I just want to offer several comments on Mike Welch's column in the Dec. 12, 2001 Credit Union Times regarding CUNA's budget ("Observations on a plan, act, budget and name").

I could not agree more; any budget in the red is not good. However, I do want your readers to know CUNA senior management was prepared to make the necessary cuts and adjustments to project a break-even (or better) budget for 2002. After a review of the situation, however, the CUNA Board and its executive committee along with management determined it would not be prudent to preserve the budget with drastic short-term measures. Measures that would significantly impair the effectiveness of an association that I'm proud to say has developed into an extraordinary organization during the last five years.

Incidentally, during those years, CUNA with guidance from the Dues Review Committee has created a reserve of more than $12 million, up from $3.6 million at the end of 1995. Those reserves were built up precisely to prepare us for situations such as those that occurred after the terrorist attacks on September 11th.