Sen. Bob Hasegawa has introduced nine state bank bills since 2009, as well as numerous budget provisos to study or implement a state bank. The most recent piece of legislation, Senate Bill 5464, would create The Washington Investment Trust.

Although the bill did not make it through the Legislature this year, a budget proviso to study the feasibility of a state bank was funded in the 2017-19 operating budget. Resources provide for a task force – made up of lawmakers, members of the public and representatives from relevant agencies and departments – to study the feasibility of a state bank and report their findings to the Legislature to take action on in the 2018 legislative session. To learn more about that proviso, please click here.

The Washington Investment Trust

Making Washington’s Tax Dollars Work for Washington

 

How It Works

Senate Bill 5464 would create a single agency, the Washington Investment Trust, which would handle all state and local tax revenues and use the interest on the revenues to capitalize a state bank that can leverage those funds for the benefit of Washingtonians.

What Do We Do Now?        

Under the current structure, private banks handle state tax revenues and keep the interest as profit.

How much money could be reinvested into Washington?

$1 billion in bond sales can cost taxpayers up to $2 billion over 25-30 years to repay.

4 Reasons a State Bank is Right for Washington

  1. Keeps our tax dollars in our state, working for us rather than as a profit tool for Wall Street.
  2. Cuts Wall Street bonds (profits). By borrowing from ourselves we can invest in critical infrastructure projects like roads, schools, affordable housing, water and sewer projects. We could also offer student and small business loans, and other uses for the public good.
  3. It is a proven approach. North Dakota has successfully run a state bank for nearly a century, and reported its 12th consecutive year of record profits for the people.
  4. Create Jobs. The Washington Investment Trust would partner with local institutions and non-profits to develop long term economic stability and create more jobs across the state.

More Information

State Investment Board’s annual report

Washington State Treasury’s Debt Affordability Study

Bank of North Dakota annual reports

Infrastructure Task Force from August 2011 included discussion of state bank here

Center for Innovation Oregon state bank analysis here

Information on the proposed Seattle City Bank here