State Senate Resolution Buoys N.Y. Public Fund Hopes
New York credit unions, engaged in a tough scrap with the banking lobby over allowing deposit of municipal funds in CUs, won fresh support this week from a favorable State Senate budget resolution and a new endorsement by Mayor Michael Bloomberg and the New York City Council.
The Senate move to include an industry-backed provision backing the CU cause in the budget represents a "significant second hurdle we've crossed in making our case and now we have to concentrate on the Assembly," said Amy Kramer, vice president of governmental affairs for the Credit Union Association of New York.
On Thursday, the New York mayor and the city council again formally adopted a resolution "encouraging state legislators to enact municipal depository choice, giving cities across the state opportunity to make deposits in local CUs."
In January Gov. David Paterson had also endorsed the CUANY bill allowing local government entities such as cities, towns, counties, public schools, fire districts and public libraries the option of "depositing funds in local credit unions or community savings institutions."
Kramer of CUANY said the specific deposit provision is not in the latest Assembly budget package but CUs expect to push for its support when lawmakers return after the Easter recess.
"We know that many municipal treasurers are tired of the big banks telling them where and how they can deposit their funds," said Kramer. CUANY officials noted also the "Move Your Money" campaign has also been a factor in winning lawmaker backing.