The industry was told what we felt was needed. They made comments on what we were proposing; we listened and adjusted the budget accordingly. The industry had the opportunity to voice their opinion and NCUA got the budget increases we wanted.

It took a few years to get the expertise, staff and support needed to ensure that NCUA had the resources to be an effective, efficient and responsive regulator in the financial services industry.

Last year and again this year I said it was my belief that NCUA had reached an adequate level of staff support and dollar amount. Other than union contract mandated and merit salary increases along with increases in items such as travel and utilities that NCUA does not have full control over, the NCUA budget should not increase. It was time to step back, re-allocate where needed and hold the line. The Board, at some point, must say enough is enough and help stop the widespread belief and perception that government never stops growing.

Board Member McWatters has seen through the massive amount of paper generated to justify a budget that deserves every bit of criticism he has leveled against it.

A regulator must have the resources they believe are required to do their job. If NCUA believes they need additional personnel and line item increases, an open and honest discussion should take place.

What is also required is the necessity to justify their requests, answer the questions raised and clearly show that it cannot be done with the resources currently in place.

It is a simple process. It begins with true transparency and continues with open and honest discussion. Just maybe it can now begin.

And all it took was a simple, but brave, no.

Michael E. Fryzel

Attorney and former NCUA board member

Chicago