Nonprofit Quarterly Highlights Public BankingâCalifornia & Beyond
We started the year off strong with two features in The Nonprofit Quarterly! Check out the trilogy of public banking articles: two from the California movement and the third from New York.
1. Californiaâs push for public banking rewrites local finance. By breaking Wall Streetâs grip, these banks tackle community needs–stabilizing neighborhoods & funding home-grown solutions. The revolution is local. Trinity Tran with the Alliance and Public Bank Los Angeles writes for NPQ. Read the article here.
2. From Public Bank East Bay in NPQ: Why let Wall Street hoard public funds? California’s movement is breaking the âpublic funds, private profitsâ pipeline, creating banks that invest in affordable housing, small businesses & clean energy. Read the piece here.
3. Andy Morrison with Public Bank NYC in NPQ: What does âfinance for the peopleâ look like? Itâs public banks that work for communities, not shareholders. New York is building a future where public dollars fund progress, not Wall Street greed. Read the article here.
California is proving whatâs possible when communities demand a financial system that works for them. These articles capture the vision, the action, and the urgency of this movement. Letâs keep building.
Rebuilding and Resilience: California Needs Public Banks
Our thoughts are with those affected by the wildfires in Southern California, the families displaced, the communities impacted, and everyone still waiting for safety and relief. Los Angeles, we see your resilience in the face of this devastation.
As California faces another catastrophic wildfire season, weâre reminded how vulnerable our state is to natural disasters. Members of the Alliance have experienced the effects of these fires firsthand, making it clear that none of us are exempt from the damage caused by the climate crisis. From the projected $250 billion in damages in LA alone to the thousands of families displaced, the need for real solutions has never been clearer. We need public banks in California to invest directly in wildfire prevention, rebuilding homes and infrastructure, supporting small businesses in their recovery. Instead of local governments issuing expensive bonds, wasting millions in interest payments to Wall Street banks, we can keep public dollars working here, where theyâre needed most. A public bank also gives us the tools to invest in long-term climate resilience: renewable energy, sustainable housing, and infrastructure that can withstand the growing impacts of climate change. This is about more than recovery, itâs about building a California thatâs ready for the challenges ahead. If youâre thinking about starting a public bank in your city or region, take a look at our organizing and technical resources. Letâs join forces to create community-owned banks that truly invest in the people and neighborhoods that need it most. Reach out anytimeâweâd love to hear from you: info@capublicbanking.com.
Public Banking in California: A Pathway to Community Wealth Building and Inclusive Local Economies
In 2019, California became the first state to establish a legal framework for municipalities to form public banks. Since the passage of the California Public Banking Act, local governments in the East Bay, San Francisco, Los Angeles, Sacramento, Fresno, Pomona Valley, and the Central Coast have taken steps toward exploring public banks, with some passing legislation or allocating municipal resources.
Public banks are government-owned, socially responsible financial institutions that enable municipalities to reclaim public funds and invest directly in their communities. Their loans support projects that serve local needs, reinvesting profits to generate sustainable growth and public benefit. Public banks have the potential to spur inclusive and equitable economic growth including affordable housing, green energy infrastructure, and expanding access to capital for local community financial institutions to support small businesses. Public banking advocates believe that communities of color would especially benefit from this alternative to the private banking system.
On November 19, 2024, BA AFN led a discussion on:
the benefits of public banking and its potential to build community wealth and meet local needs;
the roadmap to establishing a public banking system throughout California; and
catalytic philanthropic investment opportunities to make public banking a reality in California.
Speakers
Trinity Tran, California Public Banking Alliance Bianca Blomquist, Small Business Majority Eric Payne, The Central Valley Urban Institute Sophia Rodriguez, Y&H Soda Foundation Rebeca Rangel, Asset Funders Network
THE CALIFORNIA PUBLIC BANKING ALLIANCE EXPANDS IN CENTRAL CALIFORNIA!
Welcome to Public Bank Fresno, the newest member of the growing California Public Banking Alliance! Weâre excited to collaborate with you in working with local governments to establish socially and environmentally responsible public banks across California.
Led by Samuel Molina, CEO of The Academy of Financial Education, and Eric Payne, Executive Director of the Central Valley Urban Institute, Public Bank Fresno brings a wealth of expertise and passion to our shared mission.
If you’re in the Fresno or Central Valley area and interested in joining Public Bank Fresno, contact Samuel: samuel@taofe.org
CPBA SEPTEMBER 2024 CITY/REGIONAL PROGRESS REPORTS
The California Public Banking Alliance (CPBA) continues to make significant strides in establishing public banks across the state. From Los Angeles to San Francisco, local governments are pushing forward with plans to establish financial institutions that serve the people, not just profits. This update covers our latest efforts, showing our shared commitment to flipping the script on California’s financial future and making banking work for everyone.
Central Coast The governing bodies of ten jurisdictions have approved resolutions in support of a viability study to create the bank, and officials from two other jurisdictions have expressed support for a viability study as well. Local organizers with the People for Public Banking Central Coast are currently exploring the formation of a regional green bank that could eventually transition to a full-scale public bank. Fresno Fresno organizers are advocating for the Fresno City Council to introduce a motion that allocates funds for a feasibility study and business plan to explore the formation of Public Bank Fresno, which would support community economic development and partner with local financial institutions and CDFIs to strengthen Fresnoâs small businesses. East Bay In May 2024, the City of Richmond unanimously passed a resolution authorizing the East Bay Public Bank organizers to apply to the State and Federal regulators for a bank charter in their name. The Friends of the Public Bank East Bay, its Board Candidates, and CEO are continuing negotiations with Alameda County and local municipalities regarding capitalization commitments. PBEB leadership has completed a full draft of the bankâs business plan and is working with local financial institutions on initial partnership discussions. Los Angeles
The August 2024 Public Bank LA (PBLA) Advocacy Day at Los Angeles City Hall saw strong backing from coalition leaders: Inclusive Action for the City, United Parents and Students, ACCE Action, SEIU 721, and community allies. Councilmember Eunisses Hernandez endorsed the public bank as a strategy to cut infrastructure costs, especially with the LA 2028 Olympics approaching. Following the City Councilâs unanimous May 2024 vote to fund the Public Bank Feasibility Study, PBLA is now advocating for Phase 1 funding in the Fall budget, which could save the city over $1 billion annually, reduce borrowing costs, and create new revenue streams.
At the June 2024 rally at LA City Hall, the Public Bank LA coalition called on the city to establish a public bank to boost local lending power and keep profits within the community. Councilmember Hugo Soto-Martinez stressed the importance of a public bank to tackle the housing crisis, homelessness, and budget challenges, calling for reinvestment of taxpayer money into neighborhoods and housing solutions. Sacramento In March 2023, the Sacramento City Council approved a budget request to fund consultants to develop plans for starting a public bank in accordance with the California Public Banking Act. An updated RFQ was released by the City in August 2024.
San Francisco Plans for the Green Bank and Public Bank were unanimously approved by the Board of Supervisors in June 2023. Currently, the San Francisco Public Bank Coalition is working with the Board of Supervisors, the Local Agency Formation Commission, and the office of the Treasurer and Tax Collector to implement the plans, including actively engaging with U.S. EPAâs Greenhouse Gas Reduction Fund awardees to seek federal funding available for capitalizing green banks.
Pomona Valley The Study Group for Public Bank Pomona Valley has met for nearly five years, lobbying local elected officials and civic groups from three cities, promoting grassroots public bank education, and closely watching statewide efforts. We intend to be among the second tier of regions establishing local public banks and, until then, tilling the soil in preparation for guiding our cities toward this worthy goal, as well as assisting other regions in their efforts. Our members have also contributed to both the National Infrastructure Bank and CalAccount efforts. If you’re interested in joining local or regional public banking efforts, please reach out to the organizers in your area in our contact list at capublicbanking.com/contact-us.
CALACCOUNT COMMUNITY BRIEFING – OCTOBER 1ST!
Join our virtual community briefing on October 1, 2024, at 12pm as we gear up for implementation of CalAccount in 2025! Hear from experts about why CalAccount is so important, learn about the features of the new program that will be essential to the millions of workers without access to reliable, free banking services, and get your questions answered.
Share the invitation with your base to help make CalAccount a reality.
CALACCOUNT MEETINGS IN SACRAMENTO & LOS ANGELES
Union members and community leaders gathered in Los Angeles and Sacramento to demand a fair banking system for all, including working-class people, people of color, and immigrants. In LA, we briefed SEIU 2015 workers and community memberes to prepare them for public comment.
Workers shared stories about the impact of bank fees, highlighting the need for fee-free banking. Nearly 8 million un/underbanked Californians could save $3.1 billion annually, generating $5 billion in economic activity. We’ve advocated for free checking accounts with debit card access for all 40 million Californians. The RAND study confirms that CalAccount is feasible. Read the report here:Â Banking the Unbanked: CalAccount Market Study and Feasibility Assessment.
The struggles of workers fuel our mission to remove banking barriers. We’re grateful for the powerful testimonies from the California Fast Fod Workers Union and SEIU Local 2015. It’s time to eliminate these barriers for all Californians.
If you havenât already endorsed CalAccount, join over 250 organizations in support of free banking!
State Treasurer Fiona Ma supports CalAccount, recognizing its feasibility and urgent need. CalAccount is essential to protect Californians from predatory financial practices, offering everyone a fair shot at building wealth and breaking the cycle of poverty. We look forward to working with the Legislature to make this program a reality.
âIn summary, a CalAccount program is, indeed, feasible. We also received a massive outpouring of public support for implementing a CalAccount program, which mirror feedback collected from throughout the state during the last six months.
… But hearing over-and-over again these real and raw, first-hand experiences make it clear as day that the time is now for a CalAccount program and that this simple program could make a lasting impact in helping Californians build wealth and end inter-generation poverty.â
– California State Treasurer, Fiona Ma
BRIDGING THE GAP BETWEEN CLIMATE & ECONOMIC JUSTICE
CalAccount is a game-changer for economic and climate justice in California. With 1 in 5 households unbanked or underbanked, vulnerable communities are hardest hit by climate disasters. CalAccount provides a free public option for basic financial transactions, helping low-income and communities of color build resilience against climate shocks. It could save Californians $3.3 billion in fees and interest, benefiting both wallets and the environment.
“The Case for California’s State Public Bank,” authored by Neha Singh of UC Berkeley’s Goldman School of Public Policy, supported by the California Public Banking Alliance and Rise Economy, outlines a plan to transform the Infrastructure Bank (IBank) into the California State Public Bank. Modeled after the Bank of North Dakota, this strategy aims to enhance local economic resilience through strategic partnerships while expanding IBankâs mission to include affordable housing, green energy, and economic development. The report also calls for governance reforms to ensure transparency and efficiency. A California State Public Bank would be a cornerstone of the state’s economic framework, advancing sustainability and social justice.
State Treasurer Fiona Ma supports CalAccount, recognizing its feasibility and urgent need. CalAccount is essential to protect Californians from predatory financial practices, offering everyone a fair shot at building wealth and breaking the cycle of poverty. We look forward to working with the Legislature to make this program a reality.
âIn summary, a CalAccount program is, indeed, feasible. We also received a massive outpouring of public support for implementing a CalAccount program, which mirror feedback collected from throughout the state during the last six months.
… But hearing over-and-over again these real and raw, first-hand experiences make it clear as day that the time is now for a CalAccount program and that this simple program could make a lasting impact in helping Californians build wealth and end inter-generation poverty.â – California State Treasurer, Fiona Ma
Welcome to the June edition of the CA Public Banking Alliance (CPBA) Newsletter! We’re excited to share insights into the transformative power of public banking in California and beyond. Explore our technical brief, learn about our initiatives to ensure financial inclusion through CalAccount, and find out how you can support the ongoing banking revolution. Plus, we celebrate a historic milestone in Public Bank East Bay’s public banking progress!
CA Public Banking Alliance Technical Brief: Exploring the Mechanics and Benefits of Public Banks
Discover the transformative potential of public banking with the CA Public Banking Alliance Technical Brief. Our newly designed comprehensive guide covers essential topics, including:
Mechanics of a Public Bank: Understand how public banks operate and their fundamental principles.
Start-Up Capital and Lending Funds: Learn about various methods to acquire the necessary capital and funds for lending.
Sustainability: Explore strategies to ensure the long-term viability of a public bank.
Advantages of Public Banks: Discover the numerous benefits, from fostering local economic growth to supporting community projects.
Examples of Public Banks: Examine successful public banks in the US, and around the world, and their impact.
Financial Components: Gain insights into the financial structures that underpin public banking.
Risk Management: Identify the risks involved for both the public and the sponsoring entity and learn effective risk mitigation strategies.
Rate of Return: Get projections on the expected return on initial capital investments.
Municipal Finance Corporations: Learn about these entities and their role in public banking.
Green Banks: Understand the concept of green banks and their importance in driving sustainable projects.
Historic Resolution for East Bay Public Bank Charter Passed
On May 29, 2024, Richmond, CAâs City Council unanimously passed a resolution authorizing East Bay Public Bank organizers to apply to state and federal regulators for a bank charter. This is the first such government resolution in the U.S. in 100 years! Congratulations, Richmond!
Save the Date! CalAccount Town Halls in Los Angeles and Sacramento on July 18th!
Earlier this year, we held a series of statewide town halls attended by hundreds of people in coordination with the State Treasurerâs Office to uplift the voices of those affected by Wall Streetâs harmful and unfair banking practices. On July 18, 2024, in preparation for the release of the final CalAccount market analysis report, weâll be convening our second town hall in Los Angeles and Sacramento. Your voice matters in bringing free banking to California. Stay tuned for details! CalAccount was featured in La OpiniÃģn, the US’s largest Spanish-language paper. Read the coverage: RevoluciÃģn bancaria en favor de los mÃĄs vulnerables (Banking revolution for the most vulnerable; see English translation).Â
Endorse CalAccount: Empower Californians with Free Financial Services
Join over 250 organizations in supporting CalAccount, a groundbreaking initiative to provide free financial services for all Californians. Over 30 percent of Black and Latina/Latino households are unbanked or underbanked. By endorsing CalAccount, your organization will help support financial inclusion, reduce the unbanked population, and ensure that all residents have access to essential banking services without the excessive fees, fines, penalties, and barriers posed by Wall Street banks and commercial financial institutions. Endorse CalAccount today by signing our organizational support letter. If you have already endorsed, please reaffirm your commitment by signing our 2024 endorsers letter. Join the movement and stand with our growing list of supporters by viewing the links below. Sign On to Endorse CalAccount and our 2024 Endorsers Letter View the Endorsers List
Support the Banking Revolution: Donate Today!
In 2019, the California Public Banking Alliance (CPBA) achieved a historic milestone with the passage of the California Public Banking Act (AB 857). Building on this success, our all-volunteer team and dedicated allies championed the California Public Banking Option Act (AB 1177) in 2021, which will make universal free banking services a reality. Now, weâre focused on turning these groundbreaking legislations into tangible change. Our team is working tirelessly to establish local public banks across California and guide the CalAccount program to fruition.
Every dollar you donate is tax-deductible and directly supports our mission to open public bank doors and provide free banking services to all Californians. Your generosity will make a real difference in the lives of California communities. Thank you for your support. Donate Now
The Case for the California State Public Bank was authored by Neha Singh of Berkeley’s Goldman School of Public Policy, commissioned by Rise Economy in collaboration with the California Public Banking Alliance. The report provides a roadmap for launching a California State Public Bank through the existing framework of the Infrastructure Bank (IBank). It’s not just about exploring possibilitiesâit’s about harnessing them strategically to address crucial economic sectors such as affordable housing, green energy, small business empowerment, and pioneering ownership models across the state.
The capstone proposes a transformative shift by advocating for a partner bank model, inspired by the US’s successful public bank, the Bank of North Dakota. This approach would significantly boost the IBank’s effectiveness by supporting local economic resilience through partnerships with local lenders and Financial Development Corporations (FDCs), thereby democratizing capital control. With an expanded mandate, the IBank could include not only affordable housing and infrastructure projects but also initiatives that tackle climate change and social equity in economic resource distribution.
The report points out the crucial need for operational and governance reforms for the IBank to transition into an effective public banking entity. It lays bare issues of inadequate oversight and engagement and proposes strategic reforms such as revitalizing board composition, ensuring active and transparent governance, and aligning the bankâs operations with rigorous audit and compliance standards.
This capstone blends practical financial strategies with an approach to systemic economic reform. It posits the public bank as a linchpin in Californiaâs economic ecosystem, capable of driving significant social and infrastructural development, thus making a compelling case for rethinking, reforming, and revitalizing the financial frameworks that underpin Californiaâs most pressing economic needs.
Join over 250 organizations in supporting CalAccount to provide free financial services for all Californians. By endorsing CalAccount, your organization will help support financial inclusion, reduce the unbanked population, and ensure that all residents have access to essential banking services without the excessive fees, fines, penalties, and barriers posed by Wall Street banks and commercial financial institutions.
Endorse CalAccount today by signing our organizational support letter. Join the movement and stand with our growing list of supporters by viewing the links below.
If you have already endorsed, please reaffirm your commitment by signing our 2024 endorsers letter.
Over the past year, the CalAccount Community Coalition has tirelessly advocated through reports, testimony, and public input, stressing the urgency of providing fee-free checking accounts with debit card access to all Californians. Working families, especially those facing financial hardship, shouldn’t have to pay overdraft fees and other predatory penalties to access their own money! On July 1st, RAND released the CalAccount Market Study & Feasibility Assessment, commissioned by the State Treasurerâs Office, stating that CalAccount is feasible and necessary to address financial inclusion and the needs of unbanked and underbanked populations in California. This gives us the green light to introduce legislation next year for legislative approval of the program, making CalAccount the nation’s first state-administered universal banking program. JOIN US ON JULY 18th: We’re coordinating public support for CalAccount in Sacramento and Los Angeles. The Sacramento hearing will be held at the State Treasurer’s Office. Supporters will meet at SEIU State Council‘s office in Sacramento at 12pm on July 18th for a brief training session and lunch. They will then walk (about 3 blocks) to the State Treasurer’s office where the commission hearing will be held. In Los Angeles, we will be convening on July 18th at 12pm at SEIU 2015 Union Hall and will call in to participate remotely for public comments. Sacramento – July 18th – View/Download the Sacramento Flyer 12pm – SEIU State Council – 1029 K Street, Sacramento, CA 95814 1pm – Commission Hearing at State Treasurer’s Office – 901 P Street, Conference Rm 102, Sacramento, CA 95818 Los Angeles – July 18th – View/Download the LA Flyer 12pm – SEIU 2015 Union Hall – 2910 Beverly Blvd, Los Angeles, CA 90057 1pm – Remote call-in for public comment. Reach out to us at info@capublicbanking.com and let us know if you will be able to join us in either Sacramento or LA.
CalAccount is needed:Â No-fee-/no-minimum balance accounts are ârare in California,â and underbanked Californians pay hundreds of dollars a year in fees to use their money. 95 percent of banks charge overdraft fees; monthly service fees are common, and unbanked Californians face check-cashing and money order fees among others. CalAccount will enable savings on those multiple fees with âmeaningful impactsâ on California households.
CalAccount âcould significantly reduce disparities in access to bankingâ for Black and Latina/Latino and low-income Californians. CalAccount could cut those disparities by 25% to 30% — or more under some scenarios — the report finds.
CalAccount is feasible. The accountâs technical features are âsimilar or identical to transaction account features already being offeredâ by banks and fintechs. Nearly four in 10 unbanked Californians â and three-fourths of underbanked Californians â are already using mobile online financial services similar to those CalAccount would offer.
CalAccountâs benefits outweigh the costs for all versions of the program the report analyzes, with an estimate of $31 million more in benefits than costs for a mobile/online-only version of the program.
The report suggests ways to set up a successful CalAccount program. For example, the report notes that CalAccount could help banks acquire customers for their other services as well as generate fees and revenues for banks and that outreach by community organizations could ensure CalAccount signs up enough customers to make money. In fact, the report finds that banks and fintechs are already offering no-fee/no-penalty accounts â underscoring that the issue is not whether such accounts are financially viable but whether the state guarantees financial access that is not subject to the whims of bank executives.
HR&A Advisorsâ recent report on CalAccount offers insights that complement the RAND report. Those include estimates that CalAccount will save Californians an aggregated $3.1 billion annually and an impact analysis estimating that the program will generate a total of $5 billion in activity in the stateâs economy.
Endorse CalAccount!
Join over 250 organizations in supporting CalAccount to provide free financial services for all Californians. By endorsing CalAccount, your organization will help support financial inclusion, reduce the unbanked population, and ensure that all residents have access to essential banking services without the excessive fees, fines, penalties, and barriers posed by Wall Street banks and commercial financial institutions.
Endorse CalAccount today by signing our organizational support letter. Join the movement and stand with our growing list of supporters by viewing the links below.
If you have already endorsed, please reaffirm your commitment by signing our 2024 endorsers letter.
