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NAFCU urges NCUA to justify budget and cut costs
NAFCU Chief Economist and Vice President of Research Curt Long wrote the NCUA Tuesday to reiterate the association’s comments at the public hearing on Nov. 16. In the letter, Long called on the agency to provide more justification for the budget increases and added that “the NCUA's dedication to credit unions should motivate them to aim for annual budget reductions.”
Long provided remarks at the NCUA’s budget hearing, where he called the trend of substantially increased budgets “unsustainable” and urged the agency to “restrain its spending going forward and look for cost savings wherever possible.”
Similarly, Long’s letter requested the NCUA justify newly funded positions and ensure that “overhires” are “not simply…grandfathered into the next budget.” Additionally, he called the addition of 13 examiners for consumer compliance “unwarranted” and pointed out that consumer financial protection is not synonymous with protecting the safety and soundness of the credit union industry.
Long urged the agency to focus on protecting the Share Insurance Fund, continuing offsite examinations, eliminating unnecessary positions, and adopting a transparent method for evaluating cybersecurity and IT expenses.
NAFCU will continue to engage the NCUA on its proposed budget to ensure credit unions have the most resources possible to serve their members.