European Stars and Stripes (Newspaper) - October 07, 1990, Darmstadt, Hesse                                Sunday october 7,1990 the stars and stripes Page 13 Only a computer knows the real cola numbers but it does keep up business news its a question that sgt. 1st class Michael Donohue has heard enough times to answer in his sleep. A what about my Cost of living allowance a asks the Soldier with leave and earnings statement in hand. A a it a not keeping  Donohue says it is keeping up although sometimes the figures will appear to be out of step with local currency Exchange rates. A i can say to Gen. Crosbie Saint or to a private one i think its fair a says the staff finance sergeant from . Army Europe a resource management office in Heidelberg. A the main complaint that we get is that the per diem committee is Quick to reduce cola and slow to raise. But they have a computer based algorithm so the process going Down is the same As the process going up. Congress per diem travel and transportation allowance committee a in Rosemary Sawyer meets every two weeks to of adjustments to allowances that Are determined by computer. A there Are a lot of soldiers out there a lot of airmen that try to second guess their cola payment but nobody knows All the numbers a not even me a Donohue says. Donohue will probably hear from More than a few soldiers worried about their paychecks with the Dollar Deutsch Mark rate having dipped to a new postwar Low thursday. The rate of 1.50 Marks struck fears in the hearts of even the most infrequent off base shoppers a and diners. Analysts attribute the drop to an expected decrease in . Interest rates and the markets disillusionment with Congress for failing to reconcile its budget differences. But As most service members will agree knowing the reason for the dollars weakness does Little to curb the climbing Price of your Wiener schnitzel. Enter the Cost of living allowance. Uncle Sam gives its service members a Cost of living allowance so they can have the same spending Power As stateside service members of the same rank family size and years service. Cola is not paid to allow the serv ice member to buy As Many Marks As he or she could say in 1986 when each Dollar bought Well Over 2 Marks. Every year Market Basket surveys Are conducted to determine what service members in the United states and overseas must pay for More than 160 different goods and services. Officials will conduct the Market Basket Survey in Europe next month. The Survey teams will Check out food costs and other such expenses As entertainment hair cuts medical care child care and maid service. Along with the Survey service members will be polled on where they shop for the various goods and services. After All the information is in officials determine How much Money service members would need overseas to have the same spending Power As their counterparts in the United states. That amount is figured As a percentage of their net spendable incomes. Such income is the amount left Over after housing costs taxes savings life insurance and charitable contributions Are deducted. Donohue uses the example of an e-5 with three dependents and More than six years service living in Frankfurt Germany to illustrate How the system works. In this example the service member lives in a full sup port area with Access to an array of facilities such As commissaries and exchanges. Currently the e-5 is receiving a Cost of living allowance equal to 22 percent of his or her net spendable income of $13,000 in order to have the same spending Power As the same e-5 in the United states. The same service member in a no support area such As Geilenkirche would be Given 37 percent of his or her net spendable income. After the Cost of living allowance is determined the amount is adjusted for Dollar fluctuations. Sometimes a reduction in service members living and housing allowances will coincide with the dollars dive against local currency but Donohue says that service cola for e-5 full partial and no support refer to the availability of . Goods and commercial services in a Community. A Ful support area has Complete services a no support area has few if any . Services. June 16, june 16, sept. 16, Germany 1989 1990 1990 full support partial support no support Exchange rate Italy $102 $102 $164 $1 = 1.99dm $195 $216 $303 $1 = 1.70dm $238 $260 $390 $1 = 1.56dm full support $65 $130 $173 partial support $108 $195 $260 no support $151 $260 $325 Exchange rate $1 = $1 = $1 = 1,459lira United kingdom 1,242lira 1,171 lira full support $130 $195 $281 partial support $195 $303 $390 no support $260 $390 $520 Exchange rate �1=$1.53 �1 =$1.70 with 3 dependents More than 6 years sort Lee �1 =$1.89 source Usa eur a amps Susan Harris members should not worry. The computer algorithm will ultimately catch up with the fluctuation. Every Day Washington is Given daily Exchange rates from overseas that Are fed into a computer. The computer compares the daily rates with the rate that is currently being used to award allowances called the pegged rate. The computer figures the percentage difference Between the two rates daily. When the cumulative difference reaches 10 percent the computer selects a new pegged rate that should compensate for the inequity within two months. The rates Are then changed in conjunction with military paydays. A the per diem committee could change the rates every single Day. They really could a Donohue says. A but we done to believe the finance computers could keep up with that and we done to think soldiers could keep up with that. So. The services agreed that they would do it twice a  this does no to Cost service members Money though because the computer adjustment compensates for the Days Between when the cumulative difference reached 10 percent and when the rate was actually  strikes it Rich with sponsorship plan by Deedee Arrington Doke Kaiserslautern Bureau Ramstein a Germany a the Promise of expensive prizes boosted Gross revenues at air Force Bowling centers in Europe this summer by More than $600,000 Over the same period in 1989. The Success of the �?o100 Days of summer Bowling promotion has convinced . Air forces Europe officials that they can offer customers something extra and make Money for expensive morale welfare and recreation programs at the same time. The key is corporate sponsorships a partnership Between mar and businesses that spreads the companies messages to specific audiences via Cash supplies equipment or services. In fiscal 1990, Safe received $65,000 Worth of corporate sponsorships. Officials Hope to More than triple that to $200,000 in fiscal 1991. A we think we have just scratched the surface. There a much potential for sponsorship in Europe a said col. Harry Mcmillin Deputy chief of staff for personnel. A one year test program that allows air Force morale welfare and recreation operations worldwide to solicit sponsors will help. Mar officials initially had to wait for sponsors to seek them out when . Air forces Europe began accepting com customers hit Jackpot too Ramstein a Germany a amps among the happiest beneficiaries of corporate sponsorship was airman 1st class Reginald Jones of Pitburg a. Jones returned Home the owner of a new recreational vehicle after attending an awards presentation at Ramstein last month. A the Best thing about the whole Deal is no car payments a Jones said. Ramstein a master sgt. Bob Welch and his family won a $10,000 vacation to Hawaii in the family bumper bowl contest. The tuesday fun mix league of Raf Chicksands England won $10,000 in the 100,000 pins contest for organizations with 751,280 pins. Yolanda Millsaps of Raf Benwa ters England won $5,000 in the singles category. She had 582,124 pins. Mercial sponsorships last november. A the limit to corporate sponsorships is. Imagination and the sponsors budget a said Roger Davis chief of a Safe a marketing and business activities division. Varsity sports was the first air Force program in Europe to Benefit from corporate sponsorships but the advantages Are beginning to show up for other recreation activities such As the �?o100 Days of summer Bowling promotion. Chrysler corp. And american Telephone amp Telegraph co. Took part in the Bowling Bonanza. Safe _ invested $140,000 in administrative costs including the printing of special scratch and win tickets. By offering a free car tropical vacations and Cash prizes the Campaign drummed up interest in Bowling during a traditionally sluggish season and increased Bowling Center revenues from $2.1 million in 1989 to $2.7 million this year Between May 25 and aug. 3. A a we re very proud a Mcmillin said. A your goal was to increase last years Gross revenues by $500,000.�?� a Safe a recycling Campaign known As the resource recovery and recycling program is Likely to be one of the next command activities to involve corporate sponsorship. Davis said the corporate sponsorship will Likely involve a rebate program and take place around Earth Day which is in the Spring. Command wide programs interest sponsors because they offer the business a Cess to the largely untapped military Market in a number of countries. Pauline Wegor consumer markets manager for at amp to deutschland a Mph said a Safe a Bowling Campaign a was one of the More innovative programs we be sponsored and a Good orientation for us. It gave us Good visibility  at amp to a participation in the Bowling Campaign will pay off for the company in other ways. Names and addresses of participants in the events family bumper Bowling Competition will be used in a direct mail Campaign she said. Bases also Are being encouraged to develop corporate sponsorships for programs and activities in need of a boost. Safe held regional training workshops last summer to spell out regulations for solicited and unsolicited sponsorships As Well As to develop strategies for attracting and maximizing businesses help. A everyone says that mar has to operate like a business. Its not a business a Davis said. A a it a a function that applies business principles when required. With appropriated fund cuts we re going to have to do More Businesslike  w. Austin Blair Chrysler a National manager for military car sales agreed. Impending troop cuts and accompanying budget trimming will increase the need for corporate sponsors in military recreation programs he said