Public Banking Institute – Although LA’s Measure B did not pass, the effort generated massive awareness and support in a few brief months. The California Public Banking Alliance is now using that momentum in their work toward statewide legislation that will enable cities and regions to establish public banks.

Public Bank LA, part of CPBA, claims victory despite the ballot measure’s defeat and writes about this wider strategy in a recent CPBA press release: “Over 395,000 Angelenos voted in favor of a policy that they had likely never heard of before 2018. 43% in favor is a strong baseline measure of support that public banking advocates look forward to building upon through sustained outreach and education. … Having this [state level] legal framework in place will give L.A. and other cities a solid template to work from in setting up our banks.”

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FOR IMMEDIATE RELEASE
November 21, 2018

Media Contact
Sylvia Chi
info@calpba.org
415-946-4002

Public Banking Proponents See Victory in Outcome of Measure B Vote

(Los Angeles) Although Measure B, which proposed amending the Los Angeles City Charter to authorize the city to establish a municipal financial institution, was defeated on November 6, public banking advocates, united as the California Public Banking Alliance (CPBA), remain focused on advancing statewide legislation to enable localities to establish public banks.

CPBA is confident that as it continues to advocate for this enabling legislation and educate the public about public banking, more and more Californians will join the momentum currently building for public banks across the country.

Public banking: a nationwide movement
On June 29, 2018, the Los Angeles City Council responded to a rapidly growing movement in favor of public banking by placing Measure B on the ballot, making it the first referendum on public banking in the United States since the Bank of North Dakota was established in 1919. According to a map created by the Public Banking Institute, over 20 U.S. cities and states, from Washington state to Washington, D.C., are currently working toward public banks.

The Green New Deal put forward by Alexandria Ocasio-Cortez and other Congressional progressives proposes a public banking system as a way to finance their plan for a just transition of the U.S. economy to becoming carbon neutral. Germany’s public banking sector has been key to the country’s transition to renewable energy, providing over 70% of investments in renewables, totaling 10.3 billion euros, in 2016 alone.

From near-zero to 44% in a few months
Public Bank LA, the grassroots group spearheading the Yes on B campaign, claims victory despite the ballot measure’s defeat. As organizer Trinity Tran explains, “Council President Wesson made a bold and progressive move to place public banking on the ballots. Even with limited resources as a volunteer-run group, we committed to fight for Measure B’s success. 44 percent of the votes, in the second largest city in the nation, shows an incredible level of support given our short time frame to secure endorsements and educate voters on the benefits of public banking. Our campaign has since propelled public banking onto the national radar… We’ve gained a lot of momentum.”

Over 420,000 Angelenos voted in favor of a policy that they had likely never heard of before 2018. 44% in favor is a strong baseline measure of support that public banking advocates look forward to building upon through sustained outreach and education.

The statewide alliance
Earlier this year, Public Bank LA helped launch the California Public Banking Alliance, a coalition of local public-banking advocacy groups across the state. The Alliance aims to introduce a bill in the state legislature in the 2019 legislative session.

This enabling legislation will allow for localities to establish a system of public banks in the state and provide appropriate terms, exceptions, and constraints.

Tran said, “[Public Bank LA’s] original strategy has always been to get this bill passed first, and then push for establishing the bank. Having this legal framework in place will give L.A. and other cities a solid template to work from in setting up our banks.”

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California Public Banking Alliance is a coalition of public banking activists working towards creating socially and environmentally responsible municipal and regional banks.

http://www.californiapublicbankingalliance.org
Facebook: @californiapublicbankingalliance
Twitter: @calpba

Public Banking Proponents See Victory in Outcome of Measure B Vote Press Release

The Next System Project – This week on the Next System Podcast David Jette from Public Bank LA and Juleon Robinson from the New Economy Project, a member of Public Bank NYC, a broad-based coalition of community, worker rights, economic justice, and environmental groups to sit down to discuss the transformative potential of public banks. These institutions aim to hold finance publicly accountable, directing credit into the real economy with the public goods prioritized over profit.

Adam Simpson: I am here today with two guests to talk about two public banking campaigns, coast to coast. David Jette is the co-founder and legislative director of Public Bank LA. David is a financial analyst and consultant with 10 years in the tech real estate and start-up sector, as well as a life-long activist and organizer. David, welcome to the program.

David Jette: Thank you for having me.

Adam Simpson: We also have with us Juleon Robinson, a program associate at the New Economy Project, where he co-produces and hosts the organization’s podcast and conducts research to support campaigns like the ongoing campaign to establish a municipal bank in New York City. Juleon, welcome to the program.

Juleon Robinson: Thanks for having me as well.

Adam Simpson: Before we get into public banks, let’s talk about the problem first with our current system. Our current financial system is dominated by enormous, powerful intuitions. It’s owned by and operated for the benefit of a handful of shareholders. What are the consequences of such a system, and in your work what motivates you to pursue reform in this sector as you do?

Juleon Robinson: I think most people are aware of the consequences of the financial system, especially at the national level. We’ve seen companies like Wells Fargo commit widespread fraud and maintain most of its business. We’ve seen the government bail out banks despite their having caused a financial crisis only 10 years ago through their reckless profiteering. And in a place like New York City that’s both home to many communities of color, many immigrant communities, we’ve seen these mega banks that routinely extract wealth from those neighborhoods. The consequences are really present for our campaign, our coalition, and all the groups that we work with. The members of the public bank in the New York City coalition work in these neighborhoods all over New York City that are reeling from predatory lending, from foreclosures, from eviction, job loss, and other problems that are really caused by Wall Street.

Continue reading on The Next System Project.

Medium – By Ben Hauck. On July 15th 2018, the California Democratic Party (CDP) passed a resolution supporting socially and environmentally responsible, state-chartered public banks. The state party resolution is a significant milestone for the public banking movement, as the CDP represents over 8.7 million registered Democrats.

The resolution was originally presented by Feel the Bern Democratic Club, Los Angeles with the support of public banking advocacy group Public Bank LA (PBLA). After passing unanimously through the Los Angeles County Democratic Party in April 2018, the resolution was passed during the California Democratic Party Executive Board meetings in Oakland this weekend.

Public Bank LA co-founder Trinity Tran states, “The California Democratic Party’s resolution endorsement is a significant step to elevate publicly-owned banks as a top priority issue for the mainstream. The solutions to many of the problems that stem from privately-controlled banks can be addressed through public banking. It’s a common sense approach for local-control and self-determination of our public finances.”

Los Angeles City Council President Herb Wesson and six councilmembers introduced an exploratory public banking motion in July 2017, following the City’s divestment from Wells Fargo bank. Wesson and council members took further action on June 26, 2018, unanimously passing a motion that will add a measure on the November 2018 general election ballot that would amend the city charter, removing a barrier to creating a city-owned bank. This will put the fate of public banking in the hands of Los Angeles voters.

Continue reading on Medium.

Truthout – By Ellen Brown. Cities and states are seeking ways to better leverage taxpayer dollars and reinvest them in the needs of local communities. Voters in Los Angeles will be the first in the country to weigh in on a public banking mandate, after the City Council agreed on June 29th to put a measure on the November ballot that would allow the city to form its own bank. The charter for the nation’s second-largest city currently prohibits the creation of industrial or commercial enterprises by the city without voter approval. The measure, introduced by City Council President Herb Wesson, would allow the city to create a public bank, although state and federal law hurdles would still need to be cleared.

The bank is expected to save the city millions, if not billions, of dollars in Wall Street fees and interest paid to bondholders, while injecting new money into the local economy, generating jobs and expanding the tax base. It could respond to the needs of its residents by reinvesting in low-income housing, critical infrastructure projects, and clean energy, as well as serving as a depository for the cannabis industry.

The push for a publicly-owned bank comes amid ongoing concerns involving the massive amounts of cash generated by the cannabis business, which was legalized by Proposition 64 in 2016. Wesson has said that cannabis has “kind of percolated to the top” of the public bank push, “but it’s not what’s driving” it, citing affordable housing and other key issues; and that a public bank should be pursued even if it cannot be used by the cannabis industry. However, the prospect of millions of dollars in tax revenue is an obvious draw. Los Angeles is the largest cannabis market in the state, with Mayor Eric Garcetti estimating that it would bring in $30 million in taxes for the city.

Continue reading on Truthout.

Next City – By Alejandra Molina. The Los Angeles City Council is moving forward with a proposed ballot measure that would ask voters this fall whether they want to create a publicly owned bank.

In a unanimous vote, council members on Tuesday, June 26, gave the go-ahead to begin the process of adding a measure on the November 2018 ballot that would amend city charter in order to create a city-owned bank. The city’s code currently prohibits it from entering into a “purely commercial venture,” unless it’s approved by voters.

To advocates, this move is a historic one that can set the tone for other public banking movements happening across the nation.

“The outcome will reflect the pulse of the national movement,” says Trinity Tran with the Public Bank LA campaign.

In New York City, dozens of residents and community organizers in early June gathered in front of the New York Stock Exchange to launch the Public Bank NYC Coalition, a group calling for the creation of a New York City-owned bank. Oakland and San Francisco are exploring the idea. New Jersey and Michigan are also considering setting up state-owned banks.

Continue reading on NextCity.

LA Progressive – By Phoenix Goodman. Something big is starting to happen in the world of activism. Grassroots campaigns are beginning to coalesce into coherent, focused missions with definable outcomes.

The Divest campaign is a classic example of how the People can have a tangible effect on society by speaking the language of the dominating classes: money.

Divestment is what it sounds like: removing public investments from corporate institutions, and repurposing them into organizations which will benefit the common good. This means leveraging the collective will through mass individual actions to force the perpetrators of corrupt and unscrupulous behavior to directly lose profits; in essence, to divest is to boycott.

Even in the world of international affairs, we hear of sanctions, which are nothing more than state actors divesting from another nation in order to conduct economic war. On the domestic front, we too face war- class war. As Warren Buffet, one of the richest individuals on earth put it, “there’s class warfare alright, but it’s my class that’s winning.” So applying this divestment strategy at the grassroots level to win very real battles in this economic war on behalf of the People is key to changing the world for the better, because it works.

At minimum, it sends a symbolic message that we are creating a culture of higher virtues and principles in which the divested institution and others like them are not welcome anymore. At best, very real systemic change can result.

Continue reading on LA Progressive.