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Cost and Finance of Elections. Voting Technology Conference Caltech Friday, March 30th, 2001. Danaher Corporation. $3.8B Fortune 500 and S&P 500 NYSE Company Compete in two major business segments: Process and Environmental Controls Tools and Components 19,000 Associates in 25 Countries

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cost and finance of elections

Cost and Finance of Elections

Voting Technology Conference

Caltech

Friday, March 30th, 2001

danaher corporation
Danaher Corporation
  • $3.8B Fortune 500 and S&P 500 NYSE Company
  • Compete in two major business segments:
    • Process and Environmental Controls
    • Tools and Components
  • 19,000 Associates in 25 Countries
  • Driven by Danaher Business System
  • Wall Street Journal “Honor Roll” for consistent stock performance
  • 60% of Danaher companies are #1 in their respective served markets
background
Background
  • Experience with State/Municipal WAN/LAN Implementations
    • DE, Columbus, Philadelphia in 2001 - 2002
  • NASED Certified - Software and Hardware
  • Turn-Key Election Solution Provider
  • Automation and Process Simplification
  • Training Programs From DHR
    • Network Administration
    • Database Management
    • Election Officials
    • Poll Workers
    • Public Education
annual spending per election
Annual Spending per Election
  • Costs broken into two categories
    • Fixed/Permanent Costs
      • Infrastructure
      • Election Officials
      • Equipment, Telecommunications, etc.
    • Variable Costs
      • Function of number of Voters
      • Function of type of election equipment
cost as a function of type of equipment
Cost as a function of Type of Equipment

Security concerns, infrastructure requirements and type of internet voting (home vs. central location makes it difficult to estimate voting costs

costs as a function of county size and demographics
Costs as a function of County Size and Demographics
  • Type of equipment does make a difference
    • Speed of gathering and tabulating results impact costs ie network connectivity infrastructure
    • Speed of results less of an issue for smaller communities
    • Accuracy and reliability most important issue among jurisdictions
  • Fixed infrastructure costs easier to justify in larger counties and municipalities
    • Easier to spread cost over larger number of voters
role of federal government
Role of Federal Government
  • Government subsidies to improve voting systems are appropriate
  • New Administrative Branch may be needed to monitor eligibility, funding and financing
  • Must allow local and state governments to dictate type of equipment process
  • A centralized “heavy-handed” approach is not likely to work
      • Local and State governments will move at their own pace
      • Trying to force large numbers of conversions in a short period of time will likely result in chaos with mixed results
      • Funding estimates have ranged from $1B to $2.5B over the next decade
election equipment industry
Election Equipment Industry
  • Generally in good health
    • Few large players and a number of smaller regional niche players
    • Consolidation in industry is expected to continue
    • Critical mass necessary to effectively service projected increase in demand
    • Lumpy nature of demand makes industry generally less attractive
    • Barriers to entry limit field
    • Absorption rate of bubble difficult for one or two companies to dominate industry
funding strategies for the long run
Funding Strategies for the Long Run
  • Federal Fund Matching
    • Local and State Government bear some of the cost
      • New Mexico, South Carolina, Delaware
      • Interest free loans, General Fund allocations
  • Complete Systems to be considered
    • Registration, equipment, IT infrastructure, etc.
  • A degree of autonomy for local and state governments must be preserved
  • Imposing one national system not likely to succeed