BRATTLEBORO — Over the past several years, a number of legislators and civic groups have proposed the establishment of a public bank in Vermont to fund important projects in all areas of government, such as education, infrastructure, and health care.
To date, only North Dakota has such an institution. Because of growing interest in this issue, the League of Women Voters of Vermont is conducting a two-year study to explore the pros and cons of forming a public bank or using an existing entity to finance state lending operations.
On Tuesday, Jan. 21, at 1:30 p.m., the local League of Women Voters unit is meeting in the Hanna Cosman Room in the Brattleboro Municipal Center, 230 Main St., to discuss the League's state bank study.
Claudette Sortino, a member of the state League board, will provide an overview of the issue and report on the findings of the League study committee to date.
Sortino also serves on the Ryegate Selectboard and as chair of the Education Foundation at Blue Mountain Union School, which raises funds to provide programs not affordable in the school budget.
Sen. Anthony Pollina, P/D-Washington, has already introduced legislation this year, S. 204, to create the 10 Percent for Vermont Program within the Vermont Economic Development Authority for the purpose of establishing a banking system owned, controlled, and operated by the state of Vermont.
His proposal, loosely modeled after a state bank that North Dakota set up in 1919, would move the state government's cash deposits from commercial banking institutions into a state-owned bank.
In November, Vermonters for a New Economy released a report promoting a state-owned bank. While the report was generally favorable, the researchers acknowledged that substantially more study was required.
Others have raised significant concern about the ability of a state-owned bank to be self sufficient, and raised the following questions: What problems do we want to solve; what are Vermont's unmet investment needs; and what are the reasons for failure to meet those needs?