ALEXANDRIA, Va. – NCUA Board Chairman Debbie Matz told CU Times in a video interview that the agency will not hold budget hearings in the future or make the budget proposal available to the industry before the full board vote.
NCUA Board Member Mark McWatters voted against the $279.4 million operating budget for 2015 at the NCUA Board meeting Thursday. McWatters said the public should have a chance to view the budget proposal in advance of the meeting and recommended the agency hold budget hearings in the future.
“Each board member is entitled to their own beliefs. I do not believe it's prudent to release our budget in advance or to hold hearings on our budget. Congress specifically provided the board with the statutory authority to determine how we spend our money. They gave us the authority to raise funds from the credit unions but they specifically gave the board the authority to determine how the funds are spent,” Matz told CU Times in a video interview after the meeting.
“I believe that providing that information to the trades really would result in regulatory capture which is what existed previously. We had hearings on the budget. We reduced FTEs by a total of 71 in a five year period of time from 2003 to 2008 and when I came on in 2009, the industry was on the verge of collapse and we didn't have the resources that we needed in order to protect the industry so we were playing catch up,” she added.
McWatters said public hearings would not lead to regulatory capture given that trade associations frequently meet with board members.
“We are using other people's money. It seems fair. It seems reasonable for people to look at the budget and come and present their thoughts on the budget to us in an open meeting. Trade associations meet with members of the board all of the time,” he said in a video interview after the meeting.
“What exactly is this idea of regulatory capture? It seems to be that if you can have a public meeting where everything is on the record, everyone can see it, total complete transparency, how in the world can that be something approaching regulatory capture when someone meeting in your office having the same comments and the same concerns is not regulatory capture?” McWatters added.
Metsger agreed with Matz's position on holding hearings and allowing public comment on the budget proposal before the board vote.
“They can comment. Anybody can write a letter or call on the budget now – that is far different than saying, 'let's put on a dog and pony show.' I mean, the idea is people can comment on it. I don't know of any comment that's received – certainly in my office – that's material, that's significant that I'm not going to address and I would think every board member would be the same,” Metsger said.
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