The National Association of Insurance Commissioners’ 2009 budget has a shortfall requiring the organization representing state insurance commissioners to make cuts.

The organization had budgeted $73.1 million for operations this year, but revenues have not met projections, according to BestWeek.

Andrew Beal

With aspects of the 2010 draft budget still to be determined, NAIC Chief Operations Officer Andrew Beal said many details are not yet available. But he said the association has begun to slice into its current 2009 budget in anticipation of “a little bit of a shortfall.”

The organization has eliminated salary increases for the second half of this year and the first half of next year, has stopped new hiring and plans cuts to its travel budget, according to the publication. No layoffs and mandatory furloughs are currently under consideration, Beal said.

“The NAIC is not immune from the economic conditions of the marketplace,” Beal said told the publication.

NAIC President and New Hampshire Insurance Commissioner Roger Sevigny promised a 2010 budget that is “realistic, conservative and frugal.” The budget will be introduced at the NAIC’s fall national meeting near Washington, D.C., in September.