NCUA Proposes Small Hike InSpending
ALEXANDRIA, Va. - (10/20/05) -- NCUA on Wednesday proposed a budgethike of just 1.9% for next year, to a total of $151 million, whichwould help hold the lid on operating fees for federal creditunions. The proposed spending plan would include 3.1% average payhikes for NCUA employees, and the continued reduction in staffingto a ten-year low of 958 positions, three less than this year. Ifadopted by the NCUA Board, the budget would require an increase inoperating fees assessed federally chartered credit unions of just1% of less. During a budget review at the agency's headquartersWednesday representatives from the major trade associationsapplauded the spending proposal, but also noted that NCUA alwaysspends far less than it budgets for. In 2004, for example, NCUAcollected $16.4 million than it spent from credit unions and theNational CU Share Insurance Fund, according to NAFCU President FredBecker. "Our concern," said Becker, "lies with the degree to whichthe NCUA overfunds its operations each year and the effect of suchover-budgeting on the federal credit union community."