June 2024 Newsletter

Dear Friends of Public Bank Pomona Valley (PBPV),

This month marks about four and a half years in our efforts to get a public bank off the ground in our region and state. Turns out, it’s not easy to start a bank!  Especially a novel type of bank that challenges not only the paradigm of banking, but also the entrenched institutions that see this movement as a threat. 

Nevertheless, things are happening!  A generous grant awarded to the California Public Banking Alliance (CPBA) has enabled us to begin assembling a trove of expert financial documents for use in the regions seeking to start banks, including info on viability studies, risk assessment, and the formation of green banks. I’m on the CPBA committee working on how these funds should be allocated between our state level priorities and regions like ours.

Speaking of the regions:

·   East Bay is making great progress, having recently hired a CEO and started building a Board of Directors. They have amassed impressive funding from several public and private sources.

·   San Francisco has opened a Municipal Finance Corporation, a first step toward transitioning to a public bank after establishing a track record in responsible public lending.

·   Los Angeles had a setback recently, as allocated funding for a business plan study was mysteriously removed. But it was quickly reinstated, with unanimous support from the city council. It now goes to the mayor’s office for placement in the final budget.

·   The city of Sacramento has allocated funding to hire consultants for their public bank viability study and the local public bank group sponsored a forum on the FDIC’s role in backing public banks. They have been very active in efforts to engage lawmakers as we seek to extend AB 857, the founding legislation for our movement.

·   The Central Coast PB group, which includes Santa Barbara, Monterey, Santa Cruz, and San Luis Obispo counties, is collaborating to form a regional public bank.

Our Public Bank Pomona Valley Study Group (a subset of this mailing list) continues to meet and strategize monthly, and stays active and supportive of work at the state level and in the other regions. In addition, some of us are working on legislation for a National Infrastructure Bank and a California State Bank. We hope to continue raising awareness of the public banking movement by presenting to local groups like city councils and community groups – most recently to the Claremont Democratic Club. We will be assisting in presenting at a Community Development Financial Institutions conference in LA this fall, and CalAccount Town Halls in LA and Sacramento in July. 

CalAccount is the program created by AB 1177 (2020) which will enable no-fee basic banking for all Californians. The RAND viability report on this program is due in July, and then next steps will begin by the Blue-Ribbon Committee led by the State Treasurer.

On a personal note, I have enjoyed working with our PBPV group over the years, and value the relationships we’ve formed as we work to make this great idea come to fruition. If you have an interest in getting more involved by joining our Study Group, shoot me an email.

Pressing on,

Steve Sittig

PBPV Convenor

CPBA Regional Director

Remember to check out our website and Facebook Group:

October 2023 Newsletter

Dear Friends of Public Bank Pomona Valley,

In several regions of the state, public banking efforts have been moving steadily ahead over recent months. The City of Los Angeles issued a request for proposal to prepare a business plan for a public bank, and that should be done in a few months. In the meantime, studies are being done to analyze aspects of the plan’s impact on housing, small business lending, employee ownership, and climate-centered lending.  Central Coast cities may soon start a similar proposal process. East Bay is close to having two more cities approve the viability study and is vetting potential board members, as well as doing some serious fundraising.  San Francisco’s business plan is being developed in consultation with community representatives and financial experts and is looking at governance models.  A new California Public Banking Alliance group has emerged in Sacramento and is joining with Humboldt and our own Pomona Valley group to raise grassroots awareness and support local elected and appointed officials as they consider how public banks could be developed regionally.

A parallel effort has been part of our work, and has seen real progress over the summer. The CA Public Banking Option Act, landmark legislation that we helped pass in 2021, secured funding in the state budget to move ahead with its Blue Ribbon Commission chaired by CA Treasurer Fiona Ma. Its first meeting has been held, and the market analysis of the proposed CalAccounts program will be developed over the coming months, eventually heading back to the legislature for final approval.  At that time, a statewide gateway to the financial system for un- and underbanked folks will be opened, ensuring zero or low fee banking services to all Californians who want it – overdraft protection, autodeposit of paychecks, zero fee check cashing and e-bill payment, favorable loan access, and no redlining of minorities. This will be a major step forward for reducing inequities in banking and finance. Public Bank Pomona Valley is pleased to have been able to help the California Public Banking Alliance in this campaign.

Our Study Group and Executive Committee are grateful for the continued and growing interest in our movement.  If you know of groups that would benefit from learning more, or events upcoming that would be willing to have us present, please contact us by email.  Stay in touch with our latest news and press releases through our website and Facebook page.

Steven Sittig,

Convener, Public Bank Pomona Valley

Regional Director, California Public Banking Alliance

Newsletter   March, 2022

Dear Friends of Public Bank Pomona Valley,

We’re well into our third year on this endeavor and have seen some very good movement on several fronts.  Our first local meeting in Pomona was in November of 2019, with several elected officials and experienced activists.  Much has happened since, as we’ve backed legislation and worked to bring awareness of public banking to our area. 

Leading off in this update is the hottest item for us – an online Town Hall is planned for March 30th at 6PM.  We are excited to have the recently retired CEO of the Bank of North Dakota, the only public bank in the US today, Eric Hardmeyer, as headliner.  Long Beach Mayor Robert Garcia will join in as well, and several other panelists.  Informative and motivating, as we hear from leaders who see the value and importance of public banks.  We’ll keep you apprised as the date draws near.

You may recall that we (the PBPV Study Group) devoted some of our energy toward the passage of AB 1177, Cal Accounts, which was signed into law last October. This will in time enable all Californians to have access to low- or no-fee banking, bringing to millions of folks the advantages of auto-deposit, online billpay, free checking, and relief from service charges. As the bill works through viability studies, we will be working to ensure the public becomes more aware of it. 

Remember, public banks will support the needs of cities and partnering community banks, but Cal Accounts will bring banking access to the people. The bulk of our work, Public Bank Pomona Valley, is to establish a local public bank, serving Pomona, Claremont, La Verne, and (we hope) San Dimas. Cal Accounts, on the other hand, will give individuals access to ATMs and local branches of participating community and national banks.

A few highlights from other regions: The City of Philadelphia has just established a Financial Authority which will be able to start a public bank within a year or two. So far, nine states have passed resolutions supporting a National Infrastructure Bank, and efforts are underway to have an “I-Bank” here in California.  Los Angeles and San Francisco have approved a process to study the viability of regional public banks. And Public Bank East Bay, a consortium of four cities and Alameda County, will soon vote to approve their viability study, which is very positive in its outlook. 

Good things are happening and we want you to know. Our Study Group has been reaching out to our local elected officials so they will be well informed when the time is ripe for action in our area.    

Check our website for more information and follow our Facebook page and Twitter feed. 

Yours faithfully,

Steven Sittig,

Convenor, Public Bank Pomona Valley

Regional Director, California Public Banking Alliance

We hosted an online event in July 2020, co-sponsored by the Public Banking Institute.  Several presenters, including two of our Study Group members, La Verne City Councilmember Muir Davis and Professor Emeritus Andrew Winnock of Cal State LA,  explained the basic ideas and a bit of the history of public banking, then took questions from our audience. To view the Town Hall, click here.

Across the nation, more than 25 initiatives for public banks are actively being pursued, by progressives and conservatives, 30 of 50 states have proposed legislation in support of publicly-owned banks, and over 50 organizations are promoting public banks. Read about local efforts and legislation by various states at the Public Banking Institute's website here.

June 12, 2020

Public Banks:

1. Are owned by the people of a state, city, community, or nation;

2. Serve as the depository for local government funds (city or state taxes, fees, etc.);

3. Are required to benefit the public by serving local community needs;

4. Can save state and local governments millions or even billions of dollars, by cutting out middlemen and private shareholders, eliminating fees, and financing projects at lower interest rates;

5. Reinvest bank profits into the community, providing a new source of income for cities and states and a source of funding for projects such as infrastructure, renewable energy and affordable housing;

6. Are run, not by politicians, but by qualified bankers serving a public mission;

7. Provide accountability and transparency to the public for bank decisions, avoiding the risks of Wall Street’s speculative gambling;

8. Create new jobs and spur economic growth by supporting local small businesses;

9. Partner with and support rather than competing with local community banks;

10. Can lend during times of stress and crisis, helping to sustain a healthy local economy.

Thanks to the Public Banking Institute.

May 30, 2020

We should encourage everyone to have access to digital financial services. As was seen with the COVID-19 related stimulus checks, those without bank accounts struggled to receive their stimulus checks. Banks have become vital "middlemen" that deliver on key government programs. Read more in the May 18, 2020 article titled "The Pandemiic has shown that we need a public option for banking services" by Raul Carrillo here.

May 27, 2020

As states and cities face a tsunami of emergency expenses, collapsing tax revenues, and a shrinking bond market, we wanted to bring to your attention some new funding possibilities that have recently opened up.  Write your governor about the following actions.

#1 Use your emergency powers to set up a state-owned public bank. 

#2 Take advantage of the Federal Reserve’s new Municipal Liquidity Facility for direct access to the central bank. 

#3 Access low interest loans under Federal Reserve Act 14(2)(b). 

Read more at the Public Banking Institute's website here.

April 22, 2020