Budgets: Chapter 2. Board of Governors
The Board of Governors operates under a two-year budget. The budget for 2008-09 was approved in December 2007 and subsequently amended in April 2009.
Board of GovernorsThe Board's approved operating budget for 2008-09 was originally set at $706.3 million--$526.6 million (74.6 percent) for salaries and benefits and the remaining $179.7 million for goods and services (table 2.1; also see appendix C). The Board's approved capital budget for 2008-09 was $47.8 million, representing funds to be used primarily to replace or upgrade computing systems, renovate aging facilities, and expand Office space to accommodate workforce growth.
|Operational area or Office of Inspector General||2006-07 (budgeted)||2006-07 (actual)||2008-09 (budgeted)||2008 (actual)||2008 actual expenses as a percent of the 2008-09 budget|
|Monetary and economic policy||143.1||137.9||169.1||78.1||46.2|
|Supervisory, regulatory, and legal services||206.4||200.5||232.0||117.1||50.5|
|Federal Reserve System policy direction||55.6||55.9||66.3||31.0||46.7|
|Support and security services||195.4||198.8||236.9||119.6||50.5|
|Total, Board operations||609.5||601.4||706.3||345.9||49.0|
|Office of Inspector General||10.2||9.5||12.7||5.3||42.1|
Note: Components may not sum to totals and may not yield percentages shown because of rounding.
1. Includes Office of Inspector General. Return to table
In 2009, $30.1 million, or 4.3 percent, was added to the Board's operating budget, bringing the two-year budget to $736.4 million. The increase in operating funds was driven by the extraordinary demands put on Board staff, Board operations, and technology support related to the financial crisis. Demands for information and technology and general services support have increased in order to provide real-time analysis and make changes to reports frequently based on new or revised regulatory and lending practices. There have been no changes to the Board's capital budget.
Office of Inspector GeneralIn keeping with its statutory independence, the Office of Inspector General (OIG) prepares its proposed budget apart from the Board's budget and presents it directly to the Chairman of the Board of Governors for Board members' consideration. The OIG's 2008-09 operating budget was $12.7 million. During 2009, an additional $1.3 million was added, bringing the two-year budget to $14.0 million. The capital budget increased by $11,000.
Authorized PositionsAt the beginning of the 2008-09 budget cycle, the Board had 2,041 authorized positions (table 2.2). The number of authorized positions for the OIG was 37.
To meet increased workload demands, the Board added 39 positions in 2008. In 2009, the Board added another 63 positions, bringing the total authorized positions to 2,143. The OIG's total authorized positions remained at 37 during 2008, but 8 positions were added during 2009.
|Operational area or Office of Inspector General||Position count|
|2006-07 (initial)||2006-07 (ending)||2008-09 (initial)||2008 (ending)|
|Monetary and economic policy||466||467||481||484|
|Supervisory, regulatory, and legal services||567||577||576||585|
|Federal Reserve System policy direction||173||176||179||179|
|Support and security services1||770||805||805||832|
|Total, Board operations||1,976||2,025||2,041||2,080|
|Office of Inspector General||36||36||37||37|
1. Includes summer interns and youth positions and positions that support the Federal Financial Institutions Examination Council for processing data collected under the Home Mortgage Disclosure Act and the Community Reinvestment Act. Return to table
… Not applicable. Return to table
Areas of RiskDespite careful planning, future developments could necessitate resources beyond those currently approved. Examples of such developments include:
- significant changes in or shocks to the economy or financial system that create a material increase in workload,
- heavier workload required by laws, decisions to expand or modify central bank operations, or compliance requirements,
- pressure in key areas requiring additional salary or benefit packages in order for the Board to remain competitive, and
- an unforeseen external event requiring additional security or contingency enhancements.