Hartford Courant

Plan would offer aid to unpaid workers

Gov. Lamont offers state-backed loans to federal employees

- By Christophe­r Keating

“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.’’

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