Newsroom

November 20, 2014

NCUA Board, 2-1, OKs budget hike; Matz says cutting 'not an option'

The NCUA Board today approved a $279.5 million operating budget for 2015 – an increase of $11.2 million, or 4.2 percent, from last year. To repeated calls that the agency reduce its budget, NCUA Board Chairman Debbie Matz said that is "not an option."

NCUA Board Member Mark McWatters voted against the budget; the budget was approved in a 2-1 vote following a lengthy exchange among the board members.

NAFCU has expressed opposition to any budget increases for the agency and has urged NCUA to find ways to reduce spending. NAFCU President and CEO Dan Berger conveyed these concerns to the board in a recent letter, and also pushed for transparency in how the agency uses funds. NCUA Chairman Debbie Matz responded that NCUA will publish more details about its operating budget and make more information available following today's meeting.

Berger responded to today's budget announcement in a statement, saying "NAFCU continues to be concerned about NCUA's annual budget increases. Because every dollar spent by NCUA derives from credit unions and their 98 million members, NAFCU firmly believes that the agency must be more conscious of ways to control its spending and reprioritize current resources efficiently. While NAFCU appreciates NCUA Chairman Matz's commitment to greater transparency, we believe that NCUA can do more to achieve even greater clarity in the budgeting process. The agency has not held a hearing on its budget in over five years and it does not currently publish detailed financial breakdowns for its various funds."

During today's board meeting:

  • Staff estimated a possible share insurance premium ranging from 0 to 5 basis points but said no stabilization fund assessment is expected.
  • The board approved a 0.9 percent decrease in natural person federal credit union operating rates. Total federal credit union operating fees are projected to be $78.69 million and will be due April 15. (Download NAFCU's 2015 operating fee calculator now.)
  • The board approved an overhead transfer rate of 71.8 percent - up from 69.2 percent in 2014.

NCUA budget documents provide details on how regional offices allocate full-time employees. More to come on today's budget action.