SHELTON, Wash.-One person says that CUNA's "Unite for Good" campaign has already achieved some of what it set out to do, as three Washington state CUs have joined together to assist members effected by the federal sequester.
In late March, Peninsula Community FCU, Connection CU and Kitsap CU partnered to host a town hall-style meeting to show that the three credit unions-along with other service providers in the area-"were there in a unified way to support (the community) and provide a network of resources," said Jim Morrell, CEO at 17,000-member, $150-million Peninsula CU.
While many are still waiting for confirmation on when federal job furloughs will begin, Morrell explained that one factor complicating the matter for many in the region is that not only are hours being cut by furloughs, but overtime pay has been cut as well. Some who had been working 60 hour weeks, he said, are preparing to have that cut to 32 hours per week.
"Not many people can endure that kind of reduction in household income," he said, adding that many subcontractors at the local naval base have stopped working because contracts were not approved, and many who were poised to be hired have not been. On top of that, local coffee shops, mom-and-pop restaurants and other businesses have begun to see a reduction in customers.
All three CUs are offering different options for members effected by the sequester, and Peninsula is offering penalty-free withdrawals on CDs, as well as debt consolidation loans and skip-a-payment options. One of the features of the town hall event, said Morrell, was that it "plugged into a larger network of community resources," such as Puget Sound Energy, a local electric company that offered to help consumers analyze their electric bills and look for ways to save money. Wave Cable volunteered to help people look for ways to reduce their cable bill, and CostCo-which provided food for the event-also brought information about part-time employment opportunities for local furloughed workers.
Counselors On Hand
Balance Financial Counselors and American Financial Solutions were also on hand to help discuss budgeting solutions. Morrell said those sorts of services were particularly important, because with so many people maxing out their overtime prior to sequestration, money had not previously been an issue for some.
"They had never had to budget before," said Morrell. "They didn't know how to think about these things because they had never had to do it."
The three CUs estimate that more than 16,000 local Department of Defense civilian employees, contractors, their families and others could be affected by sequestration-mandated budget cuts. Morrell said that about 300 people attended the event, many of whom reported that they were there on behalf of their coworkers and planned to pass information from the meeting on to others.
"I think there's a multiplier," he said. "For every person that was there, they're bringing information back to seven others. So that's 2,100 folks. And then you get it out into the media and share that, and that increases it further."
Morrell said that this was the first time the three CUs have worked together this way, noting that the on "Unite For Good" slogan is applicable. "I can certainly apply that theme to what we're trying to do as a group for our community. The synergy that's been created with everybody involved was just incredible to see."
