Newsroom

November 20, 2015

NCUA budget $290.9M in 2016, $302.9M in 2017

NCUA's board voted 2-1 Thursday to approve a 4.1 percent budget increase for 2016 to $290.9 million and another 4.1 percent increase to $302.9 million in 2017 – for a total increase of $23.4 million over the next two years.

NCUA Board Member J. Mark McWatters, who argued that the agency has numerous options for reducing its budget, voted against the package.

NAFCU continues to press the agency to find cost savings wherever possible to mitigate costs for credit unions.

"While NAFCU and our members appreciate the NCUA Board's continued commitment to increasing budget transparency, we firmly believe that more can be done to ensure that credit union dollars are being spent efficiently and effectively," said NAFCU President and CEO Dan Berger. "The agency has not held a public hearing on its budget in six years, and credit unions deserve the chance to be a part of the process that they ultimately fund."

The 2016 budget will be funded through a combination of operating fees paid by federal credit unions, the National Credit Union Share Insurance Fund overhead transfer rate (for insurance-related expenses) and a small amount of interest and miscellaneous income.

The 2017 budget figure could change by the end of next year; agency Chairman Debbie Matz said the 2017 figure represents NCUA's "best estimate" for 2017 expenses. She noted the agency will again hold a mid-year budget review and will look at the 2017 budget again next November.

The 2016 budget detail shows for a $9 million increase in employee pay and benefits under the agency's current collective bargaining agreement. Travel is down 10 percent, training is up 27 percent and consulting (under contracted services) is down 20 percent.

The operating budget was approved along with the oversight budget for the Temporary Corporate Credit Union Stabilization Fund.