PRESS RELEASE

July 24, 2015

CONTACT: Patrick Keefe, NASCUS Communications/703-528-5974, pkeefe@nascus.org

COMMENT FROM LUCY ITO, NASCUS PRESIDENT AND CEO
ON NCUA BUDGET REPROGRAMMING; SAVINGS ON OP FEES

Deeply troubled budget reprogramming limited to reducing operating fees

Among the developments yesterday was the NCUA Board’s adoption, on a 2-1 vote, to “reprogram” its 2015 budget. In doing so, the board pledged to use the savings to offset federal credit union operating fees, effective in March 2016. Lucy Ito’s comment focuses on that aspect:

“We are deeply troubled that NCUA’s reference to the use of savings from its budget reprogramming has been limited to reducing the operating fees for federal credit unions. Rather than earmarking these savings solely for that purpose, we propose using the savings for reducing the amount of the annual overhead transfer rate. As Board Member Mark McWatters noted in his statement yesterday,  ‘consideration needs to be given to how funds from mid-year budget reductions are allocated and whether they should be used, at least in part, to address OTR issues directly, rather than routinely applied to reduce operating fees to benefit just one group of credit unions.’ We enthusiastically agree, and urge the NCUA Board to genuinely consider this approach.”

 

Information Contact:
Patrick Keefe, Director of Communications, pkeefe@nascus.org or (703) 528-5974

The National Association of State Credit Union Supervisors (NASCUS) is the primary resource and voice of the state governmental agencies that charter, regulate and examine the nation’s state-chartered credit unions. NASCUS membership is made up of state-chartered credit unions, state regulators and other supporters of the state credit union system. NASCUS is the only organization dedicated to the defense and promotion of the state credit union charter and the autonomy of state credit union regulatory agencies.