The Defense Economic Adjustment Program Responding to BRAC 05 The Counselors of Real Estate November 14, 2005 David F. Witschi Associate Director Office of Economic Adjustment

Status of Recommendations  8 Sep 05 - Commission forwarded its report and recommendations to the President.  15 Sep 05 - President approved and forwarded Commission’s recommendations to Congress.  Congressional Action The Statutory period for Congress to enact a joint resolution of disapproval for BRAC 2005 recommendations expired on November 8,  9 Nov 05 – Full implementation of the BRAC 05 recommendations may commence.

Comparing BRAC Rounds (TY $B)Major Base Closures Major Base Realignments Minor Closures and Realignments Costs 1 ($B) Annual Recurring Savings 2 ($B) BRAC BRAC BRAC BRAC Total BRAC 05 (Commission Rec ’ s) Note 1: As of the FY 2006 President’s Budget (February 2005) through FY Note 2: Annual recurring savings (ARS) begin in the year following each round’s 6-year implementation period: FY96 for BRAC 88; FY98 for BRAC 91; FY00 for BRAC 93; and FY02 for BRAC 95. These numbers reflect the ARS for each round starting in 2002 and are expressed in FY 05 dollars. Note 3: Does not add due to rounding.

BRAC 2005 Recommendations

Guiding Principles - Implementation 1.Act expeditiously whether closing or realigning 2.Fully utilize all appropriate means to transfer property 3.Rely on and leverage market forces 4.Collaborate effectively 5.Speak with one voice

BRAC Implementation Involves Designing and building facilities at gaining installations Moving personnel and equipment Examining the environmental conditions at both gaining and losing installations Environmental cleanup Disposing of excess property

The Defense Economic Adjustment Program Purpose : To assist communities, businesses and individuals adversely impacted by changes in Defense activities, such as BRAC, by providing coordinated Federal economic adjustment assistance. Examples : School impact aid Worker adjustment assistance Federal sponsored public benefit conveyance Infrastructure improvements Economic development assistance

EAC Implementation Activities The President’s Economic Adjustment Committee (EAC), established under E.O , consists of 22 Federal Departments and Agencies. Coordinated site visits Agency Publications/websites Issue roundtables/task forces Conference participation

Anticipated Activity in Response to Downsizing Closures and Realignments  Worker adjustment/retraining  Infrastructure improvements  Demolition  Economic development activities  School Impact Aid drawdown  Environmental regulatory approvals  Historic resource agreements  Fed–to-Fed property transfers  Federal sponsorship of public benefit conveyances  Small business assistance  Homeless outreach and review support

 Growth management planning  Housing construction  Gap financing for residential construction/home ownership  Transportation systems  Infrastructure expansion  Impact aid growth  School expansion and construction  Additional community services (police, fire, solid waste, recreation, social services)  Economic development – jobs for spouses Anticipated Activity in Response to Realignments with Growth

Responding to BRAC 05 The Counselors of Real Estate November 14, 2005 David F. Witschi Associate Director Office of Economic Adjustment