NCUA Approves 5% Budget Hike for Next Year: Print Preview
ALEXANDRIA, Va. — The NCUA board approved a $236.8 million budget for the agency next year, a 5.1% increase from 2011. The spending plan, which the board supported unanimously at its Nov. 17 meeting, includes funds for 33 new employees, 26 of which will be for examination-related positions.
The new staff will include people with specialties in lending, capital markets, information systems, supervision and troubled institutions. The budget funds 1,259.5 full-time equivalent positions.
The board also approved increasing the overhead transfer rate–what the agency transfers from the NCUSIF to the agency to pay for the agency's insurance-related operations–to 59.3% from this year’s level of 58.9%. The board also approved a 4.75% increase in the asset-level dividing points for natural person federal credit unions to be used when determining the agency's operating fee scale. But the board decreased the natural person federal credit union operating fee rates by 0.9%.
Woodson also told the board that the NCUSIF’s equity ratio was 1.32% at the end of October. It had been 1.31% for the three previous months. She said that because there are fewer troubled credit unions, the agency is reducing the NCUSIF’s reserve balance from $1.2 billion to $871 million, which will result in an increased equity ratio.