NAFCU Urges NCUA to Reconsider Budget Increase
NAFCU President Fred Becker urged the NCUA to reconsider the budget it approved on Thursday, in light of the 12% increase, given the troubled economy.
While recognizing that "the safety and soundness of credit unions is of utmost importance,'' Becker wrote the NCUA that its 12% budget increase "puts an undue burden on our industry at the most inopportune time!"
He said that the increase, much of which will go towards hiring new examiners, isn't necessary. Becker pointed out that that credit unions aren't as complex as banks but the NCUA has a higher ratio of examiners relative to the size of the assets it oversees, compared to the FDIC.
He also said the proposed pay increase for NCUA employees, which the agency estimates to be 5.7%, is too high in light of the current economic environment.
On Thursday, the NCUA Board approved a $225.4 million budget for 2011, an increase of 12% over this year's spending plan of $200.9 million.
He also criticized $1.2 million set aside for capital improvements, such paintings, furniture replacement and bathroom upgrades.
"We seriously question whether these are necessary in the coming year,'' he wrote.