The State Worker: FPPC says interest-free loans for state workers are OK

The State Worker

Chronicling civil-service life for California state workers

July 19, 2010

FPPC says interest-free loans for state workers are OK

Bee Capitol Bureau colleague Torey Van Oot reported that the Fair Political Practices Commission on Friday issued an advice letter to the Senate Banking, Finance & Insurance Committee that employees do not have to report no-interest budget impasse loans as gifts or income on their statements of economic interests -- as long as the loans are offered to all state employees who are members of the institutions.

FPPC drew up the letter after concerns arose in some quarters that at least one bank -- one of the many that didn't announce a no-interest state worker loan program earlier this month -- was telling state workers that such loans had to be reported.

For now, the matter is moot except for legislative employees, who get no pay until a budget is approved. Judge Patrick Marlette's decision on Friday means that the state won't withhold pay to the federal minimum for about 200,000 state employees for this month or next while litigation plays out in Sacramento Superior Court.

Still, we recommend you check out Torey's post on our sister blog, Capitol Alert, for more info and a link to the FPPC advice letter.

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