Bring friends, neighbors who can attend daytime hearings, to learn more about the WA State Bank. See the Resources page on our website, with many Power Points and articles on WA State Banking Project site, and the National State Bank website.
Did you know that there is no State Bank in Washington? Instead our State government chooses to bank with Wells Fargo, Bank of America and Chase.
Small businesses in Washington are in desperate need of credit. But due to the recession, loans from the Small Business Administration have declined.
The proposed Washington Investment Trust (H.B. 2434 & S.B. 6310) can change all that. By keeping our public funds here in Washington State, instead of giving it to out-of-state banks, we can put our capital and interest to work creating jobs, building infrastructure, and encouraging small business growth here at home!
Wednesday afternoon January 25 at 1:30 pm, there will be a public hearing on Senate Bill 6310 in Senate Hearing Room 2 in the Cherberg Senate Building. Then on this Thursday morning January 26 at 8 am, there will be a public hearing on House Bill 2434 in the House Hearing Room B which is in the John L. O'Brien Building. We need a strong showing of public support, so please attend the hearings, and sign in as in favor of the bill. You may also testify at either or both of these important hearings; if you bring written comments, please bring 20 copies to have enough for all committee members and staff.
If you can't attend (or even if you can), please call or email your representatives and senator encouraging them to vote in favor of the bill.
Call the Legislative Hotline: 1-800-562-6000. They willl get your message to the correct legislator even if you don't know who that is when you call.
Please also write to the Governor (http://www.governor.wa.gov/contact/) and the State Treasurer, Jim McIntire (James.McIntire@tre.wa.gov) in favor of the bill.
If you are interested in tracking the bill you can do it here on the legislative website.
Below is some information about the WA Investment Trust that you may find helpful and informative.
Brian L. Gunn
State Committee Man / PCO
31st LD Democrats
http://31stdistrictdemocrats.org/
253-334-8614
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The mission of the Washington Investment Trust is to utilize Washington's depository assets in ways that afford most efficient use of taxpayer revenues and public resources for the benefit of the people and economy of the state.
The Washington Investment Trust may:
(a) Facilitate investment in, and financing of, public infrastructure systems that will increase public health, safety and quality of life, improve environmental conditions, and promote community vitality and economic growth;
(b) Assist students who are in need of additional low-cost student loans in order to finance the cost of higher education; and
(c) Leverage Washington's financial capital and resources, and work in partnership with financial institutions, community-based organizations, economic development organizations, guaranty agencies, and other stakeholder groups.
What would this mean for Washingtonians?
1) A Public Bank in Washington State would make credit available for small business loans.
It is estimated that a Public Bank in Washington could generate roughly an 8.2% increase in lending (about $2.6B in new lending activity) due to bank participation loans.
2) A Partnership Bank can offer low-interest financing for homeowners and businesses.
Imagine having a credit card at 6% interest. How about offering zero-interest loans as community equity loans for public infrastructure?
3) A Public Bank would help create and retain jobs.
It is estimated that a Public Bank could help create or retain 7,400-10,700 additional small business jobs in Washington.
4) A Public Bank would generate new revenue.
A Public Bank could generate dividends for the Washington State starting in year 3, and a bank capitalized at $100M and conservatively run could pay total accumulated dividends to the state's General Fund of $71M after 10 years, $206M after 20 years, $382M after 30 years, and $675M after 40 years.
5) A Public Bank would lower debt costs for local governments.
A public bank can get access to low-cost funds from the regional Federal Home Loan Banks. It can pass this savings on to local governments when they buy debt for infrastructure investments. The banks can also provide Letters of Credit for tax-exempt bonds at lower interest rates.
6) A Public Bank would strengthen local banks
The Bank of North Dakota's charter is clear. One of its goals is to be helpful to and to assist in the development of [North Dakota banks]... and not, in any manner, to destroy or to be harmful to existing financial institutions. By purchasing local bank stock, partnering with them on large loans, and providing other support, public banks strengthen small banks in an era when federal policy encourages bank consolidation.