MADISON, Wis. (7/1/09)--Wisconsin credit unions are celebrating Gov. Jim Doyle’s veto of several provisions contained in the state’s budget bill that would have negatively affected credit unions. “Credit unions saw all potentially damaging provisions that had been part of the $46 billion state budget removed this morning before it was signed into law,” said the Wisconsin Credit Union League Tuesday. Doyle vetoed:
* A provision that would have encouraged credit union to bank conversions. The provision was included at the request of the Wisconsin Bankers Association and would have provided a more direct route to conversion that would have not provided adequate notice and protection for members; * A limitation on credit union service organization (CUSO) lending authority. The provision would have prevented any Wisconsin CUSO from running a car sales or leasing operation; and * A requirement for credit unions to match data on delinquent taxpayers. The budget passed by the legislature had language requiring financial institutions to initiate a data match with the Department of Revenue to identify delinquent taxpayers.
The league attributed credit unions’ success to credit unions’ strong relationships with lawmakers. The budget process shows how tenuous the fate of credit unions can be, underscoring the need to have strong relationships with individuals from both parties in the state legislature, the Wisconsin league said. Many legislators stood up for credit unions during the budget process, either by signing a letter to Doyle urging his vetoes or by making critical contacts to get the job done, the league added. For a story on one of the provisions vetoed, see RELATED: “Wis. governor vetoes bill extending CU’s car sales.”