Lawmaker Resolution Shunned, Highway CUs Still Face Closure
Despite backing by Missouri lawmakers, those 10 small highway credit unions remain under orders to close their offices in two years and have their 27 employees cut from the payroll Sept. 30, state officials reported today.
"The House resolution is not a force of law," explained Roberta Broeker, chief financial officer of Missouri's Department of Transportation in detailing the agency stance in sticking by its original move last January to oust the CU facilities from division offices across the state on budgetary grounds.
The agency's position, blasted as "unconscionable" and seriously harmful to CU safety/soundness by the Missouri Credit Union Association, comes as the Missouri House on Monday voted unanimously in favor of a resolution urging the 10 CUs "remain in Missouri Department of Transportation facilities despite MODOT's intent to sever ties with the credit unions."
The resolution is now due for Senate action with the measure heading to Gov. Jay Nixon.
"Unanimous passage of HCR 70 sends a strong message to MODOT and clearly demonstrates the support of lawmakers for credit unions on this issue," said Roshara Holub, president/CEO of MCUA.
MCUA officials have said they are working on possible restructuring of the CU operations and trying to assist the CU employees while it fights the state agency challenge, which it calls "unprecedented" and "shocking."
Broeker said she has consulted with leaders of the agency and "we feel this is the right thing to do" in ending the CU operations and that the House resolution "does not really change anything." The CUs, many with "Highway Division" in their names total $138 million in assets and have 18,000 members, said MCUA.