In her testimony yesterday before the House Subcommittee on Financial Services, SEC Chairman Mary Schapiro told Congress that President Obama’s increased budget request of $1.026 billion for the agency in FY 2010, a 9 percent increase over the FY 2009 appropriation, will be critical to allowing the SEC to properly function. She said that she has learned since coming to the agency several weeks ago that the 2009 appropriation of $943 million will actually require the agency to make significant cuts in its current operations.
With the additional funds, Schapiro said the SEC plans to add staff to its Enforcement program; add new positions to its Examination program to expand its inspections of credit rating agencies, strengthen risk-based surveillance and examination oversight of investment advisers; and increase the number of staff in its Office of Risk Assessment specifically dedicated to deepening our understanding of risk, and incorporating risk assessment into all aspects of operations. Schapiro said that she has submitted a “reprogramming request” to Congress to use $17 million in the SEC’s unspent prior year funds in fiscal year 2009 so that these staff increases can occur in 2009 rather than 2010.
