Terrorism - The Cost Of Keeping Us Safe

On October 8, 2001, Executive Order 13228 established the Office of Homeland Security (OHS) and the Homeland Security Council. The mission of the office would be "to develop and coordinate the implementation of a comprehensive national strategy to secure the United States from terrorist threats of attacks." It was envisioned that this would become a cabinet level department. Bush administration officials have called the creation of this new department the most dramatic change in the federal government since World War II. This new department would have a budget of $37.4 billion and pull together 169,000 employees from the federal workforce.

The table on the next page details the budget for various programs and shows the dramatic increases over the previous year's budget.¹ It is quite likely that even more funds will be devoted to security. What area will receive the most funding? Border security. Statistics from OHS point to the formidable undertaking here. The United States shares a 7,500 mile land and air border with Canada and Mexico. Every year 500 million people are admitted into this country; 330 million are non-citizens. 7,500 foreign-flagged ships make 51,000 calls in ports annually. 16 million cargo containers enter these ports annually. How is security handled? The Immigration and Naturalization Service has no way to track foreigners who overstay their visas. Only 2-3% of those 16 million containers are screened at ports.

The White House's Proposed Budget for Fiscal Year 2003

	($ Billions)	Increase Over 2002
First responders	0.3	1066.6%
Bioterror-related	5.9	321.4%
Information technology	0.7	250.0%
Aviation security	4.8	220.0%
Border security	10.6	20.4%
Other homeland security	12.2	64.8%

Who will receive the greatest increase in funding? "First responders," which includes state and local police, firefighters, and emergency medical professionals. They are the first on the scene, and most capable of saving lives and treating casualties. The loss of life among New York police, firefighters, and port authority officers must have played a significant role in such a dramatic increase in funding. But many cities, recognizing their need to be more prepared, are looking at ways to better train emergency personnel or provide upgraded equipment or improve communications. The level of preparedness varies by city, however.

Information technology is set to increase 250% over the 2002 budget. This category is particularly vital. Just as terrorists have exploited technology to suit their needs, so too do law enforcement officials need to upgrade their computer and communication methods to track them. The FBI in recent years came under fire for its jungle-like bureaucracy and lack of updated computer systems. Ron Kessler, who has written about both the FBI and CIA, made this recent observation: "The fact is the FBI literally had computers that no one would have taken even as a donation to a church. When they had to send a photo of a suspect to another office, they would actually send it to their home computer or to a police station because they couldn't download it at the FBI." The updates on technology are not just for investigations. Computer networks need to be protected from cyber-attacks. Money is needed for new forms of high-tech security, such as voice or face scanning technology.

Funding for aviation security is set to increase from $1.5 billion to $4.8 billion for fiscal years 2002 and 2003. Since the attacks, the airlines have been struggling to recover financially as well as implement the changes requested by the government. The plan to hire 33,000 federal airport screeners by November 19, 2002 is far behind schedule. The plan to install 1,100 new explosive screening machines and screen all checked baggage by November 2002 now appears impossible — indeed has been shoved out a year.

Who will provide this new software and technology? Big business. The security industry is booming. Companies such as 3M, Raytheon, Visionics, and Northrop Grumman are providing sensors, face scanning devices, and other high-tech equipment. When Transportation Security Norman Y. Mineta made over $92 million available to ports to improve security, American Shipper describes it as a "dinner gong" sounding to companies that sell, tag and track cargo containers. Even the director of homeland security, Tom Ridge, recognizes the role of corporate America when he made these comments to the Electronic Industries Alliance: "The entrepreneurial spirit is a potent weapon against terrorism. We look to your enlightened self-interest. We want you to do well by doing good." The new technologies can make a difference. With new software and X-ray machines, New Jersey's Newark Elizabeth Seaport now scans 10% of its risky cargo, up from 2% a year ago. Work remains to be done, however. Nor is it just the government that will need to be protected; billions of dollars in security measures will be needed for private America as well.

How ultimately will the government handle the security issue? The first step in solving problems is simply to identify them, of course. Some important steps have been made. Intelligence agencies are sharing information on terrorists with law enforcement; indeed, the FBI and CIA, which once worked separately are now reportedly sharing information.

Will the OHS simply put Band-Aids on real problems? Will we have the kind of inefficiency and overlap of which the government is so often accused? While more than 40 federal entities are included in the structure of the OHS — including Border Patrol, the Immigration and Naturalization Service, Transportation Security Administration and the Secret Service — some have wondered why the FBI and CIA have been omitted. The USA Today reports that in 1998 the Justice Department gave grants to local and state governments to combat terrorism. As of March 2002, $243 million had yet to be spent. Nearly $1 million was spent on equipment that couldn't be used because it wasn't distributed, was missing, or because no one was able to operate it. Nor did the Justice Department develop a standard to measure if the governments were able to improve their ability to handle terrorist attacks.

Sources: "Sluggish Sept. 11 Response Leaves Holes in Security." USA Today, May 29, 2002, p. 12A; "Securing the Homeland Strengthening the Nation." Retrieved from http://www.whitehouse.gov; "A huge government reorganization for homeland security." Retrieved from http://www.cnn.com; Dreazen, Yochi J. "Spreading the Wealth." Wall Street Journal, March 28, 2002, p. R7; "High-Tech is Starting to Kick In." BusinessWeek, September 16, 2002, p. 30; Michel Martin. "Spy vs. Cop." Retrieved from http://www.abcnews.com; Steven Roberts. "Office of Homeland Security Facing Daunting Challenges." National Defense, April 2002, p. 48. "America's Biggest Job." BusinessWeek, June 10, 2002, p. 34; "Chasing the Security Dollar." American Shipper, August 2002, p. 70. Jim Drinkard. "Businesses See Bonanza in Homeland Security." USA Today, July 10, 2002.