Marilyn Barnewall - State Bank Initiative

STATE BANKSWhy States Cannot….

• Create their own currency

• Reject the federal financial system (Federal Reserve, FDIC, comptroller, etc.

• Secede

• Be sovereign states:

… Without one.

• State Bank =Alternatives

BOISE, IDAHO

ONE IN 21 HOMES IS IN FORECLOSURE

SARASOTA, FLORIDA


LAKELAND, FLORIDA


TAMPA, FLORIDA


PORT ST. LUCIE, FLORIDA


SACRAMENTO, CALIFORNIA


NAPLES, FLORIDA


DELTONA, FLORIDA


BAKERSFIELD, CALIFORNIA


RENO, NEVADA


VALLEJO, CALIFORNIA


ORLANDO, FLORIDA


MERCED, CALIFORNIA


STOCKTON, CALIFORNIA


RIVERSIDE, CALIFORNIA


MIAMI, FLORIDA


PHOENIX, ARIZONA


MODESTO, CALIFORNIA


CAPE CORAL, FLORIDA


LAS VEGAS, NEVADA

ONE IN EVERY 9 HOMES IS IN FORECLOSURE

CONSTITUTION OF THE UNITED STATES OF AMERICA

ARTICLE 1, SECTION 8

The Congress shall have power to…

…borrow money on the credit of the United States; to regulate commerce with foreign nations, and among the several States, and with the Indian Tribes;

The Congress shall have power to…

…coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures.

NATIONAL DEBT HISTORY

NORTH DAKOTA STATE BANK RESULTS:

WITH A POPULATION OF ABOUT 650,000, THE NORTH DAKOTA STATE BANK HAS, DURING THE PAST TEN YEARS, PAID THE STATE TREASURER MORE THAN $325 MILLION FROM BANK PROFITS.

IN 2010 – THE WORST ECONOMY IN RECENT HISTORY –NORTH DAKOTA HAD ITS LARGEST FINANCIAL SURPLUS IN HISTORY.

NORTH DAKOTA TOPS THE LIST OF STATE ECONOMIES YEAR AFTER YEAR.

UNEMPLOYMENT IN 2011National 9.1%Colorado 8.5%North Dakota 3.3%

REDUCING TAXES

IN 2011, NORTH DAKOTANS WILL SEE ALMOST $500 MILLION OF THEIR MONEY RETURNED TO THEM IN THE FORM OF INCOME AND PROPERTY TAX CUTS.

COMBINING 2009 AND 2011 TAX REDUCTIONS, THE AVERAGE NORTH DAKOTAN WILL ENJOY A 30% TAX LIABILITY DROP.

THE LEGISLATURE ALSO FUNDED $342 MILLION IN PROPERTY TAX RELIEF. THE OWNER OF A $150,000 HOME WILL ENJOY A TAX REDUCTION OF $506.

BREAKDOWN, NORTH DAKOTA TAX RELIEF:

$341.79 MILLION: PROPERTY TAX RELIEF. The money is provided to the superintendent of public instruction for grants to school districts under the mill levy reduction program.

$120 million: reduces all individual income tax rates by 17.9 percent.

$25 million: reduces all existing corporate income tax rates by 19.5 percent.

$2.125 million: Reduces the financial institutions tax rate from 7 percent to 6.5 percent. Only the state general fund share of the tax revenue is impacted by this change.

Ref: The tax reduction bill, House Bill 1047

GOVERNOR OF THE STATE IS THE

EQUIVALENT OF CHAIRMAN OR CEO OF

BANK

ADVISORY BOARDECONOMY W/

STATE TREASURER

ADVISORY BOARD LARGE CREDITS

(MAJOR LOAN COMMITTEE)

CORRESPONDENT CREDIT AND OTHER

LINE BANKING SERVICES

Economy & Finance

Marilyn Barnewall - State Bank Initiative