California: Interest-free loans to unpaid state workers won't be available

Sacramento Bee ^ | July 6, 2002 | Ed Fletcher

[John Jorsett]

Legislative employees and others who don't get paid when the state can't pass a budget have in recent years breathed easier knowing zero-interest loans from a local bank would tide them over.

But this year the Golden 1 Credit Union -- the bank of the bulk of state workers -- says it can't offer the interest-free program. Credit union officials say the new possibility that nearly all state workers won't be paid in full until the budget is signed makes it financially risky to do so.

[John Jorsett]

Looks like a budget crisis this time is going to pinch.

[Ernest_at_the_Beach]

Now that is good news, it seems to me. Make their supporters feel it in the pocketbook.

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[Texas_Longhorn]

Just like in old Russia!

[Lockbox]

Governor Le Petomane: Holy underware! Sheriff murdered! Innocent women and children blown to bits! We've got to protect our phony baloney jobs, gentlemen. We must do something about this, immediately, immediately, immediately!

Reporters, Taggart and the Governor: Harrumph! Harrumph! Harrumph! Harrumph! Harrumph!

Governor: I didn't get a 'harrumph' out of that guy!

Lamarr: Give the governor a 'harrumph!'

Reporter: Harrumph! Governor: You watch your ass.

[snopercod]

ROFL! Perfect!

[jdontom]

Golden 1 officials said the bank borrows money at 3.5 percent and would thus lose money on each transaction. They said the policy is necessary because they might have to cover the payroll of the 100,000 state workers who are Golden 1 members.

I know a lot of state workers who work for EDD in Sac. They say if the budget dose not pass they will not work for min. wage.

Too bad I can't borrow @3.5%, what would make these State workers happy, Time off with pay until budget is setteled. Crybabys!

[John Jorsett]

I know a lot of state workers who work for EDD in Sac. They say if the budget dose not pass they will not work for min. wage.

That might not be a sound strategy. When the budget is finally signed, I expect the legislature to pass a bill to make up for any shortfall that arose during the impass. If those folks simply take the time off, I wouldn't expect them to be covered.

[Gophack]

OK, I'm tipping my hand here. I am one of those evil state employees. I will tell you that state employees screwed themselves in 1992 when they sued Pete Wilson over IOUs instead of paychecks. THe court ruled that IOUs couldn't be offered, so we got nothing in 1993. Fortunately, with the Golden 1, we got very, very short-term loans -- in essense, those of us with direct deposit could borrow our paycheck, and when it was deposited by the state, the bank took it instead.

Don't go ragging on state employees. We're like all of you, we have mortgages and school bills and car payments. If I don't get paid on the 15th, I have automatic withdrawls that don't get paid, and I get screwed.

HOWEVER, I'm not advocating that they pass a budget just so I can get paid. I think the budget sucks and we should stand firm against ALL tax increases. But don't rag on state employees ... we're not the ones who created this mess (at least, I'm not!)