ALEXANDRIA, Va. — The National Credit Union Administration is projecting an $8.2 million increase (2.8%) in its budget for 2017 and an additional $14 million for 2018, according to a
The release comes less than two weeks before the agency's Oct. 27 budget briefing, the first such meeting since 2008.
Among the notable figures in the proposed budget — which totals $299 million for 2017 and $313 million for 2018 — is $157 million in staffing costs for next year (compared to $152 million for 2016), with a projected $10 million increase for 2018. The regulator's Office of Small Credit Union Initiatives' budget will remain fairly steady, rising from $6.37 million in 2016 to $6.45 million for 2017 and $6.72 million in 2018. The agency's Office of Examination and Insurance will also see a slight increase, rising from a budget of $11.57 million this year to $12.25 million for 2017 and $12.72 million for 2018.
The public budget hearing is part of the regulator's push to increase transparency, implemented by NCUA Chairman Rick Metsger shortly after he was appointed chairman earlier this year.
The two major credit union trade associations reacted swiftly to the proposal, saying they were pleased with the ability to participate in the budget process but expressing concerns with NCUA's numbers.
"NAFCU and our members appreciate NCUA Board Chairman Rick Metsger and NCUA Board Member J. Mark McWatters' leadership and commitment to greater transparency regarding the budget process," said Dan Berger, president and CEO of the National Association of Federal Credit Unions. "We look forward to reviewing the budget in detail, and relaying our substantive feedback, as well our members', during the Oct. 27 briefing. As NAFCU has repeatedly urged, we will continue to ask the agency to implement spending efficiencies and reduce line items, where possible."
Ryan Donovan, chief advocacy officer for the Credit Union National Association (CUNA), said that while NCUA's commitment to budget transparency is admirable, the trade association is disappointed by the increases in the proposal.
"While we appreciate seeing some of the materials in advance, we hope there is more to come so that the public can fully evaluate how credit union fees are being spent," Donovan said in a statement. "CUNA and our state credit union league partners have long advocated to bring back transparency to the budget process. CUNA is reviewing the budget proposal and will have detailed comments, and will attend the Oct. 27 public briefing."
Comments Welcome
For his part, Metsger said in a statement that accompanied the release of the proposal that NCUA has outdone other federal regulators in the level of budget transparency it provides, and he encouraged credit union supporters to comment on the budget and attend the upcoming board meeting.
"We post our budget documents on our website, and the summary of the staff-proposed budget will give stakeholders an early look at what the board will consider later this year," said Metsger. "The briefing itself offers another level of engagement, and we are taking comments online, as well. While final decisions always remain with the board, stakeholders can contribute ideas in advance for the board's consideration."
NCUA will accept written comments on the proposed budget by email at BudgetComments@ncua.gov until 5 p.m. EST Friday, Nov. 4. The agency said comments "should provide specific, actionable recommendations rather than general remarks about the size or structure of the budget."
The Oct. 27 budget briefing will be held in the NCUA board meeting room beginning at 2 p.m. Eastern and run for approximately two hours. Due to space considerations, a limited number of people will be able to sit in the board room, but an overflow room will be available with a livestream from the briefing. The livestream also will be available through a link on
