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The Washington State Bank?
It might jump start the economy
by Linda Boyd
Representative Bob Hasegawa (D-11th district) thinks that one way to jump start jobs and economic recovery would be to create a Washington State bank.
House Bill 3162, sponsored by Hasegawa and cosponsored by five others, seeks to authorize the creation of a Washington State bank. This would mean that all state funds and funds of state institutions would be deposited at the state bank.
The establishment of a state bank could fund the small and medium sized businesses that desperately need it, offer low interest student loans, and generate income for the state general fund.
This might be an excellent investment. According to the Small Business Association, small businesses have created 64% of net new jobs over the last 15 years.
A state bank would offer an alternative to the current lending practices of large banking institutions that often deny loans to small businesses and have failed to provide a return on our local investment in the bailout.
North Dakota is the only state in the nation with its own state bank. It is also one of the few states in the country with a strong economy. Many credit its resilience to the state bank, which supports its economy at all levels.
The Bank of North Dakota turns over about half of its profits to the state general fund. In the last decade, the bank put almost $300 million in North Dakota's treasury.
The state bank idea is catching on. Bill Bradbury, Candidate for Governor in Oregon, has also proposed a state bank of Oregon, “Putting Oregon Money to work for Oregonians.”
Officials from Florida, Oregon, Vermont, Michigan, New Mexico and Ohio have also inquired about North Dakota’s bank and are considering the creation their own state banks.
HB 3162 is tentatively scheduled to receive a hearing in the Financial Institutions & Insurance Committee on March 2. Implementation would require a constitutional amendment and voter approval. ◆