr. Freedman received concurrence from the Committee members to place Resolution
S06-004 on the agenda for the August Board meeting.

5. Secretary’s Matters.

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 Secretary Scocos said he would brief the Board tomorrow on budget issues. More and
more veterans are becoming involved in the successful acquisition of benefits. Some upcoming
issues are taxation of veterans organizations, general purpose dollars to assist with administrative
costs, headquarters facility purchase, solvency at Union Grove, etc. Mr. Scocos is looking
forward to a good exchange of ideas as the Stakeholder Conference on June 28.

Q: Can the loan programs be tax deductible on state taxes?

A: The Department is still researching that. It will be discussed at the June 28th
Stakeholder Conference.

Q: The $16 million transfer to the Veterans Trust Fund as a result of SB 613 enactment,
is that part of the $25 million that didn’t lapse?
A: It was originally estimated to be $25 million but in reality became $16 million.

6. Public Input.
Mr. Grams said it is imperative that we get the correct information out to the public. He
asked for the definition of the Wisconsin G.I. Bill for a dependent child because there might be
some misunderstanding with that. Does the income of a dependent child have any ramifications
on their eligibility for the Wisconsin G.I. Bill? The answer was no. If the dependent child has
moved out of the house, has a full time job, attends school full time and is under age 26, he or
she is still eligible for the Wisconsin G.I. Bill. The Department needs to know if someone is
being denied based on dependency or marital status.

7. Committee Members’ Matters (Not Subject to Adoption).

Mr. Thiers thanked everyone for their support throughout this past year after his accident.

8. Next Meeting Date.

The next meeting will be August 17 at the National Guard Armory in Spooner.

9. Adjournment.
It was moved by Mr. Sniegowski, seconded by Mr. Miskulin and carried on a voice vote
to adjourn the meeting.

Marvin Freedman
Chairman

3
 MINUTES
LONG TERM CARE COMMITTEE
WISCONSIN DEPARTMENT OF VETERANS AFFAIRS
Meeting of June 15, 2006

Committee Present WDVA Present

Ken Wendt John A. Scocos, Secretary
Walter Stenavich William Kloster, Deputy Secretary
Ken Koon Anthony Hardie, Executive Assistant
Kevin Kavanaugh Bill Crowley, Commandant, WVH-King
Arnold Miller Glen Brower, Commandant, WVH-Union Grove
Jerry Rabetski Colleen Holtan, Budget Office
Robert Morzenti Ken Abrahamsen, Budget Director
Alan Walker Shari McCann, Executive Staff Secretary
Mary Meyer (via videoconference) Doug Tindall, Dir. Engineering & Physical Plant
Jerry Polus Colleen Roemer, Ex. Staff Secretary
Jackie Moore, Adjutant
Committee Excused Chris Wrolstad, Deputy Commandant
Chris Kornkven Shannon Hardel, DON Stordock Hall
Dave Gough Sally Herek, DON MacArthur Hall
Bev Przybylski, DON Ainsworth Hall
Others Present Sandy Mosher, DON Olson Hall
Rick Cherone Rich Calcut, Public Information Officer
Larry Danielson Jim McGarvey, Information Technology
Bill Hustad Nancy O’Connell, Director of Purchasing
Cleon Brown, USSVWWII Steve Stead, Director, Bureau of Finance
Russ Alsteen, Navy Clubs Marge Maroney, Director, Bureau of Admissions
Ann Stenavich Cathy Leaverton, Director, Bureau of Activities
Owen Williams, US Sub Vets VIA VIDEOCONFERENCE:
Mary Lex, Langlade County Ken Black, Division Administrator
Mary Meyer, via videoconference John Rosinski, Chief Legal Counsel
Seth Perelman, Division Administrator
Mike Sievert, IT
Julie Van Metre, Executive Staff Assistant

1. Call to Order and Roll Call.

The meeting of the Long Term Care Committee was called to order at 12:30 p.m. to hear
a WDVA briefing (see Exhibit 1). The Committee stood in recess after the briefing. A quorum
was present at the briefing and upon reconvening at 3:45 p.m.

2. Certification of Notice of Meeting.

It was certified that proper notice of the meeting occurred.

3. Approval of Minutes.
It was moved by Mr. Rabetski, seconded, and carried on a voice vote to approve the
minutes of the April 20, 2006 meeting.
Mr. Crowley took this time to introduce some of the King staff members in attendance.

1
Doug Tindall, Director of Engineering and Physical Plant; Colleen Roemer, Executive Staff
Secretary; Jackie Moore, Adjutant; Chris Wrolstad, Deputy Commandant; Shannon Hardel,
Director of Nursing in Stordock Hall; Sally Herek, Director of Nursing in MacArthur Hall; Bev
Przybylski; Director of Nursing in Ainsworth Hall; Sandy Mosher, Director of Nursing in Olson
Hall; Rich Calcut, Public Information Officer; Jim McGarvey, Information Technology; Nancy
O’Connell, Director of Materials Management; Steve Stead, Director of the Bureau of Finance;
Marge Maroney, Director of the Bureau of Admissions and Discharges; Cathy Leaverton,
Director of the Bureau of Activities; Shari McCann, Executive Staff Secretary, and former VFW
Adjutant, Larry Danielson, a new member of the Home.

4. Proposal to Increase Wages for Work Therapy Participants as well as Increase the Maximum
Allowable Monthly Income.
The Work Therapy Program at King is certified by the US Department of Labor and
authorizes the payment of wages lower than the minimum wage under the Fair Labor Standards
Act for Workers with Disabilities. The Program is recertified every two years and was last
adjusted for both hourly wage and maximum earnings in 1997. Last year 268 members of the
Home at King held jobs in one of 34 different job classifications such as tugger driver, laundry
worker, office worker, activities helper, library aide, postal worker, etc. A member’s doctor
must certify them as being able to work in a Work Therapy job and they are paid a range from
$2.20 per hour to $5.15 per hour up to a maximum of $1,500 a year or $2,100 a year dependent
on the job and their ability to perform the job requirements. Last year’s payroll for the work
therapy program was $275,000. On June 1, 2006 the Wisconsin minimum wage was increased
and the USDOL wants us to keep in compliance with the minimum wage. The cost of the
proposed increase would amount to about $41,000 per year to the Veterans Home at King, which
would come out of program revenue at the Home. The proposal is an across-the-board increase
of 15% in the work therapy reimbursement rate.

It was moved by Mr. Polus, seconded by Mr. Kavanaugh and carried unanimously to
approve the proposal and forward it to the Board of Veterans Affairs.

Committee members were provided with their own personal copy of a three-ring
reference binder containing information about the Wisconsin Veterans Homes.

At the Committee’s last meeting in Sturgeon Bay a question was brought up about why
the WVH cannot accept veterans with a 70% or more service-connected disability and get their
entire cost of care paid for by the federal VA. The answer was given at that time and about three
weeks later, Robert Shaw, Administrator of the Colorado State Veterans Home, as national
legislative chairman of the NASVH, gave testimony to the Senate Committee on Veterans
Affairs and part of what he talked about was the above referenced subject. Copy of his
testimony was provided to Long Term Care Committee members.

5. Secretary’s Matters.
Secretary Scocos thanked the Committee for a wonderful Armed Forces Day at Union
Grove with the dedication of our 120-bed facility, Boland Hall. We are making major changes
in how we are doing business at the Veterans Home in Union Grove. The Secretary has tasked
both Commandants, the Budget Director, and other staff to come up with a long term plan for the
solvency of both Homes.

2
 It was announced that following the Board of Veterans Affairs meeting there will be a
building dedication ceremony in honor of John Moses.

6. Public Input.
There is a tour available for any member of the Long Term Care Committee to see the
new kitchen facility if anyone is interested.

7. Committee Members’ Matters (Not Subject to Adoption).

The CVSO Association, at its spring conference, voted unanimously to contribute $100
toward the bus fund.

Mr. Wendt said there have been some complaints with the cook-chill meals at the King
Home. He has personally eaten these meals and finds them to be of good quality. He feels some
of the problems come with not being comfortable with change. Mr. Wendt was also concerned
with the increase from $1.00 to $1.25 for a glass of beer.

8. Next Meeting Schedule.

August 17th at the National Guard Armory in Spooner.

9 Adjournment.
It was moved by Mr. Miller, seconded by Mr. Rabetski, and carried on a voice vote to
adjourn the meeting.

Ken Wendt
Chairman

3
 MINUTES
FINANCIAL COMMITTEE
WISCONSIN DEPARTMENT OF VETERANS AFFAIRS
Meeting of June 15, 2006

Committee Present WDVA Present

Pete Moran John A. Scocos, Secretary
Don Heiliger William Kloster, Deputy Secretary
Connie Allord (via videoconference) Anthony Hardie, Executive Assistant
Mike Demske Bill Crowley, Commandant, WVH-King
John O’Brien Glen Brower, Commandant, WVH-Union Grove
Jim Endres Colleen Holtan, Budget Office
Jim Gausmann Ken Abrahamsen, Budget Director
Bill Bottoms Shari McCann, Executive Staff Secretary
Joe Campbell VIA VIDEOCONFERENCE
Ken Black, Division of Veterans Benefits
Committee Excused John Rosinski, Chief Legal Counsel
Al Kochenderfer Seth Perelman, Division Administrator
Mike Sievert, Information Technology
Others Present
Marvin Freedman, Board Member
Duane Miskulin
Josh Sniegowski
Cleon Brown, USSVWWII
Ron Rutkowski, VVAW
Judith Singer
Steve Lawrence, VFW

1. Call to Order and Roll Call.

The meeting of the Financial Committee was called to order at 12:30 p.m. to hear a
WDVA briefing (see Exhibit 1). The Committee stood in recess after the WDVA briefing. A
quorum was present at the briefing and upon reconvening at 4:15 p.m.

2. Certification of Notice of Meeting.

Notice of meeting was certified.

3. Approval of Minutes.
It was moved by Mr. Endres, seconded by Mr. Heiliger and carried on a voice vote to
approve the minutes of the April 20, 2006 meetings.

4. Secretary’s Matters.
Secretary Scocos said the budget brief will be presented to Board members tomorrow.
The new plan sets the solvency of the Trust Fund out to 2019. The Trust Fund needs to be built
up in terms of the mortgage loan repayment fund to continue a strong program. We are talking
about long and short term plans for the Veterans Homes. The veterans population is a major
factor for the future of our Veterans Homes. We will be looking at the headquarters building and
whether or not we can commit to a stronger and bigger museum.

1
 Q: The Primary Mortgage Loan Applications received by month is zero. If we are not
lending money, how are we going to get additional money in?
A: That is the importance of the passage of the Qualified Veterans Mortgage Bond for
the future. We have been in a downward spiral for the last three years. We have to look
internally on freeing up additional funding.

5. Public Input.
None.

6. Committee Members’ Matters (Not Subject to Adoption).

None.

7. Next Meeting Date.

August 17 at the National Guard Armory in Spooner

8. Adjournment.
It was moved by Mr. Endres, seconded and carried on a voice vote to adjourn the
meeting.

Pete Moran
Chairman

2
 MINUTES
COUNCIL ON VETERANS PROGRAMS
WISCONSIN DEPARTMENT OF VETERANS AFFAIRS
Meeting of June 16, 2006

Members Present WDVA Present

Russ Alsteen, NCUSA John A. Scocos, Secretary
Paul Bialk, MCL William Kloster, Deputy Secretary
Pat Brown, USSVWWII Anthony Hardie, Executive Assistant
Rick Cherone, MOPH Bill Crowley, Commandant, WVH-King
Paul Fine, ANU Glen Brower, Commandant, WVH-Union Grove
Rick Gates, CVSOA Colleen Holtan, Budget Office
Bill Hustad, WVV Ken Abrahamsen, Budget Director
Steve Lawrence, VFW Rich Calcut, PIO
Jerry Rabetski, PLAV Shari McCann, Executive Staff Secretary
Ron Rutkowski, VVAW VIA VIDEOCONFERENCE
Vera Roddy, UWV Ken Black, Division of Veterans Benefits
William Sims, NABV John Rosinski, Chief Legal Counsel
Tim Thiers, AMVETS Seth Perelman, Division Administrator
Paul Weprinsky, JWV Mike Sievert, IT
Steve House, VVA Julie Van Metre, Executive Staff Assistant
Walter Peterson, Am. ExPOW
Others Present
Members Excused John O’Brien, MOPH
Jesse Haro, CWV Holly Hoppe, Oconto CVSO
Bud Mautz, Am. Legion James Young, Vernon CSO
Clif Sorenson, WACVO Ted Mynyk, Iowa CVSO
Jack Stone, PVA Mark Grams, Dodge CVSO
WWI vacancy Bob Wilson, Langlade CVSO
FCDV vacancy Walter & Ann Stenavich, Board Member
ARC vacancy Mack Hughes, Board Chairman
DAV vacancy Robert Morzenti, Iron CVSO
Mary Lex, Langlade County
Mike Demske
Kevin Kavanaugh
Chet Krause
John Sniegowski
Joe Campbell
Judith Singer
Bill Bottoms

1. Call to Order and Roll Call of Members.

The meeting of the Council on Veterans Programs was called to order by Chairman
Alsteen at 8:00 a.m.

2. Certification of Notice of Meeting.

It was certified that proper notice of the meeting occurred.

1
3. Introduction of Guests and Announcements.
Chairman Alsteen acknowledged Board Member Wendt, Board Member Stenavich,
Board Member Moran, Board Chairman Hughes, and Tony Flanzer who is a resident at the
Wisconsin Veterans Home.

4. Approval of Minutes.
It was moved by Mr. Lawrence, seconded by Mr. Hustad and carried unanimously on a
voice vote to accept the minutes of the April 20-21, 2006 meetings.

5. Council Communications.
Mr. Alsteen said he received communication from MOAA and TREA organizations
stating that they proposed language for submission to the Legislature for their inclusion on the
Council on Veterans Programs. Mr. Alsteen received a letter from Governor Doyle announcing
that he signed Senate Bill 613 into law. Another correspondence was received from Russ
Feingold in regard to the spinal cord injury center in Milwaukee.

6. Museum Foundation Report.

Mr. Hustad said the Museum Foundation is scheduled to have a meeting next week. The
annual Golf Outing is July 17th and they are still looking for sponsors or golfers.

7. Possible Action on CVSO Resolution S06-001—Individual Income and Property Tax

Benefits for Veterans.
Initially, when the state came up with a benefit for exempting veterans from having to
pay state property tax, it was just for veterans with 100% service-connected disability. The
Resolution includes veterans who are 100% disabled based on determination of unemployability.
Mr. Gates added that sometime down the road we would like to address the residency
requirement and the age 65 requirement.

It was moved by Mr. Hustad, seconded by Mr. House and carried unanimously on a voice
vote to go on record in support of CVSO Resolution S06-001. Mr. Thiers would like copies of
this Resolution available at the Stakeholders Conference so that it could be re-evaluated for
residency and age 65 requirement.

8. Report of Special Committee to Study the Reorganization of the Membership of the Council
on Veterans Programs.
The Committee met yesterday afternoon. Letters to MOAA and TREA supporting their
application to this Council have yet to be sent. Another letter is to be drafted and sent to any
organization missing three consecutive Council meetings and/or failure to submit its biennial
report. Mr. Alsteen will draft those letters for mailing. There were no discussion items by the
Special Committee that needed action by the full Council.

9. Secretary’s Matters.
Mr. Scocos announced that there will be a John Moses Central Services Building
dedication ceremony immediately following the Board meeting today.

The Secretary will brief the Board today on the initial budget proposals. He looks
forward to seeing everyone at the Stakeholders Conference on June 28th in Madison. This year

2
has been a great year for budget successes that culminated on Memorial Day with the signing
into law of Senate Bill 613. The 120-bed skilled nursing facility was dedicated on Armed Forces
Day.

The Department had a great Supermarket of Veterans Benefits event in Oshkosh and the
Secretary has had the opportunity to attend listening sessions across the state with various
legislators. The Secretary is hearing that the property tax credit and the theft of veterans’ records
are the most pressing issues out there. Mr. Scocos has attended and will continue to attend the
veteran’s service organization conventions throughout the summer.

10. Old Business.

Mr. Kloster reported that the Process Action Team to review the question of eligibility
has met and filed its report. The basic recommendation from the Committee was, in the cases of
discharges that were not cut and dried honorable versus dishonorable but in a grey area, a Board
of various composition would be put together to review those cases and make a recommendation.
Mr. Kloster felt that may be problematic in that any decision by that Board would be subject to
an appeal and we would need to develop an appeal process. Since it would be subject to an
appeal, there would have to be definite rules by which the Board would use to determine whether
or not a person was eligible. If the rules are already in place, then the current system we have
should be sufficient. The real question here is that we, as a veteran’s community need to come
to grips with the fact that either we’re going to continue to operate as we currently do with our
eligibility, which is fairly liberal as far as character of discharge, or we’re going to have to take a
hard stand and say this is what works and this is what doesn’t work. There is more discussion
needed in that matter and that is one of the topics we will address at the Stakeholders meeting on
June 28th.

It was moved, seconded and carried on a voice vote to table receiving a report regarding
the discharge matter until the next meeting.

Mr. Alsteen said that he was recently in Lancaster, Pennsylvania at a National

Convention where a representative from the US Department of Veterans Affairs enlightened
them on the theft of the 26 million veterans’ records. A Department employee illegally
downloaded information from the US DVA on a computer and took it to his home. They’ve
concluded that it was a gang related incident because there were multiple break-ins in the
complex where this employee lived. Each of the break-ins in this apartment complex resulted in
the theft of computers only. Their assumption is that the thieves took the computers, erased
them so they could not be traced and then sold the computer.

Mr. Alsteen said the Council received a letter from WDVA Legal Counsel regarding the
issue of reimbursement of expenses from the state for attending Council meetings. It basically
states that under current law, members of the Council on Veterans Programs are entitled to
reimbursement for transportation, lodging, meals, and expenses incurred while attending official
meetings of the Council, limited by maximum reimbursement amounts. There is no clear
limitation as to whether lodging is necessary based upon the timing of the official meetings. The
Council had considered removing lodging eligibility for those people who don’t attend the
briefings the day before. It was moved by Mr. Rabetski, seconded by Mr. Thiers and carried on
a voice vote to table the issue indefinitely.

3
11. New Business.
None.

12. Activities within the Veterans Community.

The CVSO Association recently had an executive committee meeting and selected two
Advocacy Award recipients for 2006. One was to Simon Katchke of Sheboygan and the other
was to Robert “Bud” Thiel of Crandon.

The US Department of Veterans Affairs and the Wisconsin Department of Veterans

Affairs are sponsoring a Women Veterans Health Conference on Saturday, June 17th at the
Madison VA Medical Center.

Military Order of the Purple Heart and VFW Day at Union Grove is 24 September. The
King Day will be on 10 September. A new program initiated this year is to present Purple Heart
Plaques to all the soldiers in the Iraq and Afghanistan War. Fifty-five plaques have been
distributed to date.

AMVETS State Convention, June 22-25 in Manitowoc. The local Manitowoc DAV
Chapter has instituted a year of free dues for returning service members who attend the Chapter
meetings. AMVETS and VVA are co-hosting a King Day. Mr. Thiers wished Mike Demske
good luck in his bid for VVA State President.

Stakeholder Conference, June 28, 1100 to 1600 in Madison. Mr. Alsteen encouraged
each Council member to attend the stakeholder meeting.

In conjunction with Ft. McCoy Retiree Days, the Department and the Ft. McCoy
Retirement Center will do a joint veterans benefit information fair at the Rumpel Fitness Center
on September 1st.

The USS Edson is attempting to get moored in Sheboygan. Mr. Thiers recommended
that the Board take into consideration approving this attempt. He would like a letter sent stating
that it is under review and a decision will be made at the next Board meeting. Mr. Thiers said
the Woodshop at King makes the triangle flag display cases and they are for sale for $40 to $60
in the gift shop. The point of contact for purchasing these cases is Rich Calcut.

Mr. Thiers said that WDVA Claims Representative Paul Frantz will be missed, he was a
tremendous resource for CVSOs and his death is a significant loss. Wilson, Langlade CVSO,
echoed his admiration for Mr. Frantz. Mr. Wilson added that his office received a donation of a
pontoon boat that his county donated to Camp American Legion.

Mr. Hardie announced a public hearing at the Department headquarters on June 19th at
11:00 a.m. It is an annual requirement regarding bonding for the qualified veteran’s mortgage
bonds. Written comments are encouraged in lieu of attendance.

August 7th is the Department sponsored Purple Heart Recognition Day event in Sturgeon
Bay.

4
 Mr. Cherone brought up a concern he has heard about veterans not being notified in
advance that they have been moved from one clinic to another. Ms. Oshinski asked him for
more
specifics before she could respond. He also noted that the waiting lists for dental care is about
five or six months. Will that service be outsourced? Ms. Oshinski said they are trying to create
additional staffing for dental as well as attempting to outsource.

Q: What is the timeline for getting something to the legislature?

A: You can be working now on legislative bill drafts to have them ready for introduction
in January. There is a window of opportunity between now and next May to put items into the
budget or draft individual pieces of legislation.

Mr. Campbell officially thanked John Scocos, the Department of Veterans Affairs and
Steve House from VVA for their support in an organization called Being There, Reaching Out.

13. Next Meeting Date.

August 17 and 18 at the National Guard Armory in Spooner.

14. Adjournment.
It was moved by Mr. Gates, seconded by Mr. Thiers and carried on a voice vote to
adjourn.

Russ Alsteen
Chairman

5
 BOARD MINUTES
WISCONSIN DEPARTMENT OF VETERANS AFFAIRS
Meeting of June 16, 2006
King, Wisconsin

Board Members Present Others Present

Ken Wendt Larry Danielson
Pete Moran Bill Hustad
Marv Freedman Bill Bottoms
Mack Hughes Jerome Rabetski, PLAV
Walter Stenavich Mark Grams, Dodge CVSO
Ted Mynyk, Iowa CVSO
Board Members Absent Jon LiDonne, Waupaca CVSO
Kathy Marschman James Young, Vernon CVSO
Don Heiliger (departed due to illness) Larry Smerling, Winnebago CVSO
Owen Williams, US Sub Vets
WDVA Present Russ Alsteen, Navy Clubs
John A. Scocos, Secretary Ann Stenavich
Bill Kloster, Deputy Secretary Rich Cherone, MOPH
Anthony Hardie, Executive Assistant Bob Wilson, Langlade CVSO
Glen Brower, Commandant-Union Grove Robert Morzenti, Iron CVSO
Bill Crowley, Commandant-King Mary Lex, Langlade County
Colleen Holtan, Financial Officer Mike Demske
Rich Caclut, Public Information Officer-King Rick Gates, CVSO Association/Polk CVSO
Shari McCann, Executive Staff Secretary Steve House, VVA
Chris Wrolstad, Deputy Commandant Arnie Miller, AMVETS
Colleen Roemer, Executive Staff Secretary Duane J. Miskulin, AMVETS
Jackie Moore, Adjutant Alan W. Walker
Linda Eskritt Vera Roddy, UWV
Sherry Kelly, Director of Social Services Renee Oshinski, VISN 12
Sandy Mosher, DON Olson Hall Robert McDivitt, VISN 23
Beverly A. Przybylski, DON Ainsworth Hall Josh Sniegowski, DAV
Nancy O’Connell, Materials Management Jim Endres, AMVETS
Cathy Leaverton, Director of Activities Ron Rutkowski, VVAW
Steve Stead, Director of Finance Kevin Kavanaugh, MOPH
VIA VIDEOCONFERENCE Chet Krause
John Rosinski, Chief Legal Counsel
Ken Black, Division of Veterans Benefits
Seth Perelman, Division Administrator
Mike Sievert, Information Technology
Rich Zeitlin, Museum Director
Julie Van Metre, Executive Staff Assistant

1. Roll Call and Introductions

The meeting of the Board of Veterans Affairs was called to order at 9:10 a.m. The
Pledge of Allegiance was recited. A quorum was present after roll call of members.

2. Certification of Notice of Meeting

It was certified that proper notification of the meeting occurred.

1
 At this point Secretary Scocos introduced Chet Krause and thanked him for his
support and contribution toward the bus fund. Mr. Crowley said Mr. Krause is a World War
II veteran who expanded his enterprises over the years and with his work ethic and
dedication has been successful. He has been extremely generous to different organizations
and causes. His fellow veterans will benefit from his generosity with his contribution of
$110,000 toward the cost of acquiring transportation services for the veterans at the Homes
in King and Union Grove. Mr. Krause was presented with the King of Hearts Plaque as a
token of appreciation.

The Secretary presented a plaque to Deputy Commandant Chris Wrolstad on behalf

of the Board in recognition and appreciation of her outstanding achievements.

3. Approval of Minutes
It was moved by Mr. Moran, seconded by Mr. Wendt and carried unanimously on a
voice vote to approve the minutes of the April 20-21, 2006 Board meetings.

4. Board Members’ Matters

Mr. Moran congratulated Secretary Scocos on being the recipient of the
Distinguished Service Award from the DAV. Mr. Moran attended the Boland Hall
dedication at Union Grove. He also had the opportunity to attend the Memorial Day services
at the State Capitol and witnessed the signing of landmark legislation in the Governor’s
chambers after the service. Mr. Moran had the opportunity to donate his service memorabilia
to the Veterans Museum.

Mr. Wendt attended the Governor’s presentation at the King Veterans Home in May.
He was at the dedication of Boland Hall on May 20th and at King for the Open House on
May 21st.

Mr. Freedman attended the dedication of the Skilled Nursing Facility in Union Grove
and also joined Mr. Moran at the Memorial Day services in Madison at the State Capitol and
the subsequent signing ceremony by the Governor for SB 613 and a number of other veterans
and military affairs bills. He also attended the Helmets to Hard Hats ceremony in
Milwaukee.

Mr. Hughes attended the stately Memorial Day ceremony at Wood Cemetery and
participated in the parade in Milwaukee.

5. Board Action from Committee and Council Meetings

CVSO Advisory Council meeting of June 15, 2006. Ms. Hoppe, Chair of the
Council, reported that discussions covered issues on identity theft, education and health care,
property tax credit issues, and aid to needy veterans. There were no motions for Board
action.

Legislative and Program Review Committee meeting of June 15, 2006. Mr.
Freedman said the committee discussed four resolutions from the CVSO Association. The
first three were supported by unanimous motions with the recommendation that the Board do
likewise. The fourth resolution was placed on the agenda for the August meeting and action
on it would be deferred until that time.

2
 Long Term Care Committee meeting of June 15, 2006. Mr. Wendt said the
Committee recommended that the Board increase wages along with the maximum allowable
monthly income for Work Therapy participants. He reminded everyone to contribute to the
bus fund and took the opportunity to contribute $50.00. Mr. Alsteen bested him by donating
$100 to the bus fund. Mr. Wendt, not to be outdone, donated another $50.00.

Financial Committee meeting of June 15, 2006: Mr. Moran said the Committee heard
a report by the Department. Positive cash flows are starting to materialize and we are
starting to see some of the rewards of the solvency plan. The Committee passed no motions
to bring before the Board.

Council on Veterans Programs meeting of June 16, 2006: Mr. Alsteen said the
Council unanimously supported CVSO Resolution S06-001. They voted to permanently
table any potential change in reimbursement for travel, meals and lodging expenses.

It was moved by Mr. Freedman, seconded by Mr. Stenavich and carried on a voice
vote that the Board go on record in support CVSO Resolutions S06-001, S06-002 and S06-
003 relating to individual income and property tax benefits for veterans, the change to the
Wisconsin G.I. Bill and the Assistance to Needy Veterans Grants.

6. Proposal to Increase Wages for Work Therapy Participants as well as Increase the
Maximum Allowable Monthly Income.
Based upon the April 2006 Work Therapy payroll, the suggestion to raise both the
rate and maximum earnings a year would increase the Work Therapy payroll by an estimated
$41,500 a year. The hourly wage varies according to the specific job and the participant’s
ability to perform the job. The range is from $2.20 an hour to $5.15 an hour and an across-
the-board increase of 15% to all the wages is requested. These positions are not covered by
the minimum wage law, which is $6.50 per hour. There is a provision by the US Department
of Labor certifying the Home as being authorized to pay wages lower than the minimum
under the Fair Labor Standards Act for Workers with Disabilities. The program needs to be
recertified every two years.

It was moved by Mr. Moran, seconded by Mr. Wendt and carried unanimously on a
roll call vote to increase the hourly wage of Work Therapy jobs by 15% and increase the
maximum income for a Work Therapy participant by $200 a month.

7. Clarification on HILP Policy.

At the last Board meeting, the Department introduced a methodology by which it
would establish interest rates on the Home Improvement Loan and the Personal Loan. There
were two concerns raised in regard to the minimum mark up that we would apply to the
interest rate and the difference between a loan with 10% equity versus more than 20% equity.
We also heard a concern voiced by the CVSO Association on the setting of the interest rates.
A modification to the policy was proposed.

Policy: On a quarterly basis, or more frequently if warranted by market conditions,

the Wisconsin Department of Veterans Affairs will set rates for its Home Improvement Loan
Program. Rates shall be no less than 25 basis points below an average of conventional

3
market rates offered in the State of Wisconsin and at least 12587.5 basis points above either
the State of Wisconsin Investment Board (SWIB) earnings rate for the last month reported or
the bond coupon rate when bond proceeds are being lent. Further, the rates offered for a
mortgage secured loan with a loan-to-value (LTV) ratio of greater than 80% and less than
90%, shall be at least no more than 50 basis points higher than those offered for an 80% or
lower LTV ratio loan, and the rate for a three-year guarantor secured loan shall be the same
as the rate offered for the Department of Veterans Affairs personal loan program three-year
guarantor secured loan.

It was moved by Mr. Wendt, seconded by Mr. Freedman and carried unanimously on
a voice vote to accept the revised HILP interest rate policy.

Mr. Kloster informed the Board that the Department is in the final stages of an
agreement with the Land Commission to notify us that they will have $2 million available
early next month for us to do a bond issue to fuel our Home Improvement Loan Program for
at least a year.

8. VISN 12 and VISN 23 Reports

Mr. Rob McDivitt began with greetings from Dr. Petzel, the VISN 23 Network
Director. He reported on the following:
• VISN 23 has treated 242,000 veterans at this point in the year as opposed to 236,000
a year ago.
• Budget: the Network will make it through the fiscal year with the funds available to
it.
• Over 10,000 OIF/OEF veterans have enrolled in the Network, including over 2,000 in
Minneapolis.
• The Network is participating in a pilot program called Post Deployment Health
Reassessment Process. This is a mandatory health screening done by a private consultant.
If the veteran has a need for medical care, mental health care, social issues, etc., they are
referred to the VA. On average, if they screen 100 returning soldiers, about 30-40 will be
referred to the VA for follow up.
• Waiting lists have improved. There are now 157 veterans waiting for a first
appointment at Twin Ports. All have been offered appointments in Minneapolis. It has been
an ongoing and multi-year struggle to recruit providers in the Twin Ports area. Chippewa
Valley has no one on a waiting list.
• Outpatient Clinics: The western Wisconsin, Barron/Sawyer County community
based outpatient clinic has not yet happened, although there has been movement at the
Washington level. Proposals have gone through VA, they are out in the Congressional
comment period.
• Security issues: There was a breach of security of 26 million veterans’ records. No
health care information was released as a part of that. Significant action is being taken in
the health care part of the VA. All employees are being retrained on privacy.
• The polytrauma center in Minneapolis continues to grow. They continue to receive
patients and provide for families in the Fisher House across the street.

Ms. Oshinski said the VISN 12 Network budget is on a fairly steady course. The
Network is challenged by the integration of the closure of the Naval Hospital at Great Lakes
and bringing that workload into the VA Hospital. The workload has far outstretched the
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estimates they received from the Navy. In the first week 600 patients were treated in the
emergency department and of those about 75% were DOD people and 25% were VA people.
VISN 12 has been trying to reduce waiting lists by implementing the advanced clinic access
principles to make sure people are seen as soon as they need to be seen. They have expanded
some contracts and also tried to bring on some additional staff. That has been helpful and the
waiting list is down from 3,000 to 800 veterans waiting for their first appointment.

The prostate biopsy equipment that was identified as having unclear cleaning
instructions and therefore the potential for transmitting disease is used at the Milwaukee
VAMC. Letters of explanation were sent to 2,054 patients who received their biopsy with
the BK Transducer equipment. As of yesterday 513 of the 2,054 contacted have been in
touch with the VA; 458 have appointments scheduled, testing has been completed on 399 and
from those results, none have been identified with medical complications.

Q: What diseases could have been transmitted with the BK Transducer problem?
A: Former patients receiving the prostate test with the BK Transducer were tested for
HIV and Hepatitis B and C.

The Hines campus, working with Catholic Charities, just had a ribbon cutting for
homeless veterans housing. Another housing project is a living facility for 70 one bedroom
apartments that provides priority placement for veterans. Another project with Catholic
Charities is on the south side of Chicago for homeless veterans. The last one is the
exploration of some enhanced use possibilities on the Milwaukee campus.

Security is a tremendous concern to all. VISN 12 is redoubling its efforts to educate

staff on how and where to use information. There will be a stand down for security across
the VA on June 26th. The telephone number that was set up nationally for any veteran who
has any questions or problems about their data being compromised is—1 800 FED-INFO.
The web site is www.firstgov.gov.

Q: Do we have a mental health provider at all our CBOCS?

A: There is some sort of mental health presence—a social worker, a psychiatrist, a
psychologist, some of them may be contract.

Q: Are there waits for veterans to see mental health providers?

A: Someone could get in for an initial assessment fairly quickly. There may be
longer waits for follow up appointments.

Mr. Freedman asked both Ms. Oshinski and Mr. McDivitt to give a briefing at the
next meeting as far as what type of mental health presence there is at each of the CBOCs
within the two VISNs and what the initial wait is and the follow up visit wait.

In other public comment, several people in attendance spoke about tinnitus and
hearing loss. They felt that audiologists assume that hearing loss is either cumulative or it
started because of something specific that had to be shown at discharge from service. Now,
in Minneapolis veterans are being granted a 10% tinnitus due to documented noise exposure
but they are being denied hearing loss because it was not tested during or immediately after
service. Decisions are being rendered at the comp and pension office. Audiologists are

5
being tasked of providing the exams. If the audiologist feels it is cumulative, you will get
your claim through, if he feels it is not a cumulative issue, it had to happen right then and
there, you are being denied. Ms. Oshinski said both Networks can look at this issue more
from a system perspective rather than a case-by-case basis.

9. Secretary’s Matters
Deputy Secretary Kloster began by giving a brief update on the PTSD process action
team. Secretary Scocos tasked Mr. Kloster to look at what is being done and what could be
done in the future for PTSD. There are eleven members on the process action team that
include individuals from New Jersey, the State of Washington, representatives from the
CVSO community, Madison and Milwaukee VA medical centers, Women Veterans,
Vietnam Veterans of America, the mental health community and our Mission Welcome
Home coordinator along with a Vet Center contracted counselor. At the first meeting in
January, New Jersey and Washington reported on what they are providing. Some key points
were identified: first there is the negative stigma of a person suffering from PTSD as being
crazy; secondly, returning service members need help in reintegrating back into society; third
was to make services much more accessible. In order to move forward on those points they
worked for several months to put together a brochure entitled, “Military Families in
Transition”. The brochure provides information about mental condition, about PTSD and
other stressors that service members might be experiencing and where to get help. Mr.
Kloster is working on a web site that is specifically designed to add much more information.
His goal is to try to break down that stigma and get the individual to seek help early on in
the process. Everyone on the committee agreed that if the person who is suffering seeks
assistance early on, they can be cured or the severity of the systems will be lessened
dramatically.

Mr. Freedman said this request for a PTSD update was prompted by a conversation
that he and Ms. Marschman had in May. The GAO reported that of the veterans identified as
at-risk only 22% were being referred for treatment and 78% were not. Of all the returning
military who were evaluated, the conclusion was that only 5% were determined to be at-risk.
A previous report by the VA itself and others estimated it at 20%, a very conservative
number. Mr. Freedman said Post Traumatic Stress takes three forms—the acute variety,
chronic variety and the delayed variety. The delayed variety is the most insidious because it
is most likely to become chronic. Mr. Freedman encouraged looking beyond just the
returning military from Afghanistan and Iraq but include Persian Gulf veterans and others
since Vietnam. The condition has been known throughout the years as Shell Shock, Combat
Fatigue and Post Traumatic Stress Disorder.

Secretary Scocos presented a briefing on the 2007-09 biennial budget. Unlike the
objective in the last biennial budget which was to implement the Veterans Trust Fund
Solvency Plan-Phase One, he intends to use this budget to start building a financial
foundation for the future. To accomplish that objective we must increase general purpose
revenue funding in order to solidify the financial base of the Veterans Trust Fund in the short
term. To insure the long term Veterans Trust Fund solvency we must rebuild the Primary
Mortgage Loan portfolio using a source of funding that is sufficient to meet demand and
provide a profit margin. These are two primary objectives to be achieved in the upcoming
biennial budget. This is the direction we’ll take to ensure the long term Veterans Trust Fund

6
solvency. The Secretary plans to involve stakeholders in the planning process, and build a
strong legislative relationship to insure enactment of the plan.

The administrative savings for fiscal year 2006 is over and above $900,000 in the
administrative reduction taken in the 2005-06 biennial budget. Those savings, plus the 2006
savings total over $1.4 million. We made a number of program and funding changes for
grants programs and personal loan programs as part of the Veterans Trust Fund solvency
plan. The demand for the personal loan program has been substantially less than projected.
However, the financial impact is minimal since we are now earning nearly 5% on our cash
invested in the State of Wisconsin Investment Board as opposed to only 1% when we were
developing the solvency plan two years ago. We are about to implement a marketing
initiative within the next month that should increase the demand for the personal loans. The
Veterans Trust Fund ending cash balance for FY 06 is based on the solvency which is
projected to be $22 million. The actual ending cash balance for 2006 will be about $7
million higher than that projected. The Trust Fund, Mortgage Loan Repayment Fund and the
Homes all have substantial positive cash balances.

WDVA general budget guidance: limit administrative costs, reduce supply and
services expenditures, concentrate on cost neutral initiatives, develop long term plans for our
Veterans Homes, improve administrative and IT systems, and work for the future. The
Governor’s budget guidance: agency budgets are due September 15th based on 100% fiscal
year 2006-07 adjusted base level. Areas needing additional staffing must be met with base
reallocations.

Specific budget items: restore general purpose funding for the Veterans Museum,
shift funding for certain administrative cost to general purpose, seek federal legislation to
increase the volume cap for QVMB and state legislation that will allow us to use commercial
paper for our Primary Mortgage Loan Program. We need to right size the King Home so that
we can provide our members with safe, quality care that can be supported by the labor
market in the area. For both the Veterans Trust Fund and the Mortgage Loan Repayment
Fund we must continue to reduce administrative costs as well as reallocate resources where
needed. Finally, we’ll follow up on those items that were not passed in the legislative
session.

Budget issues: Tax breaks for veterans of all eras. Continue the commitment to
growth at our Veterans Homes. Look to establish a new veterans state cemetery in the Fox
Valley area based on federal funding. Continue the legacy of the Veterans Museum and our
goal to purchase or construct a building. Continue to memorialize the contributions of
veterans in the community. Expand the property tax credit for disabled veterans to 30%
based on current state and federal law. Relook all programs and residency rules. Relook the
issue of purchasing retirement credit for veterans. Assist veterans with a veterans
organization tax exemption. Assist the Council on Veterans Programs add more groups to its
membership. Continue the long term project of establishing a Chippewa Falls Home.

The budget timeline is as follows: the budget will be presented to the Board of
Veterans Affairs at its August meeting; final budget approval via Board member

7
teleconference in September, and 15 September budget submission to the Department of
Administration.

10. Public Input.

Mr. Crowley introduced King staff members: Linda Eskritt, a member of the group
of Directors of Nursing; and Sherry Kelly, Director of the Bureau of Social Services.

Board Chairman Hughes presented the Board of Veterans of Affairs gavel plaque to
outgoing Board Chairman Ken Wendt and thanked him for his year of leadership on the
Board.

Mr. Miskulin is on the Steering Committee for the National Symposium for Young
Veterans. He has had the opportunity to travel across the United States and ask veterans
organizations at state conventions if they could send a young veteran to the symposium in
Chicago, October 18-21. Major General Franks will be the guest speaker. There will be 55
subcommittees manned by professionals to document the needs of the young veterans and
then present those needs to the Senate and House Veterans Affairs Committees in
Washington.

11. Other Matters (Not Subject to Adoption).

Commandant Crowley said that Chet Krause has again offered a challenge for the
benefit of the bus fund. In addition to the $110,000 that he has already given, Mr. Krause
said that if we can raise $25,000 between now and August 1st he will match that with another
$25,000. Robert Morzenti donated $100 for the bus fund. Mr. Freedman presented a check
from the Dane County VVA Chapter 220 in the amount of $500 for the bus fund. A King
Veterans Home employee donated $50 to the bus fund. Mack Hughes donated $100 to the
bus fund. Pete Moran pledged $100 to the bus fund. Wally Stenavich said he just received a
letter of thanks for his $100 donation.

12. Next Meeting Date and Location

August 17 and 18 at the National Guard Armory in Spooner

13. Adjournment
It was moved by Mr. Moran, seconded by Mr. Freedman and carried on a voice vote
to adjourn the meeting at 11:15 a.m..

Mack Hughes
Chairman