Tuesday, June 30, 2009
With the legal budget deadline now hours away, state employees have begun applying for no interest loans, in case they miss paychecks during prolonged negotiations. The Pennsylvania State Employees Credit Union is offering the loans for commonwealth workers who are members but there is a catch to the great rate. After a budget is signed into law, workers will have sixty days to repay the loan. If they don’t the interest rate jumps from zero to 3.9 percent. State workers will stop being paid tomorrow and will not see a paycheck until a deal is in place. However, they are required by law to keep showing up at work. PSECU members will be able to withdraw up to a thousand dollars per paycheck period. Department of Community and Economic Development assistant counsel Matthew Speicher told reporters he signed up for the program over the phone, calling it an "easy process." “I wanted to be ready for the impending impasse. I think it might go on two to six weeks, so I wanted to be ready just in case we needed the money” says Speicher. He says about half of the people he works with have signed up for the program.