SACRAMENTO- Communities across California lacking investment from mainstream banks are the victors of Thursday's Senate Appropriations bipartisan vote to pass Assembly Bill 2581, the California Banking Development Districts bill, which encourages mainstream financial investment on Main Street and increases the financial security of unbanked Californians.

Lieutenant Governor Abel Maldonado and the State Commission for Economic Development's Forescee Hogan Rowles of the Community Financial Resource Center, Assemblyman Manuel Perez, and Aubry Stone of the California Black Chamber of Commerce joined banks, credit unions, consumer groups, and business advocates in support of the measure this week.

"As we continue our economic recovery, California cannot stand on the sidelines and be content with the lack of access to basic financial services in underserved communities," said Maldonado. "This critical bill is another step in the right direction to promote smart investments and spur local economic growth."

Based on the successful New York State program launched in the late 1990s, the Banking Development Districts program would coordinate state and local incentives to encourage banks and credit unions to open in areas of California that lack mainstream financial institutions and offer low-cost products and services tailored to the needs of low-income consumers.

"This bill will lead to job growth and economic opportunity to unbanked areas in the state by providing vital financial services needed to ascend the economic ladder," said Assemblyman Steven Bradford (D-Gardena), the author of the bill. "I am pleased that my Senate colleagues support the growth of financial institutions in targeted low income communities around the state."

Approximately 1.5 million Californians are "unbanked"- meaning they lack a basic bank account that provides the on-ramp to savings, economic security, and mainstream financial participation.

"I hope that the larger Senate will pass this market oriented financial empowerment bill, and when it lands on the Governor's Desk, I want to remind him of his effort with the Bank on California program and urge him to sign this significant legislation for the benefit of his constituents that remain unbanked," said Bradford.

"The bipartisan leadership in Sacramento working to advance financial empowerment legislation is commendable," said Olivia Calderón, California Legislative Director of the New America Foundation's Asset Building Program. "We know Banking Development Districts will spur greater financial inclusion and provide Californians with the opportunity to build their savings and credit."

The Asset Building Program, which was instrumental in the creation of the Bank on model and helped take that successful program statewide and nationwide, has long advocated for banking development districts and other policies to promote the ability of working families to become financially secure and have a stake in the larger economy.

For interview requests and additional information, please contact Elizabeth Wu at (510) 295-9859 or wu@newamerica.net.

About the New America Foundation
The New America Foundation is a nonprofit, nonpartisan public policy institute that invests in new thinkers and new ideas to address the next generation of challenges facing the United States.