Big holes in the SEC's budget came to light in April, resulting in some employees being reprimanded and others put on administrative leave. In all, SEC officials said unplanned cost overruns might total $50 million through fiscal 2007.

Last week, the SEC's staff was told to put all nonessential travel, training and conferences on hold, effective immediately. Hiring for all but the most qualified candidates also is on the back burner.

"We're asking for fiscal austerity on everything, pretty much," Peter Derby, SEC managing executive for operations, said in a telephone interview Monday.

Congress authorized a record $913 million for the SEC in fiscal 2005. The SEC agreed to carry over $25 million to fiscal 2006, which starts Oct. 1, leaving it $888 million for the current year, on par with the Bush administration's proposal for SEC spending in fiscal 2006.

Real-estate cost overruns are a big part of the problem. The SEC is in the process of moving to a new Washington headquarters and recently relocated its offices in Boston and New York. Derby said higher-than-expected security and building costs for the new offices could run between $48 million and $50 million over the next two-and-a-half years.

A few employees in the SEC's Washington headquarters responsible for facilities budget planning underestimated building costs in Boston and didn't calculate any costs for New York, according to Derby. Controls in that area have been tightened since then, said Derby. He said some of the employees have been reprimanded or placed on administrative leave, but declined to comment further, describing it as a sensitive personnel matter.

The SEC's budget crunch surprised some lawmakers. Senate Banking Committee Chairman Richard Shelby, R-Ala., who chairs the Senate Appropriations subcommittee that oversees funding for the SEC, wasn't aware of the belt-tightening, said spokesman Andrew Gray.

"Sen. Shelby has told the SEC on numerous occasions that he is receptive to giving them the budgetary authority needed to complete their mission," said Gray. "Our indication has been that their funding is adequate."