State Employees' Credit Union President/CEO Jim Blaine said hehas no beef with CUNA or the Carolina Credit Union League. In fact,he said the $27 billion SECU has been very involved in theseorganizations for a very long time.

However, Blaine said SECU decided not to renew its combined$340,000 membership dues – $250,000 to CUNA and $90,000 to CCUL –because there are serious issues that are not being addressed byboth organizations.

Though the merging of the North Carolina and South Carolinaleagues was overwhelmingly approved by member credit unions lastyear, the number of credit unions in the two states continues toshrink.

“After the merging of the North Carolina and South Carolinaleagues and the number of credit unions in those states continue toshrink, what do you do next?” said Blaine. “The long range(question) is what is the role of the CCUL going forward? This isnot a complaint on our part, but you are heading to a collisionwith realty and that reality is that the number of credit unions isshrinking. You can't escape that fact and it ought to be dealtwith.”

Blaine said he also has issues with the CUNA board structurethat includes representatives from only six leagues, but there are40 leagues in the nation. That should prompt some cooperativeconcerns, he said.

“Why should a quarter of CUNA's 24 seats be allotted to sixleagues out of a pool of 40 state leagues? And who do the leaguesrepresent as they consolidate?” he said.

When SECU was presented with the consolidation of the NorthCarolina and South Carolina leagues, he said it made sense from thestandpoint that it would save costs. But what didn't make sense toBlaine was when he was told that his membership dues would morethan double.

“We are only in North Carolina,” explained Blaine. “Prior to themerger, we had the entire (North Carolina CU League) staff and theywere doing a great job. Now we have half of their time and energiesand we are going to pay twice as much. I have a hard timeexplaining that to the board and other people.”

However, Blaine said that CCUL has since backed off its proposalto increase membership dues.

“Small credit unions want more services (from their league) andlarger credit unions want lower costs (from their league),” Blainesaid. “Those issues are being kicked down the road, but they arenot going to go away because we all agree that the number of creditunions is going to continue to shrink, if not accelerate. Thoseissues need to be addressed.”

Last Fall, SECU backed a proposal that would have allowed CCULto conduct a one-year test pilot program that would have allowedCCUL members the choice of joining CUNA or the league.

The objective of the pilot program was to observe what impactaffiliation choice would have on the state league and CUNA,including changes in affiliations rates, dues revenue, and whataffect would affiliations choice would have on legislative,regulatory and political affairs.

But Blaine said the test pilot program was not accepted by CUNAand CCUL late last year.

In a Jan. 31, Blaine wrote a letter to John Radebaugh,president/CEO of the Carolinas Credit Union League, informing himthat SECU would not renew its 2014 membership.

“SECU asked that consideration be given for credit unions tohave the option to separately choose between membership in CUNA andthe league,” Blaine wrote. “The right to independently choosemembership and to have direct representation in CUNA appears to bevery much in line with our core cooperative principle – one member,one vote.”

Blaine continued to write: “The accelerating pace of themerger/dissolution of credit unions, paired with the resultingconsolidation of numerous leagues, would indicate an urgent'inevitable' need for structural changes in our trade association,if cooperative principles are of key importance.”

Radebaugh responded to Blaine's letter: “We believe affiliationprovides great mutual benefit for our organizations and aredisappointed in your decision. Nonetheless, we respect yourdecision and appreciate the notice.”

CUNA President /CEO Bill Cheney also responded to Blaine'sletter and invited him to meet with the CUNA executive committeelater this month. Cheney also noted in his letter that incomingCUNA Chairman Dennis Pierce is appointing a Renewal ReviewCommittee to look at these (Blaine's) concerns and othersimmediately following the CUNA Governmental Affairs Conference.

Blaine wrote a brief letter responding to Cheney writing: “GladDennis has appointed a Committee. That should be helpful. SECU doesnot have any remaining concerns which require discussion. Wish youand CUNA the best of luck in the future.”