While Washington is deeply mired in the elections process today, CUNA President /CEO Jim Nussle sent the NCUA a letter last week addressing concerns with NCUA’s proposed 2017-2018 budget, conveying important information to NCUA’s Board about developments at the Oct. 27 budget briefing.
The letter provides a detailed economic analysis of the NCUA’s proposed budget, which questions NCUA’s efficiency and continued budget increases that outpace inflation. Nussle stated “NCUA’s budget continues to increase substantially in the face of post-crisis improvements in credit unions, and at a rate that significantly outpaces changes in credit union operation costs and the budgets of other banking regulators. NCUA staffing levels increased substantially in response to the greatest financial crisis in modern history; however, the agency’s FTE count is virtually unchanged since the peak of the crisis. We find these trends concerning given the improvement in credit unions’ financial conditions over the past six years and this is something on which we intend to continue to press the agency.”
We encourage NCUA to do better “to reduce its footprint, right-size the organization and come out of the resulting transition as a nimbler, stronger, more efficient and more effective regulator.”
Read about this and 2016 Elections: Plausible Scenarios and Impact on Credit Unions in the Washington Wire.