In the state of California, where a state budget has yet to be passed, state employees are facing a huge pay cut. Until a budget is passed, the governor of California has asked that all salaries for state employees be cut to the federal minimum wage. Some banks and credit unions are offering a online cash loans to these employees, including no-interest installment payday loans.
Cutting employee pay in California
At the beginning of the California fiscal year on July 1, the state had passed no official spending budget. Without the budget in place, the state of California is facing a $ 19.1 billion spending budget deficit. The Governor of California, Arnold Schwarzenegger, has ordered that every state employee have their salaries reduced until federal minimum wage until a budget is really passed. The state budgeting and payroll system, though, needs an overhaul and state Controller John Chiang said the reduction would not be possible.
Banks and credit unions offer employee “impasse” loans
Several large banks and small credit unions, including Wells Fargo and Bank of America, are offering no fax money now loans called “budget impasse loans”. There’s no credit check and no interest on these “impasse” loans. Instead, state employees are extended extra credit or cash money to make up the gap. When a state spending budget is passed, eventually, the employees will get a retroactive payment they can use to pay off these loans.
Qualifying for impasse loans
Banks are not quickly giving employees who need to get a personnel loans these impasse loans – there are qualification criteria. The financial institution has to have an existing account with the employee. California has only managed to pass a balanced budget on time in ten of the last 34 years, so banks have had a while to come up with products for state employees.
