Illinois CUs Sue State For Commingling CUFunds
SPRINGFIELD, Ill. - (12/16/04) -- The Illinois CU League filed suit instate court here Tuesday challenging the state's raiding of thededicated CU Fund for general purposes. "Our members are veryinterested in seeing that the funds we pay to the state stay forcredit union supervisory purposes," Keith Sias, chief lobbyist forthe league, told The Credit Union Journal. The opening of the CUFund, which now holds about $6 million, was enabled under lastMay's budget bill under which 300 different funds previouslydedicated to single purposes and holding as much as $400 millionwere opened to help fund general operating expenses. But in thecredit union case, annual supervisory fees paid by 400 statechartered credit unions were also hiked by 27.5% to add another $2million to the fund. For the largest state charters, CEFCU andAlliant CU (formerly United Airlines Employees CU), that hasincreased annual fees by 50%, or by $125,000. The state'sDepartment of Financial Institutions spends about $2.4 million ayear to examine and supervise credit unions which would leave anexcess of as much as $6 million after the fee hike. State lawrequires any excess funds be rebated to credit unions.