CUNA Calls on NCUA to Reconsider Budget Increase (Misc News: December 14, 2010)
CUNA has joined the chorus asking the NCUA to reconsider the 12-percent budget hike it approved for 2011.
CUNA President/CEO Bill Cheney said that even though the federal regulatory agency might not be subject to the federal salary freeze proposed by President Barack Obama, the agency should consider adhering to the policy.
Last month, the NCUA announced that its 2011 budget would increase $25 million, or 12 percent, to pay for new staff as well as raises that average 6.1 percent.
"With elevated loan losses and expenses related to share insurance and corporate credit unions, credit unions earned very little net income in 2008 and 2009. This year net income has recovered somewhat, but is still far below 'normal,' especially considering the need for many credit unions to rebuild capital," Cheney wrote.
Last week, MCUL & Affiliates CEO David Adams sent a similar letter to NCUA Chair Debbie Matz calling on the agency to reconsider the pay increases. Adams also questioned other aspects NCUA spending including its Suze Orman consumer education campaign, the need for additional staffing and the agency’s plan for Corporate Stabilization Fund assessments.
Click here to read the story about Adams letter to the NCUA.
In its letter, CUNA noted the support CUNA, credit unions and the leagues have always shown for "a strong independent agency, which has access to sufficient resources in order to ensure safety and soundness objectives under the Federal Credit Union Act are adequately met..." That support is unwavering, CUNA said, despite the unusual situation that the greatest part of those resources come directly from credit unions.
"In light of the belt tightening at credit unions and the new proposal from the administration, we believe it is appropriate and reasonable for NCUA to do all it can to contain its own costs," Cheney wrote.
Click here to read the story on CUNA News Now.