CU advocates head to Albany to lobby for public deposits

GAC 2017 Capitol

New York credit union advocates are in Albany today to lobby lawmakers in support of public and municipal deposits. The group, which includes leadership from the New York Credit Union Association, is expected to meet with the chairmen and ranking members of the Assembly Banks and Local Government Committees, along with new members, in support of public deposits.

As previously reported, a majority of states have enacted legislation authorizing public deposits in credit unions, but New York has not. Authorizing governments to deposit funds in credit unions will ensure taxpayer money is getting its best return.

The Association strongly supports legislation A.3262, which is sponsored by Assembly Banks Committee Chairman Kenneth Zebrowski, D-Westchester-Rockland, and would allow credit unions to accept deposits from municipal corporations. Passage of this legislation would give municipalities’ depository choice, save taxpayer dollars and generate revenues that exceed the combination of interest and tax revenues garnered from bank income on public deposits.

The Association also strongly supports legislation A.2454/S.3028, sponsored by Robert Rodriguez, D-Metropolitan and Sen. Rich Funke, R-Rochester, which would create the Credit Union Deposit Program to encourage the State Comptroller and Commissioner of Tax and Finance to place state funds into local credit unions. This would give state government depository choice, save taxpayer dollars and generate revenues that exceed the combination of interest and tax revenues garnered from bank income on public deposits.

The Association is reminding all credit union advocates throughout the state to attend the hearing on municipal and state deposits next Monday, May 20, at 10 a.m. in Hearing Room C of the Legislative Office Building in Albany. This will mark the first time the credit union movement will have the opportunity to make the case for municipal deposits in a hearing format. Several credit union leaders are scheduled to testify at the hearing.

“This is a priority issue for the New York credit union movement,” said Association President/CEO William J. Mellin, who is among the group lobbying lawmakers today. “It is important we show the members of the Assembly what a powerful force the credit union movement can be. This critical legislation will benefit New York’s credit unions, local governments and New York taxpayers. The time is now to pass this legislation.”

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