The Securities and Exchange Commission is unlikely to see its budget increased over the next couple months as it continues to implement Dodd-Frank.
The Securities and Exchange Commission is unlikely to see its budget increased over the next couple months as it continues to implement Dodd-Frank.
Senate leaders agreed yesterday to work out a temporary government funding measure that would hold spending to its fiscal year 2010 levels. The so-called continuing resolution must be approved by Dec. 18 for federal operations to continue uninterrupted. Congress failed to pass a new budget by Oct. 1, the beginning of the fiscal year.
Earlier this week, the Senate Appropriations Committee proposed a $1.108 trillion omnibus measure that would fund government operations for fiscal year 2011. Under that bill, the SEC would receive $1.3 billion, an 18% increase over the 2010 budget of $1.118 billion and 3% more than the Obama administration's budget request of $1.258 billion.
But all 42 Republicans were united in opposition to the bill, giving them the margin required to filibuster the measure.
The Senate vote followed passage in the House last week of a short-term continuing resolution that would have boosted the SEC budget to $1.250 billion, up from its current $1.118 billion. The Senate is not likely to include the House provisions in its short-term funding bill.
The GOP argued that the appropriations bill represented profligate spending that would worsen the federal deficit. Democrats accused Republicans of hypocrisy because the legislation included $8 billion in special congressional spending known as earmarks.
“The voters don’t want us to wait to cut spending and debt, and fight the health care bill next October — they want us to do these things immediately,” Senate Minority Leader Mitch McConnell, R-Ky., said in a floor speech today. The appropriations bill would have funded the government through Sept. 30.
Mr. McConnell and Senate Majority Leader Harry Reid, D-Nev., are working on a continuing resolution that would fund the government for the next two months. That bill is likely to be “clean,” according to an aide to Mr. McConnell.
That means that agencies like the SEC would continue to operate at their fiscal year 2010 levels.
Mr. Reid acknowledged that he couldn’t find the votes to overcome a filibuster, which would have likely led to a halt in government operations after Dec. 18.
“We cannot afford a government shutdown,” Mr. Reid said in a statement Thursday night. “I am disappointed that the bipartisan efforts of [Senate Appropriations Committee] Chairman [Daniel] Inouye [D-Hawaii] and ranking member [Thad] Cochran [R-Miss.] to put together a sensible, responsible funding bill have been hijacked by partisan politics.”
The SEC recently announced that it was deferring several Dodd-Frank initiatives due to “budget uncertainty.” Among those on hold are ones that would create investor advisory and investor advocacy offices.
The Wall Street Journal reported Wednesday that the agency's enforcement and inspection efforts have been slowed by lack of funding.
“We are taking our usual steps just like any other government agency under a continuing resolution, which include restrictions on non-essential travel, hiring and contracts,” said SEC spokesman John Nester.
In congressional testimony over the summer, SEC Chairman Mary Schapiro said the agency needs to hire 800 new staff to implement Dodd-Frank.
