NCUA proposes ‘revised’ 2017 budget of $299M

Oct. 14, 2016 -- NCUA is proposing a 2017 revised budget that is 2.8% more -- $8.2 million -- than the budget the board approved for 2016, according to details released by the agency today in advance of an Oct. 27 board briefing on the agency’s upcoming spending plans.

In a “2017–2018 Budget Justification, Staff Draft” released Friday afternoon, NCUA said the agency’s “revised” operating fund budget is $299.2 million, and includes a net decrease of 17 full-time staff equivalents (FTEs) from the 2016 budget approved by the board.

In 2016, the board adopted a plan in which it would approve the agency budget in two-year chunks, rather than annually. In other words, last year the board approved both 2016 and 2017 budgets. What the agency is now proposing is a revision of the budget already approved for 2017. The staff draft points out that the “revised” budget (released today) is actually less than the 2017 “approved” board budget from last year (by 1.3%, or $3.8 million).

Additionally, at mid-year, the NCUA Board projected a $2.7 million reduction in spending for 2016.

Additionally, the agency is estimating a 2018 budget of $313.1 million – a $13.9 million increase from the 2017 “revised” budget released today (for a 4.65% increase).

However, NCUA also pointed out that the 2018 budget request for authorized FTEs will “reflect a decline of 61 positions from a peak of 1,269 authorized FTE in 2015. “

The staff draft indicates that the overhead transfer rate (OTR), which the agency employs to determine the amount that the National Credit Union Share Insurance Fund (NCUSIF) will reimburse the agency’s operating fund to account for insurance-related budgeted expenses, will be presented to the NCUA Board for its consideration at its Nov. 17 meeting.

In is release, NCUA stated that the Oct. 27 budget briefing will be held in the NCUA Board meeting room beginning at 2 p.m. ET and run for approximately two hours. “Due to space considerations, a limited number of people will be able to sit in the Board room, but an overflow room will be available with a livestream from the briefing. The livestream also will be available through a link on ncua.gov,” the agency stated.

In addition, the agency stated it will accept written comments on the proposed budget by email at BudgetComments@ncua.gov until 5 p.m. Friday, Nov. 4. Comments, the agency stated, should provide specific, actionable recommendations rather than general remarks about the size or structure of the budget.

LINK:
NCUA 2017–2018 Budget Justification, Staff Draft