Los Angeles City Council members voted Wednesday to allocate $460,000 toward a feasibility study for establishing a city-owned bank, a move that has drawn sharp criticism from some officials concerned about the city's fiscal health. The council approved the expenditure with a vote of 11-3, despite the city facing a projected $100 million budget gap.

The proposal, championed by council members Eunisses Hernandez, Ysabel Jurado, and Hugo Soto-Martinez, aims to explore the potential of a public bank to direct financing towards affordable housing, small businesses, and infrastructure projects, while keeping funds within the city. Councilmember Nithya Raman, a mayoral candidate, also supported the measure.

However, Councilmember Traci Park voiced strong opposition during the meeting. "We can’t even manage our own damn finances," Park stated, questioning the wisdom of pursuing a municipal bank when the city struggles with its current financial management. She further expressed skepticism that residents or businesses would entrust their funds to a city-run bank.

Supporters of the public bank concept argue it could serve community needs and invest in public services without relying on private financial institutions. "A public bank has the potential to finance affordable housing, supporting small businesses, and invest in infrastructure that serves instead of private profit," Jurado said.

This is not the first time the idea has been considered at City Hall. In October 2021, council members unanimously voted to study the possibility of a public bank. Subsequently, in 2023, they voted 12-0 to approve funding for HR&A Advisors to conduct a feasibility study. However, that funding was later redirected to city reserves, halting the process until this latest vote.

Raman's office indicated her support for moving the study forward, noting that her district had previously allocated $15,000 in discretionary funds toward the effort. She has previously argued that a public bank could help address financial needs not met by the city's current reliance on commercial lenders.