NYS Legislators & Credit Union Assoc. of NY Gather in Support of Municipal Deposit Choice

ALBANY, NY (06/13/2010)(readMedia)-- Assemblyman David I. Weprin (24th AD, Queens), several State Legislators and the Credit Union Association of New York – representing 451 New York credit unions and 4.4 million New York credit union members – today called on the State Assembly to join the Governor and State Senate in support of municipal deposit choice, which will give New York City and local government entities more financial flexibility and help save critical tax dollars.

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 local credit unions or community savings banks. Currently, commercial banks have a monopoly on municipal tax deposits.

"I strongly support municipal deposit choice which simply gives local governments the ability to deposit their tax dollars in credit unions and community savings banks in addition to commercial banks," said Assemblyman David I. Weprin, former chairman of the New York City Council Finance Committee, former deputy superintendent of banks for New York State and a member of the New York State Assembly Committee on Banks. "That's why I co-sponsored Assemblyman Carl Heastie's bill which lets our local governments make the best choices with our tax dollars and keeps our tax dollars in our local communities."

"Together with Assemblyman Weprin and others in the State Legislature, we are asking the State Assembly to support municipal deposit choice and join the Governor who included it in his proposed budget and the State Senate which included it in their passed budget resolution," said William J. Mellin, president/CEO of the Credit Union Association of New York. "This much-needed reform allows local governments something they don't currently have - the freedom to deposit their tax dollars where they can save revenue, encourage more local investment, and create more opportunities for New Yorkers."

Assemblyman Carl Heastie's bill (A.4370) would amend the general municipal law and banking law to allow credit unions, savings banks, savings and loan associations, and federal savings associations to accept and secure deposits from municipal corporations. Several other bills pending in the State Legislature also seek to accomplish this goal, including bills sponsored by Senator Kevin Parker (S.1782-A), Senator Craig Johnson (S.717) and Assemblyman Harvey Weisenberg (A.4319).

"We need everyone's support in this effort and I'm asking supporters of municipal deposit reform to get involved, reach out to your State Legislators, and help us get this passed," said Assemblyman Harvey Weisenberg, representing the 20th Assembly District on Long Island and a member of the Assembly Banking Committee. "Municipal deposit choice affects all New Yorkers in many personal ways."

Credit unions play a significant role in New York City and communities throughout the State by investing in areas banks have long since left and paying property taxes to those very same local governments that would benefit from municipal deposit choice, namely municipalities, libraries, fire districts and public schools.

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

Currently a majority of states, including Connecticut, allow municipal deposit choice. In addition, local government organizations throughout New York State support municipal deposit choice including 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 are standing with us, including Mayor Bloomberg and the New York City Council," said Mellin. "Municipal deposit choice is about reforming a nearly century old antiquated law, which fails to reflect current financial conditions or offer local governments the flexibility they need to manage declining revenues and growing deficits."

A 2006 study by former Assembly economic advisor Brian P. O'Connor indicated that by allowing credit unions to work with local governments, they could save taxpayers $18 to $24 million. Mellin said: "The savings for taxpayers is clear and significant," said Mellin. "The time for municipal deposit reform is now, especially given the state of the economy and the budget crisis faced by state and local governments."

Mellin concluded: "We're hoping the Assembly members -- 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 this year. And until they do, we're 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 support municipal deposit choice."

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