Public Banking
In a traditional governmental finance relationship, the city/county/agency deposits its funds or taxpayer dollars with a financial institution like Wells Fargo or Bank of America. The bank then manages the money just like it does for individuals and other corporations, charging a account maintenance fee in return for holding the city/county/agency. The city/county/agency then also borrows from the same or multiple financial institutions for financing of infrastructure projects they do not have the current funds for. The bank then charges interest rates to profit from the transaction. The Bank of Virginia Act aims to leave this exploitative relationship and manage its own funds itself, for the benefit of taxpayers following the model of the Bank of North Dakota.
When managed like the Bank of North Dakota, the bank not only can save taxpayer dollars from avoiding high fees and interest rates, but return money back to the state through its investments. In 2017 the Bank of North Dakota brought in $145 million for the state or the equivalent of $191 less in taxes for every individual in North Dakota.
When managed like the Bank of North Dakota, the bank not only can save taxpayer dollars from avoiding high fees and interest rates, but return money back to the state through its investments. In 2017 the Bank of North Dakota brought in $145 million for the state or the equivalent of $191 less in taxes for every individual in North Dakota.
Socially Responsible Mandate
As we learn about the threat of climate change to our communities, the Bank of Virginia Act works to help invest in solutions. Through a socially responsible mandate in the Act, the Bank of Virginia will prioritize loans to organizations and businesses that are working on sustainable initiatives. It will also be able to provide affordable financing for governmental projects to solve climate change.
Beyond climate change, the socially responsible mandate will prioritize companies and organizations that are investing and building communities that value life and its diversity.
Beyond climate change, the socially responsible mandate will prioritize companies and organizations that are investing and building communities that value life and its diversity.
Efficient Government
Currently the State of Virginia operates four different agencies or programs that provide either loans or investment options to citizens of Virginia. The Virginia Housing Development Authority (VHDA), Assistive Technology Loan Fund Authority (ATLFA), Virginia College Savings Program and the Virginia State Employee Loan Program all provide financial services to Virginians, but act independently of each other. Through the formation of the Bank of Virginia, all four programs could be consolidated and inefficiencies removed, so that they can better serve their missions.
