Credit Union Trade Groups Clamor to Address NCUA Budget Forum

ALEXANDRIA, Va.-Though NCUA is not releasing a speaker list until it is finalized, three national credit union trade associations have announced that they have applied to present oral arguments regarding the agency's 2006 budget. NCUA will hold its fifth annual Budget Briefing and Public Forum on Oct. 19. NAFCU President and CEO Fred Becker plans to present for his group. He said he intends to request that NCUA return any overages it has charged federal credit unions through the operating fees for NCUA's reserves. Last year, NCUA returned $9 million to federal credit unions. This issue drives at the heart of NCUA's accounting for reserves, according to Becker. If NCUA needs four months of reserves on the books then acknowledge that rather than just claiming one month then returning the excess funds, he said. Becker also plans to suggest NCUA "reshape the agency for the future, given its size and the demographics of it." He said he will talk about the disappearance of small credit unions as well. CUNA Board Member Paul Parrish, CEO of Wings Financial Federal Credit Union in Apple Valley, Minn. will be presenting for the trade group. NASCUS has also requested to make oral remarks, to be presented by chair Linda Jekel, director of credit unions for Washington. "NASCUS believes the process of permitting stakeholders to comment publicly on the proposed agency budget is an effective mechanism for informing the public about NCUA's plans, programs and budgetary decisions for the next year," Jekel said. NASCUS plans to focus on issues specifically impacting state charters. A big one every year is the overhead transfer rate, which are funds transferred from the insurance fund to cover insurance-related expenses. NASCUS states every year that the state charters are paying for the regulation of federal charters through the institutions' 1% deposit into the National Credit Union Share Insurance Fund. On the other hand, federal charters-which fund 75% of NCUA's budget through operating fees and the OTR, Becker said-complain that they are paying for the training of state examiners by NCUA, as well as equipment. Becker pointed out that some of these examiners also examine privately insured credit unions, which have nothing to do with the federal agency. -scooke@cutimes.com