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Alabama CUs important to state economy
(Reprinted with permission from Credit Union National Association, Inc., publisher of Credit Union News Now)
BIRMINGHAM, Ala. (3/15/05) — An economic impact study by The University of Alabama found that credit unions contributed to $543 million in economic outpuut in 2003. The university's Center for Business and Economic Development performed the study, that was commissioned by Alabama Credit Union League (ACUL) subsidiary CU-Vote.
Credit unions were linked to 8,777 direct and indirect jobs and $288 million in household earnings in 2003, the report cited.
These earnings generated $24.1 million in tax receipts; $16.8 million in state income, sales and property taxes as well as $7.3 million in county and municipality sales and property taxes.
Credit unions also delivered another impact to Alabama's economy in the form of savings for their members.
In 2003, Alabama credit unions saved their members more than $113 million vs. what they would have paid a for-profit financial institution. The savings were in the form of lower fees, higher dividend rates and lower rates on loans.
In total, these savings generated an economic impact of $218.3 million resulting in 2,241 jobs with earnings of $58.3 million. This economic impact in turn, also generated an additional $4.9 million in tax receipts for the state.
"Credit unions invest in their communities. In almost every case they are locally owned," said ACUL President Gary B. Wolter. "This study shows just how much credit unions do for our communities around the state, particularly in the area of member savings. This is money that would normally go to the stockholders of an out of state financial institution. With a credit union, the money stays here in Alabama."
The study was delivered to Congressional delegates at the same time as the states' 50,000 signatures on petitions against the taxation of credit unions.
"At a time when bankers are pushing for the removal of the credit union tax-exempt status and for other harmful legislation, it was crucial that we show our members of Congress what credit unions mean to Alabama's economy," said Wolter.
The study noted that credit unions engage in community activities, increase banking industry competition, are low-cost and sometimes high-yield providers of financial services, and provide access and credit availability for certain segments of the population that have historically been underserved or ignored by other financial institutions, especially minorities and small businesses.
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