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 additional 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 back these loans.
Getting an impasse loan
Employees who have to get a personal loan aren’t quickly qualifying for zero-interest loans from these banks. First, the employee has to have an existing account with the financial institution. Given that California has only passed a balanced spending budget by the beginning of the fiscal year in 10 of the last 34 years, it is not surprising that numerous banks have created solutions to help employees that are left within the dust.
