ALEXANDRIA, Va. — During today's NCUA Board meeting, the agencyapproved a higher than anticipated budget increase following a newbargaining agreement with the National Treasury EmployeesUnion.

The final 2008 budget approved was for $158,631,447,representing a $6.6 million increase or 4.35%, over the 2007budget. Saying a bargaining agreement would have further impact onits budget, NCUA had projected its public budget briefing for a3.0% increase.

NCUA Executive Director Len Skiles said merit pay increases willrange anywhere from 2.75% to 8.25%, averaging 5.0%. Locality pay isexpected to go up in most areas as well. Other significant budgetitems are a $5 million accounting program upgrade for the11-year-old system and seven additional examiners.

NCUA's projected a 2009 budget accounts of $168.4 million, anincrease of $9.8 million or 6.17% over the requested 2008budget.

The overhead transfer rate dropped to 52.0% while the operatingfees paid by federal credit unions was up 9.85%.

The NCUA Board also unanimously approved a final rule to includea conflict of interest provision regarding eligible obligations,which should not bring any added regulatory burdens for creditunions.

Shell New Orleans Federal Credit Union's application to convertto a community charter was also approved.