FDIC Cuts Budget 8%

WASHINGTON-NCUA was busy touting its 0.5% budget cut just a couple weeks ago, while the Federal Deposit Insurance Corporation (FDIC) cut its budget December 3 by a full 8%. Of course, there may be more wiggle room with a more than $1 billion budget. The FDIC Board approved an operating budget of $1,070.5 million and a multi-year investment budget of $70.4 million for 2003. Spending for 2003 is estimated at $1.1 billion, or 8% lower than the 2002 budget. “I am very pleased that we are meeting our goal of reducing spending by becoming a more efficient organization,” FDIC Chairman Don Powell said. “We take seriously our obligation to control costs and continually seek more efficient ways of doing business.” As with NCUA, the bulk of the operating budget will go toward personnel costs. Even with staffing dropped from 6,300 in 2002 to 5,650 for 2003, two-thirds of the budget will go toward pay and benefits. The Investment Budget consists of eight major new projects that will range in cost from $3 million to $35 million over multiple years. The budget funds the examination of FDIC-supervised institutions, the marketing and resolution of failed institutions, and the administration of the insurance fund.