WASHINGTON—While saying it appreciates NCUA's efforts to be transparent in its budget process, NAFCU is urging the agency to undertake a line-by-line review of its budget to find efficiencies and savings as it carries out its mid-session budget review.
Carrie Hunt, NAFCU's executive vice president of government affairs and general counsel, emphasized in a letter to NCUA Chairman J. Mark McWatters and Board Member Rick Metsger that given that the NCUA's budget is funded exclusively by credit unions, the agency's expenditures have a direct impact on the credit unions the agency regulates and insures.
"In the current regulatory landscape, these dollars become even more significant, as credit unions are forced to expend substantial sums of financial and human capital bringing their policies and procedures into compliance with the sea of new regulatory requirements," Hunt wrote. "For that reason, NCUA’s budget process continues to be a topic of significant interest to Congress, NAFCU’s membership, and the entire credit union industry."
In her letter, Hunt applauded the NCUA board's decision last year to return, as long urged by NAFCU, to the practice of holding public budget briefings where stakeholders can share their views. "Our hope is that the agency maintains its commitment to budget transparency and continues to host public budget hearings on a periodic basis," she wrote.
The NCUA board will take up the mid-session budget review during today’s open meeting. This year's approved budget is $298.2 million; a budget of $312.1 million is slated for 2018.
Hunt, noting the president's executive orders issued earlier this year to encourage improved efficiency, effectiveness and accountability in the federal government, urged the agency to "look carefully" at what works and find cost savings wherever feasible.
"We hope the agency uses the mid-year budget review as an opportunity to promote the responsible administration of credit union dollars, increase spending efficiencies, and reduce line item budgets where possible," she urged.