ALEXANDRIA, Va. — Nearly a month out, CUNA, NAFCU, and NASCUS had already said they were applying to make oral comments at NCUA's seventh annual Budget Briefing and Public Forum on Oct. 22.
While the budget, funded by credit unions, remains relatively stable, the overhead transfer rate is a consistent bone of contention. The OTR is the percent of the budget funded by the NCUSIF, which is contributed to by all federally insured credit unions through their 1% deposit; the rest is paid for as regulatory expenses through federal credit union operating fees.
Though the budget is not decided with the OTR in mind, it is always raised at these budget briefings. The states feel it should be lower because the state examiners hand over their work product to NCUA, which only goes in a handful of state charters a year. Federals feel it should be higher because NCUA offers training and equipment to state examiners.
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The major national credit union groups applying to testify so far are NAFCU President/CEO Fred Becker; NASCUS Chairman George Reynolds, senior deputy commissioner of the Georgia Department of Banking and Finance; and CUNA.
NAFCU pointed out on its Web site (www.nafcu.org) that its urging in recent years for NCUA to budget based on actual expenditures yielded just a $740,000 reduction in this year's mid-year budget adjustment.
Reynolds added, "By providing input, we are helping to maintain NCUA's responsible use of funds contributed by state credit union stakeholders."
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