News
News
2/6/2006
05:15 PM
Connect Directly
RSS
E-Mail
50%
50%

Bush Proposes $64 Billion Federal IT Budget

The slight increase would mostly benefit civil agencies, with the Defense Department's budget remaining flat.

Government solution providers will have a few more dollars to compete for in 2007 if President Bush's proposed budget for $64.3 billion is approved by Congress. The slight increase will mostly benefit civil agencies, with the Defense Department's budget remaining flat.

President Bush proposed an IT budget of $30.5 billion for the Department of Defense, compared to the $30.4 enacted in fiscal year 2006; for civil agencies, he proposed $33.7, compared to $32 billion last year. Not surprisingly, most of the additional dollars were allocated to the Department of Homeland Security, with a proposed budget increase of $772 million compared to last year. Among the agencies that saw a decrease in proposed budget allocation compared to last year were the Department of Treasury and NASA.

"The government recognizes that using technology is not a discretionary line item; it's mandatory for the proper functioning of the government," says Rick Marcotte, president and CEO of Herndon, Va.-based DLT Solutions. "And I think they're right. Really, any government agency, regardless of size, that isn't using technology to better serve constituents is missing the boat."

In addition to defense and security priorities, Bush did mention public-school reform via an American Competitiveness Initiative, which "targets funding to advance technology, better prepare American children in math and science, develop and train a high-tech workforce, and further strengthen the environment for private-sector innovation and entrepreneurship."

That said, the initiative doesn't translate to additional dollars; the proposed IT budget actually decreased the amount allocated to the Department of Education from $407 million to $403 million.

Overall, President Bush proposed a $2.7 trillion budget, with a decrease in spending on Medicare of $36 billion during the next five years, a hold of overall discretionary spending below the rate of inflation and a cut in spending on nonsecurity discretionary programs below 2006 levels. The administration identified 141 programs that should be terminated or significantly reduced in size.

"Just because the President requests a [certain amount in the budget] doesn't mean it will be approved," says Stan Collender, managing director of financial advisory firm Financial Dynamics at the Coalition for Government Procurement's Winter Seminar. "The average member of Congress can't see or touch [technology]. If [they] have a choice of throwing money at IT or at something where a ribbon can be cut, it's a no brainer."

Comment  | 
Print  | 
More Insights
IT's Reputation: What the Data Says
IT's Reputation: What the Data Says
InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business really views IT's performance in delivering services - and, more important, powering innovation. Our results suggest IT leaders should worry less about whether they're getting enough resources and more about the relationships they have with business unit peers.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Government Tech Digest Oct. 27, 2014
To meet obligations -- and avoid accusations of cover-up and incompetence -- federal agencies must get serious about digitizing records.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of October 26, 2014 and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.