B-202309(1),O.M., MAY 6, 1981

B-202309(1),O.M., MAY 6, 1981

SUBJECT: MILITARY BASE CLOSURES AND REALIGNMENTS (CODE 945461; FILE B-202309)

GAO EVALUATOR, PLRD - CLEM GAYNOR:

THIS IS IN REPLY TO THE FOLLOWING QUESTION:

"IS THE DEPARTMENT OF DEFENSE (DOD) REQUIRED UNDER PRESENT LAW TO ADDRESS IN ANY SOCIAL OR ECONOMIC PRESENTATIONS, THE ECONOMIC EFFECTS THAT A BASE CLOSURE OR REALIGNMENT WOULD HAVE ON THE BUDGETS OF OTHER GOVERNMENT AGENCIES?"

IT WOULD APPEAR TO BE THE INTENT OF CONGRESS, IN ENACTING SEC. 612 OF PUB.L. 95-82, THAT DOD ADDRESS THE ECONOMIC EFFECTS THAT A MILITARY BASE CLOSURE OR REALIGNMENT WOULD HAVE ON THE BUDGETS OF OTHER GOVERNMENT AGENCIES.

PUBLIC LAW 95-82 SEC. 612 (10 U.S.C.A. SEC. 2687), AS AMENDED BY PUB.L. 95-356, PROVIDES AS FOLLOWS:

"(A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, NO ACTION MAY BE TAKEN TO EFFECT OR IMPLEMENT -

"(1) THE CLOSURE OF ANY MILITARY INSTALLATION;

"(2) ANY REALIGNMENT WITH RESPECT TO ANY MILITARY INSTALLATION INVOLVING A REDUCTION BY MORE THAN ONE THOUSAND, OR BY MORE THAN 50 PERCENT, IN THE NUMBER OF CIVILIAN PERSONNEL AUTHORIZED TO BE EMPLOYED AT SUCH MILITARY INSTALLATION S AT THE TIME THE SECRETARY OF DEFENSE OR THE SECRETARY OF THE MILITARY DEPARTMENT CONCERNED NOTIFIES THE CONGRESS UNDER SUBSECTION (B)(1) THAT SUCH INSTALLATION IS A CANDIDATE FOR CLOSURE OR REALIGNMENT; *** UNLESS AND UNTIL THE PROVISIONS OF SUBSECTION (B) ARE COMPLIED WITH.

"(B) NO ACTION DESCRIBED IN SUBSECTION (A) WITH RESPECT TO THE CLOSURE OF, OR A REALIGNMENT WITH RESPECT TO, ANY MILITARY INSTALLATION MAY BE TAKEN UNLESS AND UNTIL -

"(3) THE SECRETARY OF DEFENSE OR THE SECRETARY OF THE MILITARY DEPARTMENT CONCERNED SUBMITS TO THE COMMITTEE ON ARMED SERVICES OF THE SENATE AND HOUSE OF REPRESENTATIVES HIS FINAL DECISION TO CARRY OUT THE PROPOSED CLOSURE OR REALIGNMENT AND A DETAILED JUSTIFICATION FOR SUCH DECISION, INCLUDING STATEMENTS OF THE ESTIMATED FISCAL, LOCAL ECONOMIC, BUDGETARY, ENVIRONMENTAL, STRATEGIC, AND OPERATIONAL CONSEQUENCES OF THE PROPOSED CLOSURE OR REALIGNMENT; ***"

THUS UNDER THIS SECTION AN "ECONOMIC IMPACT STATEMENT" IS REQUIRED TO BE SUBMITTED TO THE SENATE AND HOUSE COMMITTEES ON ARMED SERVICES FOR CERTAIN CLOSURES AND REALIGNMENTS OF MILITARY INSTALLATIONS. THE SECTION IS NOT APPLICABLE TO A CLOSURE OR REALIGNMENT OF A MILITARY INSTALLATION IF THE PRESIDENT CERTIFIES TO THE CONGRESS THAT SUCH CLOSURE OR REALIGNMENT MUST BE IMPLEMENTED FOR REASONS OF NATIONAL SECURITY OR MILITARY EMERGENCY (SEC. 612(C)); NOR DOES IT APPLY IF THE MILITARY INSTALLATION TO BE CLOSED OR REALIGNED IS AUTHORIZED TO EMPLOY LESS THAN 300 CIVILIAN PERSONNEL (SEC. 612(D)).

YOUR QUESTION PERTAINS TO THE SCOPE OF THE DETAILED JUSTIFICATION REQUIRED TO BE FILED IN CONNECTION WITH THE CLOSURE OR REALIGNMENT. ALTHOUGH SEC. 612 DOES NOT SPECIFICALLY DEFINE THE SCOPE OF THE DETAILED JUSTIFICATION, THE LEGISLATIVE HISTORY OF THAT SECTION INDICATES THAT CONGRESS INTENDED THAT THE DETAILED JUSTIFICATION ADDRESS THE EFFECTS OF THE PROPOSED CLOSURE OR REALIGNMENT ON THE BUDGETS OF OTHER GOVERNMENT AGENCIES.

THE SENATE REPORT REGARDING PUB.L. 95-82 SEC. 612 STATES:

"SECTION 612 IS ESSENTIALLY IDENTICAL TO THE SIMILARLY NUMBERED SECTION IN LAST YEAR'S LAW (PUBLIC LAW 94-431) AND PRESCRIBES THE CONDITIONS UNDER WHICH PROPOSED DEPARTMENT OF DEFENSE BASE CLOSURE AND BASE REALIGNMENTS MAY BE ACCOMPLISHED. THE PROPOSED SECTION IN ESSENCE MAKES THE LEGISLATIVE RESTRICTIONS PERMANENT, AS OPPOSED TO LAST YEAR'S SECTION 612 WHICH WAS APPLICABLE ONLY TO FISCAL YEAR 1977."

S. REP. NO. 95-125, REPRINTED IN 1977 U.S.C. CONG. & AD. NEWS 546.

SECTION 612 AS ORIGINALLY PROPOSED BY HOUSE SPEAKER O'NEILL IN A PREDECESSOR BILL TO PUB.L. 94 431 REQUIRED THE SECRETARY OF DEFENSE TO SUBMIT A

"*** DETAILED JUSTIFICATION OF THE PROPOSED CLOSURE OR REDUCTION TOGETHER WITH THE ESTIMATED FISCAL, ECONOMIC, BUDGETARY, ENVIRONMENTAL, AND OPERATIONAL EFFECTS OF THE PROPOSED CLOSURE OR REDUCTION, INCLUDING BUT NOT LIMITED TO, ESTIMATES OF -

"(I) THE AMOUNT OF UNEMPLOYMENT COMPENSATION WHICH WILL BE PAID TO PERSONS WHO ARE UNEMPLOYED AS A RESULT OF SUCH CLOSURE OR REDUCTION;

"(II) THE AMOUNT OF MANPOWER RETRAINING AND RELOCATION EXPENSES WHICH WILL BE EXPENDED FOR PERSONS SO UNEMPLOYED; AND

"(III) THE MILITARY CONSTRUCTION AND REHABILITATION COSTS (INCLUDING HOUSING) WHICH WILL BE INCURRED AT OTHER MILITARY INSTALLATIONS IN ORDER TO ACCOMODATE PERSONNEL TRANSFERRED THERETO AS A RESULT OF SUCH CLOSURE OR REDUCTION; ***"

122 CONG.REC. 12971 (1976). SPEAKER O'NEILL IN DISCUSSING THE SECTION STATED:

"INCREDIBLE AS IT MAY SEEM, THE DEPARTMENT OF DEFENSE POLICY IN THE PAST HAS BEEN TO CLOSE OR REDUCE MILITARY INSTALLATIONS AS ECONOMY MEASURES, WITHOUT CALCULATING THE IMPACT SUCH ACTION WOULD HAVE ON THE FEDERAL BUDGET AS A WHOLE.

"I WANT THE CONGRESS TO HAVE THE BENEFIT OF A HARD AND PAINFUL EXPERIENCE SUFFERED WHEN THE BOSTON NAVAL YARD WAS CLOSED IN MY DISTRICT WITHOUT A PRIOR ECONOMIC STUDY OF THE CONSEQUENCE OF THE CLOSING ON THE FEDERAL BUDGET. TO SAVE THE NAVY $20 MILLION, IT HAS ALREADY COST OTHER AGENCIES OF THE FEDERAL GOVERNMENT, THE DEPARTMENT OF LABOR, THE DEPARTMENT OF COMMERCE, THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, $25 MILLION. ADDITION, IT COST THE NAVY $33 MILLION TO MOVE THE NAVAL BASE.

"NOW WE ARE OPERATING UNDER A BUDGETARY SYSTEM AROUND HERE AND WE WANT TO KNOW EXACTLY WHERE THE MONEYS ARE GOING AND WHERE THE SPENDING IS. WE WANT LONG-TERM PLANNING. IT IS ABOUT TIME THE DEPARTMENT OF DEFENSE DID SOME LONG-TERM PLANNING AS FAR AS IMPACTS ARE CONCERNED."

122 CONG.REC. 12971 (1976).

"IT CALLS FOR A REPORT TO BE SUBMITTED TO CONGRESS DETAILING THE ECONOMIC IMPACT OF CLOSURES CONCERNING MILITARY AND CIVILIAN PERSONNEL, ON THE TOTAL FEDERAL BUDGET."

122 CONG.REC. 12973 (1976).

IT THUS APPEARS SEC. 612 AS PROPOSED BY SPEAKER O'NEILL WAS INTENDED TO REQUIRE AN ECONOMIC IMPACT STATEMENT DETAILING THE EFFECTS A BASE CLOSURE OR REALIGNMENT WOULD HAVE ON THE BUDGETS OF OTHER GOVERNMENT AGENCIES. BEFORE ITS ULTIMATE ENACTMENT INTO PUB.L. NO. 94-431, SEC. 612 WAS MODIFIED SEVERAL TIMES. HOWEVER, SEC. 612 STILL REQUIRES THE SECRETARY OF DEFENSE IN CONNECTION WITH CERTAIN MILITARY BASE CLOSURE OR REDUCTIONS TO SUBMIT A DETAILED JUSTIFICATION WITH STATEMENTS OF THE ESTIMATED FISCAL, LOCAL ECONOMIC, BUDGETARY, ENVIRONMENTAL, STRATEGIC AND OPERATIONAL CONSEQUENCES OF SUCH ACTION. ALTHOUGH SEC. 612 IS DIFFERENT IN FORM FROM THE ORIGINAL O'NEILL PROPOSAL, NOTHING IN THE LEGISLATIVE HISTORY INDICATES THAT THE "ECONOMIC IMPACT STATEMENT" REQUIRED TO BE FILED WAS TO BE DIFFERENT IN SCOPE THAN AS PROPOSED BY SPEAKER O'NEILL.

SENATE SUPPORTERS OF THE SECTION ULTIMATELY ENACTED WANTED TO ENSURE THAT THE DECISION TO CLOSE OR REALIGN MILITARY INSTALLATIONS INCLUDED CONSIDERATION OF THE NET SAVINGS TO THE GOVERNMENT, NOT MERELY NET SAVINGS TO THE DOD. THE REMARKS OF SENATOR KENNEDY, A COSPONSOR OF THE SECTION ULTIMATELY ENACTED INTO LAW, ARE PERTINENT IN THIS REGARD:

"I JUST WANTED TO BE SURE, AS A RESPONSIBLE OFFICIAL, THAT WHEN WE GET THE INFORMATION WHICH IS REQUIRED UNDER THIS PROVISION, ESPECIALLY ON ECONOMIC IMPACT OF THE TERMINATION OF THE FACILITY, WITH ALL THAT IMPLIES, THAT WE NOT ONLY CONSIDER COSTS TO ONE AGENCY OF GOVERNMENT, THE DEFENSE DEPARTMENT, BUT ALSO CONSIDER COSTS TO HEW IN TERMS OF MEDICAID AND FOOD STAMPS AND WELFARE PAYMENTS. SHOULD BE ABLE TO GET THE TOTAL ECONOMIC IMPACT, THE TOTAL MILITARY IMPACT, AND IMPACT ON THE PEOPLE IN THE LOCAL COMMUNITY." 122 CONG.REC. 30447 (1976).

"THIS DETAILED JUSTIFICATION HAS TO INCLUDE COST SAVING, LOCAL ECONOMIC IMPACT DATA, AND THE MILITARY RATIONALE FOR THE DECISION.

"THE PROCESS OF STUDY PROVIDED FOR IN THE AMENDMENT INSURES THAT THERE WILL BE COMMUNITY INPUT INTO WHATEVER DECISION IS MADE; THAT MONEY SAVED BY THE DEPARTMENT OF DEFENSE IN CLOSING BASES WILL BE BASED ON MILITARY NECESSITY."

122 CONG.REC. 30455 (1976).

IT IS OUR OPINION THAT THE LEGISLATIVE HISTORY OF SEC. 612 INDICATES THAT CONGRESS INTENDED THE DOD TO INCLUDE IN THE DETAILED JUSTIFICATION REQUIRED TO BE SUBMITTED TO THE SENATE AND HOUSE COMMITTEES ON ARMED SERVICES BEFORE ACTION TO CLOSE OR REALIGN A MILITARY INSTALLATION IS IMPLEMENTED, AN ECONOMIC IMPACT STATEMENT ON THE EFFECTS OF SUCH CLOSURE OR REALIGNMENT ON THE BUDGETS OF OTHER GOVERNMENT AGENCIES. HOWEVER, SINCE WE HAVE NOT REVIEWED ANY BASE CLOSURE STATEMENTS PREPARED BY DOD UNDER SEC. 612, WE STATE NO OPINION ON WHETHER OR NOT THE "ECONOMIC IMPACT STATEMENTS" CURRENTLY PREPARED BY DOD CONFORM WITH THE INTENT OF CONGRESS.