NCUA Unveils 9.5% Budget Increase for 2024
NAFCU calls the $394.5 million proposed budget “unreasonable” and asks for cost-cutting measures.
It’s that time of year when the leaves are changing color, Halloween decorations are going up and pumpkin spice flavors are being added to coffee and donuts. It’s also the time of year when 2024 budgets are being planned.
The NCUA published its 2024-2025 draft budget on Thursday and the combined proposed budget totaled $394.5 million, which is a 9.5% hike from the 2023 budget. According to the NCUA, the proposed budget breaks down like this:
- $382.1 million operating budget; 11% higher than 2023.
- $7.3 million capital budget; 35.6% lower than 2023.
- $5.1 million Share Insurance Fund administrative budget; 3.6% higher than 2023.
Three main factors appear to contribute to the agency’s proposed increases in 2024:
- Net increase of 28 positions, or 2.3%, compared to the agency’s 2023 staffing level.
- Increase of $18.2 million for current employee compensation in 2024 compared to 2023.
- Increase of $10.7 million in contracted services for 2024.
After analyzing the proposed budget changes and increases, NAFCU President/CEO Dan Berger wasn’t pleased with what he saw.
“NAFCU and credit unions support fiscal responsibility. It’s only natural that the agency overseeing credit unions follows the same principle; however, the NCUA, once again, has proposed unreasonable increases for its 2024-2025 budgets,” Berger said.
He continued, “With a proposed increase of 9.5% over 2023, the agency needs to rein in unnecessary spending. At a time of such economic uncertainly, the NCUA shouldn’t be taking away money from credit unions and the 138 million members they serve. NAFCU will continue to call on the NCUA to find cost saving measures and hold the agency accountable.”
On Nov. 16, the agency will hold a public budget briefing at its office in Washington, D.C. beginning at 2 p.m. ET. The meeting will be livestreamed on the NCUA’s website.
Also on Thursday, NAFCU released an updated NCUA Operating Fee Calculator based on the proposed budgets and allows credit unions to figure out how the 2024 budget could impact its fees.
The budget proposal has been published in the Federal Register and comments will be open until Nov. 21. And the NCUA Board plans to vote on the budget during its meeting on Dec. 14.
Maybe scientists can one day figure out how to make a pumpkin spice budget to help the process go down easier.
READ MORE: The NCUA’s 2024-2025 Proposed Budget.