The Public Bank of North Dakota has kept their public funds safe, local and working for more than 100 years.
Photos courtesy BND.com
Credit Union Association of New Mexico
Endorses a Public Bank for New Mexico
Ballooning New Mexico|@Yancy|Flickr
How Can a State Public Bank
Support Our Communities?
Researcher and interns of Sandia Labs at Pueblo of Acoma discuss photovoltaic solar panel. Photo courtesy Sandia Labs via Wikimedia Commons.
Working together let’s establish a Public Bank for New Mexico, to finance the bold changes it will take for our communities to overcome today’s obstacles and seize tomorrow’s opportunities.
The Alliance for Local Economic Prosperity (AFLEP) is a nonprofit, grassroots think tank advocating for a state public bank. New Mexico’s revenue (taxes and fees) is now largely invested in global banks outside the state, missing opportunities to invest in the economic needs of New Mexico communities. Learn more:
Endorse a Public Bank for New Mexico
Endorse a public bank so public officials and friends know you support public banking and why.
Allied Organizations that support what a State Public Bank can do for our economy
In the News
By Editorial Board, Bloomberg – Should U.S. post offices also be banks? Lately, a group of legislators including Bernie Sanders and Alexandria Ocasio-Cortez has been championing the idea as a way to address economic inequality. It might seem far-fetched, given how the postal service has been struggling recently to even deliver the mail. But the idea shouldn’t be dismissed.
By Wan R. Smith and Philip Fracica, Nonprofit Quarterly – Today, as President Joe Biden’s $2 trillion infrastructure bill is debated in Congress, it’s worth recalling that this isn’t the first time the US has faced an infrastructure deficit. “By the 1930s nearly 90 percent of US urban dwellers had electricity, but 90 percent of rural homes were without power. Investor-owned utilities often denied service to rural areas, citing high development costs and low profit margins,” recalls one account.
By Stacy Mitchell, Institute for Local Self-Reliance – Rural America is in crisis, and the gap between struggling rural towns and coastal supercities is growing ever wider. Much of this distress stems from the concentration of corporate and financial power, which is centralizing wealth in the hands of the few while wiping out the independent businesses and well-paying jobs that are the foundation of rural economies.
AFLEP in New Mexico Blog
By Lochaven (CC BY-SA 2.0)
Justin Friedman, Taos News | March 31, 2021
The legislation to create a New Mexico State Public Bank did not progress in this year’s legislative session. It received two committee hearings and died in the second one. The critical piece for Taos County is the related failure to locally fund startup small businesses in solar installation, home improvement, forest management and a diverse, far reaching number of local initiatives. Failure to enact this legislation further exacerbates the ongoing crisis of a non-diversified State economy reliant on fossil fuel extraction. Thanks to all who supported our efforts to implement this potential cornerstone for New Mexico economic development.
Image: mustofa agus tri utomo (Pixabay)
By Dee Gamble, Santa Fe New Mexican | March 2, 2021
Thanks to Milan Simonich for highlighting the bills (House Bill 236 and Senate Bill 313) to create a New Mexico Public Bank and promoting public discussion (“Public bank bill belongs on scrapheap,” Ringside Seat, Feb. 21). However, the New Mexico Public Bank would not replace the New Mexico Finance Authority, it would complement, not duplicate or compete with it. More importantly, the public bank, as a chartered bank, would grow money (yes, “grows as it goes”), which the New Mexico Finance Authority cannot do. The bills do not create a bank that lends directly to individuals, as the Bank of North Dakota does for college loans. Rather, it would partner with community banks and credit unions to finance loans to small businesses and entities including municipalities and tribes for underfunded community development investments.
If financial investments are just fine as they are, why is New Mexico at the bottom of all the measures for well-being? New Mexico communities have many unmet needs, and it’s high time we do something bold that is successfully functioning elsewhere and is currently being considered by dozens of other states.
March 2, 2021 – The New Mexico Public Banking Act hearing originally scheduled for the HAFC on Tuesday, March 2nd will now be heard on Wednesday, March 3rd at 1:30pm.
Let your voice be heard! Offer public comment during the hearing on Wednesday, March 3rd at 1:30pm. Participants are allotted 60 seconds of public comment time if called upon. Join in the hearing to let them know of your support.
Use this Zoom link to access the hearing: https://us02web.zoom.us/j/81432164016
- North Dakota had the lowest unemployment rate in the nation during the 2007-08 recession. Current Sept 2020 rates: North Dakota, 3.8%; U.S., 7.9%; New Mexico, 9.4%.
- Bank of North Dakota (BND) has added to the state’s annual operating budget $300+ million over the past 10 years.
- North Dakota community banks are thriving because of their partnerships with BND: 10 community banks per 100,000 population, the highest in the U.S.
- BND originated or renewed 15,696 loans to state businesses, projects and students, totaling $1.33 billion in 2019. The total loan portfolio is $4.5 billion.
- BND works actively to create successful new businesses to reduce the state’s dependence on oil and gas.
- Founded in 1919 with $2 million in capital, BND reported assets of $7.0 billion at the end of 2019.
- BND posted its 16th year of record profits at $169 million in net earnings in 2019 and is highly profitable, with a Return on Investment (ROI) of 18.6% for 2019.