NCUA Plans To Cut Spending

ALEXANDRIA, Va. - (11/19/04) -- The NCUA Board Thursday approved abudget for next year that would cut spending by 1.3% to $148million. The proposed spending plan will result in a 1.3% reductionof operating fees charged to federal credit unions and a cut in theoverhead transfer rate, the amount by which funds are transferredfrom the NCUSIF to pay annual overhead costs for the agency, to 57%from the current 59.8%. Next year's budget includes average 4%raises for NCUA personnel, a reduction in authorized staff to a10-year-low of 961 positions; and additional spending to theagency's small credit union assistance program. NCUA Chairman JoAnnJohnson said the budget represented an effort to balance the needfor strong regulatory oversight of the industry with fiscalprudence.