CBO and More Closures

[Lenny Siegel <lsiegel@igc.org>]

CONGRESSIONAL BUDGET OFFICE ON FUTURE BASE CLOSURES

In its annual review of options for "Reducing the Federal Deficit" 
(March, 1997), the Congressional Budget Office has produced a succinct 
analysis of the potential budgetary impact of a new round of military 
base closures. Most of the options in CBO's reviews are not directly 
implemented; nevertheless, they provide a credible baseline of 
budgetary data.

A new round of base closures, says CBO, would add to costs over the 
next five years. Upfront costs, from 1998-2001, would increase $1.4 
billion. However, "between 1998 and 2007, this option could save about 
$6.4 billion in budget authority and about $4.5 nillion in outlays." 
(Environmental cleanup costs are apparently not included in these 
figures because those are considered necessary even in the absence of 
closure.)

By the end of 1999, "military and civilian end strength will have 
fallen by about 968,000 positions - a reduction of about 31percent from 
personnel levels in 1990." By the time current base closures are 
completed, the replacement value of the base structure will have 
dropped by only 21 percent. CBO also notes that base closures free up 
property for transfer to other federal agencies as well as other 
beneficial users of the former bases.

 Lenny Siegel