States Fear Impact of Base Closures

[UpInArms]

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=4409458

MIAMI (Reuters) - The U.S. states, which have borne the weight of a recession and slow recovery in tax receipts, now face a new challenge -- a round of military base closures and the declining economic activity that may follow.

Billions of dollars in economic activity may be lost by some states over the next few years as the Defense Department identifies bases and military installations to be shut down after decades of use, officials and analysts say.

The Pentagon plans to close 20 percent to 25 percent of the nation's military infrastructure to save an estimated $3.5 billion to $7 billion, depending on the number of bases closed. That could then be used to improve fighting capabilities or enhance soldiers' pay or living situation.

Fearing that closures will cripple local economies, governors throughout the United States have announced plans to spend millions lobbying Congress and the Pentagon as the 2005 Base Realignment and Closure, or BRAC, process heats up.

...more...

[haele]

1. "Governors announced plans to spend millions..."

Millions most states don't have.

I can see why the governors are so concerned -
Bases, especially military bases, create so much local revenue to outlaying communities in states they are in that the closure of even departments within the base (such as getting rid of a brig facility, a maintenance facility or a particular specialty school) can create fiscal chaos and hundreds of "living wage" job losses within those communities.
Military bases bring with them thousands of people who buy housing in the community, pay sales taxes, bring in civilian contracts to create and maintain community infrastructure, as well as clean up their environmental issues (which is why the Pentagon is constantly clamoring for waivers to local environmental laws - and usually not getting them) - and usually, military bases sponsor many civilian community functions - especially charities - that the communities might not otherwise have the funds to maintain.

When San Diego lost the stationing of an aircraft carrier there for a while, the city faced an annual 2.5 million dollar shortfall in revenue until a replacement carrier was assigned to the city.

Now, most governors will also agree to the legitimate closing of a base when the actual need for the base is no longer there - as the military has most previously likely transferred or disbanded all units and infrastructure that had been there.
However, BRAC closures historically have had little to do with actual military requirements or DOD funding issues, but with political requirements. BRAC closures are usually based on the ability to privatize or otherwise consolidate certain functions of the military to supposedly save costs - but usually to fatten the wallets of the defense industry CEO's and the sharks (the Walmarts, HMO's/insurance, real estate developers) of the civilian world.
The majority of the closures I have seen are certainly not based on the needs of the military function or the guaranteed military support function (such as VA needs - many bases are completely closed when there should still be guaranteed administrative, medical, housing, and MWR/PX services open due to the amount of retired military in the area.)

BRAC was a technically good idea that ran away and went bad. And now, state governments have to spend revenue they can't afford to play the "lobby" game to keep a fairly secure source of revenue in these difficult times.
Expect to see the thin slices of social services in those states sliced even thinner, an increase in state "junk bonds" issued, and sales and property taxes to go up as those bases face closure.
Thank you very much, Unka Dick - BRAC was your brainchild during the Reagan years when you decimated the military and it's morale back then, and I wouldn't doubt at all you have a hand in it now, counting out all the dollars that will end up in your own wallet, you faux-elite REMF chickenhawk bastard. You ain't no world leader, you're just a would-be slacker bag-boy for some local Chaos-mart with delusions of grandeur that just got lucky - mainly because you were good at figuring out who to "suck".

Haele
(Okay, I got it off my chest!)