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From YouTube: Committee on Finance 10-5-2020
Description
The Committee on Finance of the Council of the City of Philadelphia held a Public Hearing on Monday, October 5, 2020, at 1:00 PM, in a remote manner using Microsoft® Teams to hear testimony on the following items:
200054 Resolution authorizing the Committee on Finance to hold hearings regarding public banking.
F
F
B
F
Thank
you,
mr
inuzi,
before
we
begin
to
hear
testimony
from
the
witnesses
we
have
here
for
today,
everyone
who
has
been
invited
to
this
meeting
to
testify
should
be
aware
that
this
public
hearing
is
being
recorded,
because
the
hearing
is
public
participants
and
viewers
have
no
reasonable
expectation
of
privacy.
By
continuing
to
be
in
the
meeting,
you
are
consenting
to
be
to
being
recorded
additionally
prior
to
recognizing
members
for
questioning
the
comments
they
have
for
witnesses.
F
I
will
note
for
the
record
at
this
time
that
we
will
use
the
chat
feature
available
in
microsoft
teams
to
allow
members
to
signify
that
they
wish
to
be
recognized
in
order
to
comply
with
the
sunshine
act.
The
chat
feature
must
only
be
used
for
this
purpose
before
we
call
the
first
panel
with
any
members
of
the
committee
like
to
make
any
opening.
F
Some
of
you
may
remember
the
original
meridian
bank.
I
was
an
assistant
branch
manager
at
the
meridian
bank
abroad
in
glenwood
in
the
garment
square
part
of
north
philadelphia
right
across
from
joe
frazier's
gym,
and
it
was
from
those
experiences
in
banking,
where
I
really
became
much
more
attuned
to
the
issues
that
had
plagued
this
city,
this
commonwealth
of
this
nation,
from
a
systemic
perspective
in
reference
to
access
to
credit
and
equity.
F
When
it
comes
to
finances,
many
of
our
customers
had
some
challenging
histories
and
were
knowledgeable
of
issues
of
redlining
and
the
challenges
and
access
to
credit,
and
so
for
me
that
gave
me
a
a
perspective
on
some
of
the
real
difficulty
and
that
we've
had
as
a
nation
dealing
with
banking.
And
as
I
came
into
my
role
as
a
member
of
this
body,
I
had
a
chance
to
learn
about
this
concept
of
public
banking.
It
was
something
that
was
very
interesting,
intriguing
and
a
new
idea
to
come
to
the
city
of
philadelphia.
F
I
learned
about
institutions
like
the
bank
of
north
dakota,
which
have
had
public
banking
in
their
jurisdiction
for
decades,
and
some
of
the
benefits
and
opportunities
that
could
occur
through
public
banking.
Further
learning
that
other
cities
were
also
starting
to
investigate
on
this
issue
and
this
idea
of
public
banking
and
see
how
it
could
be
positive
for
their
community
and
their
jurisdiction.
F
So
this
is
an
issue
that
I
think
creates
a
lot
of
opportunity,
a
lot
of
potential
for
the
city
of
philadelphia.
We
are
in
a
space
now
that
none
of
us
could
ever
have
imagined
with
coven
and
so
we're
doing
and
having
these
hearings
remotely
in
virtual
platforms
like
microsoft
teams
and
so
we're
literally
in
a
brave
new
world
because
of
the
challenges
of
this
pandemic.
F
But
this
pandemic
has
also
been
an
economic
crisis
for
so
many
and
has
really
illustrated
the
historical
issues
and
concerns
that
many
people
have
had
in
our
city
in
our
state,
our
nation,
especially
especially
as
it
comes
to
finances
and
ability
access,
credit
markets.
So
I
hope
this
conversation
will
be
a
fruitful
one.
F
We
were
able
to
bring
in
a
consultant
hr
and
a
to
provide
us
with
information
regarding
the
feasibility
of
this
concept,
but
this
is
a
continuation
of
the
conversation
and
we'll
have
much
more
conversations
as
we
move
forward
to
the
possibility
of
creating
a
public
bank
to
benefit
the
constituents
and
the
citizens
of
the
city
of
philadelphia,
and
with
that
we
will
open
the
hearing.
Our
first
panel
will
be
reverend
gregory
holston,
followed
by
anthony
giancartagno,
as
well
as
walt
mccree
and
deb
my
guards.
So
we'll
start
the
hearing
with
reverend
holstein.
G
G
Really,
since
the
last
60
years
of
when
manufacturing
jobs
in
the
city
went
first
to
the
suburbs,
then
to
the
south,
then
overseas
and
now
have
been
mechanized
away.
We
lost
over
400
000,
manufacturing
jobs
from
the
early
1960s
to
about
1985
and
in
those
areas
that
have
been
devastated
by
that
transformation.
G
G
We
we
know
about
the
damage
that
is
caused,
because,
if
you
put
an
outlay
over
those
particular
areas
where
the
poverty
is
the
highest,
where
some
of
those
zip
codes
are
now
having
50
poverty
rates
and
65
of
50
people
unemployed
and
nearly
60
poverty
rates,
we
know
the
devastation
that
still
remains
and
has
remained
generation
after
generation
after
generation,
and
when
we
look
at
our
gun,
violence
epidemic
that
we're
facing
right.
Now
we
recognize
the
gun.
G
So
why
is
the
d.a
so
concerned
about
this?
Well,
we
recognize,
as
I
just
mentioned,
that
all
of
the
gun-
violence
that
we've
been
talking
about
in
our
community,
that
the
first
and
number
one
reason
we're
experiencing.
It
is
the
poverty
in
our
communities
and
unless
we
address
the
poverty
and
see
poverty
as
a
public
safety
issue
and
put
our
resources
to
ending
that
we're
going
to
continue
to
have
the
violence
that
goes
on
in
our
community.
G
One
last
point
on
that,
and-
and
I
just
want
to
be
able
to
share
so
we're
clear
on
it
right
now
in
lower
germantown
as
councilwoman
bass
has
talked
about-
there
are
people
shooting
in
our
community
and
shooting
over
marijuana.
They
are
shooting
over
the
marijuana
trade
in
the
city
of
philadelphia
and
killing
one
another.
G
What
are
we
going
to
do
to
take
the
opportunity
here
to
be
able
to
invest
in
new
businesses
to
create
new
opportunities
for
our
own
people
in
our
own
communities?
If
we
had
a
public
bank,
we
could
invest
in
the
kinds
of
businesses.
They
would
take
those
troubled
young
people
who
are
doing
things
that
are
dangerous
to
all
of
us
and
move
them
into
greater
opportunities
where
they
can
use
the
skills
and
gifts
to
really
benefit
the
community
as
a
whole.
G
H
Good
afternoon,
thank
you,
councilman
greene
and
the
steam
council
members
for
this
opportunity
to
address
you
today.
I'm
anthony
giancarino,
I'm
a
dad
of
three
young
kids
and
resident
of
mount
airy,
and
I
come
to
you
all
as
a
director
of
the
just
community
energy
transition
project
which
works
with
communities
in
philly,
pennsylvania
and
across
the
country
to
foster
energy
democracy,
participatory
policy-making
practices
to
advance
racially
just
strategies
for
transition
away
from
an
extractive
economy.
H
H
H
What
we
need
to
match.
The
vision
that
reverend
holton
actually
talked
about
is
accountable
and
local
governance
processes
that
stand
our
community's
vision,
well-being,
particularly
those
most
marginalized
by
our
current
energy
and
financial
systems,
and
this
is
why
a
public
bank
is
essential
for
philadelphia
and
we
need
this
to
achieve
a
more
environmentally
just
and
equitable
society,
so
we're
prepared
for
the
next
disaster
via
climate,
economic
or
the
continual
toll
of
structural
racism
in
our
communities.
H
H
I
offer
more
detail
than
the
written
testimony,
but
just
to
offer
a
quick
summary
of
seven
pieces
that
a
public
bank
could
directly
impact
around
environment
and
climate
and
people
is,
it
can
make
our
schools
healthier
and
environmentally
beneficial.
We
all
know
that
over
five
billion
dollars
are
needed
to
repair
the
healthy
to
repair,
the
public
school
systems,
building
the
infrastructure
and
millions
more
to
make
them
electrified
with
solar
and
heating
and
other
resilient
systems
to
be
prepared
for
any
climate
disasters.
H
We
could
use
a
public
bank
to
actually
support
this
change,
ensure
our
homes
are
healthy
and
fossil
free
over
47
000
people
remain
on
the
philadelphia
housing
authority,
waitlist
and
many
more
live
in
poor
housing
conditions.
It's
been
estimated
that
2.7
billion
dollars
are
needed
to
make
every
home
in
philadelphia
healthy
and
secure.
H
H
It
can
be
a
resource
to
help
fund
the
pgw
energy
transition
plan.
As
we
transition
away
from
fossil
fuels
to
electric,
it
can
be
a
way
to
help
support
access
to
capital
and
make
philadelphia
not
only
the
home
of
democracy
but
the
home
of
energy
democracy
where
communities
actually
have
a
say
to
control
how
we
own
and
create
and
generate
electricity
and
energy
in
our
system.
H
It
can
be
a
way
to
invest
in
climate,
just
infrastructure
and
green
water
systems
to
expand
on
the
work.
That's
been
done
by
the
city
around
water
infrastructure,
for
example,
to
expand
the
rebuild
initiative
to
incorporate
more
climate
justice
into
its
framework,
to
invest
in
carbon-free
public
transit
systems
for
all
and
to
establish
zero
waste
systems
to
support
our
sanitation
workers.
H
It
can
be
used
to
help
actually
offer
capital
and
resources
for
urban
ag
interventions
and
and
land
stewardship
key
ways
to
address
the
climate
crisis
today.
That
groups
like
soil
generation
and
others
have
done
on
very
shoestring
budgets,
and
it
can
be,
as
I
said,
a
local
mechanism
to
implement
federal
funds.
If
we
see
a
sea
change
in
federal
administration,
if
there's
a
biden
administration
in
particular,
we
will
see
trillions
of
dollars
flow
for
green
infrastructure.
H
F
I
I
Last
year,
the
city
spent
240
246
million
dollars
to
wall
street
lenders
and
that
doesn't
include
what
you
all
paid
for
the
significant
sums
for
private
money
managers.
This
ongoing
extraction
of
taxpayer
dollars
to
borrow
money
is
a
big
reason
why?
I
feel
that
if
you
will
continue
struggle
with
growing
poverty
and
economic
injustice,
but
so
it
is,
you
know
dozens
of
cities
and
states
around
the
country.
I
Part
of
this
unhealthy
reliance
on
wall
street
has
is
its
ability
and
his
practice
of
deceiving
the
nation's
cities
and
states
with
predatory
lending
programs.
All
of
you
in
philadelphia
should
know
that
you
spent
into
300
million
dollars
on
interest
rate
swaps
in
2012.,
and
that's
just
one
city
now,
while
creating
a
municipal
bank
for
philadelphia
would
not
immediately
eliminate
a
quarter
billion
dollars
a
year
that
you
send
to
wall
street,
it
would
begin.
I
This
is
the
important
point.
It
would
begin,
an
institutional
pivot
away
from
that
by
building
an
equity
engine
that
leverages
the
city's
considerable
monetary
wealth
and
resources
through
credit
to
small
businesses,
neighborhood
development
and
a
plethora
of
long
overdue
needed
improvements
and
possibilities,
some
of
which
were
just
mentioned.
I
I
So
these
studies
and
many
others
are
have
convinced
cities
and
states
around
the
country.
Great
cities
like
san
francisco,
new
york,
los
angeles,
chicago
and
now,
as
you
as
we've
mentioned,
the
state
of
new
jersey,
state
of
new
mexico,
california
and
many
others
engaged
in
the
same
process
that
you
all
are
engaged
in
right
now.
I
I
It
was
the
public
bank
of
philadelphia
that
mechanism
that
you
can
replicate.
So,
as
your
new
feasibility
study
mentions,
it's
going
to
take
some
work,
but
it
absolutely
can
be
done.
Don't
let
anybody
talk
you
out
of
it
considering
the
alternative.
This
is
something
that
really
must
be
done.
Thank
you.
J
J
I'm
honored
to
be
here
today
to
summarize
my
economic
impact
study
of
the
proposed
public
bank
in
the
city
of
philadelphia.
It
is
based
on
an
earlier
2018
economic
impact
study.
I
did
for
the
proposed
public
bank
in
the
state
of
new
jersey
cited
in
governor
phil
murphy's
executive
order,
number
91
in
2019
establishing
the
new
jersey,
public
bank
implementation
board.
J
The
new
jersey
economic
impact
study
also
draws
on
independent
studies
of
proposed
public
banks
in
the
city
of
santa
fe,
new
mexico
and
the
state
of
vermont
economists.
Like
me,
and
urban
planners
and
professional
consultants
use
regional
input,
output,
analysis
to
empirically
estimate
the
impact
of
a
new
product
or
a
new
service
as
a
tool,
it
has
been
around
a
long
time.
J
For
example,
the
analyst
can
calculate
the
potential
gains
of
a
new
local
hospital,
a
branch
campus
of
a
university,
a
sports
stadium
and
a
proposed
philadelphia
public
bank.
In
the
case
of
a
public
bank.
The
empirical
question
asked
is
how
much
new
output,
new
earnings
and
new
jobs
are
created
due
to
the
new
lending
or
credit
issued
by
the
public
bank.
J
The
public
bank
would
have
a
multiplied
effect
on
economic
economic
activity
in
the
city.
Now
these
multipliers
are
available
from
the
u.s
department
of
commerce
bureau
of
economic
analysis.
They
are
part
of
a
well-known
and
highly
regarded
regional
input.
Output,
modeling
system
called
rims2
multipliers
are
unique
to
each
u.s
state
and
county
for
372
detailed
industries.
J
J
J
J
J
J
J
The
forward
languages
of
bank
lending
would
generate
new
jobs
and
spending
created
by
construction
of
low-income
housing
or
investments
in
green
energy
or
removal
of
asbestos
from
our
public
schools.
These
projects
will
also
generate
new
local
output,
more
employee
earnings
and
further
job
creation.
J
J
J
There
will
be
benefits
to
our
regional
neighbors
earnings
and
jobs
would
increase
outside
the
city
of
philadelphia
as
well
as
within
the
city.
The
sophisticated
process
by
which
the
bureau
of
economic
analysis
calculates
the
rims
ii
multipliers
already
takes
these
so-called
leakages
into
account.
Suppliers
of
some
goods
and
services
may
be
from
outside
the
city.
Earnings
may
be
paid
to
non-city
residents,
but
the
estimates
from
the
earnings
and
jobs
multipliers
here
that
I've
provided
for
you
are
decidedly
for
this
city
and
only
the
city.
J
J
The
reason
why
any
bank
can
lend
out
90
of
its
deposits
and
only
hold
10
in
reserve
is
understood
by
a
simple
difference
between
a
stock
and
a
flow.
Every
one
billion
dollars
deposited
in
a
bank
is
not
just
sitting
there
like
a
fixed
stock
when
it
is
lent
money
in
the
form
of
loan.
Payments
comes
back
into
the
bank
every
week
or
every
month,
so
there's
a
flow
of
money
back
into
the
bank.
J
Money
works
like
a
flow
inflow
and
outflow,
not
a
stock
pragmatically.
For
you
to
think
about
is
public.
Banks
are
an
alternative
revenue
stream
for
community
development
projects
in
a
context
where,
frankly,
increasing
taxes
is
challenging,
a
public
bank
can
yield
positive
local
economic
development
effects
through
its
basic
operations
and
its
lending
more
technical
details
about
how
I
conducted
my
economic
impact
study
are
in
a
longer
publication.
I
have
forthcoming
in
the
journal
of
economic
issues.
I
am
making
that
available
to
you.
Thank
you
very
much.
F
F
B
B
E
F
F
F
F
F
I
F
A
Thank
you,
mr
chairman,
and
I'm
so
very
disappointed
that
video
didn't
work.
I'm
a
visual
learner
and
I
used
to
love
those
cartoon
videos
con
conjunction
function,
something
like
that.
I
learned
some
of
those
terminologies
very
well
through
that
mechanism,
so
I
was
hoping
for
that
today
in
the
public
bank
here
a
couple
of
questions.
Well
in
another
life
I
was
ceo
and
president
of
the
philadelphia
commercial
development
corporation.
A
A
I
No,
it's
actually
a
matter
of
practice
by
the
federal
reserve
which
really
whose
function
is
really
to
support
the
money
markets,
the
financial
markets,
the
fed,
has
provisions
in
the
law
in
sections,
thirteen,
three
and
fourteen
two
of
its
law
to
be
able
to
monetize
a
city
paper
municipal
and
state
paper,
but
it's
really
under
restricted
conditions
and
in
the
mlf,
the
municipal
liquidity
fund.
It
they
want.
They
don't
want
to
take
money
away
from
the
wall
street
lenders.
They
really
want
to
keep
it
in
others.
I
If
you
can't
get
money
on
the
street,
you
know
that
that's
really
the
situation
that
they
that
they're
doing
now
there
are
only
two
loans
that
they've
made
out
of
the
mlf
one
to
the
state
of
illinois,
which
I
think
was
at
5.8,
and
then
they
did
one
recently
for
the
mta,
which
was
the
0.85
below
the
market
rate.
So
97
of
that
money
has
not
been
used
because
it
is
so
unattractive.
I
I
Wall
street,
exactly
I
much
better
say
yes
yeah,
I
would
just
add,
which
is
why
the
value
of
having
a
bank,
if
you
were
a
chartered
bank,
you'd,
be
able
to
go
to
the
fed
window
and,
as
I
mentioned
in
those
chat
notes,
the
reserve
requirement
has
been
removed.
So
the
whole
aspect
brought
the
expansion
of
lending
would
be
quite
much
more
available
to
you.
I
A
You
for
that
that
gives
me
context.
My
second
question
would
be
size
does
matter
and
what
so
in
when,
in
the
days
of
the
philadelphia
commercial
development
corporation,
we
did
really
well.
We
had
a
a
small
bad
debt
portfolio,
smaller
than
most
banks
less
than
five
percent.
We
were
very
proud
of
that,
but
we
could
not
compete
with
the
large
volumes
of
loans
being
put
out,
so
we
would
do
one
two
deals,
some
of
them.
A
I
Well,
that's
not
something
we
could
discuss
or
could
determine
right
here.
I
think
you
know
you
want
to
you
want
to
look
at
what
your
capitalization
capitalization
be
shaped
around
what
you
want
the
bank
to
do,
but
I
think
you
also
want
to
you
have
to
look
at
what
you've
got
available
to
work
with
the
city's
funds
are
tied
up
and
deposited,
and
I
don't
know
what
the
numbers
are.
A
See
now,
when
you
talk
political,
I
understand
you
didn't
answer
me
should
we
be
and
the
reason
I
asked
that,
to
give
you
context,
our
our
portfolio
was
about
10
million
a
year.
We
could
circulate
that's
very
small
yeah
in
in
poverty
sense.
We
get
about
43
million
dollars
for
the
city
to
deal
with
cdbg
related
poverty.
So
neither
one
of
those
amounts
is
enough
to
really
move
the
needle
in
the
right
direction.
I
That's
that's
that
huge
difference
between
having
a
revolving
fund
and
having
a
bank,
but
I
think
quantifying
it
is-
is
the
word
for
for
experts
who
can
look
at
what
the
city
really
has
available
and
could
make
available
on
a
lending
basis,
but
I
think
suffice
it
to
say
that
none
of
your
revolving
funds
would
have
the
scale
that
a
bank
could
have.
If
you,
you
know,
like
the
bank
of
north
dakota,
take
all
of
your
money
in
and
put
it
in
your
bank.
A
J
You
and
your
colleagues
have
an
interesting
thing
to
think
about
in
terms
of
the
mission
of
this
bank,
and
I
agree
with
you,
sir,
that
size
does
matter.
You
could,
for
example,
in
the
legislation
and
the
bank's
mission
setting
out
the
bank's
mission.
You
could
say
I
am
opening
up
to
bank
deposits
for
our
public
bank,
not
just
for
the
city
revenue
fund,
but
I
am
encouraging
public
universities
in
our
city
or
quasi
public
universities
to
deposit
their
funds
into
the
public
bank.
J
I
am
requiring
public
authorities
septa
the
airport
authority,
the
school
board
to
deposit
their
deposits
in
our
public
bank.
I
am
encouraging
our
non-profit
organizations
in
this
city
to
take
advantage
of
our
public
bank
put
their
money
into
the
public
bank
and
therefore
they
can
draw
on
loans
from
the
public
bank.
And
finally,
you
could
decide
that
you
want
the
public
bank
in
the
city
of
philadelphia
to
handle
in
its
deposits
and
in
its
financial
management,
some
or
or
all
of
the
public
pension
funds
for
the
city
of
philadelphia.
A
A
I
It's
not
a
charity,
so
it
really
needs
to
be
moving
its
money
into
those
channels
that
have
experience
of
successful
lending,
cd,
cf
cdfis,
for
example,
but
many
other
nonprofit
financial
entities
could
be
considered
for
doing
programs
that
have
a
follow-through
and
support
that
actually
is
the
model
that
the
sparcas
and
the
bank
in
germany
germ
banks
in
germany.
Viewed
they
lend
money,
but
they
follow
through
and
support
with
their
clients.
I
think
that's
a
very
important
part,
rather
than
just
sending
out
the
money.
F
Thank
you,
councilmember
jones.
I
think
that
some
of
the
questions
you
raised
could
also
come
up
in
conversations
with
our
other
panelists
one
other
point
of
information
I
want
to
draw
on
before
we
get
into
our
next
panel.
There
was
a
conversation
regarding
the
federal
discount
rate
versus
the
municipal
liquidity
facility.
Just
want
to
remind
a
member
of
the
council
that
discount
rate
is
the
rate
that
banks
like
assantander
or
wells
fargo
or
a
melon
or
citizens.
Well,
melons
no
longer
around
I'm
showing
my
age
a
little
bit.
F
Citizens
bank
borrow
from
the
fed
and
then
they
borrow,
and
then
they
lend
out
to
individuals
and
companies
and
even
public
entities
at
a
higher
rate
and
that's
how
they
make
some
of
the
money.
The
municipal
liquidity
facility
was
something
that
was
created
by
treasury
due
to
cobit,
because
they
had
a
concern
that
many
public
entities
like
cities
like
philadelphia
or
states
like
commonwealth,
would
not
have
access
to
public
financing
for
various
needs.
They
would
have
due
to
the
covet
19
crisis.
F
What
has
happened
with
that
municipal
liquidity
facility?
As
mr
mcrae
has
stated,
there's
only
been
two
entities
that
have
used
it,
one
being
illinois
and
the
other,
the
metropolitan
transit
authority,
because
the
rates
that
have
been
provided
at
the
municipal
equity
facility
have
been
higher
than
than
entities
have
been
able
to
get
in
the
private
market.
So
the
private
market
has
actually
been
a
little
bit
more
beneficial
compared
to
the
municipal
liquidity
facility,
but
one
of
the
options.
F
If
a
public
bank
is
created,
it
could
borrow
from
the
federal
reserve
at
comparable
levels
as
private
banks
and
be
able
to
provide
loans
with
not
having
the
same
level
of
revenue
needs
as
private
entities
and
could
actually
provide
lending
at
a
at
a
lower
rate.
With
that
we'll
open
up
to
the
second,
I'm
sorry,
councilmember,
oh,
had
a
question
before
we
get
to
the
second
panel
apologize.
C
I
C
C
You
know
under
certain
terms
and
conditions,
but
pretty
much.
It
appears
to
be
in
general,
somewhat
preempted
by
the
state.
I'm
not
not
saying
absolutely.
I
don't
know
for
sure.
I
was
just
wondering
if
anyone
was
familiar
with
that
in
comparison
to
north
dakota
or
what
is
going
on
in
california
or
or
in
new
jersey
in
in
their
attempts
I'll
skip
that
just
because
I
guess
it's
just
an
issue.
We
have
to
look
at
or
be
aware
of
by
by
my
background.
F
C
F
Well,
I
guess
we'll
have
well
there's
some
additional
conversation
we
can
have
later
in
this
hearing,
but
I
mean
there
are
entities
like
the
as
councilmember
jones
talked
about
the
philadelphia
commercial
development
corporation
as
well
as
pidc
and
there's
other
concepts
we'll
get
into
about
the
ability
to
create
some
type
of
public
entity.
To
do
some.
Delaying
that
we're
talking
about
public.
C
C
But
but
what
is
the?
What
is
the
the
ideal
kind
of
set
of
goals?
Because
I've
heard
a
lot
of
things?
I
mean
philadelphia
as
a
city
gives
money,
it
collects
money
from
citizens,
it
it
finds
citizens,
it
penalizes
businesses
and
people,
it
works,
get
its
money
from
it
borrows
against
the
the
income
it
shall
receive,
but
the
the
money
oftentimes
is
spoken
for
right
now,
according
to
the
administration,
we
are
looking
at
a
750
million
dollar
budget
gap.
C
But
there
are,
there
are,
like
risks
related
to
handling
the
fiduciary
responsibilities
of
public
education,
recreation,
health
and
all
that
that
we
have
that
money.
For
how
would
you
recommend
kind
of
like
funding
this
bank
with
basically
taxpayer
dollars
or
another
innovative
way
of
funding
it
to
then
somewhat
lend
it
to
ourselves
where
we're
pretty
sure
we're
going
to
pay
back
and
make
it
available
in
a
way
where,
as
you
as
you
as
was
said,
this
isn't
a
charity.
I
I
It's
not.
The
bank
is
not
seen.
We
don't
see
the
bank
as
being
the
city
making
the
loans,
it's
the
bank
doing
operating
as
a
bank
and,
of
course
the
business
of
banking
is
to
manage
risk.
It
is
not
intended
to
be
a
public
private
partnership
where
there
are
other
stakeholders
beyond
the
city
a
resident.
The
idea
is
to
use
the
power
of
the
bank,
it's
capitalization
to
leverage
into
those
things
that
the
city
says
it
wants
to
do.
I
So,
if
you
want
to
invest
in,
if
you
want
to
take
a
a
stake
or
if
you
want
to
invest
in
small
businesses
or
in
other,
affordable
housing
and
so
forth,
there
are
systems
that
can
be
that
are
a
business
model.
This
is
examples
that
can
be
successful,
that
the
bank
would
make
the
call
on
not
the
city,
so
the
city's
responsibilities
to
to
fund
the
schools
is
their
responsibility.
I
The
bank
may
or
may
not
be
able
to
participate
with
that
based
on
what
the
bank
is
operating.
So
the
bank
is
very
distinct
and
there's
a
huge
advantage
in
that,
and
I
think
the
permission
has
got
to
be
include
a
very
clear
line
between
political
and
special
interests
and
what
the
bank's
mission
is,
though,
that
part
of
the
orchestration,
the
governance
of
the
bank,
needs
to
incorporate
of
the
city,
the
citizenry.
I
If
anything
that'll
cost
you
more
well,
this
is
basically
giving
the
same
kind
of
parity
that
the
wall
street
banks
have.
You
know
the
city's
got
a
bunch
of
money.
We
can
leverage
it.
We
leverage
our
credit.
We
know.
We
know
our
clients
aren't
going
to
leave
because
we
know
where
they
live.
You
know
and-
and
I
think,
that's
the
dynamic-
that's
the
mechanical
difference
between
this
and
a
pdc.
You
know,
or
other
private
public
private
kind
of
a
deal
north
carolina
north
carolina,
north
dakota.
I
Yes,
a
hundred
years
ago,
they
had
the
same
sort
of
crisis
where
the
the
the
powerful
financial
interests
were
undermining
their
businesses,
extracting
the
resources,
foreclosing
and
so
forth,
and
through
the
years
they
have
been
able
to
weather
all
kinds
of
situations,
economic,
as
well
as
climatological.
You
know
the
the
great
flood
and
fire
of
1997
there.
I
The
bank
was
there
the
next
day
and
an
interesting
kind
of
a
comparison,
ben
north
dakota,
grand
forks
minnesota
on
the
other
side
of
the
river,
the
flooded
wiped
out
both
towns,
grand
forks
north
dakota,
had
the
bank,
the
bank
was
there.
The
next
day
said:
here's
money
to
help
clean
up,
you
know
and
and
mortgage
abatement
and
so
forth,
and
they
lost
like
only
lost
seven
to
17
percent
of
their
population.
I
J
Councilman,
council
member,
oh
this
is
deb
feigart,
sir.
I
I
don't
think
a
professional
bank
board
would
preclude
entering
into
a
public-private
partnership
with
a
local
community
development.
Financial
institutions-
certainly
citywide
and
u.s
wide
small
business
right
now
is
underfunded.
Infrastructure
is
underfunded.
J
So,
if
you're
looking
to
a
model,
the
bank
of
north
dakota
has
entered
into
public-private
partnerships
to
the
benefit
of
small
business.
The
other
thing
they
have
done
is
for
students
who
reside
in
the
state
of
north
dakota
or
for
students
who
reside
health
elsewhere
and
attend
universities
in
the
state
of
north
dakota.
F
B
B
I've
spent
the
last
20
years
of
my
career
working
to
support
financial
institutions
providing
needed
capital
in
underserved
communities.
You
see
my
mother
was
a
social
worker
in
new
york
city.
While
I
was
growing
up,
I
knew
that
I
wanted
to
do
things
like
that,
and
I
knew
that
she
did
work
to
help
people,
but
my
love
for
numbers
and
clearing
bottlenecks
and
systems
led
me
to
the
wharton
school
for
an
mba
rather
than
a
hunter
school
of
social
work.
B
B
They
could
transform
lives
and
communities,
create,
affordable
housing
and
do
it
all
while
managing
losses
and
growing
net
assets.
Years
later,
I
got
to
work
for
the
national
credit
union
administration
or
ncua,
while
working
with
this
regulator.
I
was
again
supporting
mission
and
member-centered
financial
institutions,
another
asset
holding
industry
industry,
for
whom
member
voices
were
centered
in
choosing
how
those
assets
were
deployed
and
managed
watching
both
industries
grow
in
asset
size
and
impact
over
the
years
has
been
a
thrill.
B
B
B
B
The
time
is
now
to
move
forward
with
the
public
bank
because
it
would
tilt
the
city's
full
financial
assets
and
resources
to
address
the
poverty,
the
housing
and
the
access
to
capital
problems.
We've
been
talking
about
for
so
long
with
little
movement
of
the
needle
problems
most
keenly
felt
by
black
and
brown
philadelphia.
B
Edgar
villanueva's
book
decolonizing
wealth
lays
out
a
seven-step
process
for
foundation
to
take
the
lead
on
reparation
to
recognize
that
the
source
of
the
wealth
they
hold
today
is
the
modernized
value
of
the
land
stolen
from
native
americans
at
wealth.
Is
the
unpaid
labor
hours
invested
by
my
ancestors
and
many
of
our
city
council
members,
ancestors
and.
B
Today
have
grown
to
the
share
value
of
the
apparel
industry,
stocks
bought
and
sold
in
billions
of
dollars.
It
recognizes
that
the
land
and
those
hours
were
hours
that
we've
been
systematically
excluded
from
those
riches.
Despite
our
investments,
edgar's
book
is
written
for
the
foundation
industry
where
he's
worked
for
more
than
20
years,
but
it's
a
blueprint
for
every
person,
neighborhood
city,
state
and
our
country.
B
K
I'm
also
on
the
steering
committee
of
philadelphia
neighborhood
networks.
This
testimony
was
primarily
drafted
by
jamila
medley
pack
as
executive
director,
who
cannot
be
with
us
today.
I'm
honored
to
provide
pakistan
about
cooperatives
because
business
development
in
the
philadelphia
region
and
how
a
public
bank
might
support
those
efforts.
K
K
K
The
very
industries
in
which
we
are
seeing
a
rise
in
cooperatives
as
a
member-based
non-profit
paca
currently
has
25
member
co-ops
that
include
grocery
stores,
day
care,
centers,
birth
workers,
media
makers,
renewable
energy
enterprises,
credit
unions
and
more.
Our
co-op
members
collectively
employ
over
500
people
in
mostly
full-time
jobs
in
philadelphia
over
the
last
five
years.
Co-Op
development
in
the
u.s
has
significantly
advanced
and
shifted,
changing,
who
was
served
and
how
the
work
is
done
in
philadelphia,
we've
seen
a
large
increase
in
demand
for
co-op
development
from
black
and
latinx
communities.
K
K
K
It's
also
a
reflection
of
paca
actively
spreading
awareness
that
co-ops
can
be
part
of
the
solution
to
problems
that
in
particular,
are
rooted
in
classism
racism
and
xenophobia.
Now
an
ongoing
challenge,
however,
is
scaling
and
advancing.
The
creation
of
cooperatives,
particularly
among
the
communities
pack
of
centers
it's
worked
with,
and
that
and
that
problem
is
the
under
availability
of
non-extracted
capital
for
many
businesses,
loans,
especially
for
startups
lenders,
request
personal
guarantees
or
credit
scores
from
borrowers.
K
So
in
conclusion,
in
philadelphia
we
see
that
the
majority
of
people
turning
to
the
cooperative
economy
are
folks
who
have
been
systematically
marginalized.
Therefore,
do
not
hold
the
generational
wealth
or
credit
scores.
Typical
banks
require.
We
need
better,
fairer.
More
equitable
solutions
to
capitalizing
small
businesses,
including
cooperatives,
paca,
believes
that
a
philadelphia
public
bank
can
be
a
slu
solution
to
these
ongoing
ongoing
inequities.
D
Good
afternoon,
chairman
green
and
members
of
the
finance
committee,
thank
you
for
this
opportunity
to
discuss
the
establishment
of
a
philadelphia
public
bank.
My
name
is
peter
winslow,
I'm
a
member
of
excuse
me,
I'm
a
resident
of
the
west
mount
airy
neighborhood
of
philadelphia,
I'm
speaking
on
behalf
of
the
philadelphia
public
banking
coalition
and
neighborhood
networks.
D
D
D
D
In
fact,
the
foundational
model
is
shown
essentially
to
break
even
depending
on
the
assumptions
used.
Contrary
to
the
hrna
analysis,
the
findings
maintained
disingenuously
that
the
foundational
mile
quote
runs
into
laws
and
costs
the
city
money.
It
will
not,
of
course,
but
the
city
doesn't
seek
control
of
its
money,
just
to
invest
in
the
same
portfolio
being
provided
by
for-profit
banks.
D
Second,
return:
on
average
assets,
roa
is
an
incomplete
and
inadequate
metric
for
assessing
the
philadelphia
public
bank.
A
traditional
bank
seeks
profits
wherever
they
can
be
found.
The
philadelphia
public
bank
will
keep
its
investments
in
philadelphia,
even
if
a
higher
return
could
be
derived
by
say,
drilling
for
oil
and
the
indonesian
rainforest,
unlike
furthermore,
unlike
with
a
for-profit
bank,
the
benefits
for
the
city
doesn't
end
when
a
loan
is
repaid
with
interest.
D
D
D
Five
billion
dollars
at
five
percent
would
produce
250
million
dollars
of
interest
income
while
incurring
twelve
and
a
half
million
dollars
of
interest
expense.
The
philadelphia
public
bank
would
thereby
receive
net
237.5
million
dollars
annually
to
coverage
operating
expenses
and
funded
programs
without
requiring
the
city
to
incur
any
additional
expense.
D
F
Getting
ready
for
another
panel,
we
have
both
jackie
dunn,
our
acting
city,
treasurer,
as
well
as
representatives
from
hrna,
who,
I
believe,
will
not
be
ready
until
three
o'clock.
I'm
going
to
ask
some
questions
to
this
panel,
but
if
we
could
have
council
tech
staff
on
the
clerk's
office
to
reach
out
to
beth
finn,
so
we
can
have
her
come
in
to
testify.
F
B
Well,
credit
unions
are
sort
of
they
have
that
very
defined
membership
based
and
so
they're
much
more
community
oriented
and
the
regulations
are
different
from
the
larger
banks
and
that
they
are
limited
to
the
type
of
investments
that
they
can
make
with
the
assets
that
they
have
so,
but
also
just
by
nature
and
the
origins
of
credit
unions.
They
are,
they
are
much
more
focused
on
their
membership
and
their
membership
best
interest.
The
phrase
that
I
often
use
when
people
start
talking
about
where
they
bank
is
sort
of.
B
Like
you
know,
credit
unions
you're
going
to
do
better
at
a
credit
union
for
your
car
loan
in
terms
of
commercial
lending.
The
there's
actually
I'll
acknowledge,
there's
actually
a
small
percentage
of
credit
unions
that
are
doing
it,
but
the
ones
that
are
doing
it
again,
they're
doing
it
based
on
community
relationships
and
they're
doing
it
in
the
local
community,
that
is
their
defined
membership
base,
and
I
think
that
really
makes
a
difference.
You
know
the
the
the
we'll
just
say
the
city
banks
and
the
larger
institutions.
B
F
So
one
other
thing
that
was
saying
this
to
cdfis
and
I'll
tweak
my
question
a
little
bit
more
cdfis
or
as
you're
very
familiar
with
community
development,
financial
institutions
and
councilman
jones
kind
of
touched
on
this.
In
his
questions
in
the
first
panel
like
the
entity
he
ran
for
so
many
years,
pcdc
or
the
philadelphia
commercial
development
corporation
have
limited
resources.
F
So
one
of
the
ideas
I've
heard
in
reference
to
the
ability
of
a
public
bank
is
to
provide
some
additional
enhancement
for
cdfis
to
help
them
grow
and
do
lending
directly
to
cdfis,
which
typically
you
don't
see,
that
with
credit
unions,
because
credit
unions,
as
you
stated,
are
really
membership
and
mission-based
so
they're
trying
to
help
their
members.
That's
why
you
see
often
a
navy
federal
credit
union
or
other
credit
unions
based
on
a
specific
employer
like
a
att
or
verizon,
because
members
of
that
community
or
employment
base
decided
to
start
a
credit
union.
F
B
B
So
the
credit
unions
and
the
banks
have
the
license
to
take
deposits
from
individuals.
Cdfis
generally,
don't
have
that
cdfis
are
made
up
of
loan
funds,
there's
also
a
couple
of
venture
capital.
A
couple
of
banks,
and
actually
lots
of
credit
unions
are
in
there
too.
But
if
you're
talking
about
the
traditional
loan
funds,
they're
not
depositories.
B
So
when
they
first
started,
they
were
dependent
on.
You
know
the
wonderful
nuns
who
actually
put
up
their
retirement
resources
and
said
we
think
you've
got
a
good
idea
and
we're
putting
our
money
out
here
for
it.
So
they've
gotten
more
sophisticated
over
the
years.
As
the
data
that
I
got
to
work
on,
showed
in
doing
partnerships
with
traditional
banks
getting
more
capital
from
the
social
responsible,
investing
now
called
esg
community.
F
Okay,
before
we
go
into
mr
winslow,
I
want
to
ask
the
tech
staff
or
the
clerk's
office
if
we
are
able
to
bring
in
miss
finn
after
mr
winslow
for
her
to
testify.
I
do
know
that
we
have
the
acting
city,
treasurer
and
hrna
who's
not
available
until
three
o'clock.
So
can
you
let
us
know
if
that's
feasible
at
this
time.
D
F
D
Thank
you,
councilman
green,
to
address
your
question.
Following
the
established
practices
of
the
bank
of
north
dakota,
the
banks
in
germany
and
elsewhere,
we
envision
the
public
bank
acting
in
partnership
with
other
financial
institutions
within
the
community
to
strengthen
the
entire
financial
ecosystem
of
the
community.
D
So
there
are
many
ways
in
which
that
ecosystem
can
be,
can
be
nurtured
and
be
be
helped.
There
is
a
provision
in
federal
law
for
a
bank
service
company
that
could
be
fostered
by
the
public
bank
that
would
enable
all
of
the
institutions
within
the
community
to
lower
their
operating
costs
by
by
centralizing
some
of
their
service
functions,
for
example.
F
F
E
E
E
We
have
heard
much
today
about
how
public
banks
have
provided
financial
stability
in
times
of
crisis
and
how
one
in
philadelphia
could
lead
to
economic
benefits
for
the
people
living
here.
I
would
like
to
make
three
additional
points.
First,
a
philadelphia
public
bank
could
fund
projects
that
would
directly
benefit
the
school
district
of
philadelphia.
E
Our
school
buildings
are
in
desperate
need
of
repairs
and
updates.
The
technology
required
by
our
schools,
especially
in
these
times
of
remote
learning,
also
requires
regular
maintenance
and
improvement.
Second,
a
philadelphia
public
bank
could
fund
projects
that
will
increase
the
stock
of
available,
affordable
housing
in
our
city.
We
face
a
housing
crisis
that
is
only
getting
worse
and
the
projects
this
council
would
like
to
undertake
to
address
it.
E
E
The
city
has
been
to
court
several
times
with
wells,
fargo
alone
alone,
judgments
against
them,
based
on
their
discriminatory
and
discriminatory
and
predatory
lending
practices,
add
up
to
hundreds
of
millions
of
dollars
and
wells.
Fargo
is
not
the
only
bad
actor
we
have
had
issues
with
bank
of
america,
barclays
and
others
as
well.
E
Thousands
of
philadelphians
were
directly
affected
by
foreclosures
during
the
financial
crisis
of
2008.
these
wall
street
banks
were
responsible
for
that
collapse.
There
is
nothing
more
risky
than
placing
our
faith
in
the
big
banks
that
are
still
considered
too
big
to
fail,
while
we
here
in
philadelphia
are
not.
E
F
B
Yes,
that's
correct!
Yes,
you
know.
I
just
really
wanted
to
thank
you,
and
I
wanted
to
thank
miss
finn
for
her
reason
for
her
comments
regarding
the
untrustworthiness
of
some
of
our
banks
that
we
do
business
with
here
in
the
city
of
philadelphia,
and
specifically,
I
want
to
just
point
out
that
you
know
a
few
years
ago
we
had
a
bill.
B
My
office
produced
a
bill
that
would
divest
ourselves
from
wells
fargo,
which
at
the
time
was,
you
know,
really
getting
a
lot
of
attention
for
its
very
unethical
banking
practices,
which
in
which
they
also
ended
up
firing
a
number
of
lower
level
employees
who
did
not
have
reap
the
benefits
of
the
fraudulent
practices
of
wells
fargo.
So
I
just
really
wanted
to
also
put
that
on
the
table
as
a
strong
proponent
for
a
public
bank
for
the
city
of
philadelphia.
B
F
Thank
you,
councilman
bass,
for
your
participation
hearing
and
your
comments
with
that.
We
will
close
this
second
panel.
I
want
to
thank
all
the
witnesses
for
testifying
this
afternoon.
Thank
you
for
participation
and
advocacy
regarding
this
issue.
At
this
point
we
are
going
to
then
have
our
acting
city.
Treasurer
is
done
to
provide
her.
F
Okay,
why
don't
we
do
this
we're
trying
to
get
both
this
done
as
well
as
hn
rna,
if
we
could
take
maybe
a
brief
break
and
then
we'll
come
back,
and
I
would
also
give
our
phenomenal
stenographer
and
text
there
and
clerk's
office
a
few
moments
to
stretch
and
do
some
some
like
yoga
as
we
prepare
for
our
next
two
panels.
Thank
you.
So
much
we'll
be
back
in
a
few.
F
E
F
F
F
F
F
F
F
F
Thank
you.
I
want
to
welcome
you
back
to
the
council
committee
on
finance
hearing
resolution,
two:
zero,
zero,
zero
five
four
resolution
regarding
public
banking
and
we're
now
joined
by
our
acting
city,
treasurer
jacqueline
dunn,
I'm
miss
dunn,
thank
you
for
being
here
just
wanted
to
stay
for
the
record.
Thank
you
for
your
office's
work
on
this
matter.
I
know
we've
been
working
on
this
issue,
a
topic
for
some
time
in
numerous
hearings
and
conversations
and
emails
in
person
and
then
in
covid.
F
L
L
We
thank
hra
advisors
for
taking
an
independent
look
at
complex
questions
around
the
financial,
legal
and
administrative
feasibility
of
a
city-owned
bank.
I
also
want
to
thank
council
member
green
for
his
leadership
in
looking
at
a
public
bank
as
an
innovative
way
to
address
systemic
challenges
and
work
toward
a
more
equitable
philadelphia.
L
And
finally,
I
also
want
to
recognize
those
who
offered
public
testimony
today,
as
well
as
provided
valuable
insights
and
research
to
our
consultant
hrna
advisors
for
their
review.
While
the
administration
is
neutral
on
the
concept
of
a
public
bank,
we
look
forward
to
further
discussions
with
city
council
on
the
idea,
and
this
concludes
my
testimony.
I'm
happy
to
take
any
questions
at
this
time.
F
We
now
have
representatives
from
hrna
so
like
to
at
this
point,
have
missed
on
here
for
a
few
moments
and
then
transition
to
hrna
as
they
are
coming
into
the
teams.
But
mr
dunn
I'll,
ask
you
one
quick
question.
As
representatives
from
hrna
come
into
the
hearing,
you
know
they
talked
about
some
of
the
inequities
that
we
see
in
the
city.
F
From
your
perspective
that
you
have
additional
thoughts,
you
would
like
to
opine
in
reference
to
that
aspect
of
public
banking
or
just
see
some
of
the
inequities
you
see
in
the
city.
I
know
the
administration
is
being
very
cautious
as
they
should
in
any
type
of
new
venture,
but
just
want
to
get
some
of
your
global
thoughts
and
then
we'll
go
into
hrna.
L
Sure,
thank
you
absolutely,
I
think
hrna,
you
know
really
address
some
questions
head
on
about
ways
that
we
can
further
look
to
reduce
and
close
gaps
to
our
underserved
and
unserved
communities
in
philadelphia,
particularly
communities
of
color,
who
face
lending
disparities,
challenging
challenges
obtaining
credit.
You
know
and
and
small
business
challenges
that
have
only
become
you
know
more
real
in
this
cobin
19
environment.
F
M
N
M
Great
and
I'll
go
ahead
and
I'll
be
giving
you
all
my
testimony
today.
So
again,
thank
you
for
having
us
here
today
to
provide
our
testimony
on
the
philadelphia
public
bank
feasibility
study.
My
name
is
arielle
benjamin
and
I'm
a
director
at
hrna
advisors,
a
firm
working
at
the
intersection
of
public
policy,
economic
development
and
urban
transformation.
M
M
M
So,
in
a
direct
relationship
to
the
city's
poverty
rate,
today,
more
than
35
percent
of
philadelphians
are
either
unbanked
or
underpinked
a
rate
that
is
higher
in
philadelphia
than
any
other
major
u.s
city.
According
to
data
from
prosperity.
Now,
small
businesses
are
also
underserved
by
traditional
banking
services.
M
According
to
the
city's
2019
report,
growing
with
equity
philadelphia
is
behind
its
national
peers
in
terms
of
new
business
creation
and
black
owned
business
creation
and
growth.
One
likely
cause
of
philadelphia's
lag
is
stifled,
access
to
capital
in
the
form
of
loans,
loans,
allow
small
businesses
to
form
grow
and
stabilize
and
in
turn,
create
permanent
local
jobs
in
philadelphia.
88
of
small
businesses
in
low
and
moderate
income
census
tracts
are
not
receiving
any
loans.
M
Despite
the
city's
important
work
to
improve
access
to
financing
for
small
businesses.
Many
small
businesses,
particularly
those
that
are
owned
by
black
and
latinx
residents,
face
significant
credit
and
capital
shortages,
hrna
estimated
that
the
lending
gap
for
small
businesses
in
philadelphia
is
at
least
840
million
dollars
in
2020.
We
are
all
but
certain
that
this
lending
gap
has
widened
due
to
the
economic
implications
of
covin
19..
This
gap
is
so
large
and
the
trends
are
so
pervasive.
That
is
clear
that
the
problem
is
structural.
A
structural
problem
requires
a
structural
solution.
M
Enter
the
call
for
a
new
way
of
banking,
in
which
a
public
bank
would
be
able
to
make
different
determinations
about
risk
account
for
inherent
biases
in
these
calculations
and
value
community
well-being
beyond
profits.
Our
client
team,
the
philadelphia
public
bank
working
group
determined
that
supporting
small
businesses
was
its
top
priority
for
a
public
bank
with
attention
to
uplifting
underserved
black
and
latinx
businesses,
so
that
they
grow,
create
more
jobs
and
build
community
wealth.
Our
client
team
also
determined
that
another
goal
of
the
public
bank
should
be
to
uphold
autonomy
over
the
city's
financial
resources.
M
Local
governments
have
an
obligation
to
think
deeply
about
how
to
leverage
each
dollar
public
each
dollar
public
taxpayer
revenue
to
create
the
most
value
for
their
cities.
To
put
a
finer
point
on
it.
Cities
are
large
and
important
clients
of
banks
and
therefore
have
enormous
leverage.
The
city
of
philadelphia
houses,
millions
of
dollars
in
its
operating
and
investment
accounts
in
11,
authorized
depository
institutions,
11
major
commercial
banks,
nearly
all
of
which
you
know
by
name,
and
they
do
personal
or
business
banking.
M
With
the
question
is:
how
can
the
city
of
philadelphia
bank
those
dollars
in
ways
that
helps
their
residents,
many
of
whom
are
poorly
served
by
the
private
banks?
Can
the
city
do
more
or
do
better
with
those
dollars?
Of
course,
these
questions
are
even
more
urgent.
As
we
begin
an
era
of
profound
fiscal
challenge.
M
M
We
believe
that
this
feasibility
study
is
a
meaningful
step
to
understand
why
and
how
the
city
can
and
should
interrupt
the
status
quo.
We
also
recognize
that,
while
the
rhetorical
benefits
of
a
public
bank
inspire
us
to
think
boldly
oversimplifying,
the
feasibility
of
establishing
such
institutions
will
not
advance
racial
and
economic
equity
alone.
M
In
doing
so,
we
evaluated
feasible,
if
and
looked
under
the
hood,
to
identify
what
it
would
take
to
create
a
philadelphia
public
bank
that
meets
the
two
goals
set
out
by
the
working
group.
We've
responded
to
these
goals
and
assess
the
feasibility
of
two
banking
models:
a
foundational
public
bank
that
houses
the
city's
municipal
deposits
and
operating
accounts;
and,
secondly,
a
small
business
support
model
to
extend
access
to
credit
to
underserved
businesses
across
philadelphia.
M
We
find
that
establishing
a
philadelphia
public
bank
will
not
be
easy,
but
it
is
possible.
We
find
that
a
city-controlled
public
bank
can
be
feasible
if
the
city
and
the
commonwealth
undertake
a
series
of
legal
actions
and
structure
the
bank
to
maximize
lending
impact.
Our
recommendations
can
be
organized
into
three
categories:
legal,
financial
and
administrative.
M
Depositor,
changing
laws
and
policies
will
require
significant
political
capital
and
time
and
must
contemplate
changes
that
potentially
expose
taxpayers
funds
to
greater
risk.
Second,
financially,
the
public
bank
must
participate
in
lending
activity
to
avoid
operating
at
a
loss.
We
project
that
the
foundational
model
may
return
a
negative
return
on
average
assets
or
roa
of
negative
point.
Seventeen
percent,
which
alone
is
financially
infeasible
and
particularly
impractical
compared
to
the
returns
the
city
earns
from
its
current
consolidated
cash
accounts.
M
M
A
public
bank
is
among
a
suite
of
tools
that
the
city
can
implement
to
support
small
businesses
and
address
the
problems
of
ongoing
and
racialized
poverty
that
characterizes
this
otherwise
proud
city,
while
exploring
the
creation
of
a
public
bank.
We
hope
that
the
city
takes
immediate
and
bold
steps
to
support
its
black
and
latinx
residents
to
create
and
grow
their
small
businesses,
and
we
hope
that
the
study
serves
as
a
launching
point
for
making
an
immediate
impact,
while
laying
the
groundwork
for
systemic
reform.
M
F
Okay,
thank
you
for
your
testimony.
I
just
have
some
initial
questions.
As
you
were
doing
your
research
and
I
was
struck
by
a
couple
of
the
comments
that
you
made
one
about
a
structural
problem
and
structural
solution
you're,
and
I
got
the
sense.
You
also
said
that
the
city
should
disrupt
the
status
quo
and
you're
referring
to
a
public
bank
concept
right.
F
M
M
We
don't
have
a
recommendation
on
deposits
from
other
sources
outside
of
city
government,
there's
many
they
can
be
from
school
districts.
They
can
be
from
other
kind
of
mission
driven
institutions
that
receiving
deposits
from
other
places.
In
addition
to
receiving
deposits
from
the
city
requires
enabling
legislation.
M
F
Right,
especially
some
of
the
concepts
and
perspectives
of
reference
to
the
governance
you
may
reference
to
having
you
know:
professional
management,
others
who
made
that
same
response
and
those
additional
things
that
would
need
to
be
researched
and
investigated
in
reference
to
the
structure.
I'm
also
curious,
in
reference
to
your
experience
as
a
firm
on
some
other
studies
and
where
and
you've
worked
some
other
cities
and
jurisdictions
on
this
type
of
work.
N
Sure,
let
me
say
one
thing:
councilman
just
to
your
prior
question.
I
think
we
draw
the
distinction
in
our
analysis,
was
deter
to
determine
feasibility.
The
next
step
would
then
be
determine.
How
would
you
go
about
implementing,
so
you
would
need
to
do
a
business
plan.
You
would
need
to
further
investigate
our.
F
F
And
so
just
basically
the
fundamental
perspective
based
on
the
research
and
the
need,
which
is
also
even
further
demonstrated
because
of
covid,
that
this
is
a
disruption
to
the
status
quo,
to
change
a
structural
problem
and
that
this
concept
is
feasible.
But
the
additional
details
are
much
more
implementation
aspects
and
a
business
model
or
additional
steps
that
were
beyond
your
scope.
But
you
just
focus
on
the
feasibility
of
this
concept
of
public
banking,
which
I
think
you've
answered.
Yes
from
my
reading
of
the
report.
N
N
The
second
was
to
capitalize
the
city
to
be
to
with
a
function
and
a
role
of
lending
to
two
small
businesses
of
the
city
of
philadelphia.
We
determined
that
is
feasible.
The
next
step
would
then
be
to
come
up
with
an
implementation
plan.
The
reason
I
make
that
distinction
is
because
the
bank
to
do
what
is
an
important
question
in
the
determination
of
whether
or
not
it
is
a
feasible
enterprise
for
for
the
city.
N
N
We
know
that
the
city
of
washington
dc
recently
received
a
feasibility
study,
but
we
are
not
aware
of
it.
Acting
any
further
on
that
study,
the
state
of
california
has
passed,
enabling
legislation
and
cities
are
currently
in
varying
his
states
of
preparing
to
act
on
that
determination
of
feasibility.
F
N
N
Based
on
our
view,
none
of
these
cities
have
put
out
a
business
plan
or
engaged
in
a
business
planning
process.
The
city
of
los
angeles
had
attempted
to
do
their
first
step
in
creating
a
public
bank
by
issuing
a
public
referendum
to
amend
the
charter
to
allow
the
city
to
establish
a
public
bank
that
referendum
failed
to
the
best
of
our
knowledge.
We
have
not
seen
any
cities
yet
advance
a
business
plan
for
establishing
a
public
bank.
N
N
The
the
the
prospect
there's
strong,
a
strong
advocacy
community
in
la
that
wants
to
do
this
again,
because
there
were
other
issues
on
the
ballot
that
might
have
complicated
the
support
for
a
public
bank,
but
no
one
to
the
best
of
our
knowledge
has
moved
forward
with
a
feasibility
study
along
the
lines
of
what
the
city
of
philadelphia
has
done,
or
certainly
not
a
business
planning
stage.
I
should
also
I
neglected
to
say
there
have
been
feasibility
studies
in
santa
fe
as
well
and
ariel.
F
N
I
mean
I'll,
let
ariel
address
the
substance
of
the
question
because
we
struggled
with
this
in
our
study
having
hit
midway
through
or
more
than
that
through
our
study
process.
I
will
say
the
urgency
is
clearer:
it
doesn't
change
any
of
the
steps
that
are
required
and
that
are
significant
to
establish
a
feasible
public
bank.
N
I
was
just
going
to
say
that
there
were
there.
There
were
proposals
that
were
offered.
You
know
by
others,
were
aware
of
for
a
public
bank
facility
to
take
advantage
of
some
of
the
of
the
of
the
federal
aid
in
the
way
that
it
was
structured
and
dispersed.
We
did
not
evaluate
the
feasibility
of
those
proposals,
because
that
was
beyond
our
scope,
but
you
know
there
were
ideas
in
the
discourse
about
how
a
public
bank
either
could
or
could
have
served
as
a
vehicle
and
to
receive
federal
funding.
F
As
you
were,
researching
the
feasibility
on
the
small
business
model
and
looking
at
local
state
laws-
you
I
was
well,
I
don't
like
to
make
assumptions,
but
what
review
did
you
do
like
economic
development
financing
laws?
I
like
those
laws
that
have
enabled
enough
industrial
development
corporation
to
provide
loans
similar
to
what
councilmember
jones
talked
about,
which
is
the
former
adolf
commercial
development
corporation.
That
also
provides
loans
as
a
lending
entity.
M
Sure,
and
so
in,
in
our
conversations
with
the
sequels
with
the
city's
legal
team
and
the
commercial
law
unit,
unpaid
was
certainly
a
precedent
to
look
look
towards
in
terms
of
how
to
use
the
economic
development
financing
law
to
then
go
through
the
general
assembly
and
establish
an
authority.
I
think
it
definitely.
It
is
one
of
the
reasons
we
got
to
the
finding
that
an
authority
was
an
important
vehicle
for
the
public
bank.
M
M
F
Right,
and
so
in
those
conversations
you
talked
with
both
pidc
and
also
well.
Pcdc
is
a
former
entity
that
councilman
jones
ran
that
was
acquired
by
pidc,
a
pidc
being
a
city-related
entity
does
provide
lending
through
a
cdfi
and
that's
something
that
you
did
see
they
have
the
building
and
that
you
use
the
legal
authority.
I'm
sorry,
I'm
sorry,
not
legal
authority.
Legal
analysis
from
the
law
department,
not
your
own
legal
analysis,
but
the
law
department
to
come
up
with
your
foundation
and
as
well
small
business
model
for
your
study.
N
The
spirit
of
this
was:
can
you
set
up
a
public
bank
because
it
would
meet
the
stated
need
which
began
with
the
legislation
that
you
introduced
of
addressing
poverty
in
philadelphia,
with
a
belief
that
you
can
address
poverty
by
creating
jobs?
Small
businesses
create
jobs.
The
poverty
is
deeply
racialized
in
philly.
There
is
the
legacy
of
racism
and
banking
in
philly.
That
leaves
us
with
inadequate
capital
to
black
and
latinx
businesses.
N
So
we
were
looking
at.
How
could
a
public
bank
solve
for
that?
The
next
stage
of
this,
in
order
to
be
a
meaningful
exercise,
would
have
to
generate
a
return
to
meet
that
gap.
The
bank
would
have
to
be
sufficiently
capitalized
to
generate
a
return
to
meet
that
gap
in
order
for
this
exercise
to
be
meaningful
and
to
positively
impact
the
lives
of
philadelphians,
in
the
way
that
you
had
envisioned,
we
have
to
start
from
that.
Is
it
feasible
to
address
that
gap?
That
is
the
most
important
question
we
addressed
feasibility.
F
F
F
F
I
think
your
report
really
provided
a
strong
basis
for
the
urgency
and
the
need,
and
I
keep
reflecting
on
the
fact
you
acknowledge
that
it's
a
very
significant
structural
problem
that
needs
a
structural
solution
and
that
he
recommended
that
the
city
should
leverage
its
dollars
and
to
find
a
way
to
disrupt
the
status
quo,
which
is
something
I
believe
the
public
bank
does.
I
think
the
concept
of
how
we
focus
that
concept.
F
Considering
we
have
some
of
the
historical
inequities
that
we
have,
especially
for
people
of
color
and
african
american
and
latin
constituents
in
our
spit
in
our
city,
especially
business
owners,
and
how
covet
19
has
only
increased
that
if
we
look
at
any
of
the
information,
that's
been
discussed
in
previous
hearings.
My
hearing
that
I've
done
jointly
with
council
member
squilla
in
reference
to
recovery
council
member
don's
hearings
on
physical
stability.
F
I
know
he
has
an
upcoming
hearing
as
well
regarding
the
just
impacts
of
african-american
businesses
and
the
lack
thereof
in
the
city
due
to
a
number
of
issues,
and
I
think
cobit
has
only
demonstrated
that
concern
and
your
report
and
goes
to
that.
But
you
also
provide
that
we
need
to
provide
some
additional
work
and
research
in
reference
to
an
implementation
strategy.
F
Regarding
some
of
those
issues
which
go
to
that
next
phase
in
reference
to
how
a
public
bank
can
be
created
and
what
steps
we
need
to
take,
I
know
in
our
conversation
with
the
law
department,
there
have
been
some
additional
things
that
they
need
to
research
that
may
or
may
not
be
within
their
capacity
as
a
city
solicitor's
office.
That
may
need
some
outside
counsel
to
help.
I
know
you
relied
upon
their
work
and
research
to
get
to
this
point,
but
some
additional
questions
and
concerns
have
come
up
in
reference
to
do.
F
Okay,
thank
you.
So
I
just
want
to
thank
all
of
you
for
your
work
and
participation.
I
know
we've
been
working
on
this
issue
and
this
research
for
some
time
and
we're
going
to
continue.
This
conversation
continue
the
work,
so
we
can
move
forward
to
the
creation
of
this
entity
and
I
don't
see
any
other
questions
or
comments
from
members
of
the
committee
being
no
further
questions
from
members
of
the
finance
committee
and
no
other
witnesses
to
testify.
F
I
will
ask
if
there's
no
one
else
to
present
in
this
hearing,
because
then
we
have
failed
to
call
and
have
wishes
to
offer
testimony
on
any
of
the
bill.
I
didn't
write
any
I'm
sorry
and
that
wishes
to
offer
a
testimony
on
this
resolution
being
considered
today.
I'm
hearing
none.
I
want
to
thank
all
the
panels
and
witnesses
for
their
participation
value
your
opinions.
This
concludes
the
public
hearing
of
defiance
committee
will
now
recess
this
hearing
until
the
call
of
the
chair.