NEWARK — Governor Phil Murphy, surrounded by community and financial justice advocates, today signed Executive Order No. 91 creating a Public Bank Implementation Board. The Board is tasked with developing an implementation plan for a public bank within one year.
“Leveraging state resources to provide greater access to capital for our communities, small businesses, municipalities, and students is an important component of building a financially inclusive New Jersey,” said Governor Murphy. “With the creation of this implementation board, I am proud to take the first step toward ensuring that our taxpayer dollars are invested here in New Jersey.”
“Public banks can help lower debt costs for local governments while generating revenues and spurring job and economic growth and I’m excited that Governor Murphy is signing an Executive Order to move this forward in New Jersey,” said Lt. Governor Sheila Oliver, who serves as Commissioner of the Department of Community Affairs. “We welcome the opportunity to help lower taxes for residents in our communities while investing in the common good with loan affordability for education, infrastructure and small businesses growth.”
“Through the establishment of this board, we are bringing together leaders from across the state to begin the process of establishing a public bank that will work for the people of New Jersey,” said Department of Banking and Insurance Commissioner Marlene Caride. “This board will conduct the research necessary to determine the path forward for a public bank designed to provide access to capital that will allow us to improve our infrastructure, revitalize our communities, to assist small businesses, and provide residents with access to higher education loan financing. The goal is to make New Jersey’s taxpayer dollars work for the people of this state, and that will be our guiding principle.”
“Treasury looks forward to joining in the efforts of this board and exploring ways that a state-owned public bank could provide residents, businesses and organizations with expanded access to below market rate capital and enable greater investment in the people, places and projects that will improve the quality of life for all New Jerseyans,” said Treasurer Elizabeth Maher Muoio.
"A public bank would expand access to capital that is needed to address New Jersey's most pressing and unmet needs in our state's most under-served communities,” said Phyllis Salowe-Kaye, Executive Director of New Jersey Citizen Action. “There are many socially beneficial projects that don't have adequate funding, including upgrades to public infrastructure, expanding affordable housing and neighborhood revitalization, reducing student loan debt, and providing micro-loans for small businesses. Today marks an important step towards making the public bank a reality. We look forward to working with Governor Murphy and our State Legislature towards establishing New Jersey's first public bank."
"To me, the Governor’s State Bank vision is bold and innovative and yet its goal is simple,” said Patrick Morrissy, Vice Chair, New Jersey Community Capital. “Let’s direct the lowest cost capital to the state’s greatest challenges. While we’re at it lets partner with our Community Development Financial Institutions who are already filling the credit and investment gap in affordable housing, small business development, and urban revitalization.”
To oversee the implementation of the Bank, the Board’s objectives will include assessing capital needs for New Jersey’s small businesses, students, and local infrastructure and affordable housing projects; conducting at least three public meetings to better understand how the State can better reduce those capital needs, with a special emphasis on supporting low-income and minority populations; enhancing the coordination and services of state authorities; identifying how a public bank can strengthen the capacity of local financial institutions and non-profit entities; developing a business plan for a public bank that determines capitalization needs and outlines a governance and operation structure; and consulting with experts or other knowledgeable individuals in the field of public banking.
The board will be made up of 14 members, chaired by Commissioner of Banking and Insurance Marlene Caride, and includes four public members. The board will hold its first meeting within 30 days. A full list of the Board's membership is below:
Click here to read Executive Order No. 91.