Guest Column: Expanded banking options can give financial freedom to S.C. Communities
- Guest Columnist Rick Osbon
- Nov 7
- 2 min read
As someone who has served at the local level, I understand the importance of making every tax dollar count for cities and counties. When local governments have the flexibility to manage their finances efficiently, taxpayers benefit through stronger infrastructure, safer neighborhoods, and better local services.
This issue is not new to me. When I served as President of the Municipal Association of South Carolina, expanding financial flexibility for local governments was a key initiative. I saw firsthand how limited banking options constrained cities’ ability to maximize returns and reinvest in their communities. That experience is why I am now proud to chair the Palmetto Public Deposits Coalition because I know just how much this reform can impact local governments and taxpayers across our state.
That’s why I’m proud to lead the PPDC in supporting the South Carolina Financial Freedom Act (S.60/H.3221). This commonsense, bipartisan proposal empowers local governments to make more informed financial decisions on behalf of the people they serve.
Right now, state law limits public entities—counties, municipalities, school districts, and others—to depositing their funds only in large commercial banks. This outdated restriction effectively creates a monopoly, driving up costs, limiting options, and reducing returns for taxpayers.
The South Carolina Financial Freedom Act would modernize this system by allowing public entities also to deposit funds in federally insured credit unions. Families, small businesses, and nonprofits already enjoy this freedom. Local governments should, too.
When only a few large banks can hold public funds, they set the terms, often at the expense of local communities. Allowing credit unions to compete levels the playing field, encourages better rates, and saves taxpayer dollars. Even modest gains, thousands of dollars in interest or lower fees, translate directly into more resources for essential services, such as road repairs, police and fire protection, and utilities.
Credit unions are not-for-profit financial cooperatives that reinvest their earnings locally through lower loan rates, higher savings rates, and community development initiatives. They’ve been trusted partners for South Carolinians for decades. Giving them the ability to accept public deposits ensures more of those dollars stay in our communities—supporting small businesses and strengthening local economies, especially in rural areas that big banks often overlook.
This is not a partisan issue, and it does not require new state spending or bureaucracy. The Financial Freedom Act simply provides freedom of choice, empowering local governments to select the financial institution that best serves their citizens.
At its core, this legislation is about fairness, competition, and accountability. It ensures that taxpayer dollars are managed responsibly and that every community, from the Upstate to the Lowcountry, has access to the same opportunities.
South Carolina’s local leaders deserve the tools to deliver the best results for their residents. The Financial Freedom Act gives them that freedom, and I urge the Aiken and Edgefield legislative delegations to help lead the way in 2026 to make it a reality.
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