Berkeley Voters Weigh Parcel Tax to Seed a Regional Public Bank for the East Bay

Berkeley voters are being asked to decide whether to levy a new parcel tax that would provide start-up money for a regional public bank. Measure Z appears on the Nov. 3 ballot and seeks to raise $58.3 million over six years.

Backers say the bank would finance affordable housing, small businesses, green energy and sustainable infrastructure, both in Berkeley and across the East Bay. They argue it could offer loans at lower interest rates than conventional private banks. In the measure's legislative text, advocates wrote that "big corporate banks prioritize shareholder profits, rather than Berkeley's needs."

If voters approve the measure, starting Jan. 1, 2027, Berkeley property owners would pay up to $0.06 per square foot on residential space. Commercial and other non-residential properties would be taxed at up to $0.09 per square foot. According to the Berkeley city attorney's analysis, the City Council would review, allocate and approve all funds, and would raise the rate each year based on inflation. The Coalition to Keep Berkeley Money Local says the revenue would sit in a dedicated fund separate from the city's general fund.

Under the proposal, Berkeley would be a shareholder in the institution. The coalition says a governing board of elected officials, community members and financial professionals would set policy and lending priorities, while experienced professional bankers, not city staff, would handle daily operations. "Unlike a private bank, Berkeley is an owner," the coalition said, adding that profits would return to the city rather than go to Wall Street shareholders.

Supporters frequently cite the Bank of North Dakota, the only state-owned bank in the United States, as a model. Founded in 1919 to support agriculture, commerce and industry, it now makes loans for students, local communities, public facilities and infrastructure, and its earnings go back to the state. The bank reported net income of $231.8 million last year, up from $200.4 million the year before.

The main criticism concerns who would benefit from the lending. StopMeasureZ.com, which leads the opposition campaign, argues that "loans can go anywhere in the East Bay" even though Berkeley property owners would supply the money. "Imagine if only Berkeley paid for BART. That's the financing plan," the group said.

The volunteer-led group Affordable Berkeley raised similar concerns. It said the measure offers no guarantees and amounts to a gamble, since there is no assurance the bank would ever be licensed to operate. While it noted that affordable housing, clean energy and small business lending are widely shared goals, it argued the regional design could leave Berkeley bankrolling the East Bay without contributions from Oakland, Richmond or Alameda County.

Advocates respond that a larger, more diversified loan portfolio spanning Berkeley, Oakland, Richmond and other communities would be lower-risk and more profitable than a single-city lender, with Berkeley sharing in the profits as an owner. They say Berkeley's role is to supply the start-up capital, and that the long-term goal is a fully co-owned regional bank in which Oakland, Richmond and Alameda County contribute their own capital.

Supporters of Measure Z include State Sen. Jesse Arreguín, City Council Member Ben Bartlett, Alameda County Supervisor Nikki Fortunato Bas and State Controller Malia Cohen. Opponents include City Council Members Mark Humbert and Terry Taplin, along with the Berkeley Democratic Club. The measure needs a simple majority to pass.