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News Now

CU System
Official lauds CUs help for state workers in budget limbo
SACRAMENTO, Calif. (7/23/08)--The Golden 1 CU was thanked by a California official for spearheading a loan program to help state government workers, who are going without paychecks while waiting for the state’s budget to be adopted. June 15 was the last payday not only for California politicians, but also for committee secretaries, security guards, legislative aides and vendors. They are waiting for an overdue budget to be approved by the state legislature and signed by Gov. Arnold Schwarzenegger (Ventura County Star July 22). The Golden 1, a $6.586 billion asset, Sacramento-based credit union, is one of three financial institutions--Wells Fargo and Bank of America are the other two--that provide loans to state legislative staff almost every July when budgets need to be renewed. Usually loans are issued with 0% interest. To qualify, borrowers must have direct deposit on their accounts. The Golden 1 was “the harbinger of the loan program,” according to Tony Beard Jr., California Senate sergeant-at-arms. He said he wanted to be the first to thank the credit union for its service to members of the state legislative staff over the past years. Almost every year, California, like many states, has to operate when one year’s budget expires and the next year’s has yet to be approved. California credit unions have a history of helping people through state budget limbos. In years past, Schools Financial CU, a $1.131 billion asset, Sacramento-based credit union, has offered zero-interest loans to state workers needing financial assistance during a budget impasse (News Now July 5, 2005). Years ago, while mired in a budget crisis, Arrowhead CU, a $1.064 billion asset, San Bernardino, Calif.-based credit union, allowed public nonprofit agencies to borrow up to a $100,000 from Arrowhead to continue operations until the state budget was adopted (News Now July 17, 2003).
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