NCUA’s proposed budget appropriately responds to operational challenges but differs from NCUA’s draft strategic plan in several ways that raise questions. CUNA Chief Economist Mike Schenk and Virginia Credit Union League President/CEO Carrie Hunt presented Wednesday at NCUA’s public budget briefing.

NCUA’s proposed combined 2022 budget is $345.3 million, 1.2% higher than the 2021 budget.

“CUNA believes the efficiency of operations is essential to responsibly using members' resources as NCUA seeks to become a world class regulator,” Schenk said. “In general, credit unions, the ones we represent, see the budget documents’ proposed increases in staffing as significant, costly, and unnecessary.”

Highlights of Schenk’s presentation include:

• CUNA is concerned with substantially increased consumer protection examination-related expenditures, which CUNA believes is not warranted. CUNA believes NCUA’s examination program should focus primarily on its mission of ensuring safety and soundness of the credit union system.
• Continued significant field of membership reform is one of the fundamental ways to help many credit unions lower exposure of climate-related risks through the ability to diversify membership
• NCUA should extend the 18-month extended examination cycle asset threshold for credit unions to $3 billion, up from the current $1 billion.
• CUNA strongly objects to any suggestion NCUA may need to charge a National Credit Union Share Insurance Fund premium in the near future, especially since the fund’s equity ratio will likely end the year at 1.28%, according to NCUA staff.

Hunt also thanked NCUA for its transparency throughout the budget process, and reminded the agency every dollar credit unions spend to support to NCUA, is money that can’t be put to work on behalf of members.

She also questioned how NCUA will “mesh this budget proposal with the strategic plan that's still in the proposal stage.”