Plan would offer aid to unpaid workers
Gov. Lamont offers state-backed loans to federal employees
“Federal workers – regardless of their employment classification – are hurting.”
Gov. Ned Lamont
HARTFORD — Gov. Ned Lamont announced a plan Tuesday that would provide interest-free bank loans to federal workers who aren’t eligible for unemployment checks during the government shutdown.
Details of the plan, which requires legislative approval, have not been worked out, but Lamont said the public-private partnership with Webster Bank will provide loans guaranteed by the state. The Connecticut Bankers Association supports the proposal, which may add more banks in coming days. Lamont said he would work closely with the General Assembly to win approval for his plan.
“Federal workers — regardless of their employment classification — are hurting while the federal government is shut down,” Lamont said. “This is particularly true for those employees who must still report to work and incur the cost of commuting and other work-related costs without receiving a paycheck. The action I am announcing today will help federal workers affected by the shutdown understand the benefits to which they are entitled and pay the bills that they and their families are
incurring.’’
Lamont said he was stunned to learn that the unpaid federal employees, including environmental administrators, air traffic controllers and airport security workers, are not eligible for benefits. About 80 percent of the 1,500 federal workers in Connecticut would be eligible for the interest-free, state-backed bank loans because they have been classified as “essential’’ workers who cannot currently receive unemployment compensation from the state.
The shutdown, now the longest in U.S. history, was in its 24th day Tuesday.
On short notice, Lamont appeared at a hastily arranged news conference at 5 p.m. at the state Capitol with Webster Bank chief executive officer John R. Ciulla at his side.
“Webster Bank is pleased to work with the state to provide assistance to essential workers during this time of hardship,” Ciulla said. “Webster has a long history of supporting Connecticut and will work alongside other banks to assist residents during this difficult period.”
A preliminary analysis is that the salaries of about 1,200 eligible federal employees could be $5 million per pay cycle, Lamont said.
During the campaign and after winning the election in November, Lamont said he would bring a sharply different perspective to state government by being the first governor in decades to create a business and spend his entire professional career in the business world. With less than one week on the job, Lamont immediately asked the business community to step up during the partial government shutdown.
“I think Connecticut is a leader here, and I want to be a leader here,” Lamont told reporters. “I want to show how we can work collaboratively with the private sector to make this work, and I’d like to think that other states across the country will use this as a model.”
Lamont’s fast action – and willingness to work closely with business leaders – drew the attention of state lawmakers, including Republicans. Lamont must work with the new legislature on an emergency-certified bill to allow the bank loans to be backed by the state.
“The proposed temporary support is a clever and unique way to leverage a partnership to help those in need,’’ said Senate Republican leader Len Fasano, of North Haven. “I look forward to reviewing the details of this proposal and am hopeful that we will see necessary protections to ensure taxpayer funds are protected at the same time assistance is provided to the workers who are most in need.”
The state will guarantee the bank loans, but Lamont and Ciulla did not have full details on how that would work. They said their discussions started only at about noon Tuesday, and they announced the arrangement only five hours later. Ciulla said the move was an example of “how quickly we can move to solve problems when the administra- tion works closely with the business community.”
The issue was initially discussed Monday by U.S. Sen. Richard Blumenthal at Bradley International Airport in Windsor Locks as he stood with workers who have not been paid since various departments in the federal government were shut down. About 40 air traffic controllers and 150 transportation security agents, who check passengers and baggage, at Bradley have not been paid.
Under the nuances of the system, federal workers who are furloughed and told not to come to work are eligible for unemployment compensation. But those who come to work and then are not paid are not eligible for benefits.
Blumenthal urged Lamont and state legislators to change the law so that the workers would qualify.
“I will fully support Governor Lamont’s efforts to reform state law and urge expeditious approval by the U.S. Department of Labor of any waiver to grant unemployment compensation to these impacted workers,” Blumenthal said. “Make no mistake, these employees deserve a paycheck for the vital services they are providing to the American public. So long as the president’s shutdown continues, the least we can do is ensure impacted workers have full access to unemployment compensation to pay their mounting bills.”
At the same time that the bank loans will be made, state Sen. Cathy Osten, of Sprague, has proposed a bill that would permit the state labor department to help the unpaid federal workers under the state’s unemployment compensation fund. After the shutdown ends and employees are paid their accumulated wages, they would then reimburse the state fund. Osten said she was seeking to essentially achieve the same goal as Lamont but in a different fashion.
“A lot of federal employees who are not being paid are public safety workers, putting their lives on the line in prisons or at airport security,” Osten said. “These are the jobs that protect us day in and day out, and they shouldn’t be treated with disrespect.’’