Removing Barriers Blog

Jim Nussle Sends NCUA Letter Addressing Budget Concerns
Posted November 04, 2016 by CUNA Advocacy

CUNA President & CEO Jim Nussle sent the NCUA a letter today addressing concerns with NCUA’s proposed 2017-2018 budget.  Although we commend NCUA for implementing a more open budget process, the letter reflects the deep concerns that CUNA members and staff conveyed to NCUA’s Board at the October 27 budget briefing.  

The letter provides a detailed economic analyses of the NCUA’s proposed budget, which questions NCUA’s efficiency and continued budget increases that outpace inflation.  Jim Nussle stated “NCUA’s budget continues to increase substantially in the face of post-crisis improvements in credit unions, and at a rate that significantly outpaces changes in credit union operation costs and the budgets of other banking regulators.  NCUA staffing levels increased substantially in response to the greatest financial crisis in modern history; however, the agency's FTE count is virtually unchanged since the peak of the crisis. We find these trends concerning given the improvement in credit unions’ financial conditions over the past six years and this is something on which we intend to continue to press the agency.”

We encourage NCUA to do better “to reduce its footprint, right-size the organization and come out of the resulting transition as a nimbler, stronger, more efficient and more effective regulator.”

We are encouraged by recent actions at the NCUA to operate in a more open manner and to be responsive to changes credit unions need to stay competitive.  Our hope is that NCUA will utilize CUNA’s constructive feedback and improve the final budget.