We support the establishment of a State Bank
Position In Brief:
The League of Women Voters of Vermont supports the establishment of a State Bank. It is best established by a gradual process. Bonding for infrastructure would be the primary responsibility of a state bank, though funding for student loans, business loans, and home mortgages would also be appropriate activities.
Position History:
approved 2015
The LWV of Vermont supports the establishment of a State Bank. The League believes that the establishment of this bank should be a gradual process in order capitalize the bank and develop its functions. In establishing a state bank, governance and regulation will need to be addressed to assure transparency as to the use of public funds.
Giving the Vermont Economic Development Authority (VEDA) banking powers is consistent with the gradual approach supported by the LWV.
While revenues from a state bank may become a significant source of state funding in the future, it should not be the primary reason for establishment of such a bank.
Bonding for infrastructure should be a primary responsibility of a state bank.
Bonding or loans by the state bank should be used to reach state goals for reducing dependence on fossil fuels through weatherization and renewable energy projects.
Funding for student loans, business loans and home mortgages are also appropriate activities of a State Bank.
Supporting Documents
Public Bank Study, Final Report. Google Doc Format
Folder of Supporting Resources
Brown, Ellen and Gwendolyn Hallsmith, “How a State Bank Can Solve the State Budget Crisis,”
Montpelier Bridge, special supplement, Aprill 4-17, 2013 (not online)
Vermonters for a New Economy, “Frequently Asked Questions about a Public Bank” (not online)
Building State Development Banks, September 2010
Demos, Putting Vermont Money to Work for Vermont
VT Legislative Joint Fiscal Office, Preliminary Review
Tom Sgouros, Nuts and Bolts: A Public Banking Took Kit
Michael Taub, Vermont’s False Fiscal Dilemma
Gwendolyn Hallsmith, Money for Energy in Vermont (not online)
Yolanda K. Kodrzycki and Tal Elmatad, The Bank of North Dakota: A model for Massachusetts and other states?, New England Public Policy Center Research Report 11-2, May 2011
Interview with staff of Vermont State Joint Fiscal Office
Interview with State Treasurer Beth Pearce
Vermonters for a New Economy, Exploring Public Banking in Vermont, Preliminary Findings
Vermonters for a New Economy, Exploring Public Banking in Vermont, final report, December 2013.
The following is testimony taken by the Senate Government Operations Committee and the Senate Finance Committee on S.204, a bill which would not establish a state bank per se, but would give the Vermont Economic Development Authority (VEDA) banking powers.
- State Treasurer Beth Pearce, Analysis of S.55 and S.204
- Beth Pearce, State Bank Proposed Advantages and Responses
- Beth Pearce, Memo from Public Resources Advisory Group
- Mark Armstrong, Public Banking Institute, Testimony regarding the Bank of North Dakota
- Robert Giroux, Exec. Dir. Vermont Municipal Bond Bank, Testimony on S.55 and S.204
- Tom Sgouros, Public Policy Consultant, Testimony on expanding the function of VEDA
- Gary Murphy, Testimony regarding S.204
- Senator Anthony Pollina, Testimony to Sen. Finance Committee from Sen. Government Operations Committee
- Jo Bradley, Vermont Economic Development Authority, VEDA Technology Loans
Panel Discussion, featuring Washington County Senator Anthony Pollina; Vermont State Treasurer Beth Pearce; Gwen Hallsmith, founder of Global Community Initiatives; and Chris D’Elia, President and Treasurer of the Vermont Bankers Association was held at the State House in April. It can been seen at https://www.orcamedia.net/show/public-banking-forum-april-16-2014 ; or scroll down the playlist to “Spotlight on Vermont Issues”, and then on the Public Banking Forum. This program gives a good overview of the pros and cons of the issue.