The air traffic control system kept breaking down because the agency had not replaced old equipment.
Ideally, schools need to replace equipment at least every four to five years, school technology directors agree.
Last year only half that much was spent for replacing equipment used up or worn out in the fighting.
In advanced cases, it may be necessary to replace equipment.
So will the potential return from replacing old equipment with newer, more efficient models.
Analysts say much of the investment last year was to replace and repair equipment.
"I'm replacing equipment I thought would last till 1991 or 1992."
The loss included a $550 million charge for replacing obsolete equipment.
The money replaced old equipment, some of which had been made in 1948.
After years of tight budgets, the department needs to replace old equipment, particularly police cars.