# Berkeley and San Francisco Ballot Measures on Public Banking Voters decide on municipal lending initiatives aimed at funding local housing and small businesses. - **Source:** [Fortune](https://fortune.com) - **Published:** 2026-11-03 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/b071bcb6-92ce-4f46-9842-27a0d3931dd2 ## Public Banking Ballot Initiatives Voters in Berkeley and San Francisco are deciding on two distinct measures to establish government-owned lenders. These institutions aim to finance affordable housing and small businesses that traditional banks often overlook. The proposals emerge fifteen years after the 2008 financial crisis, reflecting a long-standing movement to localize public financial control. ## Berkeley Measure Z Funding Measure Z proposes a six-year parcel tax to generate $58.3 million for an East Bay public bank. Starting in January 2027, residential improvements will be taxed at $0.06 per square foot, while nonresidential improvements face $0.09. The city estimates this will raise $9.2 million in the first year alone. ## Proponent Arguments for Banking Supporters like Debbie Notkin argue that public banks can prioritize smaller, community-focused projects. Examples include food trucks needing $50,000, developers securing vacant land, or businesses installing solar panels. The goal is to reinvest public money directly into the local economy, ensuring that tax-paying residents benefit from the capital they provide. ## Opposition and Funding Concerns Critics like Paul Mathew oppose Measure Z, citing the burden on Berkeley residents for a regional bank. He argues that neighboring communities should share the financial responsibility. Furthermore, concerns exist regarding potential loan defaults and the impact of commercial property taxes on business tenants before they receive any actual financing benefits. ## San Francisco Proposition B Approach Proposition B seeks to amend the city charter to authorize a municipal finance corporation. Unlike Berkeley’s plan, this measure does not provide startup funding. The entity would operate as a nonprofit lender for at least three years before seeking regulatory approval to transition into a fully functional public bank. ## Operational and Regulatory Hurdles Establishing these banks requires adherence to California’s 2020 framework, necessitating state authorization and federal insurance. San Francisco’s transition could cost between $310 million and $460 million over eight years. Officials warn that maintaining financial expertise and shielding the institution from political pressure remains a significant challenge for the city. ## Prohibited Investments and Oversight San Francisco’s proposed corporation would strictly prohibit investments in industries such as fossil fuels, tobacco, weapons, and prisons. An oversight commission would appoint the board responsible for governance. Despite these mandates, the measure leaves the critical question of how to secure startup capital to future city appropriations and grants. ## Timeline and Future Outlook Even if voters approve these measures, immediate implementation is not possible. Berkeley’s bank could potentially open by 2028, with Measure Z allowing alternative lending if authorization fails by 2033. The outcome remains uncertain, with officials expecting a week or two to finalize results after the polls close this Tuesday. ## Sources covering this story - https://fortune.com/2026/11/03/bay-area-public-bank-measures/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._