NCUA approves budget, revises operating fee schedule methodology
The NCUA Board adopted a final 2024-2025 budget at its Thursday meeting. The approved budget is roughly $8.8 million lower than the proposed 2024 budget. Specifically, compared to the proposed budget, the final 2024 budget reflects the following:
- Reduction of operating budget by $7.6 million and one position;
- Reduction of capital budget by $1.2 million; and
- Increase of Share Insurance Fund administrative expenses budget by $6,000.
The final budget includes the addition of 27 positions, which is one less than included in the proposed budget. However, compared to the proposed budget the approved budget includes four additional examiner positions. Several other positions included in the proposed budget were either eliminated or moved from 2024 to 2025.
The approved 2024 budget is 7 percent higher than the 2023 budget. CUNA raised significant concerns with the proposed budget that would have been an increase of 9.5 percent over 2023. In written comments, as well as oral remarks before the Board, CUNA opposed the significant increase in examination staff, particularly those to focus on consumer compliance.
In addition, the Board approved the following revisions to the Operating Fee Schedule methodology:
- Increase of the fee exemption asset threshold below which federal credit unions are not required to pay the operating fee from $1 million to $2 million.
- Increase of the fee exemption asset threshold in future years by the aggregate growth rate for federal credit union assets.
CUNA weighed in with the agency in support of the threshold increase. However, CUNA asked the Board to consider an even higher threshold level.
The Board issued a request for comment on the existing Overhead Transfer Rate (OTR) methodology. Comments are due 60 days after the notice’s publication in the Federal Register.
Lastly, the Board approved the 2024 Central Liquidity Facility budget. The approved budget of roughly $2.2 million is slightly lower than the 2023 budget. At the suggestion of Board Member Hood, this is the first year the Board separated the CLF budget from the agency’s operating budget.