Fourth Quarter 2005
Rising in politics with credit unions
The following interview is part of an occasional series by the editors of Indepth to highlight credit union friendly state legislators. We recently had the opportunity to sit down with State Representative Frank J. Mautino (D-76, Spring Valley) to discuss his recent appointment as vice chairman of standing committees for the National Conference of State Legislators (NCSL), how this group comprised of legislators across the country can significantly impact local state legislative agendas, and why he has become a great friend to credit unions virtually since day one of his appointment 14 years ago to the Illinois General Assembly.
Indepth: Frank, you have been a credit union supporter during your time in office. Had you been familiar with the movement before?
Mautino: Yes, actually I was a member of a credit union when I was a branch manager for our family liquor distributorship prior to my appointment in 1991. I know that some members of my family belong to credit unions as well.
Indepth: What prompted you to get involved in issues affecting credit unions?
Mautino: Probably one of the biggest influences was Jack Teausant (ICUL Chairman and CEO of Financial Plus CU). Starting from nearly my first day in office, I was invited over for a tour and a meeting with several of their staff and directors. I learned more about the benefits of credit union membership and heard about success stories about some of their members because of what credit unions can do for them.
Indepth: Seeing as credit unions are just one industry of many within your constituent base, what does it take for a group like credit unions to grab a legislator’s attention?
Mautino: I have a great deal of trust and respect for those constituents who keep me up to speed about their concerns and issues and those who I can call for input and advice. Had I not have been given the background about how credit unions work and the impact they can make on the lives of their members, I probably would not be as aware of your concerns and issues when legislation arises that could impact your operations. For example, through my relationship with credit unions, I found out that 17,000 or 20 percent of my district, is comprised of credit union members. That clearly is important to know.
Indepth: Has that background and regular communication had an impact in your role with the NCSL?
Mautino: Yes. This is a group of state legislators from around the country that meet once a year and I am not convinced a lot of advocacy groups realize the impact this organization can have on the legislative priorities in their own state. Any finalized business that comes out of the NCSL carries a lot of weight back home and you want to make sure that it accurately portrays the needs of your own state. This year, several federal lawmakers attempted to push a resolution taxing credit unions through the Financial Services Standing Committee. In my capacity as chairman of this committee at the time, I made sure that resolution did not pass. Obviously, that particular resolution was not in the best interest of Illinois credit unions nor the industry as a whole and that was because of the information I had already received about your industry.
Indepth: I guess it goes to show you may not always know from where the bankers will attack. However, I understand that a new initiative also began with the NCSL to help more formally educate legislators about financial institutions as a whole.
Mautino: Thanks to CUNA, your league and other leagues around the country, the Academy for Excellence in Financial Services Policy, a certificate program for state legislators, was established at this year’s NCSL conference. This is “financial services 101” and will especially help those who are newly elected and/or assigned to financial services committees in their home states to create sound public policy. This industry is continually changing and is becoming more important at the state level. As a state legislator, I am constantly bombarded with complex policies during each legislative session. I’m lucky to have been educated by my local credit unions but I need to learn more myself. My hope is that many of my colleagues will take advantage of the academy and help contain some of the banks vs. credit unions rhetoric at least at the NCSL level. A big “thank you” goes to credit unions for helping to make the Academy possible. (Editors note: the Illinois Credit Union Foundation donated $500 to help establish the Academy).
Indepth: In your opinion, how does the legislative arena look for credit unions?
Mautino: This will be a very important year for credit unions to be active at both the state and federal levels. I have found the strength of credit unions has always been in their grassroots. The bankers will always try to change the taxing structure or further limit any credit union growth. You must remain strong with your efforts to make sure your local lawmakers understand how important credit unions are to their communities.