In a unanimous decision on June 20th, the Los Angeles City Council made their first financial investment toward launching a public bank, voting to approve funding in the amount of $460,000 for consultant services to conduct Phase 1 of a viability study. The two-phase study will examine “policy, fiscal, and economic analyses related to the formation of a public bank serving the City of Los Angeles.” Per California’s Public Banking Act, AB857, viability studies and business plans are necessary from any municipality intending to create a public bank.
Once the Phase 1 report is received from the consultants, HR&A Advisors, the Council has the option to choose a banking model and move forward to fund Phase 2 of the study. The Council’s approval of funding did not specify a delivery date for this report.
City Council voted to approve the Request for Proposal (RFP) for such a study in October 2021. The JFI / Berggruen reports released earlier this year examining what a Los Angeles public bank could do for the city were conducted independently from this RFP process.
Photo by Austin Laser.