Proposed SEC Budget Would Increase Funding by 13 Percent

President Bush’s budget for next year mirrors the headlines of the day in that only Defense, Homeland Security and the Securities and Exchange Commission would see any significant increase in their budgets.

The SEC has seen its workload expand significantly over the last year as it has taken civil action in cases related to Enron and WorldCom as well as conflicts of interest in a number of investment companies and trading irregularities/marketing issues in mutual funds, the Associated Press reported. The SEC has also been struggling under the load of investigating Time Warner, ImClone Systems, Martha Stewart, WorldCom and Xerox, the AP reported.

The proposed SEC, which totals $913 million, includes $18.7 million for new staff to work on these very issues. The budget includes $20 million the SEC was unable to spend last year because it couldn’t hire accountants and attorneys fast enough, the AP reported.

In the wake of recent corporate scandals, Congress expanded the agency’s authority and doubled the budget. While the 13 percent increase is actually quite moderate, at a time when only the Departments of Defense and Homeland Security are seeing any real budget increases, it is indicative of the increased demands on the SEC.

"It's a budget that continues what we have started," SEC Executive Director James McConnell told the AP.

This is the first budget drafted by SEC Chairman William Donaldson, who assumed the post a year ago. The SEC’s funding comes from fees companies pay to register new stock, however the agency must still go through Congress’s budget process.

You may like these other stories...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.