Removing Barriers Blog

Letter to NCUA on 2016 Budget Concerns
Posted November 12, 2015 by CUNA Advocacy

Today we sent a letter to NCUA chair Debbie Matz to express our concerns with the agency's budget for 2016. 

As the Board prepares to consider the 2016 budget at its November meeting, we are very concerned that the NCUA budget continues to increase at a time when the credit union system is very healthy. We do not believe the agency needs to increase its budget to fulfill its mission. The financial crisis is over. The credit union system is healthy and strong.  NCUA should be proposing budget reductions to decrease credit unions’ financial obligation to the agency.  

The letter urges NCUA to manage costs to the agency as a result of new regulations using existing resources, reduce staff costs in alignment with the reduction in credit unions subject to NCUA supervision, commit to moving toward an 18-month examination cycle through examination efficiency, coordinate examinations with state regulators, provide credit unions with more information regarding agency contractors, increase overall budget transparency and accountability, and provide more information and seek public comment regarding the Overhead Transfer Rate (OTR).  

We put forward what we believe are reasonable recommendations that will enhance the agency’s efficiency as well as ensure credit unions have access to appropriate information about the agency’s budget and resource allocations. We now urge the Board to signal next week that it will adopt these recommendations to help improve the agency’s budget process.