NCUA’s 2022 Draft Budget Gets Pushback, Even From the Board
The agency released its 2022-2023 draft budget proposal which calls for a 1.2% increase over 2021.
This week, the NCUA published its draft budget proposal for 2022-2023. The proposed budget of $345.3 million is a 1.2% increase over the 2021 budget – and credit union organizations and even NCUA board members were quick to raise concerns.
Inside the proposed budget was a decrease of $13.1 million to the capital budget (a 30.7% decline from 2021), an $8.5 million travel budget (a 69.7% increase from 2021), a $6.2 million Share Insurance Fund administrative budget (a 21.7% decrease from 2021) and the proposed addition of 48 new full-time agency staff members.
During Thursday’s NCUA Board meeting, Board Member Rodney Hood said, “I must say, I don’t think we need nearly 50 new staffers at the agency at this time. So this budget is not something I can support in its current form.”
Board Chairman Todd Harper responded to Hood that the proposed budget is nowhere near finalized. “I agree with you that this is a process by which we will need to work together and communicate – and you have my full commitment to do that. This initial budget is only a starting point; it is not an ending point certainly at all.”
Further objections to the budget proposal were raised by NAFCU’s President/CEO Dan Berger. “While NAFCU appreciates the NCUA’s obligation to a transparent budgeting process, we are disappointed in the agency’s decision to propose certain increases in the draft 2022-2023 budgets. Some of our primary concerns are on the NCUA’s substantial travel budget increase and their assumption that travel can and should bounce back to pre-pandemic levels, as well as the significant increase in full-time equivalents.”
Berger added, “Bearing in mind all the hardships credit unions and their members have faced in the aftermath of the COVID-19 crisis, we urge the NCUA to reassess its budget proposal immediately to identify cost-savings opportunities and eliminate unnecessary areas of spending.”
Comments on the proposed budget are due Dec. 9 and the NCUA will hold a public budget briefing on Dec. 8.
Full details of the 2022-2023 budget proposal can be found on the NCUA’s website, as well as a PDF download.