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Education IT Spending To Rebound In 2008: Report

Spending for health care and public safety is expected to level off, according to a new Input study, with state and local educational technology getting the benefit.

W. David Gardner

September 13, 2005

1 Min Read

The state and local education IT market is expected to rebound in the fiscal year 2008 timeframe after government IT spending for health care and public safety levels off, according to a report released Tuesday from Input, a Reston, Va., governmental market research firm.

The market researchers said the local and state education market will likely experience little growth in the next two years, although it is expected to recover by FY08 and increase to $10 billion by FY10. The increase should represent a 45 percent growth.

Input said many K-12 programs cut by the Bush Administration have been restored by Congress with the result that the segment has weathered the trimming. “Technology vendors working within the state and local education market will need to remain patient for the next few years,” said James Krouse, manager of Input’s state and local market analysis unit, in a statement.

“Controlled spending and inadequate budgets will give way to more significant spending by FY08,” he added. “Additionally, we will see more noteworthy grant funding earmarked to support the ever-increasing federal mandates within the K-12 education market.”

Universities have been weathering the current cuts by increasing tuition and fees, the market research company said.

Krouse expects funding for education to shift back when a new federal administration takes over the White House.

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