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