Two leading Democrats called the Securities and Exchange Commission budget passed by the Republican-controlled House Appropriations Financial Services Subcommittee Wednesday dangerous for retail investors and the economy.

The budget for the next federal fiscal year beginning October 1 keeps SEC funding at its current $1.4 million level and ignores an Obama administration request for an additional $300 million.  Most of the extra money was targeted by the White House to add 250 investment advisor examiners to increase beyond the recent 9 percent per year.

Appropriations Committee senior Democrat Nita Lowey of New York said the SEC has a desperate need for more funding and the Republican-passed budget could put mom and pop investors at risk.

The subcommittee’s ranking Democrat New York’s Jose Serrano warned not giving the financial regulator more resources increases the risk of another financial crisis.

No Republicans brought up the SEC at the subcommittee hearing on an appropriations bill for agencies that also included the Postal Service, the Internal Revenue Service and a host of others.

If recent history is a guide (and with the Congressional budget process, it frequently is), the full House will approve the subcommittee’s funding, the Senate will approve the Senate’s request and in December or January, a small SEC budge hike will be the result.

The agency is likely to go into the next budget cycle for several months with the budget at existing levels which actually amounts to a decrease in staff because of money spent on raises.