SAN FRANCISCO — Voters have approved a ballot measure that would begin the process of establishing San Francisco’s first municipal public bank after Proposition B received 52.3% of the vote as of Sunday afternoon.
With about 6,200 ballots remaining to be counted, supporters declared victory Monday. The measure had trailed narrowly on election night before gaining support as additional ballots were tallied, Mission Local reported.
Proposition B would establish a municipal finance corporation as an initial step toward a city-owned, independently operated bank. Supporters envision an institution that could finance affordable housing, climate-related projects and community infrastructure, potentially directing more public money toward local priorities.
How Bank Would Work
The corporation would be overseen by a board and supported by banking professionals. Potential sources of funding include federal funds, state grants and philanthropic contributions. After demonstrating a successful operating record for three years, it could seek to become a public bank, subject to state regulatory approvals, a banking charter and federal deposit insurance.
“Together we made history,” Misha Steier, spokesperson for the San Francisco Public Bank Coalition, said in a statement quoted by Mission Local. The coalition, formed in 2017, has advocated for the proposal.
Supervisor Jackie Fielder, a co-founder of the coalition, said the city needs public institutions capable of investing in communities and addressing climate change as residents confront rising living costs.
Opponents warned that creating and operating a public bank could be expensive and financially risky. Mayor Daniel Lurie opposed the measure but did not actively campaign against it, according to Mission Local. GrowSF and the think tank SPUR also opposed the proposal.
Supervisor Chyanne Chen, another supporter, said the election of Democratic majorities in Congress could open additional funding possibilities for the project.
Approval of Proposition B does not itself create a fully licensed bank. The proposed institution would still have to clear operational and regulatory hurdles before it could accept insured deposits and operate as a public bank.
