Anthony Pollina is a former Vermont State Senator, candidate for Governor, and Chair of the Vermont Progressive Party.
Governor Scott recently criticized Amanda Janoo’s consideration of a Vermont State Bank.
Keep in mind, the purpose of a State Bank is to keep more of our Vermont dollars here at home, investing in our local communities.
After legislative debate, the idea was not discarded, as Scott claims.
The result of the State Bank debate is the implementation of the 10% for Vermont Program now administered by the State Treasurer’s office, which touts the program as a success and has already expanded it.
A State Bank is unlike a typical consumer bank. It would likely operate as a banker’s bank where, for example, smaller banks, municipalities and school districts could access funds needed to support development projects at a favorable interest rate.
Scott quotes former State Treasurer Beth Pearce as saying a State Bank is risky.
Yet in testimony submitted to the legislature, Pearce said that she supported the 10% for Vermont plan. Why? At the time of the debate, on any given day the State had about $350 million in its daily cash balance, traditionally deposited in TD Bank which used the money for its own priorities, not Vermont’s. Under the plan, 10% of that cash balance would be moved to a special fund at the Treasurer’s office to make local investments.
The real opposition to a State Bank came largely from out-of-state banking interests, the same interests that fund many political campaigns and Super PACs.
Of course, Governor Scott and staff would not have been part of the conversation reviewing the options for a State Bank because the administration, as usual, did not actively engage with the legislature or advocates on the issue.
We need a Governor like Amanda Janoo, who will work with Vermonters to find new ways to keep dollars local.