Past Base Closures and Realignments: Costs and Savings
Abstract
In May 1988, the Secretary of Defense established the Commission on Base Realignment and Closure to recommend specific actions to achieve a more efficient military base structure. The commission's final recommendations, if authorized by the Congress, would affect 145 military installations. Of these, 86 would be closed entirely, 5 would be closed partially, and 54 would be realigned. According to the commission, these closures and realignments will result in the reduction of 12,889 military and 7,748 civilian jobs and will eventually save $693.6 million annually in base operating costs. Even after deducting the one-time costs associated with closing bases, the net present value of savings over 20 years will total $5.6 billion. To provide perspective on these projected savings, this report estimates the costs and savings associated with selected base closures and realignments that occurred during the 1970s. It focuses on nine bases for which adequate data were available to estimate both the recurring annual savings and the one-time net costs involved with closure or realignment. This report also discusses three potential issues raised by the analysis and directly related to the commission's recommendations. These include the effect of closures and realignments on the budget deficit, the problem of defining one-time costs and savings, and the method of specifying the payback period.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1989
- Accession Number
- ADA530806
Entities
People
- Wayne Glass
Organizations
- Congressional Budget Office