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In October 1988, the Congress enacted the Defense Authorization Amendments and Base Closure and Realignment Act of 1988, which established a bipartisan Commission on Base Realignment and Closure (BRAC). The purpose of the Commission was to review all military installations inside the United States and recommend which of them to close and consolidate. That Commission and its successors have completed their work and the Congress has authorized the Department of Defense (DoD) to carry out their recommendations. DoD has closed about half of the major installations authorized by the Congress, and will complete closing the remaining bases in about 2001.

This paper, prepared at the request of the Senate Armed Services Committee, examines the base realignment and closure process and provides an interim assessment of DoD's progress to date. It compares reductions to the base support structure with other measures of the defense drawdown as indicators of proportionality within the overall defense drawdown. It also examines DoD's effectiveness in carrying out BRAC procedures and decisions and addresses significant issues concerning the reuse of former military property. Data about the local economic and environmental impacts of BRAC actions highlight areas of major concern to the Congress, and a discussion of DoD's estimates of costs and savings outlines the need for near-term spending in order to achieve long-term savings. In keeping with the Congressional Budget Office's (CBO's) mandate to provide objective analysis, the study makes no recommendations.

Wayne Glass of CBO's National Security Division prepared the paper under the general supervision of Cindy Williams and Neil M. Singer. The author gratefully acknowledges the invaluable assistance of CBO colleagues Shaun Black, Sheila Roquitte, and Doug Taylor, who provided assistance in collecting, analyzing, and presenting the data. The author also wishes to thank David Berteau for reviewing the text and providing suggestions for improvement.

Sherwood Kohn edited the manuscript. Marlies Dunson provided editorial assistance, and Judith Cromwell prepared the paper for publication.

June E. O'Neill
Director
December 1996
 
 

SUMMARY

I - INTRODUCTION

II - CLOSING MILITARY BASES: ORIGINS AND PROCEDURES OF THE BASE REALIGNMENT AND CLOSURE PROCESS

• Key Elements in Closing and Realigning Bases Effectively

III - COMPARING DEFENSE CUTBACKS WITH BASE CLOSURES: HOW MUCH IS ENOUGH?

• Dimensions of the Defense Drawdown
• Base Realignments and Closures: What Has Been Done?
• Could Additional Defense Facilities Be Closed?

IV - PUTTING BASE REALIGNMENT AND CLOSURE INTO PRACTICE: PROGRESS TO DATE

• Is the BRAC Process on Schedule?
• Is DoD Carrying Out BRAC Effectively?
• How Will Former Military Bases be Used?
• What Have DoD and the Congress Done to Carry Out BRAC More Effectively?

V - MAJOR CONCERNS IN CARRYING OUT BRAC: ITS EFFECT ON PEOPLE, COMMUNITIES, AND THE ENVIRONMENT

• The Impact of Closing Bases: Who Is Hit and How Hard?
• Other Potential Effects on Local Economies
• Federal Assistance to Communities and Displaced Workers
• Environmental Issues at Closing Bases

VI - THE COSTS AND SAVINGS OF CLOSING AND REALIGNING BASES

VII - CONCLUSION
 

TABLES
1.	U.S. Military Force Structure
2.	Selected Statutory Deadlines for Transferring Surplus BRAC Property
3.	Total Number of Major Base Closures from BRAC I Through BRAC IV By State and U.S. Territory
4.	Top 10 States Gaining and Losing Jobs As a Result of BRAC Actions
5.	Impact of BRACs On Gaining and Losing Jobs in Top 10 States As a Percentage of State Employment
6.	Potential Increase in Unemployment Resulting from BRAC III Actions in Major Metropolitan Areas
7.	Potential Increase in Unemployment Resulting From BRAC HI Actions in Selected Less-Populated Locales
FIGURES
1.	Schedule for Carrying Out Base Realignments and Closures (BRACs)
2.	Summary of the Base Realignment and Closure Process
3.	BRAC and the Drawdown: How Much is Enough?
4.	Summary of Major Base Closures by Type
5.	Impact of Base Structure Reductions Since 1988
6.	Department of Defense Estimates of Backlog of Maintenance and Repair
7.	Comparison of Timing of Base Closings for BRACs in 1988,1991, and 1993
8.	Planned Property Disposal for Major Bases in BRAC I and BRAC II
9.	Planned Property Disposal to Federal Agencies for Major Bases in BRAG I and BRAC II
10.	Planned Public Benefit and Economic Development Transfers to State and Local Authorities for Selected Major Bases in BRAC I and BRAC II
11.	Profile of Total BRAC Costs and Savings by Account
12.	Baseline and Current Estimates of Annual Net Savings from Carrying Out BRAC I
13.	BRAC Projected Land Revenues for BRAC I, Fiscal Years 1991 and 1996 Budget Estimates
14.	Comparison of Baseline and Current Environmental Cost Estimates, BRAC I-III
15.	Baseline and Current Estimates of Annual Net Savings From Carrying Out BRAC II
16.	Initial and Current DOD Estimates for Net Savings During Base Realignments and Closures as of December 7, 1995
BOX
1.	Major Base Closures

 

The end of the Cold War significantly reduced many of the nation's military requirements and resulted in major cutbacks in defense personnel, the weapons they operate, and the support services they need. Closing and realigning military bases overseas and in the United States has been an essential part of the post-Cold War drawdown of U.S. military forces. Determining the appropriate quantity and type of bases to close and realign has been a major concern of the Department of Defense (DoD) and the Congress.

Beginning in 1988, when the Congress authorized the first Commission on Base Realignment and Closure (BRAC), the Department of Defense undertook a major review of the military bases supporting active duty and reserve forces and recommended closing and consolidating hundreds of surplus installations. BRAC Commissions convened in 1988, 1991, 1993, and 1995 recommended that the Congress authorize DoD to close 97 of 495 major bases in the United States and realign hundreds of others. According to DoD estimates, it will cost about $21.5 billion to close and realign those bases. DoD expects that those actions will generate about $56.7 billion in net savings discounted to present value over a 20-year period.

The Department of Defense has shut approximately half of the bases that the Congress directed to be closed. Action on the final round of closures has only just begun. Many observers have called for the Congress and DoD to consider shutting additional bases beyond those already being closed. This paper provides the Congress with an interim assessment of the BRAC process that could assist the Department of Defense in carrying out its final actions and the Congress in considering whether to close additional bases using the BRAC process.

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