Despite vigorous banker opposition, the Credit Union Association of New York is moving ahead this month with its legislative campaign to win support for a compromise bill allowing the deposit of public funds in CUs with a $250,000 cap.
Earlier bills opening up government funds for CUs had set a $1 million maximum.
CUANY officials said they were hopeful that the latest public funds bill, which won endorsement of Democratic leaders in the statehouse and New York Mayor Michael Bloomberg, might stand a chance in Albany.
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Officials stressed, however, they are being realistic about the outcome given the state is mired in a budget crisis which might take away attention from CUNAY legislation.
New York banks, meanwhile, have waged a vigorous campaign against the proposals.
"We are encouraged by receiving support from lawmakers for our compromise choice bill," said Amy Kramer, vice president of governmental affairs for CUANY. The latest CUANY bill was introduced June 24 though action is not expected until after the summer recess.
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.
Those commercial banks, however, "currently retain a monopoly on municipal tax deposits," charged CUANY, noting its bill provides flexibility for local governments. Such "a 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," said CUANY.
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