Strengthening Communities Through Credit Unions
Credit unions play a vital role in strengthening local economies and supporting communities across South Carolina. In 2023, credit unions paid $143 million in direct taxes, $38.1 million to the State of South Carolina and $105 million to the federal government, contributing significantly to public resources. Additionally, credit union activity was responsible for $335 million in total 2023 tax revenue.
Credit unions are also job creators, responsible for 5,000 direct jobs and 14,000 total jobs in South Carolina alone. With an economic output of $3 billion, credit unions boost local business and help drive community-focused growth, keeping more financial resources in the state and reinforcing the foundation of our economy.
Building a Better South Carolina: Getting the Most Out of Every Tax Dollar
South Carolina's state and local governments (public entities) have an obligation to manage taxpayer dollars wisely and prudently. Currently, public entities who would like to use credit unions for financial services are forced to do business exclusively at commercial banks.
Credit unions offer key financial services like checking and savings accounts and lower-fee loans. Local elected officials in South Carolina should have the freedom to choose the financial institution that provides the most benefit to taxpayers in their communities.
Without action at the Statehouse, South Carolina's public entities could miss the chance to access higher interest rates on deposits and lower interest rates on loans from credit unions. Allowing public deposits at credit unions would also keep more public dollars in local communities.
Increased competition for public deposits leads to better results for taxpayers. For every $1,000,000 of public funds deposited in a credit union, the return is $17,113 in total state and local government interest and tax revenue. In contrast, the same amount deposited in a bank yields just $8,750 - a difference of $8,363, or a 96% greater net benefit from credit unions.
Coalition Supporters
