On November 6th, the citizens of Los Angeles will have a chance to decide if their city should pave the path towards creating the first municipal public bank in the country. No doubt, a ‘yes’ vote for Charter Amendment B will be significant for the city, as it will put the immense power of banking in the hands of accountable officials bound by a mission of social good — a radical shift from the status quo of giving that business to Wall St.
Today, the privilege of financing city services is reserved for private speculators. As a result, the City of Los Angeles pays exorbitant costs to big banks and private investors that is siphoned away from the city’s tax fund annually. According to the city’s 2017 CAFR report, the city paid $170 million in banking fees and $1.1 billion in interest last year — money that could have been recycled into public coffers for reinvestment if Los Angeles had a public bank instead.
This means that if the public bank ballot measure passes, it will have profound effects on the city, not only developmentally but financially, making this measure particularly important for Angelinos.
But, if you’re not in Los Angeles, or generally apathetic towards municipal affairs, should you still care? Is this just one of the many measures that come and go over the years? Is it just some boring banking initiative that’s irrelevant to our daily lives? Is it just some local Los Angeles issue that doesn’t matter if you don’t live in Los Angeles?
In truth, this is much bigger than banking and it’s much bigger than Los Angeles. As a result, it’s one of the most important ballot measures in history.
The public banking measure in Los Angeles would empower the citizens of the city with a level of influence on the world rarely afforded to local ballot measures. Here are 4 reasons why it is a huge deal for everyone.