Department of the Treasury

Financial Stability Oversight 

Council

Congressional Budget 

Justification and Annual 

Performance Report and Plan

FY 2019
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Table of Contents

Section I – Budget Request................................................................................................................3

A – Mission Statement .....................................................................................................................3

B – Summary of the Request............................................................................................................3

1.1 – Resource Detail Table .............................................................................................................3

1.2 – Budget Adjustments Table ......................................................................................................5

D – Budget Increases and Decreases Description............................................................................5

1.3 – Operating Levels Table ...........................................................................................................6

E – Appropriations Language and Explanation of Changes ............................................................6

F – Legislative Proposals .................................................................................................................6

Section II – Annual Performance Plan and Report ........................................................................7

A – Strategic Alignment...................................................................................................................7

B – Financial Stability Oversight Council .......................................................................................7

2.1.1 – Financial Stability Oversight Council Annual Performance and Report .............................7

C – FDIC Reimbursement................................................................................................................7

2.1.2 – FDIC Reimbursement Annual Performance Plan and Report .............................................7
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Section I – Budget Request

A – Mission Statement

To identify risks to the financial stability of the United States, to promote market discipline, and to 

respond to emerging threats to the stability of the U.S. financial system.

B – Summary of the Request

The Financial Stability Oversight Council (FSOC or Council) is estimating an FY 2019 funding

level of $11.054 million, which represents a straight-line of its FY 2018 estimated funding 

level. This request includes $6.892 million for the FSOC Secretariat and the Office of the 

Independent Member with Insurance Expertise, and $4.162 million to reimburse the Federal 

Deposit Insurance Corporation (FDIC) for certain expenses as required by law. The Budget also 

proposes to impose appropriate Congressional oversight of Council functions by subjecting its

activities to the normal appropriations process beginning in FY 2020.

1.1 – Resource Detail Table

Dollars in Thousands

Financial Stability Oversight Council FY 2017 FY 2018 FY 2019 FY 2018 to FY 2019

Budgetary Resources Actual Estimated Estimated Change % Change

 FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Assessments1 $10,584 $8,590 $8,147 ($443) -5.15%

Interest $75 $57 $52 ($5) -9.00%

Recovery of Prior Year Paid Obligations $9 $9 $8 ($0) -5.56%

Recovery of Prior Year Unpaid Obligations $458 $454 $499 $44 9.78%

Restoration of Sequestration Reduction $854 $735 $571 ($165) -22.40%

Unobligated Balances from Prior Years2 $9,716 $8,839 $6,831 ($2,008) -22.72%

Total Revenue/Offsetting Collections $21,696 $18,685 $16,108 ($2,577) -13.79%

Expenses/Obligations

FSOC 17 $5,655 18 $6,892 18 $6,892 0 $0 0.00% 0.00%

FDIC 0 $5,126 0 $4,162 0 $4,162 0 $0 0.00% 0.00%

Total Expenses/Obligations 17 $10,781 18 $11,054 18 $11,054 0 $0 0.00% 0.00%

Sequestration Rescission ($735) ($571) $0 $571 

Net Results $10,180 $7,060 $5,054 ($2,006) -28.41%

1) The FSOC and FDIC reimbursements are financed through assessments on certain bank holding companies and nonbank financial 

companies. See Treasury’s final rule and interim final rule governing the Assessments process: 

https://www.financialresearch.gov/strategy-budget/files/final_rule_interim_final_rule.pdf

2) The funding for the first six months of operating expenses and 12 months of capital expenses are reflected in the unobligated balance 

line. This is because the first assessment covering the fiscal year beginning October 1 is actually collected on September 15 of the prior 

fiscal year. This makes it appear as though large amounts of unobligated balances went unused, when in fact very little, if any, of those 

balances were from under execution. 

C – Vision, Priorities, and Context

The Council is chaired by the Secretary of the Treasury and consists of 10 voting members and five 

nonvoting members who serve in an advisory capacity. The Council brings together the expertise 

of the federal financial regulators, an insurance expert appointed by the President, and state 

regulators. 
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The Council’s three statutory purposes are to:

1) identify risks to the financial stability of the United States that could arise from the material 

financial distress or failure, or ongoing activities, of large, interconnected bank holding 

companies or nonbank financial companies, or that could arise outside the financial services 

marketplace;

2) promote market discipline, by eliminating expectations on the part of shareholders, creditors, 

and counterparties of such companies that the Government will shield them from losses in the 

event of failure; and

3) respond to emerging threats to the stability of the U.S. financial system.

The Council has a statutory duty to facilitate information sharing and coordination among the 

member agencies regarding domestic financial services policy development, rulemaking, 

examinations, reporting requirements, and enforcement actions. Over the next year, the Council 

will continue to monitor the financial system for emerging risks and facilitate interagency 

cooperation to identify and analyze emerging threats. The Council will also continue to facilitate

information sharing and interagency coordination with respect to various regulatory initiatives.

Over the last year, the Council continued to identify and monitor potential risks to U.S. financial 

stability; fulfilled its statutory requirements, including transmission of its seventh annual report to 

Congress; and served as a forum for coordination among member agencies. The Council continues 

to evaluate its nonbank financial company determinations and financial market utility designations. 

In FY 2017, the Council rescinded one nonbank financial company determination.

By law, the Council is required to convene no less than quarterly, but the Council has convened on 

a more frequent basis to share information on key financial developments, coordinate regulatory 

implementation, and monitor progress on recommendations from the Council’s annual reports. In 

FY 2017, the Council convened seven times. The Council will continue to remain focused on 

identifying near-term threats and addressing structural vulnerabilities in the financial system. 

Transparency into Council work has routinely been provided through an annual report to Congress, 

periodic Congressional testimony on Council activities and emerging threats to financial stability, 

and regular communications with the public about Council activities and decisions.

The Council is an executive agency and is not an office or bureau of the Department of the Treasury

(Treasury). However, by law, the Council’s expenses (and, indirectly, FDIC reimbursements) are 

considered expenses of the Office of Financial Research, an office within Treasury.

FDIC Reimbursement

By law, the Council’s expenses include reimbursement of certain reasonable implementation 

expenses incurred by the FDIC in implementing Orderly Liquidation Authority. The FDIC must 

periodically submit requests for reimbursement to the Chairperson of the Council, who shall arrange 

for prompt reimbursement to the FDIC. FDIC expenses are for rule writing and resolution 

planning.
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1.2 – Budget Adjustments Table

D – Budget Increases and Decreases Description

Program Decreases........................................................................-$77,000 / 0 FTE

Administrative Cost Savings -$77,000 / 0 FTE

The Council proposes to identify further savings through reductions in administrative costs.

Program Increases..........................................................................$77,000 / 0 FTE

Pay Annualization $77,000 / 0 FTE

To cover the FY 2019 cost of the January 2018 pay-raise.

Financial Stability Oversight Council FTE Amount

FY 2018 Estimated 18 $11,054

Changes to Base:

Total FY 2019 Base 18 $11,054

Program Changes:

Program Decreases: 0 ($77)

Administrative Cost Savings 0 ($77)

Program Increases: 0 $77

Pay Annualization 0 $77

Subtotal Program Changes 0 0

Total FY 2019 Estimated 18 11,054

Dollars in Thousands
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1.3 – Operating Levels Table

1

Includes FDIC reimbursement.

E – Appropriations Language and Explanation of Changes

The FSOC receives no appropriations from Congress.

F – Legislative Proposals

The Budget proposes to impose appropriate Congressional oversight of Council functions by 

subjecting its activities to the normal appropriations process beginning in FY 2020.

Dollars in Thousands

Financial Stability Oversight Council FY 2017 FY 2018 FY 2019

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 2,204 2,432 2,500

11.3 - Other than full-time permanent 171 170 164

11.5 - Other personnel compensation 60 60 57

11.9 - Total personnel compensation 2,435 2,662 2,721

12.0 - Personnel benefits 647 656 674

Total Personnel and Compensation Benefits $3,082 $3,318 $3,395

21.0 - Travel and transportation of persons 27 29 26

24.0 - Printing and reproduction 13 13 11

25.1 - Advisory and assistance services 252 265 256

25.2 - Other services from non-Federal sources 11 12 13

25.3 - Other goods and services from Federal sources1

6,961 6,973 6,926

26.0 - Supplies and materials 403 411 395

31.0 - Equipment 32 33 32

Total Non-Personnel $7,699 $7,736 $7,659

Subtotal New Budgetary Resources $10,781 $11,054 $11,054

Budget Activities: Column1 Column2 Column3

 FSOC 5,655 6,892 6,892

 FDIC 5,126 4,162 4,162

Total Budgetary Resources $10,781 $11,054 $11,054

FTE 17 18 18
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

With the publication of the Department of the Treasury’s Strategic Plan for FY 2018 - 2022, 

Treasury will work in FY 2018 to baseline its performance against the new strategic objectives. 

This could result in additional changes to performance measures in the FY 2020 Budget.

The FSOC supports Treasury’s Strategic Plan FY 2018-2022 as follows:

 Goal 1: Boost U.S. Economic Growth

 Goal 2: Promote Financial Stability

B – Financial Stability Oversight Council

($6,892,000 from Assessments): 

There are no measures specified for managing Council performance at this time. Information on the 

Council is provided on www.treasury.gov, www.fsoc.gov, and member agency websites to provide 

transparency and accountability.

2.1.1 – Financial Stability Oversight Council Annual Performance and Report

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2

Expense/Obligations $5,679 $7,660 $6,236 $7,157 $5,655 $6,892 $6,892 

Budget Activity Total $5,679 $7,660 $6,236 $7,157 $5,655 $6,892 $6,892 

FTE 23 23 22 22 17 18 18

C – FDIC Reimbursement

($4,162,000 from Assessments): 

Certain FDIC expenses are treated as expenses of the Council. For additional detail, see above.

2.1.2 – FDIC Reimbursement Annual Performance Plan and Report

Dollars in Thousands

 Resource Level FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Actual Actual Actual Actual Actual Estimated Estimated

Column1 Column32 Column4 Column5 Column6 Column7 Column8 Column2

Expense/Obligations $6,327 $11,592 $7,628 $6,571 $5,126 $4,162 $4,162 

Budget Activity Total $6,327 $11,592 $7,628 $6,571 $5,126 $4,162 $4,162 

FTE 0 0 0 0 0 0 0