LA City Hall by Austin Laser

Los Angeles City Council approves funding for Phase 1 of the public bank viability study required by AB857

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.

[Read the agenda item]
[Read committee report]
[Watch relevant section of City Council meeting June 20]
[Read article from LA Times]

Photo by Austin Laser.

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