Monday, October 23, 2006

Circling the Statehouse

As Federal Spending Tightens, Contractors Seek Out New Clients

At a time when federal spending is slowing , state and local governments -- flush with cash from rising property-tax revenue and a generally healthy national economy -- are an increasingly juicy target for government contractors. Many have flocked to the state and local market after years on the sidelines, following the money being poured into information-technology projects ranging from humdrum computer system upgrades to innovative wireless networks.

It is rare for states to outspend the feds and with the housing crash upon us it is naive to suppose localities will be flush. This is a very bad sign for government contractors.

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