Most local communities recovering from base closures, GAO finds

After losing the lynchpins of their local economies, most communities that suffered base closures in the late 1980s and early 1990s are starting to recover, according to a new study by the General Accounting Office. But delays in shifting excess property to local jurisdictions continue to hold up economic recovery in some locations, the report said.

A strong national economy and enterprising local officials have spurred economic recovery in many places, GAO found. Nearly three-quarters of the 62 communities that underwent major base closures had unemployment rates that were below the national average in September 2001. Still, local economic issues and the deteriorating condition of base infrastructure at some sites can complicate redevelopment efforts, GAO concluded in its report, "Military Base Closures: Progress in Completing Actions from Prior Realignments and Closures" (GAO-02-433).

For example, communities near Fort Ord, Calif., will have to spend $500 million to make crumbling infrastructure on the base suitable for new businesses, according to GAO. In Maine, a weak local economy hindered efforts to redevelop Loring Air Force Base, which closed in 1994.

The report also found that support from state governments has spurred economic growth at some locations. In South Carolina, the state government has provided financial backing for development efforts at the old Charleston Naval Shipyard. Officials have attracted about 80 tenants since it was shuttered in 1996, bringing more than 4,200 jobs to the area.

In certain cases, redevelopment efforts have been held up because the Pentagon has not handed over surplus property to its new users. Before property can be transferred to new owners, the Defense Department must perform environmental cleanup at sites, a time-consuming process that cost $7 billion through fiscal 2001. Cleanup issues led to delays in property transfer at 40 of 51 bases looked at by GAO.

To get property in the hands of local communities more quickly, Defense has leased property at several former bases. The Air Force has awarded several long-term, 55-year leases at closed bases, including Loring Air Force Base in Maine, a move that helps local officials attract developers and helps Defense cut base maintenance costs.

The Defense Department estimates it has already saved $16.7 billion from the four previous rounds of base closures that took place before 1996. In December, Congress approved an additional round of base closures that will begin in 2005. The Bush administration originally sought another round of base closures in 2003, and has warned appropriators not to modernize existing bases in an attempt to protect them from closure.

But many state and local communities have already mobilized to save their bases, pouring funds into nearby roads and facilities and even awarding grants to some military research programs.