Onsite Coverage: Army Official Warns Of Defense Cut Impact on Personnel and CUs
SAN FRANCISCO — The U.S. Army's top financial official thanked credit unions for their service to the military but warned that cuts in the defense budget could reduce their member base.
Assistant Secretary of the Army Mary Sally Matiella told NAFCU's Defense Credit Union Summit on Wednesday that credit unions had helped soldiers make better financial decisions.
"Folks want to do the right thing but can't unless what they know what the right thing is. Thank you for showing soldiers how to do the right thing in investing, savings and spending," she said.
But despite the good work of credit unions they could be hurt by having fewer potential members because of budget cuts, she warned.
Matiella, who is also the Army's comptroller, said that any personnel reductions will be done in a "mindful and sensible way" but they will be part of an effort to reduce government spending that is needed for the long-term financial health of the country.
Some of the spending proposals could result in a $400 billion cut to the Pentagon's budget over 10 years, she said.
Matiella also said the miltary is revamping its accounting system so it will be easier to contain costs and audit its finances.