State, Local Real ID Spending May Reach $2.5 Billion Through 2012
State, Local Real ID Spending May Reach $2.5 Billion Through 2012
Compliance with Real ID Act of 2005 to drive spending
State and local government spending on Real ID initiatives is estimated to be $2.5 billion through 2012, according to a report released today by INPUT, the authority on government business. The major driver behind the markets growth over the next six years is the need for states to comply with the Real ID Act of 2005s new standards for issuing drivers licenses and identification cards. The new standards require potential changes to state systems applications and the management of information tied to standardized identification systems across jurisdictions.
The Real ID Act gives states three years, until May 11, 2008, to implement the new standards. According to the law, after that date, the federal government will no longer recognize drivers licenses and identification cards from states that do not meet the minimum standards. This would force citizens of states that did not comply to carry their passport to gain entry into courts, airports, and other federal locations because their license would no longer be accepted as a valid form of identification.
Varying levels of commitment, progress, and spending have been seen across the states, but clearly, fifteen months after the Real ID Act of 2005 was passed, there has been more talk than action in terms of implementation, says James Krouse, acting director, public sector market analysis at INPUT. Once Department of Homeland Security (DHS) guidance is published and adequate funding is released, INPUT expects vendors will begin to see traction in the contract area.
Although spending is expected to increase dramatically as the 2008 deadline nears, the timeframe to fully implement Read ID is likely to change. Critical regulations from DHS have been delayed and conflicting cost estimates between the Congressional Budget Offices report and the states are further complicating the issue. The National Governors Association (NGA) and National Conference of State Legislatures (NCSL) will be releasing their official cost estimates for Real ID in the coming weeks and the numbers are expected to be staggering. If states continue to shoulder the majority of the costs, INPUT anticipates a protracted implementation that will go far beyond the current 2008 deadline.
Barring another historic event such as 9/11, it is unlikely the federal government will be able to muster the funding or the public support to force swift implementation of Real ID, adds Krouse. But, if the anticipated adequate funding becomes available, INPUT projects significant contract opportunities for vendors through 2012.
About INPUT
INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,200 members, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com .
