NWCUA: Oregon’s DCBS Fee Increase Proposal Necessary—Temporarily
February 1, 2011
February 17, 2011
Oregon credit unions will likely be paying more fees than expected in 2011 to the Department of Consumer and Business Services (DCBS), the primary regulator of credit unions in Oregon, due to a budget shortfall caused by market forces.
In testimony today, Northwest Credit Union Association President Troy Stang will tell a rulemaking committee that as an industry, credit unions are disappointed with the short timeline DCBS budgeted to the process to address the need for a fee increase.
“This approach allows no time to discuss systemic change and only leaves the opportunity to provide temporary solutions to the problem,” Stang will say in a prepared statement. “It seems that with more accurate budget forecasting based on knowledge of industry changes and trends, impending issues such as significantly raising fees should be provided ample time for consideration, comment, and cooperation.”
According DCBS, its falling revenue created a projected deficit in 2011 for the Oregon credit union regulator. The state sought a credit union advisory committee to address the need for an increase and proposed several alternatives to increase income, most of which most called for a two-year term of 2011-2012.
After dialog with the DCBS the consensus was that a 26 percent increase for the year of 2011 was the best immediate solution and requested the Department immediately begin a process to embark immediately upon an collaborative approach with the industry to develop a long-term solution for its systemic funding issue.
“…Simply increasing program funding without also carefully assessing new approaches in the Department’s model, or costs that could be trimmed, is not sustainable long-term,” states Stang’s prepared testimony. “Credit unions call on the Department to collaborate with the industry to identify areas of change to help DCBS remain an effective, world-class regulator.”