New York Credit Union Association staff and credit union advocates throughout New York are in Albany today for a hearing on public deposits in Albany.
The important hearing is being hosted by state Assembly Banks Committee Chairman Kenneth Zebrowski, D-Westchester-Rockland, and Assembly Local Governments Committee Chairman Fred Thiele Jr., D-Long Island.
Local governments in New York are not currently authorized to make deposits with credit unions. Changing the law to allow credit unions to accept public deposits has been a state-level legislative priority for the Association for many years.
However, this marks the first time the credit union movement has had the opportunity to make the case for municipal deposits in a hearing format. Several credit union leaders, including Association President/CEO William J. Mellin, are testifying at the hearing.
The Association strongly supports legislation A.3262, which is sponsored by Zebrowski, 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.
Credit union advocates are strongly encouraged to show their support for the legislation by emailing their members of the Assembly and state Senate, or submitting written testimony, which can be submitted after the hearing.
Additional details on today’s hearing will be reported in tomorrow’s edition of The New York Minute.