ALEXANDRIA, Va. -- Representatives of the three largest credit union trade associations expressed concern at an NCUA hearing today that the agency's proposed 15% budget increase could raise the costs for credit unions in a difficult economic climate.

"A hundred or some odd new people sounds like a heavy load," said Tom Gaines, president and CEO of the Tennessee Credit Union League, who spoke on behalf of CUNA.

"By the time you are ginning up we may be coming out of the back door of the business cycle and this would hurt credit unions,'' he said of the proposed $182.9 million spending plan.

NAFCU President Fred Becker praised the agency's efforts to maintain and expand its rigorous examination standards. But he urged NCUA officials to be flexible in their hiring process because if the recovery goes more quickly than expected you may not need as many new examiners as anticipated.

NASCUS President and CEO Mary Martha Fortney urged regulators to be careful when changing their examination schedules and standards "because of the limited options some states may have to substantially alter budgetary and examination program restraints."

Both Gaines and Becker said they wished that NCUA had distributed their budget proposal before the hearing so they could be better prepared to react to specifics.