WASHINGTON—NCUA will be releasing its discussion draft budget later this week, and both CU trade associations said they will be paying close attention.
The agency said its budget plans would be released this week so stakeholders could review them before the budget briefing set for Oct. 27, from 2 to 4 p.m. ET. The NCUA board will also hold its open meeting that morning.
NCUA Board Chairman Rick Metsger first announced at NAFCU’s Annual Conference in June that the agency would hold a public budget briefing in October. During the mid-session budget review in July, NCUA projected $2.7 million in reduced spending for 2016.
NAFCU emphasized that it has long advocated for a public NCUA budget hearing.
With Congress in recess, NAFCU said it continues to encourage member credit unions to reach out to legislators in their home districts.
Noting the effectiveness of its grassroots efforts, as well, CUNA emphasized how the impact of its 360 Degree Advocacy program, “For the last two years or so, we in the CUNA/league system have been talking a lot about ‘360 Degree Advocacy,’ this notion that if public policy issues facing credit unions are addressed from all angles, and resources are brought to bear strategically and deliberately, the likelihood of a successful outcome is increased significantly,” said CUNA Chief Advocacy Officer Ryan Donovan. “Last week, we saw what 360 Degree Advocacy can do on two key issues – CFPB's small dollar loan Proposal and NCUA's supervisory improvement process. To be certain, this was not the first time this approach produced positive results, but the progress we've made on these issues would not have been achieved if we had approached them ‘the old way.’"
Donovan also noted that lawmakers in Arkansas last week rejected a bill that would require a study of the revenue implications of prohibiting interchange fees on nonfederal taxes.
“Lawmakers in Arkansas considered a bill that would require a study of the revenue implications of prohibiting interchange fees on nonfederal taxes. Ron Harrod of the Cornerstone Credit Union League and Windy Campbell, CEO, Arkansas Employees FCU testified in opposition to the measure at a Tax and Revenue Committee hearing,” explained Donovan. “Harrod and Campbell explained to legislators that such a prohibition would not work and, if enacted, would have a significant impact on the ability of Arkansas consumers to use their payment cards quickly and seamlessly at point of sale. They further explained that passage of the bill would impose unreasonable burdens on credit unions, other small financial institutions and the national payments system as well as on retailers who will face an increase in administrative costs.”