FRIEND IN HIGH PLACES:
The Importance of Credit Union Friendly Federal
Since the 2006 elections, Michigan credit unions have continued their excellent track record of building and maintaining strong relationships with lawmakers. Through record-setting PAC fundraising and unified lobbying efforts, credit unions have ramped up their legislative grassroots involvement while searching for new ways to help the state during a foreclosure crisis and period of economic downturn.
At the state level, the MCUL worked with member credit unions to defend their tax exemption in the midst of a depleted state budget and supported key pieces of legislation to benefit the industry, as well as carved out exemptions in legislation that might have otherwise been harmful to credit unions. At the federal level, regulatory relief for credit unions nationwide remains a hot issue, and credit unions have sent a clear message to Michigan’s congressional delegation of its importance. Now, in Michigan, with the 2008 elections around the corner, credit unions are poised to provide support to lawmakers who have backed credit union issues and cultivate new bonds with fresh faces in the Legislature.
In the year following its introduction in the U.S. House in March 2007, the Credit Union Regulatory Improvements Act (CURIA, H.R.1537) garnered the support of 11 of Michigan’s 15 U.S. Representatives. This is not only a sign of strong efforts by credit unions to communicate their message in the nation’s capitol; it also shows that the credit union industry is something that lawmakers can get behind. They support the bill because they believe credit unions can contribute to economic recovery, because credit unions have been responsible lenders or because they have had positive experiences as credit union members themselves.
With so many of Michigan’s congressmen supporting an important credit union issue like regulatory relief through CURIA and the recent Credit Union, Bank, Thrift Regulatory Relief Act (CUBTRRA) – which unfortunately appears it will not clear the U.S. Senate this session – credit unions must now focus their efforts on keeping credit union-friendly lawmakers in office. The MCUL Board of Directors and MCULLAF/MCULAF Board of Trustees have given their endorsements to all incumbent U.S. Representatives who co-sponsored CURIA this session, along with U.S. Senator Carl Levin, D-Mich., a longtime supporter of credit unions. With these lawmakers in Washington, the opportunities for regulatory relief and other positive developments for credit unions will continue to exist into the next session.
How can credit unions best support key lawmakers? MCULLAF/MCULAF Chairman Howard Spencer believes that direct interaction with a campaign provides a very human element that is beneficial to both the candidate and volunteer, and finds importance in becoming a “known entity” so it is easier to get face time with a lawmaker in the future.
“Being actively involved in an endorsed candidate’s campaign is invaluable to the person seeking office,” Spencer says. “We need to be involved in working the phones, delivering yard signs, arraigning for special venues like credit union lobbies where candidates can speak, placing articles in our newsletters about things that are being done that positively affect credit union members and attending fund-raisers. Ask what you can do to help candidates or elected officials. Oftentimes, their requests are simple, but important to them.”
As for newly elected lawmakers, Spencer feels being there at the start is a key to developing a good relationship.
“Policymakers make the rules that affect every credit union member. We want to know these people very well and have them know about credit unions and just what things are important to our industry,” he says. “Every elected official has a starting point in his or her career, and credit union people need to become players early on in the process.”
In terms of getting members, staff and the board of directors involved, the best route is to lead by example and keep them aware of current legislation affecting credit unions and how grassroots lobbying and PAC fund-raising help the credit union industry, according to E&A CU (ME) President/CEO Janice Rose.
“It is our constant responsibility to encourage our staff and teammates to be engaged in the political process and become aware of legislative issues that influence our lives,” Rose says. “There are certain political platforms that regularly impact the credit union industry and our membership. Keeping board members and community representatives apprised of those influences is a constant juggling act – one we find important.”
As a result of the priority in which E&A CU places legislative involvement, it has chosen to “personally commit” to PAC fund-raising.
“Our staff, employees and board members readily see the connection between PAC fund-raising and the future health of our industry, along with the desire to support, at a grassroots level, the political process,” Rose says. “As a young executive, I was reminded frequently of the wonderful privilege to be able to have a political impact. We encourage all our staff and membership to vote during the democratic process – from credit union annual meetings to local politics, to higher-profile, national elections.”
E&A CU, like several other credit unions throughout the state, has already surpassed both its federal and state PAC fund-raising goals for 2008.
Communications Family CU is part of the Mid-Michigan Chapter, which has seen similar, consistent fund-raising success from all of its members in recent years. Tim Benecke, who became president/CEO of Communications Family CU in July, sees the MCUL as a partner in reaching lawmakers.
“In the upcoming election, it is very important for credit unions to support lawmakers who understand the credit union difference and will help us keep our tax-exempt status, and support our efforts with member business lending and prompt corrective action,” Benecke says. “The MCUL and CUNA make it very easy to get involved with the legislative process; the CUNA GAC, MCUL GAC and Hike the Hill, as well as chapter legislative breakfasts, provide great opportunities to learn about the process and to meet and build relationships with our state and federal elected officials.”
With so much going on politically, it may seem hard to make a dent, but Spencer says it’s important not to be intimidated.
“The political climate we live in can be daunting,” Spencer says. “The bankers have learned some of our tactics and are effectively using them to gain the ears of policymakers and their staff. Credit unions should stay vigilant and always keep a presence with lawmakers. Just a call to say, ‘thank you for supporting credit union issues’ goes a long way. Visiting with lawmakers in their home district and in Washington carries a powerful message. It means that we are involved, know the issues and are active in getting legislation passed that positively affects credit union members.”
The MCUL Board of Directors and MCULAF/MCULLAF Board of Trustees have endorsed U.S. Reps Joe Knollenberg, R-Bloomfield Hills, Dave Camp, R-St. Joseph, John Conyers, D-Detroit, Pete Hoekstra, R-Holland, Dale Kildee, D-Flint, Carolyn Cheeks Kilpatrick, D-Detroit, Sander Levin, D-Royal Oak, Thaddeus McCotter, R-Livonia, Bart Stupak, D-Menominee, Tim Walberg, R-Tipton and Fred Upton, R-St. Joseph, along with aforementioned U.S. Senator Carl Levin, D-Michigan.
The MCUL has a comprehensive collection of election resources including “Get Out the Vote” statement stuffers, a copy of the 2008 candidate questionnaire, an election guide, district maps and a link to get registered to vote on the MCUL Web site at www.mcul.org/Campaigns__Elections_503.html. For more information on PAC fund-raising or getting involved with grassroots lobbying, contact MCUL Political Affairs Coordinator David Mroz at ext. 353 or dgm@mcul.org.
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Regulatory Affairs
