Alabama's credit unions said they are preparing to fight what the state league is calling a "back door tax" on credit unions. With the state looking to cut an additional $300 million from the budget while also looking for new revenue, a provision in the governor's budget includes a $300,000 transfer from the Alabama Credit Union Administration (ACUA) to the state's General Fund, "which is essentially a back door tax on state-chartered credit unions, since the entire ACUA budget comes from examination fees assessed to state-chartered credit unions," the league said.
"While the ACUA is not being singled out for this transfer, the league nonetheless will do everything in our power to remove this transfer from the budget proposal," said ACUL President Gary Wolter (see related story, page 22).
