Committee recommends Kansas Department of Credit Unions’ budgets after hearing contingency requests tied to reduced federal support
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Summary
A legislative committee recommended the Kansas Department of Credit Unions’ FY2026 and FY2027 budgets, including contingency funding to replace examiner training and software support previously provided by the NCUA and funds to cover two vacant examiner positions. The request is fee-funded, not from the state general fund.
The committee voted to recommend the FY2026 and FY2027 budgets for the Kansas Department of Credit Unions after agency staff outlined contingency requests to replace federal support. Arianna Waddell, who presented the agency’s budget, said the department’s revised FY2026 estimate is $1,800,000, “all from the Credit Union fee fund,” and noted the agency has no State General Fund support.
Waddell told the committee the supplemental requests—about $329,000 in FY2026—are driven by anticipated reductions in support from the National Credit Union Administration (NCUA), which has historically provided examiner training, access to the MERIT examination software and staffing support. The agency also expects a prorated merger payment (from the Premier Members and Merit Trust merger) of roughly $256,000 in FY2026 that will help offset the request.
The supplemental package includes $58,000 to replace NCUA-provided examiner training and $85,000 for third-party examination software if federal access to MERIT is discontinued. Waddell also requested $186,000 to fund two existing but currently unfunded financial examiner positions; she described those as positions the agency already has on its books but lacks current salary funding for at market rates.
Administrator Julie Murray told the committee the extra funding is intended as a contingency while federal arrangements remain uncertain. “We don’t get any money from the federal government,” Murray said, explaining that the NCUA reduced staffing by 27% last year and that drawdown has increased the agency’s need to fund examiner capacity.
Committee members pressed for detail on reserve levels and fee policy. Murray cited NASSCUS guidance recommending about a 75% carryover balance and said the agency intends to hold contingency funds for the next couple of years; if they are unused, the agency plans one-time fee reductions or later fee-structure adjustments.
Senator Reichman moved that the committee recommend the presented FY2026 and FY2027 budgets; Senator Blue seconded the motion. After members confirmed the governor’s recommendation had included the enhancement requests (while the Special Budget Committee’s global motion had initially deleted them), the committee advanced the budgets by voice vote.
The committee record shows the budget is funded through the Credit Union Fee Fund; no State General Fund dollars were requested. The committee did not record a roll-call tally in the transcript; the motion advanced by voice vote. The committee adjourned after completing the two agency reviews.