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Breakout of $308.0 Million Budget Estimate by Program Activity
($ in thousands)

Program Activity	Actual On-Board EOY 9/30/10	FY 2010		FY 2011		FY 2012		FY 2012
		Actual	FTE	Estimated Actual	FTE	Current Services	FTE	Budget Request	FTE
Market Oversight	143	$35,391	129	$33,814	139	$42,410	139	$77,564	250
Clearing, Swap Dealer & Intermediary Oversight	122	$27,294	99	$30,460	122	$38,013	122	$56,553	182
Chief Economist	18	$3,895	14	$3,243	14	$4,107	14	$5,965	20
Enforcement	170	$42,217	149	$43,726	167	$54,071	167	$75,059	235
Proceedings	11	$3,060	11	$2,372	10	$2,991	10	$2,912	10
General Counsel	52	$11,966	43	$13,663	50	$16,769	50	$22,876	70
International Affairs	9	$2,505	9	$2,268	9	$3,048	9	$4,043	13
Agency Direction	32	$8,070	29	$7,819	31	$9,505	31	$11,819	38
Administrative Management & Support	123	$33,946	122	$31,435	125	$39,152	125	$51,209	165
Total	680	$168,344	605	$168,800	667	$210,066	667	$308,000	983

Breakout of $308.0 Million Budget Request by Program Activity

Program Activity	Percentage
Market Oversight	25%
Clearing, Swap Dealer & Intermediary Oversight	18%
Chief Economist	2%
Enforcement	24%
Proceedings	1%
General Counsel	8%
International Affairs	1%
Agency Direction	4%
Administrative Management & Support	17%

Breakout of $308.0 Million Budget Estimate by Object Class
($ in thousands)

Object Class	FY 2010 Actual	FY 2011 Estimated Actual	FY 2012 Budget Request
11.1-11.5 Personnel Compensation	$82,577	$94,412	$142,697
12.1 Personnel Benefits: Civilian	23,164	26,960	41,703
13.0 Benefits for Former Personnel	4	4	227
21.0 Travel & Transportation of Persons	1,999	1,129	5,129
22.0 Transportation of Things	55	55	245
23.2 Rental Payments to Others	12,632	14,297	20,507
23.3 Communications, Utilities & Miscellaneous	4,156	3,406	5,267
24.0 Printing and Reproduction	664	938	1,325
25.0 Other Services1	30,910	24,520	68,003
26.0 Supplies and Materials	1,051	1,074	1,932
31.0 Equipment	7,422	2,005	14,743
32.0 Building/Fixed Equipment	3,685	0	6,222
42.0 Claims/Indemnities	25	0	0
99.0 Subtotal, Direct Obligations	168,344	168,800	308,000
99.0 Reimbursable	40	175	175
99.0 Total Obligations	$168,384	$168,975	$308,175
1 Includes costs for advisory and assistance services for information technology, Enforcement investigations, economic research and analysis, and operations and maintenance of facilities. (back to text)

Breakout of $308.0 Million Budget Request by Object Class

Object Class	Percentage
Compensation and Benefits	60%
Travel and Transportation	2%
Space Rental	6%
Communication and Utilities	2%
All Other	22%
Supplies and Printing	1%
Equipment	7%

The President requested $261 million for the CFTC for FY 2011 in order for it to meet both pre-Dodd Frank and Dodd Frank mission and obligations. Of the $261 million $216 million was requested to cover pre-Dodd-Frank authorities. However, Congress has currently continued funding the CFTC at its FY 2010 level of $168.8 million through a Continuing Resolution that will expire on March 4, 2011. The Commission continues to support the President’s FY 2011 request for the agency, as it provided an important step towards ensuring that the CFTC had the staff and resources it needs to fully execute its responsibilities.

However, for the purposes of the FY 2012 budget submission, the Office of Management and Budget (OMB) has directed Federal agencies to include the Continuing Resolution funding level as the FY 2011 base for budget formulation given the uncertainty over what Congress will finally provide in appropriations. Consistent with this direction, the CFTC is using the $168.8 million FY 2010 funding level as the base for the FY 2011 budget.

For context on the impact of these numbers on the CFTC’s budget, it is important to recognize that the Commission reached low point in staffing for the CFTC in FY 2007. The agency had shrunk from a staffing level of 567 FTE in 1999 to 437 FTE in FY 2007—a 23 percent decline in staff while during the same period the futures and options markets increased five-fold. With support from the President and Congress beginning in 2008, the agency was able to begin rebuild its staff, reaching an authorized level of 650 FTE in FY 2010. That 650 FTE level gave the agency a staff that was modestly larger than it had in 1992 when it had the agency had a 592 FTE level and a high of 634 on board, and the markets were a fraction of what they are today.

Under the President’s FY 2011 budget request, growth for the agency was projected to continue up to a level of 864 FTE, the Continuing Resolution will leave the agency near the 650 FTE level.

The Commission has realigned it FY 2011 Budget to conform to the limitations of the FY 2011 Continuing Resolution. All hiring has been restricted. The CFTC hired only two employees since the end of FY 2010 and student employees working part-time were terminated at the end of the 1st quarter of FY 2011. All programs are managing their pre-Dodd-Frank and Dodd Frank responsibilities with current staff which is well below what is required to manage even pre-Dodd-Frank activities. The CFTC is of course complying with the government-wide freeze in cost-of-living-adjustment and some employee benefits programs have been substantially reduced or eliminated outright where legally permitted. The same is true for some advisory and assistance services related to human resources, and operations and logistics, and economic analysis and research. Program travel has been reduced approximately 50 percent. Even though technology is critical the CFTC’s efforts to oversee derivative markets, the Office of Information Technology Service’s (IT) budget has been reduced 36 percent in order to preserve existing staffing levels. The capital non-IT equipment budget and fixed equipment/construction budget has been zeroed out.

Crosswalk from FY 2011 to FY 2012
($ in thousands)

	FY 2011 Budget	FY 2012 Request	Change
Budget Authority ($000)	$168,800	$308,000	$139,200
Full-Time Equivalents (FTE)	667	983	316
Explanation of Change		FTE	Dollars
Current Services Increases: (Adjustments to FY 2011 Base)
To provide for the following changes in personnel compensation:
– Performance element of merit adjustment (formerly WIG) July 2012			217
– Performance element of merit adjustment (formerly WIG) July 2011 (annualization of)			720
– To provide for increase in incentive awards			188
– To provide for increased costs of personnel benefits			353
– To provide for increased costs of unemployment benefits			109
To provide for the following changes in non-personnel costs:			39,679
– Travel/Transportation ($1,899)
– Space Rental/Communications/Utilities ($6,902)
– Supplies/Printing ($396)
– All Services ($19,786)
– Equipment ($4,474)
– Building/Fixed Equipment ($6,222)
Program Increase: (Adjustments to FY 2012 Current Services)
– To provide for salaries and for 316 additional FTE		+316	61,664
– To provide for the following changes in non-personnel costs:			36,270
– Travel/Transportation($2,291)
– Space Lease ($786)
– Communications and Utilities ($383)
– Printing ($245)
– Other Supplies ($23,697)
– Supplies ($604)
– Equipment ($8,264)
Total Increases		+316	$139,200

 

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