Kern Schools Credit Union

OUR VIEW: Uncertainty in schools impedes business growth

Steve Renock, president and CEO of Kern Schools Federal Credit Union, paid a visit to The Californian's editorial board this week. His message of cautious optimism perhaps inadvertently also said something about the conundrum of the state budget stalemate and the contradictory choices it poses.

Kern County's largest credit union, Renock said, has survived an undercapitalization problem that, just a year ago, had the attention of both shareholders and federal regulators. Kern Schools cut expenses by closing six branches, laying off 20 percent of its workforce and rolling out a less costly electronic customer interface (though not without some problems, which Renock says have now been rectified).

But Renock does not see the credit union returning to its former state of robust health anytime soon. Things are improving, he said, but not nearly fast enough. His example: Local educators, for whom Kern Schools Federal Credit Union was created in 1938, and who remain among the $1.3 billion institution's most vital shareholders, are struggling.

Local school districts are in trouble, he intimated; summer school jobs, to focus on one symptom, are in short supply. And with Kern County teachers taking a cautious approach to all things financial, the local credit union isn't writing as many loans as Renock would like. Uncertainty in schools is impeding the credit union's quest for stability and growth.

On Tuesday, the California Department of Education issued a report that underscores Renock's concerns about the consumer confidence of his most cherished depositors. Eight local school districts, classified by the state agency as "negative" or "qualified," are facing such severe budget problems they will soon be forced into drastic cuts. Two of the county's larger school districts, Panama-Buena Vista Union and Rosedale Union, are among them.

Legislative foes of Gov. Jerry Brown's budget plan say their opposition stems, in part, from concerns about the effect that temporary tax extensions will have on California business. Those legislators might also consider the effect that an all-cuts budget will have on California business; CEOs like Renock can speak to that. The broad negative consequences of deep cuts to education and other essential, state-funded institutions are already upon us. If further cuts comprise a significant portion of the remaining $9.6 billion state budget shortfall, things will get much worse.

What is the loss payee for Kern Schools Federal Credit Union ...

Did you receive a letter in the mail or just finance a vehicle with Kern Schools Federal Credit Union? No problem it is simple… You must carry $1000 or less comprehensive and collision deductibles and list Kern Schools as loss payee:

Kern Schools Federal Credit Union                                                                                       

PO BOX 40490

Bakersfield, CA 93304

Are you a member of Kern Schools? Both Safeco and Progessive offer members of Kern Schools a discount on their auto insurance. Give us a call 661-327-5531 or complete an online quote .

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