California State Capitol, Sacramento, CA. Photo by Jeff Turner.
Noting that “a California law has energized public banking advocates around the country,” Evan Weinberger reports for Bloomberg Law on the momentum for public banks sweeping the country. He speaks with a community banker in North Dakota as well as advocates working in Pennsylvania, New Mexico and New York making use of the headwind created by California’s success. New York Senator James Sanders, Chair of the Committee on Banks, remarks:
“If I had my way, New York would have beat out our colleagues on the West Coast, but that wasn’t the case. … We are going to look to see what we can learn from what California has done.”
Weinberger highlights the values advocates see in public banking depend on the state’s predominant political views:
“Public banking advocates in Pennsylvania plan to make it a state-level issue in the legislature in the coming year, as well as an issue in state senate elections set for next year.
“New York’s legislators can talk about using the public bank to fund things like the Green New Deal or student loan forgiveness. In Pennsylvania, where the legislature is under Republican control, public bank backers need to pitch the idea as a way to help balance out state finances, according to Mike Krauss, chairman of the Pennsylvania Public Bank Project.
“‘We need a bipartisan effort,’ Krauss, former chairman of the Pennsylvania Republican Party, said.”