New York CUs Wants A Slice Of The PublicFunds

ALBANY, N.Y. - (05/18/06) – Credit unions are trying againto get a share of the public coffers with a bill that will allowmunicipalities to deposit funds in credit unions as well as banks.A bill introduced in the state legislature would give credit unionsan opportunity to gain a share of the $20 billion or so depositedby New York municipalities each year. The bill is opposed by thebanking groups, which say it’s not fair for non-tax-payingcredit unions to get a share of the tax revenues raised by thestate cities and towns. The New York CU League commissioned a studythat found the municipalities could earn as much as $24 million ayear more by depositing their funds in higher-paying credit unionaccounts. The credit union lobby has tried unsuccessfully before tobe certified for public deposits.