Regulatory Fees Also On The Rise For Ill. CUs
The threat of credit union taxation in Illinois is driven primarily by two forces: the state's desire to reduce a multi-billion dollar budget deficit and the banking industry's efforts to limit competition. During the last budget cycle, credit unions (along with banks) were assessed with an aggregate 27% increase in regulatory fees, with all of the new fees earmarked for budget deficit reduction. Initially, credit unions were beset with a 50% increase in regulatory fees. The credit union industry responded by enacting legislation to reduce the fees to an aggregate 27% increase. The threat of taxation (or fee increases unrelated to the regulation of credit unions) remains alive and well as the state struggles to find ways to reduce its ongoing budget deficit and the industry remains on guard against further fee increases.