OLYMPIA – A publicly owned Washington State Investment Trust (WIT) could be in the future if HB 1320 fares well as it goes through the legislative process. The bill, which will get a hearing next Tuesday, aims to increase access to capital for small businesses, promote job growth, support student loans, infrastructure and economic development.
“It’s all about keeping taxpayers’ money working here in Washington to build our economy,” said the bill’s prime sponsor, State Rep. Bob Hasegawa, vice chair of the Finance section of the Ways and Means Committee. “Currently, most tax revenues the state collects go into a “Concentration Account” held by the Bank of America, which then makes money off our money and we never see those profits. I say we create our own institution and keep taxpayers’ dollars here in Washington, working for Washington.”
Hasegawa’s measure would create the WIT in statute, as well as set governance structure, ethics and transparency and accountability requirements. It would also create a Task Force charged with developing operational details. The WIT would begin operating after the 2012 legislature passes bills recommended by the Task Force.
Once the WIT is working, it would reap numerous benefits:
- Increase access to capital to help small business overcome their #1 barrier to success.
- Support students and schools
- Offer capital support and banking services to community banks
- Help fund infrastructure and capital projects
- Help finance housing development
- Support local farms and farmers
- Assist targeted industries and economic development projects
- Provide a long-term economic stabilizer to weather tough times down the road
“But the biggest benefit is that, just like all other banks, our WIT will be able to make money from interest, which we can then use to stimulate development and strengthen our economy,” Hasegawa said.
The lawmaker explained that the concept is based on the model of the Bank of North Dakota, which has been in business since 1919 and provides student loans as well as lending, treasury, and banking services. He emphasized that it is a non-partisan issue in North Dakota and that commercial banks appreciate the Bank of North Dakota because they work in close partnership with each other.
“We have a very strong foundation to build upon. From education to transportation, tourism to agriculture, energy to technology, we can build the finest economy and infrastructure in the country,” added Hasegawa.
Also moving along in the Senate is a companion bill, SB 5238, sponsored by Sen. Margarita Prentice.
Both bills are on the schedule for public hearings on Tuesday, January 25:
Senate Financial Institutions, Housing & Insurance Committee
Tuesday, January 25th, 10:00 a.m. – 12:00 p.m.
Senate Hearing Room 2
House Business & Financial Services Committee
Tuesday, January 25th, 1:30 p.m. – 3:30 p.m.
House Hearing Room B