KRON4 – The San Francisco Board of Supervisors voted unanimously to create the first municipal bank in the nation! The plans include a business & governance plan for a publicly-owned municipal financial corporation and then converting it into the San Francisco public bank.
Read SF supes vote unanimously for first municipal bank in nation.
We’re making significant headway in public banking, with various local governments across California showing their commitment by providing funding for public bank viability studies and business plans. These efforts are aimed at outlining the implementation path for the establishment of local public banks in their respective areas.
Read our press in Next City:Â Public Banking Efforts Are Gaining Momentum And Clarity In California. From Los Angeles to the Central Coast, from San Francisco to the East Bay and Sacramento, major public banking plans are emerging from California cities.
Also, be on the lookout for our new video introduction to public banking! We’ll share the link to âYou Can Public Bank on Thatâ soon!
CENTRAL COAST
People for Public Banking Central Coast has been advocating since 2019 for a regional public bank to encompass the counties of Santa Cruz, Santa Barbara, Monterey, and San Luis Obispo, including the cities within those counties. Currently, 12 jurisdictions have formally expressed interest in participating in a viability study to create the bank, including Santa Barbara County which has pledged $25,000 toward the study.
A possible first step will be to create a municipal finance corporation or green bank which could be called the Central Coast People’s Fund. We continue to focus on education and outreach, especially to city managers and finance directors. We also hope to educate large numbers of citizens on the benefits of public bank financing for projects like affordable housing and disaster mitigation.
EAST BAY
Public Bank East Bay is planning a suite of announcements of important milestones in mid-September. While we prepare those announcements, we (including our slate of Bank Board candidates) are very busy refining our draft business plan and charter application, collaborating closely with Alameda County and the three cities of Berkeley, Oakland, and Richmond so they will be ready to sign that application and contribute capital to the bank, and providing comprehensive training for our Bank Board candidates. We’re actively reaching out to local financial institutions as potential partners under AB 857 and are thrilled to announce recent foundation grants of $300,000 from the Irvine Foundation and an additional $150,000 grant (to be shared with Rise Economy). These grants will greatly support our research and outreach efforts for public banking.
LOS ANGELES
In June 2023, the Los Angeles City Council unanimously approved $460,000 to fund Phase 1 of the public bank feasibility study and business plan. Public Bank LA is collaborating with coalition leaders including SEIU 721 to secure an additional $240,000 to support Phase 2. Public Bank LA is also engaging LA County Supervisors working alongside Move LA and Destination Crenshaw on the LA County Regional Public Bank in an effort that runs parallel to the LA City Public Bank.
The Jain Family Institute and the Berggruen Institute released the full LA public bank report series including five extensive briefings covering: a series introduction, affordable housing, democratic frameworks, clean energy portfolio options, interactive balance sheet simulator, and financial justice portfolio options. The 160-page report series provides the most comprehensive analysis of a public bank within the movement to date.
Recent LA coverage:
Los Angeles Times
California Globe
CBS News
POMONA VALLEY
In addition to a presentation at a local Rotary Club and University Club, Public Bank Pomona Valleyâs leadership met with Public Banking Institute founder, Ellen Brown, to discuss the history and national prospects of the movement. We plan to meet soon with the Claremont Democratic Club as well as a gathering organized by the Human Values Institute, which is working with several groups promoting economic well-being in the Pomona region.
The Public Bank Pomona Valley advocacy group includes several current and former elected officials in city government, as well as community leaders of nonprofits and foundations promoting economic justice issues. While grassroots education is our primary task for now, we are ready to urge our Pomona Valley cities to begin developing their banking business plan when the time is right.
SACRAMENTO
A unanimous vote from the Banking and Audit Committee of the City Council of Sacramento was obtained this past spring authorizing up to $250,000 for a viability study and business plan for a Public Bank. The Committee is made up of the Mayor of Sacramento as well as 3 council members. City staff in the office of the Treasurer of Sacramento are now working on a draft RFP for a Viability Study with support from the Sacramento Public Bank Working Group. The Sacramento Public Bank Working Group continues to educate the public on the advantages of a Public Bank and has met with the City Treasurer and Banking Manager.
SAN FRANCISCO
The SF Public Bank Coalition (SFPBC) is mobilizing supporters for the presentation of the Reinvest In SF Working Group public banking plan to the Board of Supervisors on September 5, 2023. SF Public Bank is also working to establish a âGreen Bankâ to gain access to Greenhouse Gas Reduction funds.
On August 31, SF Public Bank will have its first general membership meeting open to all interested in joining our coalition. We presented to the Loma Prieta Sierra Club which sees public banking in the Peninsula and Silicon Valley as a means of financing innovative climate crisis interventions. We are hoping this helps reinvigorate the South Bay chapter of the California Public Banking Alliance.
Recent SF coverage:
Westside Observer
San Francisco Chronicle
San Francisco Examiner
Â
CALIFORNIA REGIONS
In regions across California, including Pomona Valley and North Coast, our CA Public Banking Alliance teams continue to dedicate themselves to community education and engagement.
We are actively reaching out to public banking advocates in regions that have not yet established CPBA chapters. If you are interested in learning more about getting public banking started in your area, or know someone who might be, please contact our outreach coordinator, David Cobb at davidkcobb@gmail.com. Below is a list of areas we are especially hoping to form chapters of public bank supporters.
BAKERSFIELD
FRESNO
HUMBOLDT / NORTH COAST
RIVERSIDE / SAN BERNARDINO
SAN DIEGO
SANTA ROSA / SONOMA COUNTY
SOUTH BAY / SILICON VALLEY
STOCKTON / MODESTO
CALACCOUNT
Our universal banking program, CalAccount (AB 1177), is an ongoing initiative of the CPBA. Along with coalition partners SEIU California and Rise Economy, weâre tracking the progress of the CalAccount program in the monthly hearings for community representation on the CalAccount advisory board and ensuring the program’s successful implementation. Establishing positive relationships with regulatory authorities is vital; we’re actively building partnerships with the California Department of Financial Protection and Innovation agency (DFPI), including DFPI Commissioner Cloey Hewlett.
People power in Sacramento! Fight for $15 and KIWA, Koreatown Immigrant Workers Alliance workers turned out in support of CalAccount, urging the State Treasurer Fiona Ma and Commissioners to incorporate community input, a crucial step to ensure the program’s success and provide essential banking services for nearly 10 million low-wage Californians.
Read the CalAccount August Legislative Briefing.
FEDERAL PUBLIC BANKING ACT
The CPBA is currently advising Congresswoman Rashida Tlaib’s office, providing insights for the amendments in preparation for the federal Public Banking Act‘s reintroduction, anticipated in the coming months, spearheaded by Representatives Tlaib and Ocasio-Cortez.
The CalAccount program is moving forward. The Commission met June 21st and is preparing to contract with a vendor to work with community groups and the Commission to explore what the community needs from the new program and how best to meet their needs.
Workers and community members from KIWA (Korean Immigrant Workers Association), the Fast Food Workers Union, Fight for $15, Indivisible Yolo, and Rise Economy joined other organizations and community members to show support for the CalAccount program.
Read our August 2023 Legislative Briefing.
The San Francisco Chronicle discusses the proposal to create the nation’s first municipal public bank in San Francisco to address the city’s housing crisis and economic challenges. Modeled after the Bank of North Dakota, the plan aims to fund housing projects for low- and middle-wage workers, support small business recovery, and promote a carbon-neutral future. The bank would partner with private banks rather than compete with them, generating funds that enable community banks to provide financing at lower interest rates. The benefits of a public bank include facilitating affordable housing and jump-starting small businesses. The article quotes Sylvia Chi, the Alliance’s Legislative Co-Director and member of the San Francisco Public Banking Working Group: “If weâre going to redevelop the Westfield Mall into something, they should use green building techniques and make sure itâs as efficient and sustainable as possible,â Chi said.” Although the bank’s cash reserves would be modest at first, it could grow to channel significant funds into community initiatives over the next decade. The proposal has been sent to the Board of Supervisors for examination and approval, and it aligns with California’s authorization for cities to explore public banking. The Bank of North Dakota’s success and impact on various sectors provide insights into how a public bank could benefit San Francisco.
Read the article in the San Francisco Chronicle.
The Los Angeles City Council has voted to fund the first phase of a public bank that would empower communities and support projects driven by public interest. A public bank would be more beneficial than private banks in serving Los Angeles’ Black and Latino communities, small businesses, green energy initiatives, and affordable housing projects. To tackle our housing crisis, the LA public bank could build or preserve over 17,000 affordable housing units within 10 years, assist with construction loans, convert housing into affordable stock, provide mortgage assistance, and prevent the conversion of affordable housing into upscale homes. Low-income communities of color stand to benefit greatly from a public bank, as it would offer lower-cost debt, free banking, alternative credit scoring methods, and help employees purchase small businesses. It’s a chance to create targeted wealth and job stability for neglected communities. The LA public bank would be funded by deposits from the city, pension funds, and green mutual funds, bypassing expensive Wall Street middlemen. This means more direct access to funds for local government projects. The LA Times interviews key figures, discussing the far-reaching impact of the public bank on communities across Los Angeles, including CPBA and PBLA co-founder Trinity Tran.
Read the coverage in the LA Times.
California cities, from Los Angeles to San Francisco to the East Bay, are moving full steam ahead on public banking! LA recently approved funding for Phase 1 to plan and implement Public Bank Los Angeles, SF Public Bank is working to fund a Municipal Finance Corporation that will scale up to a public bank, and Public Bank East Bay is making moves on a business plan for a regional public bank. California leads the way in the movement to reclaim public funds from Wall Street banks and reinvest them in local communities.
Read the article on Next City.
Thanks to your support in 2021, we successfully advanced the California Public Banking Option Act (AB 1177) toward implementation. This crucial bill aims to address financial exclusion among unbanked and underbanked Californians. Today, we are reaching out to you to request your support for an important matter.
AB 1177 seeks to establish the CalAccount program that will provide free essential financial services to individuals with limited or no access. Services like check cashing, bill payment, and debit card functionality will be offered by a state-administered bank account to improve financial security for marginalized communities.
We have been closely monitoring the CalAccount program’s progress and are concerned about the lack of transparency and community input in the bidding process to select a firm to conduct the market analysis. On June 21, the CalAccount Blue Ribbon Commission plans to select a contractor for the analysis, but the details and evaluation process have not been shared with the public.
Transparency is vital for building trust and effectively implementing the CalAccount program. We kindly request your support in signing a letter to California State Treasurer Fiona Ma urging a postponement of the contractor selection until community input and transparency are assured. This will allow the most impacted communities to review the process, share their experiences and expertise, and have an opportunity to express concerns.
Your endorsement of CalAccount AB 1177 is invaluable, contributing to a program that serves historically excluded individuals. To be included in our letter, please reply to this email (calpba@gmail.com) with your Name, Title, and Organization by 12pm PST, Tuesday, June 20. If you prefer your organization to be removed from the endorsersâ list, kindly let us know. For individual supporters, please send us your full name and city.
Letter to CA State Treasurer and CalAccount Commissioners
If you would like to join us at the committee hearing, it will take place at the Paul Bonderson Building, 901 P Street Room 102, Sacramento, CA 95814 at 1:30 pm on Wednesday, June 21. The meeting agenda is here.
Interested members of the public may use this number to call in to listen to and/or comment on items before the Commission. Public Participation Call-In Number: (877) 411-9748 Access Code: 3790012.
Thank you for your ongoing support and commitment to financial inclusion for all Californians.
The California Public Banking Alliance and Public Bank East Bay organizer Susan Harman started a women’s public banking group with Women’s International League for Peace and Freedom to encourage women activists across the country to get involved in the public banking movement and promote the idea of a more equitable and locally-focused banking system that serve the needs of the community, prioritizing accessibility, transparency, and sustainability.
Read in Ms Magazine: Why Banking for the Public Good is no Pipe Dream.
Trinity Tran’s article, “Transcending Finance with Public Banking,” part of the Institute for the Future’s “Imagining Equity: Explorations into the Future of Enterprise” series, discusses the public banking movement’s goal to address longstanding issues in the financial system, including fraudulent activities by big banks like Wells Fargo and JPMorgan Chase. Instead of relying on big banks, cities and states are turning to public banks to invest in their communities, with California passing legislation allowing for the creation of city and regional public banks. Public banks prioritize community needs, such as affordable housing, clean energy, and public transit, while also offering cost savings to taxpayers and expanding banking services for those with limited options. With several California cities and counties exploring the creation of their own banks and federal legislation in the works, the public banking movement is gaining momentum. Building a network of public banks at the local and state levels can help create a more equitable financial system.
Read the essay on IFTF.
Read on Medium.
The Alliance’s Rick Girling penned an op-ed discussing the banking system’s shortcomings following Silicon Valley and Signature Banks’ collapse. Advocates propose public banks to offer fair services and break the cycle of bank failures and bailouts.
Read the article on El Tecolote
Artwork: Mural Doctor
