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San Francisco Puts Public Bank Governance on November Ballot

Defining mission priorities, appointing authority and banned lending to fossil fuel and weapons firms, the measure does not commit startup funding

Overview

  • The San Francisco Board of Supervisors voted 9-2 on Tuesday to place a charter measure on the Nov. 3 ballot that would begin the city’s move toward a municipal public bank.
  • If approved by voters the measure would create a municipal finance corporation with an initial mission to fund affordable housing, green energy and small businesses and would bar loans to fossil fuel companies and weapons manufacturers.
  • The measure specifies who would appoint the bank’s leadership but does not provide startup capital, and advocates say roughly $325 million would be needed to begin lending.
  • Two supervisors dissented, warning that running a bank requires deep banking expertise, clear revenue plans and strong risk controls, and the mayor has not taken a public position.
  • The effort builds on California’s 2019 law that allows municipal banks and a 2023 Reinvestment Working Group report, and supporters say a 2028 policy window gives urgency to winning voter approval and securing capitalization plans.