Los Angeles is Bleeding Billions in Taxpayer Funds: The Urgent Need for a Public Bank

LOS ANGELES, CA, June 26, 2024 – ACCE Action Los Angeles and SEIU 721 urgently calls on the Los Angeles City Council to allocate $460,000 in the upcoming budget for Phase 1 of the Public Bank feasibility study and business plan. Annually, the City of LA wastes over $1.5 billion on financial costs including loan fees, debt management, and bond payments.

By putting this money to work for Angelenos rather than Wall Street banks, the Los Angeles Public Bank could generate up to $15 billion in funds to support our communities and address future budget deficits.

Who: Councilmember Hugo Soto-Martinez and coalition leaders. Beverly Roberts – ACCE Los Angeles, SEIU 721, Trinity Tran – Public Bank LA, Luz Castro – Inclusive Action for the City, and Erika Toriz – Haven Neighborhood Services.

When: Thursday, June 27, 2024, 8:30 AM PST

Where: South Lawn Steps at LA City Hall, 200 N. Spring Street, Los Angeles, CA

Councilmember Hugo Soto-Martinez and coalition leaders will speak to this expanded funding which can support key priorities like affordable housing, renewable energy, support for small businesses, infrastructure modernization, and fixing our streets while saving on excessive fees.

Initially approved by the City Council in June 2023 and reaffirmed by Councilmember Soto-Martinez’s motion and the City’s unanimous vote in May 2024, this funding is crucial to developing a public bank and directing our substantial resources towards crucial community investments.

Economic Impact:

• The City spends over $1.5 billion annually on debt service and commercial banking fees.
• A Public Bank could significantly cut these excessive fees and redirect funds to affordable housing, small business support, public services, and green infrastructure.

Despite unanimous City Council approval for the feasibility study and business plan funding, a recently enacted funding delay benefits Wall Street banks and continues wasteful spending.

Call to Action:

• Reallocate $460,000 for the public bank feasibility study in the upcoming Financial Services Report.
• Immediate action is needed to start the viability study and implementation plans.

Endorsed by SEIU 721, Public Bank LA, Inclusive Action for the City, the FIX-LA Alliance, and over 100 housing, social, and environmental justice organizations, the Los Angeles Public Bank represents a unified effort toward financial autonomy and community empowerment.

About ACCE Action Los Angeles: ACCE Action Los Angeles is a multi-racial, democratic, non-profit community organization fighting for economic justice, housing rights, and community empowerment in the Los Angeles area.

About SEIU 721: SEIU 721 represents over 60,000 members in LA County who deliver essential public services to nearly 11 million residents. These services include healthcare, social services, sanitation, child support services, parks and recreation, libraries, and more.

About Public Bank LA: Public Bank LA is a grassroots organization working to establish a Public Bank in Los Angeles to champion financial transparency, reduce banking fees, and reinvest taxpayer money into local communities.

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