NAIC President Diane Koken, the Pennsylvania insurance commissioner, explained that the association has been able to realize "significant expense reductions from the prior year" by cutting costs or reallocating human and budget resources from "less essential to more essential projects and services."

"I'm pleased to report that we have cut expenses by $1.6 million overall, representing a 2.83 percent reduction from 2004," Ms. Koken said.

Significant revenue changes from 2004 to 2005 include:

? Database revenues: they are projected to go up by around $422,780, or 1.68 percent over the 2004 budget.

? Publications and subscriptions revenue: these will jump by $486,229, some 3.53 percent, from the 2004 budget.

? Services revenue, however, is budgeted to decrease by $859,612, or 8.83 percent.

? Investment income is projected to go up by $124,965, or 18.7 percent, from the 2004 budgeted level.

Significant expense changes from 2004 to 2005 include:

? Salaries: are budgeted to go up $1,112,288, or 4.5 percent, from the 2004 budget. The 2005 salary budget also includes the elimination of six full-time employee positions.

? Travel is budgeted to drop by $193,982, or 9.2 percent, from 2004.

? Professional services are budgeted to drop by $1,214,165, or 29.9 percent.