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NCUA proposes $367M in spending for 2023, an 8.1 percent increase from 2022
The NCUA Thursday released its proposed budget for 2023 and 2024, with combined estimates for 2023 totaling $367 million,, 8.1 percent higher than the comparable level funded by the NCUA Board for 2022. The proposed operating budget estimates $350.8 million which is a $30.7 million, or 9.6 percent, increase. The agency will hold a public budget briefing on Wednesday, Oct. 19.
“While NAFCU supports an engaged and supportive NCUA, we do not support the agency’s decision to propose unreasonable increases in its 2023-2024 proposed budget,” said NAFCU President and CEO Dan Berger. “Credit unions and their members continue to face economic challenges brought on by rising prices and ongoing foreign challenges, and most recently a devastating natural disaster in Florida and Puerto Rico.”
Of note, the proposed 2023 capital budget is $11.2 million, representing a $1.8 million decrease from the 2022 NCUA Board-approved budget.
Three main factors contribute to the 2023 increase:
- a net increase of 25 positions, or 2.0 percent, compared to the agency’s 2022 staffing level;
- an increase of $8.9 million for current employee compensation in 2023 compared to 2022; and
- an increase of $5.0 million in travel funding for 2023 compared to 2022.
Additionally, the budget includes an $11.1 million increase for contracted services for the Model Examination and Risk Identification Tool (MERIT).
“The NCUA’s decision to increase its travel budget, in a still remote-heavy environment, and its proposal for significantly higher staffing levels will be detrimental to credit unions,” concluded Berger. “NAFCU is committed to working with the NCUA and providing feedback throughout this budget process to ensure the financial budget reflects the needs of the credit union industry.”
Comments on the proposed budget are due Oct. 28; NAFCU will submit comments and attend the Oct. 19 budget briefing, which will be streamed live on the agency's website. 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.
Stay tuned to NAFCU Today for updates.