NCUA Proposes 1.9% Budget Hike For 2006
NCUA last week proposed a budget hike of just 1.9% for next year, to a total of $151 million, which would help hold the lid on operating fees for federal credit unions. The proposed spending plan would include 3.1% average pay hikes for NCUA employees, and the continued reduction in staffing to a ten-year low of 958 positions, three less than this year.
If adopted by the NCUA Board, the budget would require an increase in operating fees assessed federally chartered credit unions of just 1% of less. During a budget review at the agency's headquarters, representatives from CUNA, NAFCU and NASCUS applauded the spending proposal, but also noted that NCUA always spends far less than it budgets for. In 2004, for example, NCUA collected $16.4 million moer than it spent from credit unions and the National CU Share Insurance Fund, according to NAFCU President Fred Becker.
"Our concern," said Becker, "lies with the degree to which the NCUA overfunds its operations each year and the effect of such over-budgeting on the federal credit union community."
NCUA said some of its significant expenses projected for 2006 include the conducting of regional conferences for examiners, implementation of new computer technology throughout the agency, and compliance resources for the Bank Secrecy Act and Home Mortgage Disclosure Act.