Locals Stepped Up to Help Furloughed Federal Employees
When gridlock in Washington D.C. shut down the federal government for 35 days, federal employees found themselves without paychecks. While federal government employees are generally prohibited, due to legal and ethical concerns, from accepting donations, state officials and several non-profit support organizations found a way to step up and provide support for those employees affected the federal government shutdown.
Federal employees are now back at work after a Jan. 25 deal to end the shutdown for at least three weeks, but those affected by the shutdown said that the effects may continue to be felt for a week or more.
In Guilford, the community rallied to support federal workers living in town. Local businesses offered free or reduced meals and services and resident helped to collect and distribute donations. A Facebook page, Guilford Cares, was used to share information this residents. One of the Guilford Cares principal organizers, Steve Spurrell, said the community raised almost $10,000 in one week to help furloughed employees.
The Guilford Police Department was the collection spot for most donations and the department thanked the community for its generosity in a Facebook post.
“When members of our community were facing financial difficulties due to the government shutdown...Guilford stepped up in a BIG way. The Guilford Cares group jumped into action and identified the needs in Guilford and worked with the town to get donation locations set up...We were more than excited to jump at the offer to help.
“Over the last few days, you donated thousands of dollars in gift cards, food and pet food...to grateful families that live in our community,” the post continued. “From the day we first posted the need, there was a steady flow of people in the lobby looking to drop off items. It was inspiring to see [and] inspiring to be a part of...We don’t know what will happen in the next few weeks, but thankfully we are all set with the donations for our furloughed community members at this time.”
Emergency Legislation Passed
In Hartford, legislators did their part to try to help furloughed employees as well. On Jan. 22, the legislature passed an emergency measure that creates an interest-free loan program and gives municipalities the ability to establish tax-deferment programs for affected federal employees.
The emergency bill passed by wide margins. The House of Representatives passed the bill 127-15 and the Senate passed the bill 32-1. Governor Ned Lamont signed the legislation shortly thereafter.
The bill is written specifically to address this shutdown only and the estimated 1,500 federal employees across the state currently affected. The loan program allows federal workers, both essential and non-essential, to receive no-interest loans throughout the shutdown thanks to a partnership between the State of Connecticut and private banks and credit unions.
“This unique and innovative partnership will help federal workers access the funding necessary to pay their bills and put food on the table during the shutdown,” said Lamont in a statement. “Its quick, bipartisan approval by the General Assembly is an example of what we can accomplish when we partner with the private sector and come together as leaders, rather than Democrats or Republicans.”
The state will guarantee 10 percent of the amount loaned and eligible employees can apply for a loan up to $5,000 or the regular take-home monthly pay of that particular employee. The loan stays interest free for 270 days.
The bill passed in what might be record time. The bill was proposed, debated, voted, and signed in under four hours. State Representative Noreen Kokoruda (R-101) said some people were not happy that the bill skipped the normal committee process, but that wasn’t a popular opinion.
“It’s an emergency,” she said. “You have these essential workers who have to go to work and are not getting paid. Right now if you are essential and you have to go to work, even though you are not getting paid, you can’t file for unemployment.”
State Representative Sean Scanlon (D-98) said that time was of the essence for this bill. Scanlon said he was pleased to see the General Assembly come together to support “the innocent victims caught in the middle of a politically motivated crisis.”
“I think this is a great bipartisan way to start off the new term,” he said. “We got together as Democrats and Republicans and showed how different we are here in Connecticut than Washington D.C where they can’t get anything done. Within the span of four hours on a mostly unanimous basis, we did something that is going to help thousands of people in our state.”
The bill also allows municipalities to set up tax deferment programs. Taxes are due Feb. 1 and late payment immediately results in an 18 percent penalty. Kokoruda said a constituent reached out and had asked if there was any way to defer that penalty for those federal employees who are not being paid.
“A local guy picks up the phone, makes a call, and this gets added to the bill,” she said. “That wouldn’t have happened without him because no one else picked up on that.”
State law determines the interest rate penalty and to date, towns haven’t had the ability to defer or change that penalty. State Representative Vincent Candelora (R-86) said giving municipalities the ability to offer tax deferment for this shutdown is a step in the right direction.
“I think the interest rate on delinquent taxes is draconian and I think it should be lowered across the board and this is an exact reason why,” he said. “I am glad that towns would now have the ability to suspend the interest for these individuals who are caught during this hard time.”
Each town and/or special taxing district will have to decide if it wants to adopt a tax deferment program for federal workers during this shutdown individually in the coming days. The Guilford Board of Selectmen (BOS) voted unanimously on Jan. 24 to adopt such a program.
What Happens Now
The federal government has been reopened, though the threat of another shutdown in three weeks time still hangs overhead. Candelora said the bill that was signed into law refers to federal fiscal year 2019 so if the federal government shuts down again on Feb. 15, the loan program will still apply.
“The law is intact to protect workers should that happen,” he said.