<p>CHICAGO – A group of Illinois legislators stepped on credit union toes, just in time to give attendees at the annual convention of the Illinois Credit Union League something to talk about. On April 16, a group of legislators calling itself the House Democratic Task Force on the FY 2003 Budget, included in a laundry list of ways to balance the state budget a line item that would take $1 million from the Department of Financial Institution's credit union fund to help balance the state's general revenue fund. The three-day convention opened in Chicago on April 18. More than 1,300 credit union leaders and guests attended. Beyond a variety of educational and motivational sessions, the league detailed to delegates its efforts to focus on small credit unions and announced a number of awards and board changes. The issue of raiding the DFI fund was one of several legislative concerns ICUL leaders voiced during the three-day convention. The credit union fund has a balance because, at the moment, paid-in fees exceed expenses. "Our fund is in some potential jeopardy," said ICUL Board chairman Charles Rutan, president of the University of Illinois Employees Credit Union from the podium at the delegates' meeting. The Illinois legislature, under a deadline, is struggling to balance the budget, which may be as much as $1.2 billion out of whack, in part because of a tax collection shortfall. The legislators, facing the fall election, are reluctant to raise taxes, so they are looking at a variety of cuts. Among the cuts under consideration besides tapping the DFI credit union fund include closing parks, mental health hospitals and prisons. Credit union officials first heard about the threat to the DFI fund from Keith Sias, ICUL director of state legislative affairs, at a seminar at the convention. While inclusion on a partisan hit list doesn't mean the deal is done, Sias said the legislature finds itself in a difficult position. "I'm concerned because the state is in horrible financial condition," Sias said after the session. The operation of DFI is funded through an assessment of credit unions. "It's really not fair (to tap the fund)," Rutan said. "We're the ones that (created) that fund … We raised dues to make DFI self funded." If the fund is seriously threatened, Rutan said he would mobilize the troops, the local credit unions, to lobby the legislators. "If it gets serious, we're going to have an action alert," he said. He said that fees to credit unions could be raised to cover DFI's costs. Rutan and others at the convention were proud of the strong ties Illinois credit unions have to the legislature. Indeed, a state representative, Joe Lynn, serves on the board of directors of Credit Union One, based in Rantoul, Ill., and was recently given ICUL's "Spirit of Service" award for his work with the credit union. A greater cloud on the horizon, though one less certain to occur, is a rumored consolidation at DFI. Sias said some legislators are mulling merging bank and credit union examination units, which could result in bank examiners reviewing credit union books. Sias opposes the merger. "We think they (bank and credit union examinations) are different animals," he said. Rutan agreed. "We're always concerned about combining regulatory agencies," he said. As for the likelihood of changes, DFI spokesperson Mary Kendrigan, after several hours of checking with her sources, was not ready to be concerned. She put both issues in the rumor category. Still, the credit unions are anxious about another change ahead. Incumbent governor George Ryan is a lame duck and ICUL leaders expect current DFI director Sarah Vega to be replaced when a new governor is elected in November. The league is taking no position on the gubernatorial election, which is still up for grabs. In an interview with Credit Union Times on the dais after the delegates' meeting Rutan said credit unions have had a good relationship with Vega, so any change is viewed with concern. "We've had stability for the last eight or 10 years," he said. League president Dan Plauda reported on the group's efforts to assist smaller credit unions, noting in his report than the ICUL and the ICU Foundation had spent more that $120,000 on projects and grants for smaller credit unions that helped the credit unions buy computer equipment, marketing materials, office equipment and develop websites. -</p> <p>[email protected]</p>