Agencies' security spending may rise 12 percent a year

Presidential initiatives on homeland security are forecast to increase spending in that area from $32 billion to $50 billion, or about 12 percent a year, over the next five years, a private-sector analysis of budget figures show, and the spending represents "significant" opportunities for the information technology industry.

Opportunities in various agencies are forecast for such tasks as hiring and training security personnel, developing explosion-detection equipment, modernizing distress systems, improving cybersecurity, creating real-time identification systems, and fostering the sharing and interoperability of data, according to the preliminary forecast presented to industry on Friday by the Government Electronics and Information Technology Industry Association.

The analysis examined the funding available for homeland security based on five presidential initiatives. It excludes some homeland defense spending and is subject to change based on efforts in Congress and other factors.

The report analyzed three budget laws or series of laws--the fiscal 2002 appropriations, the first fiscal 2002 emergency spending measure and the second fiscal 2002 emergency spending law enacted after the Sept. 11 terrorist attacks--and President Bush's fiscal 2003 budget request.

The five initiatives it covered were: supporting "first responders" to emergencies, using 21st-century technology to secure the homeland, aviation security, border security and bioterrorism defense. The biggest gainers were border security and first responders, GEIA found.

Six departments or agencies would receive 85 percent of the funding proposed since Sept. 11: the Defense, Health and Human Services, Justice, Transportation and Treasury departments, and the Federal Emergency Management Agency.

GEIA had nearly completed the months-long study when Bush announced a proposal to create a Homeland Security Department. The department would consume the majority of homeland security funds, the group's study found.

"We are pleased to have begun the process of forecasting homeland-security market opportunities for our industry," GEIA President Dan Heinemeier said Monday.

GEIA, which conducts numerous public and private-sector interviews in the development of its report, found that homeland security IT needs include new testing and research centers and new anti-terrorism equipment and technologies. The technologies might include real-time identification of terrorists, integration of collaborating systems, new technologies for inspection, identification and tracking of shipments for materials, and infrastructure protection.

Needed technologies include those for providing digital surveillance, data mining, advanced encryption, "smart cards," sensors, and early-warning and profiling tools.

"By forecasting budgets and business opportunities," Heinemeier said, "our goal is to help industry better prepare to meet emerging government needs and enhance our national ability to response to the homeland security challenge."