One of the biggest complaints of citizens across this country is the size and cost of government. It is a common belief that regardless of the state of the economy, government will find a way to grow and spend more money. That complaint and belief is more often true than not.
Watching government spend and grow is understandably frustrating to businesses and private citizens who during hard times must cut back and reduce their budgets and spending. If the income is not there, expenses cannot be incurred simply because there will be nothing to pay those expenses.
Unlike with government, the well is only so deep for businesses and individuals. There is no endless supply of money. They cannot just print it when more is needed. In addition, businesses and individuals not only have to pay their own expenses, they also have to pay those of the government as well. Because of that there must be strict accountability by those in charge of government agencies to ensure that all spending is controlled and justified.
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I have had the unique opportunity to view the budget process from both sides. I have worked in private industry, ran a law practice, served as head of a state government agency and been the NCUA chairman and a board member. With that background it gives me an added insight to discuss the direction the NCUA should be headed as it puts together and gets ready to approve its 2015 budget.
The NCUA first of all has an added responsibility. It is an independent agency which means it does not have to go to Congress every year to gain budget approval. The three member board makes the sole and final determination of what, where and how the budget they approve will be spent.
Second, since no public funds are a part of the NCUA budget, a reasonable expectation of accountability is owed the credit union industry since they pay the whole bill.
The NCUA also has a responsibility to run an agency that works to maintain a credit union system that is safe and sound and has a strong insurance fund. To do that you must have a qualified staff sufficient in number to get that job done.
When I arrived at the NCUA in 2008, the agency did not have the staff and resources to effectively do their job. I worked to change that by adding staff and approving budget increases to accomplish the job the agency was empowered to do. During every budget session I worked to explain to the credit union industry what the increases were, why they were needed and the benefits they would provide to the regulator and regulated.
As a result of the staff increases that have been put in place the last six years, the NCUA, in my opinion, has reached a level of size and competency to get the job done.
Simply put, aside from contract mandated and merit salary increases, along with line items such as travel and communications which may have price changes the agency cannot control, the 2015 NCUA budget should not reflect any increases in staff.
The needed personnel is in place, credit unions continue to decrease in numbers and existing staff can be redeployed from regions that have had a decline in their work load. The time has come to hold the line.
The NCUA is an independent government agency run by a three member board. It is a big responsibility and each of them must exercise accountability as if each dollar came out of their own pockets.
Credit unions across this country cannot spare another dime.
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