The National Credit Union Administration approved a 6.7 percent budget increase of $15.9 million in its proposed budget for 2014, bringing the total budget to $268.2 million—the sixth consecutive year the agency’s budget has expanded.
“The Credit Union National Association remains very concerned about the size of the agency’s budget and the continued budget growth for NCUA, particularly in light of the welcome decline in the assets in troubled credit unions over the past few years,” CUNA President and CEO Bill Cheney said. “Credit unions have to manage resources prudently or be subject to sanctions. The NCUA should not set one standard for itself and another for credit unions. Credit unions remain concerned that they work hard to contain costs and they feel their agency should do so as well.”
Employee pay and benefits account for approximately 75 percent of the budget—or $194.6 million. The agency also plans to add $1.7 million to its administrative expenses, $3.1 million to contract service expenses and nearly $700,000 to travel expenses.
In addition to the pay and benefits cost increase, NCUA employees will receive an average merit increase of four percent, and another 1.9 percent will be dedicated to costs associated with hiring and retention, promotions and staff realignments, Credit Union Times reports.