​Alliance co-chair David Delk has written a great letter to the editor in support of public banking, looking to the success of the public Bank of North Dakota in making Paycheck Protection Program loans to struggling businesses in that state.

Economic forecasts predict long-term unemployment and business closures as the result of the Covid-19 pandemic. Until there's a widely available and safe vaccine, there will be no hoped-for "V-shaped" recovery. In fact, what we have seen so far is the largest corporations getting bigger and the rich getting richer, as they take over market and services from smaller and locally-owned retailers, restaurants, and service providers.

As financial institutions committed to putting the public good first, public banks would be a key component of a broad economic recovery, if there were more of them! Fortunately there are active campaigns to establish public banks in cities and states across the US. The Massachusetts and Oregon campaigns are Alliance-sponsored projects.

by David Delk
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Portland Public Banking Alliance is moving forward with a dual focused plan to advance creation of a Portland (OR) municipal public bank while at the same time beginning the process for a state-wide initiative campaign to amend the state constitution to allow formation of a state public bank.
 
Language in the Oregon state constitution has been interpreted to prohibit such a bank. We are working on the initiative language now with a view to getting this on the ballot in November 2022.
 
In the city of Portland we have identified several candidates running for Mayor and City Council positions who support a municipal bank formation. Happily those candidates are in a strong position to join the council next year to give us a majority of council members, and a likely strong partner voice in the Oregon legislature.
 
Organizing at the state level continues as we need to change state law to facilitate municipal bank formation. While the state constitution is said to prohibit a state public bank, no such language exists regarding municipal bank formation. But a couple of changes need to be made to state law to ease the path to achieving that goal. We continue our outreach to current members of the Oregon legislature as well as candidates running for those positions. And we will reintroduce the Municipal Banks Bill in the new legislative session.

David Delk has given this talk on Citizens United v. FEC to several groups in Oregon. In it, he explains the need for an amendment to the Constitution saying that its rights belong to people, not corporations, and that governments must regulate campaign finance, and gives a call to action to support a Senate version of HJR48, the We the People Amendment.

My topic today is Deepening Democracy.
 
You might expect that I will talk about how to get out the vote, how to get rid of the Electoral College, how we need to reinstate the Voting Rights Act of 1964 which the Supreme Court punched a big hole in recently.  Or maybe about, here in Oregon especially, how to control the flow of unlimited money into the political process, specifically by supporting the legislative referral to the Nov 2020 ballot amending the OR constitution to allow limits on political campaign contributions in Oregon.   We all need to support this referral in our communities.
 
But instead I want to talk about Citizen United, because Jan 21st is the 10 anniversary of that awful decision.  It struck yet another blow against democracy by allowing even more special interest corporate money into the politics system, swamping the voices of ordinary people like you and I.
I want to talk about corporate personhood and the court system’s granting of human rights to corporations. Court-created corporate personhood has given the rights and privileges of human beings to corporations while removing them from the duties and obligation of being our servants.   

Oregon’s legislature has approved a ballot measure for the Nov 2020 ballot to amend the state’s Constitution to allow limits on campaign contribution at the state, county and city levels, to allow disclosure of contributors, and to allow political advertisements to also include information on who paid for them. But that hasn’t put a stop to a citizen effort to collect enough signatures to get a similar measure on the ballot.
 
Oregon is one of only five states that have no enforced campaign contribution limits—the others are Alabama, Nebraska, Utah and Virginia. The result is outlandish amounts of money given and spent in elections--$37 million in the last gubernatorial race, with $2.5 million coming from Nike founder Phil Knight alone--and an increasingly clear line between money and inaction on issues of concern to voters. For instance, Republican legislators who skipped the state to block a vote on a clean energy jobs bill also received large donations from companies whose bottom lines would have been impacted by the legislation. 
 
Still, Oregonians are continuing to collect 220,000 signatures statewide to get the a similar measure on the ballot, since it’s possible for the state legislature to rescind their approval.  Alliance council member Joan Horton said that legislators take the signature drive seriously, and knowing that people in their districts were out working for the measure spurred them to support a referral “A continuing signature drive is “insurance” that the legislature will not rescind their referral of SJR18 during 2020’s short session. According to our attorney, we are not on the ballot for certain until that short-session is over next year. He says it’s very unlikely to be rescinded, but it’s a chance we don’t want or need to take”, she said.
 
Alliance national co-chair David Delk noted that in Portland, the local chapter’s efforts will be focused on having the 2020 state ballot measure approved by city and county voters and supporting efforts elsewhere in the state. Every expectation is that it will pass locally, since Portland and Multnomah county voters have already approved two other local ballot measures by about 90%, though implementation is still partly tied up in court. The chapter will also join with other supporting organizations to make sure that when the question passes, contribution limits established under it are not too high and the implementing legislation is loophole-free.
 
In another legislative win Oregon also approved two legislative study committees on a single payer health care plan for the state, and a state public option. David, who also leads the Health Care for All Oregon Metro chapter, said “The single payer study committee is expected to write legislation to implement such a program in Oregon.  Passage of this study committee is quite exciting for Oregonians and moves the ball forward for Oregon to be the first state in the nation to create a single payer health care system.  Remember, everybody in, no one out!"

 

Alliance members in Oregon and Massachusetts have been working on ballot questions that take on campaign finance reform and Citizens United, and on Election Day, those efforts paid off.
In Portland, the Alliance for Democracy chapter worked to pass a city charter amendment establishing limits on campaign contributions/expenditures. The Honest Elections charter amendment will add donation limits to the city charter, including a $500 limit on donations from individuals, and a limit of $5,000 on loans from candidates to their own campaigns. It also mandates disclosure by name of funders for campaign ads and other communications, along with the industry they represent.

The measure passed 87% to 12%, with about three-quarters of the votes counted as of Wednesday.

This Portland ballot measure is based on an earlier county-wide ballot question, which passed in 2016 with almost 90% support. Unfortunately, implementation of this measure is currently tied up in the court system, where a judge has ruled that the measure's limit on individual donations is a violation of state protection of free speech.

Oregon is a campaign finance cellar-dweller, second only to Mississippi in terms of regulation, and scoring nearly straight Fs in a 2015 study of state anti-corruption initiatives. (The Koch-funded "Institute for Free Speech," on the other hand, gives Oregon an A for having the "best" system of campaign finance regulation, that is to say none).

As a result, it takes a lot of money to run for office in Oregon, with donations coming mostly from developers, timber companies, and finance. Oregon state legislature candidates raise and spend more money, per capita, than candidates in any other state, except for New Jersey.

In Massachusetts, several Alliance members worked on the “Yes on 2” campaign. Proposed by American Promise, Question 2 supports a federal amendment to overturn Citizens United, and creates a "citizen's commission" to "investigate and report on the effects Citizens United and similar court cases have had on our political discourse."

Massachusetts democracy activists remember how their legislature blocked a Clean Elections initiative, and how the state's public banking study commission was quickly dominated by big banks who decided a public bank was unnecessary. Having already passed more than 200 local resolutions for an amendment, they weren't surprised that Question 2 passed—with with 72% of the vote—but they expect the real campaign will be to get a commission appointed quickly, and have it include activists from grassroots groups. Stay tuned!

The Portland OR Alliance for Democracy chapter recently welcomed Ellen Brown, founder and chair of the Public Banking Institute. Ellen participated in a Strike Debt Debtors' Assembly as well as a public talk on how Portland and Oregon would benefit from formation of public banks. In addition, chapter members arranged for her to visit with the Portland City Attorney's office, and to meet with candidates running for city council.  

The Portland chapter has not just been working on public banking. They're organizing to enact a city charter change to end political bribery in city elections.  Using their local initiative process, they are trying to enact limits on political contributions/expenditures and to require that political ads disclose the top five entities paying to run the ad.

In working for these reforms, the chapter is going up against a state Supreme Court that has declared all such limits to be an unconstitutional infringement on individual free speech rights.  Individual is understood to include corporations.  But the proposed charter change would ban all corporate contributions, directly challenging the OR Supreme Court rulings.  

Chapter activists have also begun the process for a state-wide initiative to amend the state constitution to allow limits.  When they are successful, we will have this initiative on the ballot in Nov. 2020. 

The Alliance's three sponsored campaigns for public banks—the DC Public Banking Center, the Portland Public Banking Alliance, and Hub Public Banking—made progress this winter on democratizing finance in their cities and state.

In Washington, the DC Public Banking Center is keeping an eye on the request for proposals process for the city's public bank feasibility study, as well as continuing to reach out to constituents through a recent forum on “Banking for the Public Good, Not Private Profit.” The forum participants, including Alliance co-Vice chair Ruth Caplan, looked at what a public bank could do for Washington, the ethical concerns around the business practices of large banks, especially Wells Fargo, and the potential impact of a proposed revolving loan fund for environmental projects.

In Portland, public banking advocates have met with city council candidates and expect to have a majority on the five-person council who are friendly to the idea of a public municipal bank.

In Massachusetts, a bill to create a state infrastructure bank has been moved from the legislature's joint committee on Small Businesses to the committee on Financial Services, and advocates are mustering support for it from mayors, town managers, advocacy groups and citizens. Since the Finance committee's deadline for either moving bills to Ways and Means or asking for an extension on a decision is this week, proponents should know soon whether their bill has a chance of passage this term. 

The Alliance's campaigns were also part of the discussion at a recent strategy meeting on public banking, organized by the Public Banking Institute, which brought advocates from across the country together in Colorado. The vitality of many of these new campaigns is inspiring, especially those that have drawn a connection between municipal divestment from Wall Street banks and fossil fuels, and reinvestment in local economies and environment via a public bank.

Check out our public banking campaign page for more resources and links to individuals projects online and on social media.

Alliance for Democracy's Co-chair and founder of Portland Public Banking,  David Delk, is featured in two articles about the spreading of public banking across the United States. 

First article: 
Public Bank Fans Want to Get Portland City Council on BoardFirst up, money for a feasibility study.

Second article:  
Public Bank Movement Gains Ground in Cities and States across the US - N...Cities and states pay billions in interest to fund capital projects. They also face other shortfalls in local fi...