California public banks will carry out most of their activities by partnering with community banks and credit unions, increasing the availability of credit in areas that Wall Street banks choose not to serve. These partnership relationships with local banks will support economic development in economically deprived neighborhoods. Public banks will purchase municipal and other local government bonds to provide increased services to those who need it and local jobs.
California public banks will enhance local lending to address immediate recovery efforts, fund capital improvements such as hospitals and community clinics, and benefit working families by providing long-term, sustainable investments in infrastructure, education, and housing that will create jobs.
Public banks will increase the availability of capital in our communities, giving more people and projects access to funding. Tax revenue from our cities and counties, deposited into local public banks, will finance critically needed public projects and substantially reduce infrastructure costs, thereby significantly increasing local governments’ ability to invest in their residents.
THE LOS ANGELES PUBLIC BANK WILL LEVERAGE OUR MONEY TO SUPPORT WORKING PEOPLE
Public banks have the unique ability to leverage capital up to ten times, enabling them to make loans of up to ten dollars for every dollar of capital. This can provide a significant source of funding for projects that benefit local communities, such as the production of affordable housing, climate change infrastructure, hospitals, and schools. By requiring that work be done by union labor, similar to lending programs carried out by California cities, the LA public bank can also help to bolster wages and promote a more equal distribution of power.
By leveraging public funds to support local businesses and community-centered economic development, a public bank can help to strengthen local economies and create jobs for Angelenos. This new funding can also be used to support worker training through apprenticeship programs and upskilling the existing workforce. Additionally, it can enhance the ability of working people to become homeowners and gain more empowerment in their neighborhoods for themselves and their families.
THE LOS ANGELES PUBLIC BANK WILL KEEP MONEY IN OUR COMMUNITIES
Unlike traditional financial institutions that prioritize profits and shareholder value over the well-being of local communities, the Los Angeles public bank will focus on investing in projects that benefit the people of the state. This includes investing in Los Angeles-based initiatives, using Los Angeles labor, and supporting the local economy through improvements and investments. By keeping tax money invested for the public good, rather than funneling it to shareholders and overpaid executives, public banks can help to strengthen LA communities and support our city’s working people. A Los Angeles public bank will offer a unique opportunity to invest in a more equitable and sustainable future for all Angelenos.
