Tag Archives: budget

Currently Serving and Retirees – Pay Cuts Affect Us All

Balance-Budget-on-Backs-(2)With the proposed Ryan-Murray budget deal being voted on this week, military retirees are being urged to let their Congressional Members know how the Cost-of-Living-Adjustments (COLA) cap on military retired pay will adversely affect them over the course of their retirement. But this is only one part of the Congressional attack on compensation aimed at both the currently-serving and retirees.

Let’s not forget that the other deal announced recently — the National Defense Authorization Act for Fiscal Year 2014 (NDAA) — inflicts some pay pain on those currently-serving, which will translate to more pain when they retire. Our active duty service members should be getting a 1.8 percent pay raise, but the NDAA provides only a 1 percent raise.

And, oh by the way, in 2014, retirees will receive their full 1.7 percent COLA. The phase-in of the reduction in the COLA for retirees ages 62 and under, called for in the budget bill, doesn’t start until 2015 and will happen over 3 years. Projections on active duty pay call for smaller raises than the civilian wage increase during that time. So even if the phase-in of the reduced retired pay goes into effect, those currently serving will probably receive a few smaller pay increases than retirees. And remember, smaller active duty pay raises translate into lower retiree pay when that active duty member retires.

Congressional decisions are spreading the pain to all military people in a way disproportionate to the rest of the Nation. We firmly believe the changes in pay and retirement should not have been done piecemeal by Congress without waiting for the recommendations of the Military Compensation and Retirement Modernization Commission, established to study compensation and retirement.

We can’t talk about the harm to one group of our community without talking about the damage long term to the folks serving now if they’re denied the pay raises equal to civilian wage growth. The families of our future retirees are getting a double whammy–one punch is the lower pay raise now and the other is the lower retiree COLAs in the future. At least there will be a catch-up for the retirees when they turn 62. There’s no catch-up on active duty pay losses.

Let’s make our leaders understand the effects these deals AND continued sequestration are having on all military people.

Let Congress know that budgets should not be balanced on the backs of those who have already given so much. Despite the urgency on the budget bill, we need to focus on the effects to entire life cycle of service – from currently serving to retired. Write your Members of Congress and let them know how you feel.

And, on another note, with these hits to military families’ wallets, commissary savings become even more important! We continue to urge the Department of Defense to preserve the commissary system and the savings it provides.

How Are Military Families Doing? What Researchers Are Discovering.Posted by Joyce Wessel Raezer, Executive Director

How to Manage Spending and Stress During the Holidays

budgeting-for-holidaysA few weeks ago, we posted an article about managing your money as the holidays approach. Nothing is worse than the reality check of opening the credit card bills from all the overspending you did during the holidays. And here we thought putting on those few ‘holiday pounds’ was the only problem! The good news is that it’s never too soon to start being smart with your money. It’s never too late, either. So, let’s get down to business!

Consumer Finance Protection Bureau recommends that you avoid holiday overspending by:

Making a spending plan. Be honest about what you can really spend. Not everyone needs a tangible gift purchased with money and people often appreciate things that don’t have a price tag. So, make a plan and work within that plan. Get creative: offer childcare, house cleaning, make dinner, or get crafty!

Make a list of gift recipients. Plan, plan, plan! If you make your list early, you have time to search for good deals instead of settling for what is available at the last minute. If your list seems long (is every member of your extended family on the list?), consider doing a drawing of names or make a family game where gifts are anonymous, like “Secret Santa”. This can be a great opportunity to bond and minimize cost when your recipients have common connections. If your budget is tight, but you feel like you have to purchase gifts, try to prioritize who needs something purchased instead of something homemade. Shop online and compare prices if you have specific gifts in mind.

Keep track of what you spend. If you save in one area, you can shift that savings to other areas of your holiday gift budget! Don’t forget to look for coupons. Many paper coupons can be redeemed online and vice versa. Consider putting any money saved into a retirement or savings account!

Avoid impulse purchases. Shop online to avoid the temptation of shelves crowded with overpriced stocking-stuffers and last minute purchases that you didn’t plan on. When you are in a store, stick with your list! Think twice about window shopping, the occasional splurge, or spoiling moment in an effort to keep more money in your wallet until after the holidays when you are back in a predictable spending routine.

Leave your credit cards at home. Using a credit card almost immediately busts your budget, or at least allows for too much temptation. Make a budget that fits within what you can afford in cash. If you will be purchasing on credit, make sure you have a pay-off plan that you can stick to. You can even save a little extra money elsewhere by making a creative spending plan in advance, like purchasing gift cards for an expensive item when those gift cards offer savings on something, like gasoline. Many stores, like AAFES, offer free or reduced fee layaway prior to Christmas. Always check your local installation exchange to see if they offer a layaway program.

Check details when purchasing gift cards. Some gift cards have special use requirements, like deadlines by which the card expires or fees for not using them within a specified amount of time. This impacts the useable value of the card, so check in advance for full redemption value.

There are lots of great ideas out there about ways to save, but I love this one from Military Saves: start a savings plan in January 2014 to budget for your gifts for next year! This is the perfect time to analyze how you spend during the holidays and put a realistic long term plan together that will have less of an impact on your pocketbook and relieve some of your financial stress.

What tips and tricks do you use for holiday spending and budgeting?

brookePosted by Brooke Goldberg, Government Relations Deputy Director

The Lesser of Many Evils

govt-shutdownMy, how expectations have fallen in recent years!! When I started working for the National Military Family Association in the mid-1990s (yes, I’m old and feeling older by the minute), I learned about budget cycles, fiscal years, and the requirement that appropriations bills for a new fiscal year should be signed into law BEFORE THE YEAR STARTED on October 1. I was also told that, even if Congress didn’t get all the appropriations bills passed on time, the expectation was that Members of the House of Representatives and Senate would never want to put our military at risk by failing to provide the authority and the money on time to protect our national security.

Why is passing a Defense budget on time so important? If an appropriations bill isn’t passed by the start of a new Fiscal Year (FY), the Department of Defense (DoD) must face the possibility of several evils. One evil is a Continuing Resolution (CR), which funds the government at the previous year’s level for a certain period of time. Continuing Resolutions are bad because they don’t account for different priorities in the current year and so too much money might be available for things that aren’t needed anymore, but not enough for current needs. Also, the money is only allocated for the period covered by the Continuing Resolution. That means agencies only get a portion of their whole budget and no long-term projects, such as construction, can be started.

Contrary to the expectations we used to have about DoD getting its funding bill on time, DoD has had to operate under a CR for at least part of the year for all but one of the last five years. FY 2010 was the last time DoD had its appropriations at the beginning of the year. This year, DoD didn’t get an appropriations until March 26—halfway through the fiscal year!

I’ve talked a lot in this space about the evils of sequestration—and I’ve heard plenty from military families about its effects. Another Continuing Resolution will continue sequestration AND make it more difficult for DoD to put limited money where it’s most needed.

But as bad as the evils of Continuing Resolutions and sequestration are, we’re coming close to a situation where a CR is actually the lesser evil. If Congress can’t pass—and the President sign—a CR by midnight, September 30, the government will shut down. The military hasn’t been affected by a shutdown in a while—it could operate during the last one in 1996 because its funding bill had passed. But, we’ve come close to a shutdown in recent years and military families are understandably concerned about what might happen next week. How did we get in a situation where temporary funding—the lesser of many evils—is seen as the best our Nation’s leaders can do?

We’re gathering information about what resources will be available for military families in case of a government shutdown. Military families want to know whether their service member will be paid on time and where they will go for help if they don’t get paid. We’re asking whether military hospitals will be open or whether their civilian doctors will still treat TRICARE patients. Military families want to know whether their commissary, child care facility, or DoD school will be open. Be sure to check our Government Shutdown web page for regular updates and resources.

What do you want to know about a shutdown? We’ll ask and keep you informed.

How Are Military Families Doing? What Researchers Are Discovering.Posted by Joyce Wessel Raezer, Executive Director

On the Hill: Calling on Congress to end sequestration

Morning-Brief1Last week, on September 12, the National Military Family Association was joined by more than fifty staff, Board members, Volunteers and dedicated partners in our fight to #EndSequestration.

The #EndSequestration Team met at our headquarters in Alexandria, VA where they received matching t-shirts, a bag containing our freshly printed books, and receive a brief on the day’s events. Donning bright blue t-shirts with the words “#EndSequestration” on the back, the team boarded a bus and headed to Capitol Hill.

Following in the footsteps of our founding mothers, we divided into teams and headed to meet with all 535 Members of Congress to hand deliver our #EndSequestration book. We met with several Members of Congress, military and defense legislative assistants, and other staffers along the way.

Rep-Bill-Keating

The message was clear – the short-term impact of sequestration hurts military families, yet the long term consequences will be catastrophic.

Our #EndSequestration team reflected on their experiences of the day and shared the following:

Chairman of the Board Mary Scott, an Army spouse and mother of six children, who have all served in the military, stated , “I am very proud of [our] efforts in organizing this event. If we are who we say we are – strong advocates for military families – we must be willing to present their needs and challenges directly to those who can make a difference. This effort, on behalf of those we serve, delivered a powerful message in a personal way. I was very proud to introduce myself as a military family member and a representative of the National Military Family Association.”

Association volunteer Alicia McAfee said her first-hand experience advocating for military families left her optimistic that the unraveling yellow ribbon of support can be restored to its full potential.

rep-boehner-office-2

“Every office we visited was very welcoming. I definitely believe our voices were heard. I’m optimistic that the unraveling yellow ribbon of support can be restored to its full potential. It was encouraging to have other people on the Hill comment on our t-shirts and thank us for our efforts to end sequestration,” McAfee said after arriving back at our headquarters on Thursday.

After three dedicated hours of storming the Hill, we headed back to the bus to return to our headquarters. Some felt empowered; others hoped they did enough to get our message across. But all were appreciative to have this direct experience with the legislative process. This is the very foundation on which our government operates – by the people, for the people. And change doesn’t happen unless the people make their voices heard.

Delivering the albums to Congress is the beginning of the battle. We know we raised awareness about the concerns military families have about the long-term impact of sequestration. We will continue to demand that Congress keep their promises to our service members and their families by working to #EndSequestration.

Together we’re stronger.

shannonPosted by Shannon Sebastian, Online Engagement Manager

Association Takes the #EndSequestration Case to Congress

Storm-Capitol-HillToday, September 12, more than fifty National Military Family Association staff, Board members, Volunteers, and friends head to Capitol Hill to let our elected leaders know how sequestration is hurting our Nation’s military families. Last month, we asked families to send us photos and stories highlighting the difficulties they’ve faced as they’ve experienced sequestration in their communities.

Military families from all over the world showed us sequestration means more difficulty in getting care for their sick child, delays in arranging moves or in processing changes in pay, and reduced training time for the service member. As they encountered these hardships, military families also shared how much their service members’ ability to protect our Nation is now at risk.

We compiled families’ sequestration photos and stories into a photo album that we’re delivering to every Member of Congress today.

Our message is simple: The arbitrary, across-the-board cuts caused by sequestration are hurting military families, their communities, and service members’ readiness to perform their mission. Congress must end sequestration!

Military families are taxpayers, too. They understand the Department of Defense must share in efforts to cut government spending. BUT, those cuts must be made in a balanced way that does not impose a disproportionate burden on our military and the people who serve.

Remember, sequestration was intentionally designed to be so devastating to our defense that it would never be allowed to happen.

But it did happen.

Our purpose today is to show our Nation’s leaders the faces devastated by the aftermath of sequestration’s destruction–our military families. We present our photo album as evidence that sequestration is not a painless way to reduce the deficit. The devastation for our military families will be worse every year sequestration continues. It must stop. NOW.

The National Military Family Association thanks the families who shared their sequestration stories and photos. We thank our partners in this effort—Macho Spouse.com, Military Partners and Families Coalition, Military OneClick, Military Spouse Magazine, and Spouse Buzz—for their outreach to military families and for joining us on Capitol Hill today. We appreciate the work of our friends in The Military Coalition to seek an end to sequestration.

Sequestration is unraveling the yellow ribbon of military family support. If our Nation’s leaders allow sequestration to continue, the yellow ribbon will continue to fray. Please keep our military families strong. #EndSequestration!

Together we’re stronger!

How Are Military Families Doing? What Researchers Are Discovering.Posted by Joyce Wessel Raezer, Executive Director

Recent Good News Won’t Keep the Yellow Ribbon from Unraveling in 2014

yellow-ribbon-tree-blogOn August 6, military families got a little sequestration relief. Secretary of Defense Chuck Hagel announced that the DoD civilian employee furloughs would be capped at six days rather than the planned 11. These furloughs had closed commissaries an extra day, made it more difficult for families to get health care appointments, cut family center hours, and would have closed DoD schools for several days in September.

So, let’s celebrate a little because the 2013 DoD furloughs will end this week. But, make it only a small celebration please! Sequestration is a 10-year menace and none of the good news from last week will carry over into the new fiscal year that starts on October 1. DoD officials have shared a lot of numbers about the difficulties sequestration will cause in 2014.

According to DoD, this summer’s furloughs that caused so much disruption saved the Department $1 billion. In 2014, DoD will have to find savings of $52 billion.

How much pain and disruption for military families will come as DoD tries to find those savings?

Forget about furloughs–how many civilians will be laid off? How fast will a drawdown in the number of uniformed troops happen? How many airplanes will the Air Force be able to fly? What training will be cancelled? What family support facilities will close? What will the DoD and civilian schools educating military children have to cut? How long will we wait for health care appointments? Will schedules for Permanent Change of Station moves lengthen? What ships will be repaired? Already, the Navy has announced it will scrap, rather than repair, a nuclear submarine damaged by arson. Why? Navy officials blame a $4 billion shortfall in the shipbuilding account and other maintenance priorities deferred by sequestration.

Cuts totaling $52 billion in 2014 will hurt service members, families, and the communities where they live. Even though the 2013 furloughs will soon end, sequestration’s effects can still be seen in programs affected by hiring freezes, in reduced training for service members, and deferred maintenance of equipment and facilities. Those effects will get worse unless Congress acts to #EndSequestration.

The National Military Family Association and the other organizations that have joined with us in our campaign thank the families who have sent us pictures and stories about how sequestration is affecting their communities. Please continue to send pictures showing sequestration’s effects to social@militaryfamily.org. We’re creating a booklet of your photos and sequestration stories and will deliver it to every Member in early September.

Our Nation’s leaders must keep the yellow ribbon from unraveling. #EndSequestration.

How Are Military Families Doing? What Researchers Are Discovering.Posted by Joyce Wessel Raezer, Executive Director



**By submitting your photo, you agree that the National Military Family Association may use your submission, the language within, and any subsequent photos in any way including, but not limited to, publications, promotional brochures, promotions or showcase of programs on our website or social networks, showcase of activities in local and/or national newspapers or programming, and other similar lawful purposes.

Time to #EndSequestration: The yellow ribbon is unraveling

yellow-ribbon-tree-blog“I tried to schedule my son’s 2-month well-baby exam this morning and they won’t be able to see him until he’s almost 3 months old. His clinic is closed on Fridays now due to the Furlough so if either of my two children or I get sick on a Friday, we will have to go to the ER to be seen. As a patient, this makes me feel unimportant – insignificant.”  Military Spouse

“Sequestration is a mindless, irresponsible process. You know it — I know it. And I’m hoping that our leaders in Washington will eventually get that and come to some policy resolution.”  Secretary of Defense Chuck Hagel, July 17, 2013

The time is NOW. You’re frustrated, we’re frustrated, even the Secretary of Defense is frustrated, and there is still no end in sight. No matter how many articles are written, interviews done, or blogs posted, Congress still isn’t stirring to do something about the budget cuts that are hurting military communities. The National Military Family Association says: “It’s time to #EndSequestration!” The only way we can accomplish this goal is for all of us to take a united stand.

So what can you do?

Don’t just tell us how sequestration and budget cuts have hurt your family, disrupted your community, and brought pain to your lives – show us! We’re asking every military family to send us pictures demonstrating the disruptions of sequestration. Send them to social@militaryfamily.org with a brief description and your location**.

Get creative! Find a way to tell us your sequestration story in a picture. Take and send us pictures of:

  • “Closed” or “reduced hours” signs at commissaries, clinics, or other installation facilities
  • Extra-long lines at installation gates
  • Unpaid bills because of furloughs
  • Military equipment in disrepair
  • Canceled school programs
  • Your family holding a sign that explains how sequestration has affected you

We believe our Nation’s leaders and ALL Americans need to understand what sequestration is doing to our military community. We will use your photos to create a photo book that we will hand deliver to each Member of Congress so they can see for themselves how their actions, or lack thereof, are hurting the military community. We’ll also post these photos on our website so others can see what you see every day in your community.

We’re proud that Military.com, SpouseBUZZ, Macho Spouse, and Military Partner and Families Coalition are partnering with us to show Congress the power of numbers. And we’ll be announcing the support of other organizations soon.

But, it starts with you: we need YOUR help to make sure the message is heard. Send us your pictures, but also tell everyone it’s time for the budget madness to stop. Please change your Facebook profile picture and/or cover photo to join the movement. Let’s show we are united. We may only be 1% of this Nation, but we protect what we hold dear. It’s time to make it clear where we stand on the broken promises.

The yellow ribbon is indeed unraveling.

Yellow Ribbon FB Cover2

It’s time to take a stand. It’s time to #EndSequestration!

How Are Military Families Doing? What Researchers Are Discovering.Posted by Joyce Wessel Raezer, Executive Director

 


**By submitting your photo, you agree that the National Military Family Association may use your submission, the language within, and any subsequent photos in any way including, but not limited to, publications, promotional brochures, promotions or showcase of programs on our website or social networks, showcase of activities in local and/or national newspapers or programming, and other similar lawful purposes.