The U.S. Senate voted last week to reject two legislative options to avoid the impending sequestration. With Pres. Obama and Congress unable to come to an agreement about spending cuts and revenue enhancements, spending limits automatically rolled back to levels below 2008 levels, the final year of George W. Bush's presidency. Absent of some last minute compromise, the full, long-term reduction over nine years will be nearly $1 trillion, with half of the cuts coming from defense-related spending. With the sequestration now in effect, and with so many military installations and related jobs within Alabama and Florida, credit union members throughout the two states will be feeling the cuts where it hurts the most, their wallets. During the financial crisis, as well as after natural disasters like hurricanes and tornadoes, credit unions have stepped up to help their members weather the storm and many will be doing the same during these uncertain times. Whether it's mandatory furloughs or other consequences of the sequestration, the League urges credit unions to prepare to assist their members during this uncertain time.
JetStream FCU, based in Miami Lakes, is already offering government employees short-term loans at zero-percent interest. If you plan to provide any special programs or others forms of assistance to your members or communities you serve, let the League know so that it can document the good works of Alabama and Florida credit unions. These good works are always great examples to show lawmakers how credit unions are more interested in helping their members instead of looking for ways to make a profit. The days and weeks ahead will be filled with many questions as the president and Congress attempts to come to an agreement on these issues. Just as you will be there for your members, please know the League and its staff are here to assist you should you need anything. You can forward information to LSCU VP of Communications