The 2021-2022 draft budget for the federal credit union regulator – totaling $342.5 million in 2021 and $364.2 million in 2022 – has been published online, is the subject of a public budget briefing scheduled Dec. 2, and will remain open for public comment until Dec. 11, the agency said Friday.
The final budget is slated for approval during the NCUA Board’s Dec. 17 open meeting.
The National Credit Union Administration’s (NCUA) posted budget documents show that the draft 2021 operating budget is $315.6 million, which is $316,000, or 0.1%, lower than in 2020; the draft capital budget is $18.8 million, $6.2 million, or 24.8%, lower; and the administrative budget for the National Credit Union Share Insurance Fund (NCUSIF) is $8.1 million, about $1.6 million, or 25%, higher than in 2020.
The above items mean a total proposed 2021 budget – $342.5 million – that is down about $4.9 million, or 1.4%, from the approved 2020 budget of $347.4 million, the information shows.
That reduction would be more than made up in 2022, when the agency projects a 6.3% increase in its total budget, for a total of $364.2 million. That figure includes a $341.8 million operating budget (up $26.2 million); a $14.6 million capital budget (up $4.3 million); and $7.9 million NCUSIF administrative budget (down $218,000).
The agency said the reduction in the 2021 operating budget is possible largely due to surplus travel funds from 2020 and a lower estimated travel budget for 2021 due to anticipated COVID-19 travel restrictions. The sharp decline in the capital budget is due to the completion of the latest phase of the agency’s MERIT (new exam tool) project.
The NCUA funds its budget mainly through operating fees from federal credit unions and the overhead transfer rate from the NCUSIF (the portion of the budget paid by the fund).
To comment on the proposed budget, email comments to BudgetComments@ncua.gov by Dec. 11. Requests to make a presentation during the Dec. 2 briefing should be sent by Nov. 20 to BudgetBriefing@ncua.gov; copies of briefing presentations are due Nov. 30.