The NCUA on Friday proposed a 2017 spending plan that would increase its budget 2.8%–some $8.2 million—next year.
The agency’s 2017 proposed revised operating fund budget would be $299.2 million, with the estimate for 2018 reaching $313.1 million
The budget represents an increase in spending compared with 2016, but it is $3.8 million less than the amount the NCUA originally estimated it would need next year.
The NCUA board will hold a briefing on its budget on Oct. 27, the first time the agency has held a public briefing on the document.
“The briefing itself offers another level of engagement, and we are taking comments online, as well,” NCUA Chairman Rick Metsger said. “While final decisions always remain with the Board, stakeholders can contribute ideas in advance for the Board’s consideration.”
Credit union trade groups said they are examining the budget and will submit extensive evaluations of the plan.
CUNA said it was disappointed that the document calls for an increase in spending. “We are disappointed that NCUA’s budget continues to increase,” Ryan Donovan, CUNA’s chief advocacy officer said.
For his part, NAFCU President/CEO B. Dan Berger said, “As NAFCU has repeatedly urged, we will continue to ask the agency to implement spending efficiencies and reduce line items, where possible.”
NCUA officials said the revised 2017 budget represents a decrease of 17 full-time equivalent employees from the already approved 2017 spending plan.
The budget calls for a reduction of 25 credit union examiner positions—a decrease that is possible as a result of the agency’s Examination Flexibility Initiative working group recommendations that would extend the length of the examination cycle to well-managed, low risk credit unions.
The 2018 budget calls for a reduction of an additional 22 positions.
The budget document states that the NCUA anticipates saving money as a result of decreases in the amount of time examiners must spend onsite at credit unions.
“It is too early to determine the actual level of savings regarding the examination and supervision time spent offsite, but once implemented, it will reduce travel costs,” the budget states.
The budget document states that agency funding will be focused in several areas, including institutionalizing cybersecurity training, refining examination programs and risk management. In addition, funds will be focused on allowing examiners to develop specialized areas.
The agency’s contracted services budget would increase some $3.5 million, with much of the funding going for recurring infrastructure costs to the agency.
The revised 2017 Stabilization Fund budget is $4.1 million, a decrease of 0.1 percent from the 2017 Board Approved Stabilization Fund budget.
