THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, January 5, 1996 TAG: 9601050636
SECTION: FRONT PAGE: A7 EDITION: FINAL
SOURCE: BY BILL SIZEMORE, STAFF WRITER
DATELINE: HAMPTON LENGTH: Long : 108 lines
Anger and exasperation were palpable Thursday outside the offices of two unions representing 1,150 federal employees at the Department of Veterans Affairs Medical Center.
About 75 workers marched in a circle in the brisk noon air, many carrying signs with pointed messages:
``Congress is getting paid for a job undone.''
``Furlough Newt.''
``We should not be used as hostages.''
The purpose of the gathering was to allow the center's employees, who, because of the federal budget impasse, are working with no guarantee of a paycheck, to vent their frustrations to the community and the media.
Several veterans joined the marching workers to show their support.
Morale at the center, which provides medical care to veterans from all over Hampton Roads, skidded to a new low Tuesday when workers received paychecks half their normal size, reflecting only time worked before the partial government shutdown began three weeks ago.
The mood is growing still darker as workers face the prospect of no paycheck at all.
``It's gone further than low morale,'' said Hanna Harris, a registered nurse and president of American Federation of Government Employees Local 2328. ``It's a matter of survival now.
``We don't have time to sit around and think about how low our morale is. We're trying to feed our families.''
Shirley Zellers, another registered nurse at the center, feels buffeted from all sides by the budget crisis.
Her husband works at NASA Langley Research Center. NASA, like the VA, has been left with no funds by the budget impasse, so the Zellers have suddenly gone from two incomes to none at a time when their daughter needs money for college tuition and books.
Zellers has always been proud of her impeccable credit record. Now, through no fault of her own, she is unable to meet her obligations.
``I used to be proud to say I was a federal employee,'' she said.
``Now I'm not. I'm embarrassed. A lot of innocent people are getting hurt.
``This is not fun and games anymore. We really are getting in trouble here.''
Zellers was infuriated when she heard that some House Republicans had proposed a congressional recess with the budget impasse still unresolved.
``People are getting angry now,'' she said. ``They don't know how angry we're going to get, because our families are being affected now.''
So far, said William Wright, director of the Hampton center, patient care has been unaffected by the shutdown.
But the VA's spending authority ran out at midnight Wednesday. Wright said that means there is now no money to buy medicine and other supplies.
``We have about a two-week supply on hand,'' he said. ``Beyond that, we'll just have to depend on the good faith of our vendors.''
Providing supplies on credit could prove to be a burden, particularly for small suppliers operating on a thin margin, Wright conceded.
And if the center is unable to meet its next $2 million two-week payroll, he added, the ripple effects will be felt throughout Hampton Roads. ILLUSTRATION: Graphic
LOAN HELP: First Union Corp. said Thursday that it will extend
the terms of its existing loans to furloughed federal employees.
The Charlotte-based banking company also said it will make
available unsecured loans for as much as $5,000 to these workers.
First Union's announcement came one day after rival NationsBank
Corp. said it will forgo collection on its consumer loans to
furloughed workers. NationsBank also said it will provide short-term
loans to these workers at below-market interest rates.
Like NationsBank, First Union said furloughed employees with
accounts in good standing can get payment extensions for as long as
30 days. If the furloughs continue, it will consider additional
30-day extensions, First Union said.
The company, which operates in Hampton Roads, said it will not
charge any fees for the loan extensions. It also said that delayed
payments will not have a negative impact on government employees'
credit records.
First Union said it will charge 2 percentage points below the
existing guidelines for the emergency loans and will make the funds
available for as long as 36 months. The first repayment can be
deferred for as long as 60 days after the loan is issued, the
company said.
Furloughed workers who want to use the loan program can apply in
any First Union branch or call 1-800-701-4881, the banking company
said.
TAX HELP: The two largest tax services in Hampton Roads said
Thursday they will cut fees for preparing income tax returns of
government employees who have been furloughed or who are working
without pay because of the federal budget impasse.
Jackson Hewitt Inc., the nation's second-largest service, kicked
off the program. The Virginia Beach-based company said it will offer
a 25 percent discount on the fees to affected customers nationwide.
H&R Block's Hampton Roads franchise later said it would match the
fee cuts. But Kansas City, Mo.-based Block, the largest tax service,
hasn't yet decided whether to offer the cuts in other parts of the
country.
UTILITIES HELP: Telephone and electric companies said Thursday
that they'll make special arrangements with Virginia customers who
can't pay their bills because of the budget snarl. Bell Atlantic
Corp., the state's largest local phone company, and Virginia Power,
the state's largest electric utility, said they will not suspend
service for federal employees who regularly pay their bills - as
long as the affected customers call them to make payment
arrangements. by CNB