The Importance of Community Banking Advocacy Engagement in 2022

The Importance of Community Bank Advocacy Engagement in 2022

John McNair

President & CEO Community Bankers Association of Georgia

First, WELCOME to 2022! I hope everyone had a joyous and relaxing Holiday Season. Lisa, Lauren, and I went back home to Pennsylvania and spent a good bit of time with family and friends. With parents now in their mid-80’s, Lisa and I appreciate even more just how special each Holiday season is for our family.

Now that 2022 is here, there is a lot to discuss regarding the Georgia legislative session and politics in general in our state, so, let’s dive right into it:

Georgia Legislative Session:

Tax relief for community banks: CBA is pursuing a state income tax relief bill for community banks under $50 billion in assets. Margin compression, increased costs of doing business, and predatory tax advantaged competitors are all negatively impacting community banks. On the heels of the PPP, it is now known how vital community banks are to the Georgia economy. Lori and I, along with our consulting firm Fiveash-Stanley, will work to educate legislators as to the benefit of supporting a tax relief package.

The 2022 Elections:

Georgia will be center stage nationally due to the fact we have a Gubernatorial and US Senate election. While redistricting have created several hotly contested US House races, I will focus on the Gubernatorial and Senate elections.

Gubernatorial Election: Democratic candidate Ms. Stacey Abrams has announced her intention to run for Governor potentially creating a rematch with Governor Kemp; however, former Senator David Perdue has decided to primary Governor Kemp for the Republican nomination. The Republican primary challenge from Sen. Perdue is a shock considering his earlier loss to now Sen. Ossoff and the bifurcation of the Republican vote, funding, and allegiances for Sen. Loeffler and Rep. Collins primary. CBA does not support candidates during primaries, only party nominated candidates. We will support candidates that prioritize small businesses, less regulation, lower taxes, agriculture, and community banks.

US Senate Election: This election too will receive national attention. Sen. Warnock will be running to retain his seat- this time for a full 6-year term, against one of several Republicans vying for the Republican nomination. At this time, it is unclear who the nominee will be, and I am sure this primary too will be hotly contested. Since CBA does not have federal PAC fund, we will rely heavily on ICBA for candidate support and direction; however, our priorities for the Senate seat are identical to those outlined for the Gubernatorial election.

Bottom Line:

Please be aware that things are going to get very heated here in Georgia. Millions of dollars from out of state will pour into all the campaigns and the ads and rhetoric will be unsettling at times. To address, I encourage everyone to become engaged in the advocacy process. There are several things all must do:

1) Support CBA’s PAC Fund: CBA’s PAC fund is the ONLY ONE in Georgia’s banking industry that exclusively supports the interests of community banks. As we have seen time and time again, bifurcated advocacy does not work- too many conflicting interests. Only single constituency advocacy is effective. CBA needs your support to fight for candidates that will fight for you and your communities. 2) Support ICBA PAC Fund: ICBA’s PAC fund is the ONLY ONE exclusively to serving the nation’s community banks. There are several races in Georgia with national implications and ICBA needs your help to support those that will carry the community bank fight to Washington. 3) Take the time to become educated on the issues AND encourage your colleagues to do similarly. Most importantly, VOTE!!

Every election, whether local, state, or federal is important; however, this mid-term election will have a generational impact on Georgia and the country. Please be engaged, support the PAC funds that share your interests, and get out in person to vote. THANK YOU!