Stimulus drives state, local technology spending

State and local government technology contractors will find $4.5 billion dollars worth of opportunities in the American Recovery and Reinvestment Act (ARRA) as passed by the U.S. House, according to INPUT, an organization covering government business headquartered in Reston, Va.

The U.S. Senate version will reduce spending in the areas of education, law enforcement, and unemployment insurance.; yet, it will increase spending in the areas of broadband and health IT. Overall, INPUT researchers project $4.5 billion of technology spending, which is 9 percent of the grants with a technology component.

“The broadband rollout represents the largest portion of the likely state and local technology investment in both versions of the bill,” says Chris Dixon, manager of state and local industry analysis with INPUT. “Investments in facilities modernization, mass transit, and health IT will also drive technology spending at these levels. These priorities look to survive draft versions of the Senate compromise relatively unscathed. In fact, the Senate version, as it stands now, is more likely to increase the state and local technology spending by $1 billion dollars.”

“Fortunately for technology contractors, information technologies are integral to any modernization of public facilities—including schools—and mass transit systems,” says Dixon. “Increased security and efficiency is the key in these areas, and both are technology intensive outcomes. The same is true for health IT, where funding in both bills will drive significant investments for public safety net hospitals and clinics as well as Medicaid Management Information Systems.”