NCUA Board Member Rodney E. Hood Statement on the NCUA’s 2023–2024 Budget

As Prepared for Delivery on December 15, 2022

I certainly want to thank all of our leaders who have helped prepare today’s final budget. So, thank you, Eugene Schied, Melissa Lowden, Jim Holm, and all of the NCUA staff who played a role in bringing today’s budget before us today.

I enjoyed working in partnership with my fellow Board members to devise and advance a budget that’s transparent, expedient, and appropriate for our mission. We are already seeing signs of stress — liquidations and conservatorships are up, liquidity risk is rising, and we are facing uncertain economic headwinds. Because of this, I think it is important to emphasize the mission of the agency with the 2023 budget. What are the direct NCUA costs for the protection of the Share Insurance Fund and our industry?

Thank you. The final budget before us today is a 6.2 percent increase year over year, which is more reasonable than the 8.1 increase year over year that was proposed in the staff budget.

I do have some questions:

• Eugene, can you suggest how we incorporated the public’s feedback in today’s budget?
  • Thank you. We do take the public’s feedback seriously.
• Can you discuss the decrease in the operating fee when considering the $15 million carry over?
• Since we will be announcing a new director for Financial Technology & Access soon, can you discuss the two new positions added to this department by the Board? Thank you. I strongly support these positions.

Before I conclude my remarks, Eugene, at every Share Insurance Fund update I have asked you about the true-up and the options presented by an outside accounting firm. Now that we are at the end of the year, can you give me an update?

Thank you. Mr. Chairman, I have nothing further.