Oct. 1, 2012 – The president on Friday signed a $1.047 trillion continuing resolution to keep federal government operations operating for the first six months of fiscal 2013, from today through March 27.
The CR provides a 0.6 percent increase in total federal spending, which is limited by the 2011 Budget Control Act, the same statute that triggers the beginning of a 10-year reduction in the deficit, through sequestration, if Congress fails to act this year.
Congress is expected to tackle the deficit and tax reform during the lame-duck session following the Nov. 6 elections. Rep. Shelley Moore Capito, R-W.Va., told NAFCU Congressional Caucus participants last month to be ready for that, as action will occur swiftly.
NAFCU is closely monitoring those discussions for any developments affecting credit unions’ federal tax exemption from corporate income tax.
NCUA’s budget isn’t set through appropriations but funded by credit unions. Following a mid-year budget adjustment (“reprogramming”), NCUA’s budget for 2012 will total $234.9 million.
NCUA hasn’t published a 2013 budget figure yet; that information has come out in November over the past three years. NAFCU, point out that NCUA’s budget comes from credit unions and the earnings on their 1 percent share insurance deposit, continues to press for early input by stakeholders.
The administration has proposed continuing to allow the Central Liquidity Facility full statutory borrowing authority in order to meet credit union liquidity needs and $1.18 million for the Community Development Revolving Loan Fund. Both the House and Senate Appropriations committees have cut the CDRLF figure to $500,000. NAFCU is urging support for the full amount requested.
The CLF, meanwhile, will see its authority drop sharply by the end of the month, when the soon-to-be-shuttered U.S. Central Bridge Corporate redeems its stock subscriptions.