UPDATED: NCUA proposes $334.8 million budget in ’19; $304.4 million is for operating budget

Increases of 4.3% and 2.7% in total budget dollars for 2019 and 2020 are proposed by the federal regulator of credit unions in documents slated for publication soon in the Federal Register and due to be addressed during a public briefing at the agency Oct 17.

The operating budget is one of 3 NCUA budgets; the others are the capital budget and share insurance fund administrative budget. Credit unions support the operating budget.

The National Credit Union Administration (NCUA), under the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), is now required to publish its budget proposal in the Federal Register, hold a public hearing (which has done for some time), and solicit and consider public comments.

The F.R. notice is scheduled to publish Oct. 2.

NCUA is taking comments on the proposed budget until Oct. 26. It is also accepting requests to give presentations at the coming budget briefing until Oct. 9.

The agency released its budget summary and justification Wednesday with a press release announcing the proposed changes. The total budget changes – with the budget rising to approximately $334.8 million in 2019 and $343.9 million in 2020 – combine figures from three agency budgets: the operating budget, capital budget, and share insurance fund administrative budget.

The operating budget represents the bulk of the agency’s budget – in the range of 91% to 93%, depending on the year – and is supported by operating fees paid by federally chartered credit unions and an “overhead transfer rate” paid by the National Credit Union Share Insurance Fund (NCUSIF).

The proposed 2019 budget figure represents an increase of about $13.9 million from the approved 2018 budget of $320.9 million. The estimated 2019 operating budget would be about $304.4 million, up from the approved figure of $298.1 million for 2018. For 2020, the agency anticipates another increase of $9.1 million overall. The estimated 2020 operating budget is $316.2 million, up about $11.8 million from the 2019 figure.

For 2019, NCUA is estimating a reduction of 10 full-time equivalent (FTE) staff positions from approved 2018 levels; no changes are estimated for 2020 in total FTEs. The budget summary and justification also provide various estimates on how its budgets are changing when indexed to inflation, and in nominal dollars.

The NCUA Board is scheduled to approve a final budget at its Nov. 15 open meeting.

The Oct. 17 budget briefing is scheduled for 10 a.m. ET and will be held in the agency’s Central Office boardroom (Alexandria, Va.). It will be streamed live, and those attending will be admitted on a first-come, first-served basis beginning at 9 a.m. ET. NCUA says an overflow room will also be available.

Comments on the proposed budget should be sent by email to BudgetComments@ncua.gov (again, by Oct. 26). NCUA is requesting that comments provide specific, actionable recommendations.

Requests to present at the Oct. 17 briefings should be emailed to BudgetBriefing@ncua.gov (by Oct. 9) and should include the presenter’s name, title, affiliation, mailing address, email address, and telephone number. Those approved to present (they will hear from the board secretary) will be asked to email their presentations by Oct. 15.

Federal Register notice (scheduled Oct. 2)

NCUA Posts 2019-2020 Proposed Budget, Sets Oct. 17 Public Briefing (press release)

Proposed budget summary

Detailed budget justification

NCUA Budget and Supplementary Materials (historical)