2009 Senate Bill 195: Let local governments invest in credit union CDs

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Public Act 21 of 2009

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Introduced by Sen. Tony Stamas (R) on February 5, 2009, to allow local governments to invest in credit union certificates of deposit.
- Referred to the Senate Banking and Financial Institutions Committee on February 5, 2009.
  - Reported to the Senate on February 12, 2009, with the recommendation that the bill pass.
Passed 34 to 0 in the Senate on February 17, 2009.
Who Voted "Yes" and Who Voted "No"
Received in the House on February 17, 2009.
- Referred to the House Banking and Financial Services Committee on February 17, 2009.
  - Reported in the House on April 2, 2009, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
- Substitute offered in the House on April 21, 2009, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed by voice vote in the House on April 21, 2009.
Passed 107 to 0 in the House on April 21, 2009, to allow local governments to invest in credit union certificates of deposit.
Who Voted "Yes" and Who Voted "No"
Received in the Senate on April 22, 2009.
Passed 35 to 0 in the Senate on April 22, 2009.
Who Voted "Yes" and Who Voted "No"
Signed by Gov. Jennifer Granholm on May 5, 2009.

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1) Re: 2009 Senate Bill 195 (Let local governments invest in credit union CDs) by crazycajun on February 20, 2009

so, you would let them take YOUR money that they OVER-TAXED you for, and invest it to get a BIGGER PROFIT?

no wonder your money is worth less to day than yesterday. how about we mandate that if there is a surplus in the budget to invest, that it gets refunded to the taxpayers.

this is not talking about 'earmarked' funds for projects, but surplus funds from over-taxation.

'earmarked' funds do not have the luxury of waiting six months or a couple of years for the cd to mature.

all your local governments 'cash flow' problems are solved with amendments to the budget and the tax schedule. not by investments.

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2) Re: 2009 Senate Bill 195 (Let local governments invest in credit union CDs) by SaneMichigander on February 19, 2009

[quote user="crazycajun"]

even a six month cd would be problematic, as the funds are not usually 'planned out' that far.[/quote]

I am willing, and even eager to give my county and township governments the option of deciding what investment vehicles suit their financial needs. Allowing them to purchase certificates of deposit issued by credit unions is a a safe option when it fits local government cash flow situations

[quote]and there is no depreciation for cash unless the monetary ratings fall. we are not dealing with foreign countries here, a dollar is still a dollar, and prices do not go up for contracted services without a new clause in the contract.[/quote]

Wrong. Money you stashed in your mattress a year ago today is worth only about 96.3 cents on the original dollar. In other words, due to inflation it has depreciated at a rate of nearly 4% over the last year. Investment in safe, interest earning vehicles like CDs issued by credit unions is a prudent way to minimize the depreciation of accumulated funds.

The remainder of your argument against this bill is based on your imagination.

Well, I tried to educate an ignorant dunce, knowing (as stated above) it is an exercise in futility. Your post just reaffirms that one.

Have a nice day in LaLa Land.

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3) Re: 2009 Senate Bill 195 (Let local governments invest in credit union CDs) by crazycajun on February 19, 2009

so, what is the shortest term cd that a government can invest in?

a year? two? ten?

we trust them not to over-tax (over-charge) us in the first place, and look how that worked out.

even a six month cd would be problematic, as the funds are not usually 'planned out' that far.

and there is no depreciation for cash unless the monetary ratings fall. we are not dealing with foreign countries here, a dollar is still a dollar, and prices do not go up for contracted services without a new clause in the contract.

besides, if they put the money in a cd, it's just that much longer the supplier or contractor has to wait to get his money.

what part of that don't you understand?

oh.. yea... all of it.

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