Stimulus

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AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009

Of the approximate $786.8 billion available in the economic stimulus package, an estimated $308 billion will be discretionary spending by government agencies on education, transportation, military construction, defense, homeland security and more. However, approximately $55 billion in technology spending is buried in other line items. The most dominant areas of interest to Government Source partners include state and local education, new construction, healthcare IT, public safety, broadband spending and teleworking.

Helpful information about the ARRA can be found on the Recovery website that is dedicated to providing information about the stimulus package.

INVESTMENTS BY STATE

Check out this map that shows investments that are allocated by state in the ARRA stimulus program.

AREAS OF INTEREST TO GOVERNMENT SOURCE PARTNERS

State and Local Government (approx. $53 billion)

Distance Learning Initiatives
Telephony Solutions (focused on K12 districts)
Public Safety
Emergency Operations Centers
Emergency Notification Solutions

New Construction (approx. $40 billion)

Many new healthcare and government centers, as well as office establishments, will need IT and professional services support.

Healthcare IT (approx. $19 billion)

The focus is shifting away from automating the business of medicine to the clinical practice of medicine, and the emphasis is now on informatics.
Healthcare centers are seeking “ready-to-go” IT projects that prevent medical mistakes, provide better patient care, promote preventative care, evaluate the most cost-effective healthcare treatments and drive cost-savings efficiencies.

Public Safety (approx. $4 - $13.8 billion)

NG 911, Citizen Service
Emergency Operation Centers (EOC)
Emergency Notification Solutions
Increased social service programs that require resources to administer
Technology investments in infrastructure, contact center, IVR & web applications

Broadband Spending (approx. $7.2 billion)

City / County-wide network deployments
IP Telephony & Disaster recovery initiatives
Libraries that meet requirements for public computer centers

INDUSTRY ANALYSIS

Fiscal stimulus programs do present opportunities for IT vendors. In the US, the federal stimulus for IT will offset cuts at the state and local levels. Much of IT spending from stimulus programs are part of larger initiatives to improve healthcare, strengthen research and development and innovation, support energy conservation and alternative energy, or upgrade government infrastructure.