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NCUA proposes $345M in spending for 2022, a 1.2 percent increase from 2021
The NCUA Wednesday released its proposed budget for 2022 and 2023, which combined estimates $345.3 million, 1.2 percent higher than the 2021 budget. The proposed operating budget estimates $326.6 million, 3.6 percent higher than 2021. The agency will hold a public budget briefing on Wednesday, Dec. 8.
Of note, the proposed 2022 capital budget is $13.1 million, a 30.7 percent decrease from 2021. The agency indicated that this is due to its commitment to modernizing its IT infrastructure and applications, including the deployment of MERIT, the replacement for the legacy Automated Integrated Regulatory Examination System (AIRES).
The agency increased the travel budget by $8.5 million, or 69.7 percent, for a total budget of $20.8 million. In addition, they added 48 new full-time equivalents to the agency for a total of 1,247 employees.
“While NAFCU appreciates the NCUA’s obligation to a transparent budgeting process, we are disappointed in the agency’s decision to propose certain increases in the draft 2022-2023 budgets,” said NAFCU President and CEO Dan Berger. “Some of our primary concerns are on the NCUA’s substantial travel budget increase and their assumption that travel can and should bounce back to pre-pandemic levels, as well as the significant increase in full-time equivalents."
"Bearing in mind all the hardships credit unions and their members have faced in the aftermath of the COVID-19 crisis, we urge the NCUA to reassess its budget proposal immediately to identify cost-savings opportunities and eliminate unnecessary areas of spending," added Berger.
The 2022 budget also includes additional examiner staff in the NCUA’s three regions. However, NAFCU is concerned that the NCUA is hiring additional examiners and other staff at a time when the number of credit unions is decreasing and the ability of examiners to work remotely has increased staff efficiency.
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 is committed to working with the NCUA and will continue to provide feedback throughout this budget process to ensure the finalized budget properly reflects the agency’s commitment to the credit union industry,” concluded Berger.
Comments on the proposed budget are due Dec. 9; NAFCU will submit comments and attend the Dec. 8 budget briefing, which will be streamed live on the agency's website. Stay tuned to NAFCU Today for updates.