Budget Cuts Run Deep

Hanscom Federal Credit Union shares best practices for addressing the needs of members affected by furloughs and budget cuts.

 
 

Credit unions turned out an impressive showing in the run up to the budget compromise. From non-interest loans to skip-a-payment offers, cooperatives demonstrated they were willing and able to provide members with short-term financial boosts during a time of crisis.

 

Preparing for a government shutdown is nothing new. From 1981 to 1995, the government closed a total of nine times, each one lasting no longer than three days. In the winter of 1995, the longest shutdown in history lasted 21 days (Dec. 15, 1995 - Jan. 6, 1996). In this context, all this debt talk feels a little like déjà vu like déjà vu.

Fortunately for credit union members across the country, many cooperatives have contingency plans they can dust off and repurpose for a rainy day.

“A little planning can take you a long way if you repurpose it correctly,” says Scott Post, senior vice president of strategy and delivery for Hanscom Federal Credit Union ($919.5M, Hanscom AFB, MA). Last week, Hanscom offered a bit of insight to members of Callahan & Associates’ Leadership program regarding how his credit union plans for the worst.

Next year, a new legislative committee will decide where to cut $1.2 trillion in spending. These spending cuts will be painful for many members. How will you respond?

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Aug. 8, 2011


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