NY League Introduces New Compromise Municipal Deposit Bill
The Credit Union Association of New York stepped up its campaign Friday to win lawmaker support for a compromise bill on allowing the deposit of public funds with a $250,000 cap.
Earlier bills opening up government funds for CUs had set a $1 million maximum.
The measure has faced vigorous opposition from state banking lobbies.
CUANY officials said they were hopeful but realistic that the latest public funds bill still faced rough sledding in Albany considering the state is mired in a budget crisis and banks have waged a vigorous campaign against the proposals. But the measure has won endorsement of Democratic leaders in the statehouse and New York Mayor Michael Bloomberg.
"We are encouraged by receiving more support from lawmakers for our compromise choice bill which was introduced on Thursday," said Amy Kramer, vice president of governmental affairs for CUANY.
The latest compromise bills are now before both chambers of the legislature which may recess during the July 4 holidays putting consideration of the CUANY in the early fall
CUANY said its choice bill allows local government entities such as cities, towns, school and fire districts and libraries the option of depositing tax dollars in CUs or savings banks, as well as commercial banks.
But, charged CUANY, those banks "currently have a monopoly on municipal tax deposits. The proposed flexibility for local government and free market approach will result in the best possible rates of return and lower fees for municipalities which could save New York taxpayers millions of dollars."