States Reach out to Bankers ... and Non-Bankers

By Blount, Ed | ABA Banking Journal, October 1995 | Go to article overview

States Reach out to Bankers ... and Non-Bankers


Blount, Ed, ABA Banking Journal


Budget pressures and challenges to federalism spotlight electronic commerce. Banks, if they're ready, could be natural providers

In the past, the states have asked for the help of the federal government--and in some cases rightly so," Governor Ben Nelson (D-Nebr.) told a gathering of state government chief financial officers recently. "But we have been delegating up for so long, we've developed an inability to control our own resources." Gov. Nelson was speaking at the 80th Annual Conference of the National Association of State Auditors, Comptrollers, and Treasurers (NASACT '95), held in Des Moines from Aug. 12 through 17.

The federal government has for years not only been telling states what to do, said Gov. Nelson, but also how to do it. This has taken away much of state government's discretion in legislative and executive action. Even worse, when the federal deficit grew, these mandates began arriving at state houses without enough money to help the agency heads with compliance.

Now, though unfunded mandates are supposed to end in 1996, Gov. Nelson warned state CFOs that restrictive block grants, telling states what they can't do with federal funds, can have the same net result: "We don't want the feds to balance their budget by busting yours!"

The regulation of power among federal, state, and local governments was announced by Gov. Nelson as the conference theme of a bipartisan Federalism Summit, planned for Cincinnati on Oct. 22 through 24. To be co-chaired by Governor Mike Leavitt (R-Utah), the summit will initiate a formal discussion of the effects of "federal devolution" among top officials of seven major governing organizations.

An important national issue, to be sure, but what does all this have to do with banking? Potentially a great deal. Anxious for help, CFOs at NASACT '95 agreed, raising a chorus of fears about heavier administrative and financial burdens that seem to be falling on their regional government agencies. Alert bankers, especially those sleuthing for new customers and services, found their opportunities multiplying rapidly at this and other fiscal officer meetings as the CFOs started evaluating programs once run by federal bureaus.

States latch onto electronic commerce

Another conference, which was held earlier in the summer, made even clearer the potential for banks to work more closely with states. At the 89th Annual Conference of the Government Finance Officers' Association (GFOA '95), held in Baltimore from June 11 through 14, the main topic for discussion among the 6,000 representatives, mainly from smaller jurisdictions, was their almost insatiable appetite for hi-tech financial services. Indeed, the announced GFOA '95 conference theme, "Performance," could easily have been subtitled, "Using Banks for Electronic Commerce."

Sessions at GFOA '95 which discussed the outsourcing of accounting and on-line treasury services or, best of all, electronic data interchange (EDI) and electronic benefits transfer (EBT), were the most heavily-attended. In particular, panels that focused on the Internet and privatization met in rooms which held about 500, with crowds spilling out into the hallway and attendees inside having to crane their necks to see around and through those forced to stand. And there was action as well as talk; staff of the Government Finance Officers' Association announced the opening of a GFOA home page on the Internet, with hypertext to FinanceNet, the web server created for government finance officers by the National Science Foundation in response to Vice-President Gore's Reinventing Government initiative.

"The Internet is achieving critical mass, so it's beginning to look like a worthwhile medium," said Preston Rich, executive director of FinanceNet. In less than a year of operation, FinanceNet has had three million "hits" on the Internet and has become the central clearinghouse for all federal assets being sold to the public. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

States Reach out to Bankers ... and Non-Bankers
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.