TRENTON, N.J. (11/25/08)--A New Jersey assemblyman who introduced legislation last week to help local credit unions become authorized public depositories of government funds says he did so to help boost the state's economy.
"We need to be doing more to help local businesses, said Assemblyman Fred Scalera (D-Essex/Bergen/Passaic). "Credit unions are the sparkplug to the local economy because they do most of the local lending to local members." Under the measure (A 3508), credit unions whose deposits are insured by the National Credit Union Administration wuld be authorized to receive government funds as qualified public depositories. The legislation also would allow out-of-state credit unions having a branch office in New Jersey to take government deposits. Currently, public depositories are limited to only institutions insured by the Federal Deposit Insurance Corp. (News Now
Nov. 20). By extending competition to credit unions, Scalera said, local governments will get the best return and help save taxpayer money. "Credit unions should have the same opportunity to compete to hold government funds," said Scalera. "Credit unions are just as safe and responsible as typical financial institutions backed by the FDIC." He introduced the bill Nov. 17. It likely will be referred to the Assembly Financial Institutions and Insurance Committee for consideration, Scalera said in a press release.