CUNA and NAFCU said the 13% budget increase approved by the NCUA Board today was excessive given the financial difficulties facing many credit unions.

The $200.9 million spending plan will finance the agency's operation for 2010.

"We understand the NCUA Board's desire to provide close supervision of credit unions in these difficult economic times, but we believe this can be realized through greater efficiencies at the agency," CUNA President/CEO Dan Mica said in a statement. "Going forward, we hope to see more disclosure in the budget process and will seek to work with NCUA to ensure expenses are kept to the minimum necessary without compromising the agency's mission of safety and soundness."

NAFCU President/CEO Fred Becker said he is "extremely concerned about the dramatic increase in the budget" and criticized the agency for a lack of transparency during the budget process.

He added that the agency's decision to discontinue the budget hearing deprived NAFCU and other groups the opportunity to provide input. He noted that federal credit unions shoulder the majority of the costs for the agency's budget.

NASCUS President/CEO Mary Martha Fortney noted that the bulk of the increase was going to pay for more examiners and her organization looks forward to working with federal regulators to coordinate examinations.

"NASCUS anticipates NCUA will continue to consult and cooperate with state regulators to make certain that the examination of state-chartered credit unions is robust, thorough and efficient. NASCUS will further review the 2010 NCUA budget and dialogue with the agency to ensure the state credit union system is appropriately represented as stakeholders in the administration of the NCUSIF," she said.