MSN – Three Los Angeles City Council members introduced a motion Friday to fund a feasibility study for a proposed public bank, which supporters say could generate new revenue for the city without placing new taxes or fees on residents.
Council members Eunisses Hernandez, Ysabel Jurado and Hugo Soto- Martínez made the commitment during a news conference Friday on the steps of City Hall, with each promising to provide $15,000 in AB 1290 discretionary funding from their respective council offices for the study.
Two years ago, the council voted 12-0 to allocate $460,000 for HR&A Advisors to conduct a feasibility study for a public bank. That money was included in the budget for fiscal year 2024-25, but it was later allocated for other uses amid budget constraints.
“For too long, our public dollars have propped up systems that deepen inequality and harm our communities,” Hernandez said in a statement. “A public bank would give us the power to reinvest in our neighborhoods without further squeezing working-class Angelenos. Los Angeles deserves a financial system that works for us, not against us.”
With the city currently grappling with a roughly $1 billion deficit, Jurado said tough economic times create opportunities to examine new ways to uplift local economies.
Soto-Martínez added that the combined $45,000 sends a clear signal that LA is “ready to think big.”
The council members were joined by representatives from Public Bank LA, Move LA, Service Employees International Union Local 721, DSA-LA, Inclusive Action for the City, and Alliance of Californians for Community Empowerment.
According to Trinity Tran, executive director of Public Bank LA, the city is losing millions of dollars to private banks while neighborhoods are expected to manage deep cuts to services in the upcoming fiscal year.
“A public bank gives us the power to take control,” Tran said in a statement. “It leverages our own assets to fund housing, infrastructure, and the services of our communities. Today’s action by city leaders signals real commitment to a city that invests in its people, not Wall Street profits.”
Officials cited the success of the state of North Dakota, which established such an entity in 1919. North Dakota has used the bank to “weather multiple economic downturns and insulate itself from broader market collapses,” according to Hernandez’ office.
The motion also calls on the chief legislative analyst to work with HR&A Advisors to confirm that their previously determined cost, scope of work and timeline remain accurate.
The motion will be considered by the Economic Development and Jobs Committee before being considered by the full City Council.
READ THE ARTICLE ON MSN: 3 L.A. COUNCILMEMBERS PLEDGE TO FUND STUDY FOR PUBLIC BANK.
