Real Time Hike the Hill Updates: GoWest Testifies at NCUA Budget Hearing; Questions Proposed Increases
Posted by Lynn Heider on November 16, 2023
The NCUA Board of Directors today received testimony on a proposal to increase next year’s budget – by 9.5% in the overall budget, and 11% in the “mission support” (administrative) budget.
In collaboration with our member credit unions, GoWest Credit Union Association provided on-site testimony questioning the size of the budget increases and providing specific suggestions on areas of the budget the agency should more closely scrutinize. John Trull, Vice President, Regulatory Affairs, offered the testimony, with a delegation of Fall Hike the Hill attendees attending the hearing.
Such significant increases, Trull said, do not “seem to recognize current sensitivities, especially considering the economic pressures facing both the credit union industry and the people it serves.”
Notably, the GoWest testimony:
- Questioned the overall increase in the agency budget.
- Encouraged NCUA to find savings in the mid-budget review.
- Called on the agency to recognize that for state-chartered institutions, consumer compliance is not in the purview of the insurer, but rather is vested in the prudential regulators.
- Shed light on the fact that the Administrative/Mission Support Budget will make up a greater percentage of the agency budget than the exam and regional staff budget.
Read John’s testimony here.
NCUA will continue to receive written stakeholder feedback on the budget next week.
In other actions today, the NCUA Board approved a final rule amending the charitable donation accounts section of the incidental powers regulation. It adds “war veterans” organizations to the to the definition of a “qualified charity” that a federal credit union may contribute to. The Board was also briefed on the performance of the Share Insurance Fund, and on the increasing number of CAMELS Code 3 credit unions in Q4.
Read more here.
NCUA’s next scheduled Board of Directors meeting is December 14, 2023.