NCUA To Cut Spending
ALEXANDRIA, Va. - (10/13/04) -- NCUA said Tuesday it plans to slashits spending plan for 2005 by a little over 1%. The $148 millionspending plan, which must be approved by the NCUA Board, wouldinclude a reduction in both annual operating fees assessedfederally chartered credit unions and the overhead transfer rate,the rate by which funds are transferred from the NCUSIF to pay foroperating expenses. The proposed spending plan calls for an averagepay raise of 4% for NCUA employees, about the same as last year.But salary and benefits costs, which account for 85% of theagency's expenses, would be reduced by around $2.1 million becauseof the retirement of high-salaried employees and their replacementwith newer hires. Another major saving would be in administrativeexpenses, with $1.2 million in charges for this year's relocationof west coast Region Six not in the budget for nextyear.