Consequently, the Congress enacted base realignment and closure (BRAC) legislation that instituted base closure rounds in 1988, 1991, 1993, and 1995. Funding Opportunities to Offset the 1999 BRAC Budget Request

Our analysis of the base closure account and the fiscal year 1999 BRAC budget request raises questions about the need for $131.1 million included in the request. Funds Allocated to BRAC 1991 Environmental Projects Could Be Used to Offset the Request

During March and April 1998, the military services allocated $8.5 million from the 1990 base closure account for BRAC 1991 environmental requirements that no longer existed (see table 5). Although the $26 million was put in a holding account for potential reprogramming for other higher priority programs, the money was never used for these programs. Conclusions

DOD and the military services have reduced the previous high unobligated balance in the 1990 base closure account. Our questions center on the potential (1) use of unreported proceeds from BRAC actions, unused funds allocated to the BRAC 1991 round, and withheld BRAC appropriations from fiscal year 1998 to offset equivalent amounts of funding included in the 1999 budget request and (2) need for funding requested for two MILCON projects, where the requirements for one project have not been determined and the other has already been funded. DOD’s fiscal  year 1999 budget request did not reflect $35.7 million in proceeds that was collected but not included in the request. Also, the 1999 budget request contains $40.6 million for two MILCON projects that are no longer needed. 3.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) base closure accounts and its budget request for base closure activities, focusing on opportunities for offsetting the budget request for fiscal year (FY) 1999, including the validity of two proposed military construction (MILCON) projects included in that request.

What GAO Found

GAO noted that: (1) DOD and the military services have reduced the previous high unobligated balances in the 1990 base closure account; (2) however, there are opportunities to offset the 1999 budget request; (3) GAO's analysis of the 1990 account and the FY 1999 base realignment and closure (BRAC) budget request raises questions about the need for $131.1 million included in the request; and (4) specifically: (a) from the 1990 base closure account, $35.7 million in proceeds generated by BRAC activities that has not been reported to Congress; $12.5 million previously allocated but not needed for BRAC 1991 MILCON projects; $7.8 million allocated but not needed for BRAC 1991 operation and maintenance activities; and $8.5 million previously allocated but not needed for BRAC 1991 environmental projects; (b) from the FY 1998 BRAC appropriations, $26 million previously withheld but ultimately was not needed for other higher priority programs; and (c) from 1999 BRAC budget request, $40.6 million requested for two separate MILCON projects may no longer be needed because the requirements for one project have not been determined and the other has already been funded.