TrendIncreasing investment in ground transportation security
Since 9/11, the U.S. spent more than $24 billion on aviation security, but mere $500 million on ground transportation security; Congress wants to redress this imbalance
Yesterday we marked the two-year anniversary of the 7/7 attacks on London transportation, so this is an appropriate occasion to note that Dallas, Texas-based DRI Corporation (you may remember it as Digital Recorders) (NASDAQ: TBUS), a specialist in digital communications technology for the transportation and security markets, says that federal funding for domestic transportation and transit security programs appears to be making gains in Congress. Not a moment too soon, either: Since 9/11, the United States spend more than $24 billion on aviation security, but a mere $500 million on ground transportation security. The American Public Transportation Association (APTA) says that there is a need for a one-time investment of $6 billion to upgrade and secure ground transportation in the United States, and that following this investment there would be a need for $800 million annually for training personnel and upgrading equipment. The Bush administration, however, appears to believe that if the $6 billion investment is needed, it should come from state and local sources, and it has allocated only $175 million for ground transportation security in the proposed FY2008 DHS budget for the coming year.
Congress is questioning the administration’s priorities, and DRI took note.
“Given the recent steps taken by committees in both the U.S. House of Representatives and the U.S. Senate, it appears that transit funding is being favorably considered on Capitol Hill,” said David Turney, the company’s chairman, president, and CEO. “We applaud the increases under consideration and note that year-over-year transit funding increases could be in the area of 8.4 percent and year-over-year transit security funding increases could be approximately 45 percent…. such funding increases tend to drive transit market spending and create additional demand for DRI’s transit communications equipment.”
The numbers
Transportation funding: According to APTA, the House Subcommittee on Transportation, Housing and Urban Development and the House Committee on Appropriations approved the FY2008 Transportation Appropriations bill. Subcommittee chairman John Olver (D-Massachusetts) and ranking member Joe Knollenberg (R-Michigan) announced during the mark up that the bill fully funds the federal transit program, providing at least $9.731 billion, or approximately 8.4 percent more than the FY2007 amount.
Transit security funding. APTA also said that the House recently passed a bill which includes $400 million for transit, passenger, and freight rail security programs. According to APTA, the Senate Appropriations Committee also approved $400 million for transit security programs. If enacted, APTA said the $400 million funding level would represent an increase of $125 million, or 45 percent, over the amount provided in FY2007.
