Because California has not yet passed a fiscal-year spending budget, all state employees are facing a cut in their paycheck. The governor has asked that until a spending budget is passed, all employees have their pay cut to minimum wage. Some banks and credit unions are offering a instant money to these employees, including no-interest installment payday loans.
Article resource: California state employees offered low cost loan opportunities by Personal Money Store
California's pay cut plan
The state of California hadn't passed a budget when their fiscal year started on July 1. Without actually passing a budget, California is going to have a $ 19.1 billion budget deficit . Governor Arnold Schwarzenegger ordered that all 200,000 state employees have their wages reduced to minimum wage until a budget is passed. The reduction in pay, though, may or may not be possible because, as outlined by John Chaing, the system needs a serious overhaul.
“Impasse” loans offered
Bank of The United States and Wells Fargo have started offering payday loans no fax called “budget impasse” products. These loans are offered for no interest and no credit check. Instead, state employees are extended additional credit or cash money to make up the gap. When the state spending budget is passed, employees can be given a retroactive payment that they can use to settle these impasse loans.
How California employees qualify for impasse loans
California state employees who have to get a personal loans to cover the spending budget impasse do not quickly qualify for these zero-interest loans. Instead, the state employees must already have an account with the bank or credit union. Given that California has only passed a balanced 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.
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