Phillips calls for granting local governments greater financial flexibility

January 17, 2012

Summary

Encourages policy shift to allow use of smaller financial institutions

Story

When representatives of King County go to Olympia to discuss the County’s 2012 Legislative Agenda, they will encourage lawmakers to consider expanding the options available to local governments in meeting their banking and financial service needs.

Metropolitan King County Councilmember Larry Phillips supported an addition to the County’s 2012 Statement of Policy that encourages an amendment to the state Constitution giving local governments –city and county—the ability to use smaller, local financial institutions for their banking needs.

“People’s frustration with big banks is growing, while community financial institutions are emerging as safe and responsive partners for the banking needs of local businesses and families,” said Councilmember Larry Phillips, Chair of the Transportation, Economy, and Environment Committee. “That’s why King County supports state legislation that expands local government’s banking options to include smaller financial institutions and credit unions.”

The governments would be required to choose an institution (banks, savings and loans, thrifts and credit unions) that would be able to maintain a high level of safety and security for public funds.

The Statement of Policy is a companion to the County’s 2012 State Legislative Agenda adopted unanimously today by the County Council. The Statement of Policy focuses on issues that are separate from the Legislative Agenda but that King County has expressed an interest in having the state Legislature consider and act on.