Coalition of Local Gov't Groups/Credit Unions Urge Legislature to Include Municipal Dep.Choice in Budget

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William Mellin, CU Assoc. of NY, thanks Alb. Mayor Jerry Jennings for support of Municipal Deposit Choice. Back (l-r) Asm. Harvey Weisenberg, Sen. Kevin Parker & Albany County Exec. Michael Breslin.

ALBANY, NY (04/13/2010)(readMedia)-- A coalition of local government groups and the Credit Union Association of New York, representing 451 New York credit unions and 4.4 million New York credit union members, today held a press conference at the State Capitol to call on the State Legislature to pass municipal deposit choice.

Municipal deposit choice allows local government entities such as cities, towns, counties, school districts, fire districts and public libraries the option of depositing tax dollars in credit unions or savings banks. While a majority of states including Connecticut and New Jersey allow municipal deposit choice, commercial banks in New York State currently hold a strict monopoly on such deposits.

Supporting organizations include the New York State Conference of Mayors and Municipal Officials (NYCOM), the Association of Towns of the State of New York, New York State Association of Counties (NYSAC), the Fireman's Association of New York (FASNY), the New York School Boards Association, and the New York Library Association (NYLA).

"We appreciate our local government association partners and the many state and local leaders who stand with us today as we ask the State Assembly to join the Governor and State Senate in supporting municipal deposit choice in this year's final state budget agreement," said William J. Mellin, president/CEO of the Credit Union Association of New York. "This much-needed reform, which is also supported by New York City Mayor Michael Bloomberg and the New York City Council, allows local governments, including cities, towns, counties, fire districts, schools and libraries, the freedom to deposit their taxpayer dollars in credit unions and savings banks, as well as, commercial banks."

Local government leaders representing New York's counties, cities, and towns joined members of the State Legislature to support reforming and updating municipal deposit law that's nearly one-hundred years old and fails to reflect the current financial marketplace or offer local governments the ability to choose the right municipal deposit options for their community. Municipal deposit reform will help local governments save revenue, by providing local choice, expanding their investment options, and creating more competition. Such reform will also encourage more funds to stay local through community reinvestment and create more opportunities for local residents to take out personal or small business loans.

Local government leaders included Albany Mayor Jerry Jennings, an executive committee member of NYCOM; Albany County Executive Michael Breslin, a member of NYSAC; Vestal Town Supervisor Pete Andreasen, a member of the New York State Association of Towns; and Mike Tobler from the Albany Fireman's Federal Credit Union.

"I'm proud to support this legislation and urge the legislature to get this through this year," said Albany Mayor Jerry Jennings. "Credit unions play a vital role in New York and they will give local leaders the flexibility we need, if we have municipal deposit choice. It saves the taxpayers through increased competition and that's what built America. This is something we're all looking for."

"I stand squarely behind municipal deposit choice. We need an opportunity to utilize all of our resources including credit unions and community banks," said Albany County Executive Michael Breslin. "We should be able to use credit unions services to make more money from our tax dollars. How can anyone oppose it?"

"We need every bit of help we can get as we currently face a tough budget year and expect an even tougher one next year," said Vestal town Supervisor Pete Andreasen. "I have been a vocal supporter for municipal deposit choice for years, because it would allow Towns to seek the highest rate of return. Individuals, businesses and other entities have the ability to shop around for the best rates, why shouldn't New York's local governments have those same choices?"

Several State Legislators also spoke out in support of municipal deposit choice including Senator Kevin Parker and Assemblypersons Carl Heastie, Harvey Weisenberg, Tim Gordon, Vanessa Gibson and Michael Benjamin. While many of these state leaders have sponsored or co-sponsored related legislative bills, all strongly support municipal deposit reform.

"We must pass municipal reform now, as we are looking to shift our investments from Wall Street to Main Street and try to help our local communities," said Senator Kevin Parker, representing the 21st District in Brooklyn. "We have a crisis in credit and jobs and municipal deposit reform will boost the economy by helping on both fronts."

"We need everyone's support in this effort and I'm asking supporters of municipal deposit reform to get involved, reach out to your legislators, and help us get this passed," said Assemblyman Harvey Weisenberg, representing the 20th District on Long Island and a member of the Assembly Banking Committee. "Looking at this list of coalition members is like looking at my life, having been associated with, or active in, each and every one of these vital community institutions. Municipal deposit choice affects all New Yorkers in many personal ways."

Assemblyman Carl Heastie, representing the 83rd District in the Bronx, added that "increased competition will improve our rates of return on local tax dollars and benefit underserved communities. I strongly support municipal deposit choice and encourage my colleagues in the Assembly to join us."

"Credit unions not only play a significant role in our local communities but we also pay property taxes to those very same local governments which would benefit from municipal depositchoice, namely municipalities, libraries, fire districts and public schools," said Mellin. "Furthermore, a former economist to the State Assembly estimates local taxpayers could save $18-24 million through municipal deposit choice."

"The cupboard is bare and anything we can do to help local governments improve their financial positions without a cost to the state is something we all need to support," said Assemblyman Tim Gordon, from the Capital Region's 108th Assembly District.

"We're hoping that Speaker Silver and the Assembly -- all of whom represent local governments, districts with credit unions, and thousands of credit union members -- will do the right thing and support municipal deposit choice in the final budget," Mellin concluded. "We're also asking every New York taxpayer to call, email or write their State Legislators and tell them to support our local governments, support our local communities, and ask them to pass municipal deposit choice."

The Credit Union Association of New York has served as the trade association for the state's credit unions for 93 years. New York credit unions have assets of more than $50 billion and 4.4 million members. To learn more about the Association, visit www.cuany.org.

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Caption: William J. Mellin, president/CEO of the Credit Union Association of New York, thanks Albany Mayor Jerry Jennings following his words of support for Municipal Deposit Choice at the Association's press conference. Looking on (l-r) were fellow press conference speakers Assemblyman Harvey Weisenberg, Senator Kevin Parker and Albany County Executive Michael Breslin.