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NCUA proposes $315M in spending for 2021
The NCUA Friday released its proposed budget for 2021 and 2022, which estimates $315.6 million and $341.7 million, respectively, for its operating budget. The agency is set to hold a budget update during its November board meeting this Thursday.
Of note, the proposed 2021 capital budget is $18.8 million, a 24.8 percent decrease from 2020. The agency indicated that this is due to a surplus of travel funds from this year and a lower estimated travel budget for 2021 due to the ongoing coronavirus pandemic.
“NAFCU appreciates the NCUA's continued commitment to an open and transparent budgeting process, and we thank NCUA Chairman Rodney Hood for making prudent year-over-year budget reductions, ” said NAFCU President and CEO Dan Berger. “Given the challenges credit unions face as a result of the coronavirus pandemic, it is as important as ever that we ensure the agency’s budget remains strong, yet cost-effective. "
"We look forward to providing the agency with our thoughtful feedback after we fully review the proposal," added Berger.
The 2021 budget also includes five additional full time employees and funding for the agency's recently proposed ACCESS initiative and an increased use of off-site examinations. Additionally, the proposal highlights credit unions' solid performance in the first half of 2020.
NAFCU has long supported public budget briefings to help ensure transparency and accountability in the budgeting process, and has urged the agency to remain committed to eliminating inefficiencies and redundancies in its operations. NAFCU Chief Economist and Vice President of Research Curt Long testified on the NCUA's draft budget last year and detailed recommendations to strengthen the agency's budget.
“As we consider the draft staff budget for 2021–2022, the NCUA remains firm in its commitment to be a sound and prudent steward of the funds we collect from credit unions and any other resources entrusted to us,” said NCUA Board Chairman Rodney Hood in a statement. “This responsibility includes holding ourselves accountable by maximizing our resources and upholding transparency by inviting the public to comment on our proposed budget.
"Through this process, stakeholders are aware of how and why we allocate resources in the service of our safety and soundness mission," Hood added.
Comments on the proposed budget are due Dec. 11; NAFCU will submit comments and attend the Dec. 2 budget briefing, which will be streamed live on the agency's website.
The NCUA Board is set to approve the final budget at its final meeting of the year Dec. 17. Stay tuned to NAFCU Today for updates.