The Securities and Exchange Commission budget would receive a significant boost under a bill proposed on Tuesday by the Senate Appropriations Committee.
The Securities and Exchange Commission budget would receive a significant boost under a bill proposed on Tuesday by the Senate Appropriations Committee.
The $1.108 trillion omnibus measure would fund government operations for fiscal year 2011. 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.
Congress failed to approve a new budget by Oct. 1. Since then, federal agencies have been operating on their fiscal year 2010 budgets under a continuing resolution, which expires on Dec. 18.
Last week, the House approved a continuing resolution that would fund the government at fiscal 2010 budget levels through Sept. 30, the end of fiscal 2011. Under that measure, the SEC received a budget boost to $1.25 billion.
The agency is doing even better under the Senate bill, which would bolster its resources to implement the sweeping Dodd-Frank financial reform law.
“The recommended increase funds the SEC at the authorized level and supports increased legal and investigative staffing for oversight and enforcement responsibilities, including significant new mandates under the Wall Street reform bill, as well as substantial investments in IT upgrades,” the Senate Appropriations Committee said in a summary of the omnibus bill.
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 today 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.
He declined to comment on whether the Senate omnibus bill would allow the SEC to revive the stalled Dodd-Frank initiatives or make any statement until Congress takes final action on an appropriations bill.
In congressional testimony over the summer, SEC Chairman Mary Schapiro said the agency could hire 374 new staff under the administration's funding request. It said it needs 800 new hires to implement Dodd-Frank.
The fate of the Senate omnibus is uncertain. Republicans are resisting its price tag and scope.
“Americans told Democrats last month to stop what they've been doing: bigger government, 2,000-page bills jammed through on Christmas Eve, wasteful spending,” Senate Minority Leader Mitch McConnell, R-Ky., said in a Senate floor speech today. “This bill is a monument to all three. I think a more appropriate approach is to pass a sensible, short-term CR that gets us into next year, when the new Congress will have the opportunity to make a determination on how to best spend taxpayers' money.”
Mr. McConnell would have to hold together 41 of the Senate's 42 members to sustain a filibuster against the omnibus bill. With 58 members in its caucus, Democrats only have to garner two Republican defections to achieve the 60-vote threshold required to approve the bill.
