ALEXANDRIA, Va.—NCUA again is being urged to look at ways to limit its spending as Thursday’s open board meeting approaches.
On the agenda for Nov. 17 is the agency’s 2017-18 budget. And before the board acts on the spending package, CUNA reiterated that the agency needs to find ways to lower costs.
NCUA’s 2017–2018 budget reflects a more than $8-million increase from the 2016 board approved budget, according to information released by the agency last month.
“As always our message to NCUA is that we hope whatever they do with the budget, that they take into consideration the points CUNA, our league partners, and credit union stakeholders have made during last month’s board meeting, and in our recent letter to the board on the budget,” said Elizabeth Eurgubian, CUNA deputy chief advocacy officer and senior counsel. “We are concerned about the continued growth of the agency’s budget and we urge them to remain focused on keeping costs down.”
NAFCU noted that the board held a briefing on discussion draft budgets in October—the budgets project $299.2 million and $313.1 million in spending during 2017 and 2018, respectively. At the briefing, NAFCU President and CEO Dan Berger called for cost savings. He submitted comments in a letter the week after.
The board will also be briefed Thursday on the agency’s overhead transfer rate. Eurgubian said CUNA hopes the briefing addresses the need to “overhaul the OTR methodology to provide more fairness and transparency.”
A final rule related to the Community Development Revolving Loan Fund will also be voted on Thursday. Issued in June, the CDRLF proposal aimed to make the rule more succinct and transparent, stated NAFCU, which in August expressed support for the proposal and made suggestions on how it could be clarified.