A proposed 2018 budget of $320.9 million for the National Credit Union Administration (NCUA) will be the main topic of a public briefing set for Oct. 18 at the agency’s headquarters in Alexandria, Va.
In documents posted on its website, the agency states that its proposed 2018 budget:
- Represents an increase of about $3 million (or 0.9%) from the 2017 budget of $318 million.
- The “operating fund” portion of the budget (one of three portions) increased by 1%, or $6.1 million to $298 million, up from its “restated” 2017 board-approved budget of $292.1 million (adjusted for non-cash items). The operating fund includes employee compensation, travel, rent, contracted services and “administrative” expenses (including annual leave and depreciation).
- The other two portions of the spending plan – the capital and share insurance fund budgets – are proposed to decline in 2018 from the previous year, respectively, by 2.5% (down $388,000 to $15.4 million) and 26.6% (down $2.7 million to $7.4 million from the previous year’s “restated” budget).
The operating fund – which represents about 93% of the agency’s overall spending – also includes a net decrease of 42 full-time equivalents (FTE) from the 2017 Board Approved Budget, the agency said in a release.
The big decline in the insurance fund portion, the agency said, was due to a reduction in contractor support for credit union stress testing. “Direct charges within this budget include administration of the NCUA Guaranteed Note (NGN) program, state examiner training and laptop leases, as well as financial audit support,” the agency said.
“It remains imperative that we provide a transparent budget process in a fully accountable manner that is beneficial to credit unions and the agency,” NCUA Board Chairman J. Mark McWatters said in a statement. “The 2018-2019 budget proposal is another step in our broader effort to re-align our resources with the mission of the agency to meet the needs of an evolving credit union system in a cost-effective manner while continuing to protect the safety and soundness of the system and the Share Insurance Fund.”
The budget briefing is set for 2 p.m. and is expected to run two hours, NCUA said.