Statement of Robert F. Hale, Assistant Director, National Security Division, Congressional Budget Office
Abstract
Madam Chairwoman, Congressman Martin, and Members of the Committee, I appreciate the opportunity to testify before you this afternoon on the Congressional Budget Office's (CBO's) analysis of the costs and savings of past military base closures and realignments. I hope that our work on this important subject will help this Committee and the Congress in reviewing the Department of Defense's (DoD's) plans to close and realign military bases. The Commission on Base Realignment and Closure has estimated that their recommended actions will eventually save $693.6 million annually in base operating costs. After deducting the one-time costs associated with closing bases, the commission estimates that the net present value of savings will total $5.6 billion. To provide perspective on these projected savings, CBO has estimated the costs and savings associated with selected base closings and realignments that occurred during the 1970s. We focused on nine bases for which some historical data were available, and we used the data to estimate both the recurring annual savings and the one-time net costs involved with base closings and realignment. My testimony also discusses three potential issues raised by our analysis that relate directly to the commission's recommendations. These issues include the effect of base closings and realignments on the budget deficit, the problem of defining one-time costs and savings, and the method of specifying the payback period. My testimony does not assess the advantages and disadvantages of the currently proposed package of base closings and realignments. Nor will I assess the commission's cost estimates, though the historical costs in this statement may provide helpful background. CBO is in the process of examining the data that support the commission's cost estimates. Any cost estimate prepared by CBO will include this analysis.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1989
- Accession Number
- ADA529874
Entities
People
- Robert F. Hale
Organizations
- Congressional Budget Office