The smartest city in the world just made the dumbest choice imaginable

San Francisco voters approved Proposition B, a charter amendment to establish a city-backed public bank. The measure creates a nonprofit corporation overseen by political appointees, while leaving the bank’s funding and operations for later decisions. The vote matters because it advances a proposal that critics say could expose taxpayers to substantial costs and politically directed lending.

The city controller previously estimated that opening the bank could cost up to $460 million over eight years, with some early funding intended as grants or forgivable loans. The proposal’s supporters had earlier suggested taxing financial firms, but that approach did not gain support; Proposition B itself authorises no initial spending. California law also requires public banks to obtain FDIC deposit insurance, which the opinion writer argues could be difficult to secure. Mayor Daniel Lurie, the Chamber of Commerce and the San Francisco Chronicle opposed the measure.