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NCUA Plans Budget And Staff Increases In ‘09

Alexandria, Va., October 30, 2008 – National Credit Union Executive Director              J. Leonard Skiles announced today at the Annual Budget Briefing and Public Forum that the agency’s 2009 budget is expected to increase 15 percent to $182.9 million to accommodate program modifications necessary to address the current turbulent economic environment.  

During 2009, the overhead transfer rate is projected to be 55 percent and the operating fee is expected to increase 10 percent to oblige increased expenditures.

The most significant NCUA program changes under consideration would add additional staff, implement a 12-month examination cycle, develop a national examiner team to conduct high-risk exams, and centralize credit union chartering in 2009. 

NCUA believes it is imperative to expand its examiner staff and develop a cadre of well-trained experts as credit unions are faced with unprecedented liquidity pressures, increased interest rate risk, due diligence efforts, concentration risk, and additional governmental requirements.    

NCUA’s proposed budget includes $12.8 million to hire and train 100 additional examiners, 5 problem case officers, 5 risk management officers and additional support staff. Pay and benefits for the entire staff are projected to increase $14.5 million or 12.3 percent. Travel expense is expected to increase $6.9 million or 44.7 percent to accommodate a 12-month examination cycle and expected inflation pressures. 

The NCUA Board is scheduled to consider the budget at its November 20 meeting. The NCUA budget briefing PowerPoint presentation is available online at http://www.ncua.gov/ReportsAndPlans/index.htm.

The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 89 million accounts in all federal credit unions and the overwhelming majority of state-chartered credit unions.

-NCUA-