States set aside funds to fill gaps in reservists' pay

States are taking steps to ease the financial burden on active duty reservists.

Several states have passed legislation that sets up state funds that provide money to reservist families who face financial hardships when members are called to active duty. Those funds are supported by tax-deductible contributions from individuals and corporations. In some cases, the funds receive state dollars too.

According to Illinois Lt. Gov. Pat Quinn, active duty military pay often is less than what reservists make in their civilian jobs. The issue has been particularly acute for federal workers who make up an estimated 13 percent of the nation's reserve forces.

Quinn said his state's relief fund has paid out $829,000 to 1,800 Guard and reserve families. In Illinois, families can apply for grants from the fund for $500 to $2,500.

Pay disparity has increasingly become an issue with reservists, who are now called up more frequently, and will soon account for about 40 percent of the forces in Iraq. There are about 192,000 Guard and reserve members currently on active duty with about 311,000 dependents. Federal law protects reservists from losing their jobs if called up, but it does not make any provision for bridging a possible pay gap. Some states, cities and companies do compensate for the difference in pay, but they are not required to do so by federal law.

Legislation was introduced last spring seeking to require the federal government to make up any difference in pay for federal employees called to active duty, but so far the bills have not been voted on. The cost of closing the pay gap for federal workers called to active duty is estimated at about $90 million annually.

California Lt. Gov. Cruz Bustamante said states cannot wait for the federal government to assume its "responsibility" to fill the pay gap. Despite a multibillion-dollar-budget deficit, California has set up a $5 million relief fund for Guard and reserve members. Bustamante estimates that as many as one in five of the state's 13,000 military reservist families with a member called to active duty would be eligible for aid.

Quinn noted the financial woes for reserve families were exacerbated by the Defense Department pay system, which has regularly fouled up paychecks for reservists as they come onto active duty.

Half the states have at least 5,000 dependents with family members in the reserve now on active duty. Other states pursuing similar relief efforts include Alaska, Delaware, Louisiana, Massachusetts, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina and Vermont.