Now is the time for the Washington State Public Bank.

Despite years of economic growth, Washington is now in a position where it will face chronic deficits. These deficits couldn’t come at a worst time. Washington remains mired in a housing shortage, multiple schools are at risk of closing, and Washington’s clean energy infrastructure is behind schedule.

Fortunately, there’s a way for Washington to make critical investments in its economy without contributing to its debt. Washington could charter a state-owned public bank.

Each year, Washington receives around $35 billion in revenue. The state deposits those funds in private financial institutions, with most of that amount being held in large too-big-to-fail banks that are headquartered or chartered outside of the state.

Instead of depositing this money in private financial institutions, SB 5754 creates a state-owned public bank, where the state will place its deposits in a public institution, and then make loans to local and tribal governments off that deposit.

The State Public Bank will be a cooperative membership organization, and local and tribal governmental entities can join, deposit their revenue into the bank, and get access to loans for housing, infrastructure projects, and other community needs.

If Washington is going to move forward with an economy that works for everyone, then it needs to embrace new public financing institutions. Our current budget crisis shows that now is the time to create a future that is prosperous for all, now is the time to charter the Washington State Public Bank.

I urge you to pass SB 5754.