Cities Can "Move Our Money" and "Keep it Local"

As thousands and thousands protest Wall Street and 99% of Americans face a challenging economy, many of us have been asking ourselves, "What locally can we do to help?" Despite how we address the realities of protest camps, we should all be motivated by the pleas for a fairer, smarter economy.

Finding ways to help our money circulate locally is critical to building our local economy. Our local governments cannot control global banking or finance laws. We have few tools to keep multinational corporations from outsourcing jobs. We can do little about the growing national gap between the very rich and everyone else.

But one thing cities can do -- and that we are urging support for our City of Portland to do -- is move a meaningful portion of our public deposits into locally-chartered nonprofit credit unions and out of national banks that whisk the money to Wall Street at the speed of button clicks.

We have started an online petition building support for Portland and other cities to do that very thing. In Oregon, we can "Move our money" and kick-start the Credit Union Depository Pool, based on a bill we passed in the 2010 Legislature to allow credit unions to hold more public funds. It will put credit unions on a more level playing field with banks so they are a viable option for local government deposits.

Currently in Oregon, banks are the only institutions allowed to hold public money to any significant degree. So almost every government entity -- from the DMV to the Department of Revenue to the Oregon Ducks -- deposits its public money into a bank until it needs it. We can add credit unions to the mix and better balance our deposits. The credit unions who participate must contribute to a pool of funds that will protect the public's money.

To start the Credit Union Pool, at least five credit unions must secure commitments of more than $250,000 in deposits from a local government. Portland can be the first and extend its laudable efforts to invest in the local economy.

This effort is not merely some punishment for national banks -- a portion of our local government's modest resources won't break or make them. But moving our public money into credit unions is a solid way that Portland can help keep more money circulating locally. We can set an example for local governments across the country.

The advantages to utilizing a non-profit credit union depository include:

• A credit union may be more likely to reinvest funds within the community,
• As not-for-profit financial institutions, credit unions don't pay boards or stockholders, meaning they are able to offer depositors advantageous interest rates, and
• A credit union's earnings are more likely to stay within the local area.

Our proposal is admittedly a humble step -- it won't bring many jobs home, narrow much of the growing wealth gap, or put enough people to work. It will shift some of our deposits to local nonprofit institutions. It's a smaller proposal about a bigger thing. This century's big question is figuring out an economic future that is prosperous, sustainable, and fair. Let's help answer that question.

Sign our letter today and share your ideas.

 

 

Follow Jefferson Smith on Twitter: www.twitter.com/jeffersondsmith

Comments

[raindrips]

08:56 PM on 11/06/2011

So as part of getting a piece of the state funds, banks should be required to process state issued debit cards and SNAP cards at no cost. I think it's just a crime that people get issued cards now instead of checks (good thing: cheaper and more secure) but then banks take a whack out of the money ever time there's a transaction. I don't know how we started with the US mint printing money and the fed processing interbank checks, and then all of a sudden as money goes electronic it's all tied up with banks and VISA and everyone's getting nickeled and dimed for every transaction. Electronic money should be as easy to use as paper and metal, and equally without surcharge. This is one place to start.

[falconfordd]

10:57 PM on 11/04/2011

As the Mom and Pop stores were getting more and more decimated and the large corps bought them up or drove them out our economy turned into a big cesspool of national corporations with no connection to the local people. We can take our economy back by returning to the local economy and spurning the national corporations. If you are out of work and struggling to find a job consider opening your own small business and work to attract the local community by showing that you care about them and your community. Use your local banks and credit unions for small business loans, advertise locally not with the larger networks, hire local businesses for your infrastructure needs. Keep everything as local as possible, the tax boost that your city and county will get will benefit you and the other local businesses and families instead of all across the country or wherever the large corps headquarters are located. If the tax base goes up then corporations will open offices in your area and return the jobs that they say they moved to other states for the tax breaks. Make it more desirable to do business in your local area because of its more vibrant economy.

[dream1958]

05:53 PM on 11/04/2011

Did this back in September.

[Rocket448]

02:59 PM on 11/04/2011

This is the sort of thing co-opted "representatives" will never allow. I'm gratified to see that the idea is out there, so maybe some honest official somewhere will back it too.

[Coronadoman]

02:43 PM on 11/04/2011

Looking for a credit union near you? http://www.ncua.gov/NCUAMapping/Pages/NCUAGOVMapping.aspx

Don't forget to send your bank a note about why you're moving your money, and be sure to let your Congressional representative know, too!

[Coronadoman]

02:38 PM on 11/04/2011

An excellent proposal, at exactly the right time, with zero downside, and a modest effect with a concurrent HUGE consciousness effect. We need to return our money, and our communities, to a focus on our shared public benefit. The solid fact that nonprofit credit unions invest more in our neighborhoods and local jobs is a HUGE selling point.

Send this to everyone you know. Send it to your mayor/city council/city manager. It's easy, it's fast, it's the right thing to do. Go on, do it. We'll wait....THANK YOU, JEFFERSON!

[torridjoe]

01:39 PM on 11/04/2011

Smart idea. I love the idea of small solutions to bigger problems. As Al Gore says about climate change, there's no one thing we can do to eliminate carbon pollution. But there are MANY little things that help, and do add up over time to make a difference.

[MRstoner2udude]

12:30 PM on 11/04/2011

Move your money to a local bank or credit union! You'll be glad you did.

[Elbrando]

12:03 PM on 11/04/2011

More importantly it will limit the power of Wall Street.

[Matt Singer]

11:30 AM on 11/04/2011

Cool idea from an innovative campaign--Portland can kickstart the ability of Oregon cities to save their money in local credit unions instead of national banks.