NAPERVILLE, Ill. (1/27/15)--For the fifth consecutive year, state-chartered credit unions in Illinois have received a credit in regulatory fees--the result of a settlement negotiated by the Illinois Credit Union League (ICUL) with the state of Illinois.
The latest aggregate credit of $962,384--79% of the total 2014 fourth-quarter regulatory fees--brings the cumulative sum to nearly $16 million.
"There aren't too many examples of an association actually being the cause of a return of money to its members," said league President/CEO Sean Hession. "The real victory is the nearly $16 million in credits that Illinois state-chartered credit unions have received in the aggregate as a result of the settlement reached with the state of Illinois. We will continue to have dialogue with the state about the utilization of the regulatory fees it collects to enhance the exam process."
Illinois state-chartered credit unions receive credit for the overpayment in regulatory fees made under then-Gov. Rod Blagojevich administration's fee escalation and transfer budgetary arrangement.
Under that arrangement, regulatory fees paid by Illinois-chartered credit unions--as well as banks, savings banks, and savings and loan associations--were escalated far above the actual budgetary cost of operating their respective regulatory agencies. With accompanying amendments to the State Finance Act, surplus monies collected were then transferred to the General Revenue Fund and used for expenses other than supervision.
The regulatory fee credits continue because of legislation initiated by ICUL to implement the court-approved settlement of the regulatory fee case it filed against Blagojevich in 2004. The settlement was signed into law by then-Gov. Patrick Quinn effective April 6, 2009.
The 2009 legislation codified a rate reduction in regulatory fees on a going-forward basis and reduced the Credit Union Fund margin that triggers a credit back to Illinois state-chartered credit unions.
"The most recent credit shows the prosecution and favorable settlement of the regulatory fee case nearly six years ago remains advantageous for our credit unions today and is an excellent example of the value of league affiliation," said Stephen Olson, league executive vice president/general counsel.