The states dont pay for it. The Fed gov does. All records on individuals are kept in the DoD repository in St Louis.
If the states were funding the Guard, there would be an oath of allegiance to the state.
The oath taken by the NG folks is the same as the Active Duty; they are under the UCMJ in addition to local law jurisdiction while on drills.
Oh baloney. You were never in the NG or you wouldn't be posting this crap. Yes, when the feds nationalize the NG for out of state missions they reimburse the states for the extra costs. That is what delayed the California mobilization. The Arnie didn't like the money offered to cover the cost.