Trade associations are hopeful the NCUA will reduceits 2013 operating budget during its monthly board meeting July 25.While the board's open meeting agenda has not yet been released,historically the federal regulator makes mid-year adjustments tothe operating budget and announces the annual corporate assessmentrate in July.

Representatives from both CUNA and NAFCU noted that in the pastthree years, the NCUA has reduced the operating budget during themid-year review. Given the improvement in the economy and on creditunion financial reports, and what both groups said was an unjustified2013 budget increase, a reduction is warranted, they said.

In November, the NCUA Board approved a $251.4 million budget forfiscal year 2013, which represented a 6.1% jump from the 2012 budget. However, that amount included ahefty 7.5% increase in pay and benefits, which hinged uponPresident Barack Obama approving an increase in the generalschedule pay scale. Obama did include a pay increase in his 2013budget, but it was only 0.5%.