The NCUA has just approved its FY 2005-2006 Budget, the Overhead Transfer Rate (OTR) for 2005, and the 2005 Operating Fee for federal credit unions at its November 18 board meeting, and nearly the entire credit union community is commending the actions. I am sure "NCUA is well meaning," stated NASCUS following the decisions, but a closer look, however, shows it's "here we go again." Fact check: The NCUA Board approved a reduced budget, lowered the OTR, lowered the federal credit union operating fee and authorized the refund of $9 million in surplus funds from the 2004 budget year – to federal credit unions only. The agency apparently determined this $9 million savings arose strictly from activities related to Federal Credit Union regulation. For simplicity's sake, let's assume a 2004 NCUA budget of $150, an OTR of 60%, and consider the following scenario to illustrate the true impact of this FCU Operating Fee refund: 2004 NCUA Budget ………. $150 2004 Overhead Transfer Rate…… 60% 2004 Overhead Transfer …….$90 2004 NCUA Budget*………..$141 2004 Effective Overhead Transfer Rate..64% 2004 Overhead Transfer……..$90 (* $150 NCUA budget less $9 refund to FCUs only) By refunding the $9 million solely to FCUs, NCUA effectively increased the 2004 overhead transfer rate from 60% to 64% and lowered FCU operating fees by 15%, all "after the fact." Does anyone see a problem here? As I said, here we go again. Roger W. Little NASCUS Chairman of the Board Arlington, Va.