Military Base Closures Since 1988: Status and Employment Changes at the Community and State Level

This document also available in PDF Image . U.S. budget outlays for national defense have declined sharply since the late 1980s, and are expected to continue this decline for several more years. The downsizing of the U.S. armed forces, which began before the fall of the Berlin Wall, has been an important factor in the drop in defense spending. Beginning in 1988, Congress required a reduction in military bases and other military real property infrastructure to accompany the manpower cuts. Members of Congress are very interested in how defense spending cuts and the consequent base realignment and closure process will affect the communities they represent. This report compiles Department of Defense (DOD) data on major base closures and employment changes at DOD facilities affected by the base realignment and closure (BRAC) process since 1988. It assesses (1) the process and issues associated with closure and reuse of major installations, (2) the employment effects of all BRAC actions at the community and state levels, and (3) the federal role in assisting affected communities, workers, and businesses. Major base closures, shutdowns causing the loss of 300 or more jobs, are a focus of particular concern. Of the hundreds of actions closing or realigning military installations, 98 qualify as major closures. Here, the challenges for job replacement, wise land use, and community stability often are greatest. The disposition and/or reuse of military real property can have an important impact on the economic and social health of a host community. Recent experience indicates that some communities are having to grapple with a variety of problems in the reuse process: the reconciling of competing demands for assets, unrealistic federal appraisals of base assets, local funding constraints, the lack of short-term interim leases from the federal government, failure to meet local codes, land use constraints, and environmental contamination.

Although the overall economy should not experience major disruptions from this downsizing of the military, some industries, workers, and communities could face difficult economic adjustment and conversion challenges. The data show the hardest impacts are being felt by a surprisingly small number of communities. Of 163 communities affected by one or more closure or realignment actions since the beginning of the BRAC process in 1988, 95 lost 50 or more military and civilian jobs. Thirty three of these localities experienced unemployment rates of 5.9% or more, indicating that as of July 1995, relatively few localities had unemployment rates above the national average of 5.7% at that time. In the early 1990s, Congress greatly expanded the federal role in aiding communities, workers, and businesses affected by base closures. The 104th Congress, however, approved considerably less funding for economic adjustment and conversion assistance. Looking ahead, Congress will likely continue to tighten reins on such funding and monitor the appropriateness and effectiveness of all currently authorized assistance programs.