Homeland Security spending dissected

I just finished reading an interesting paper by Veronique de Rugy of the American Enterprise Institute for Public Policy Research. The paper is titled 'What Does Homeland Security Spending Buy?'. The study looks at the growth of Homeland Security-related spending and where that money is going. It points out some glaring problems in the funding allocation process as well as in the projects that get funded. Pork-barrel politics rather than a sound cost-benefit analysis founded on risk management principles appears to be driving investment decisions:

While the quantity of funds is significant [Total spending directed to Homeland Security activities (est.) for FY 2005 is $47 billion], the funds are not being allocated according to a plan that was devised by security experts... In keeping with the way Washington spreads federal taxpayers' money to the states,... DHS follows in part a formula set by Congress that provides every state with a guaranteed minimum amount of state grants regardless of risk or need. Specifically, the formula written into law by Congress into the Patriot Act after September 11th guaranteed each state 0.75% of the total amount appropriated to DHS for state terrorism preparedness grants... It amounts to 40% of the total pot of money being divided up equally among the states, regardless of size, risk or need... The political formulas used now to allocate the money disconnect the funding from the risk of being atacked.

After this 40% ... is allocated to states, the 60 percent left over is apportioned among states based on population, not on risk.

This spending forumla translates to a per-capita spending of $5.05 for New York State compared to $4.69 for California and $35.30 for Wyoming.

Another interesting/scary tidbit: 95% of TSA's 2005 budget for 2005 (which is $5.3 billion) is devoted to aviation security alone (you know, checking people's shoes, removing plastic knives from carry-ons, that sort of stuff).

That would leave about $250MM for the other stuff - securing the public transportation infrastructure, installing WMD detectors at borders and ports of entry, shipping container security initiatives, etc.