	Background

To enable DOD to close unneeded bases and realign others, Congress enacted BRAC legislation that instituted base closure rounds in 1988, 1991, 1993, and 1995. Most Communities Are Recovering From the Economic Impacts of Base Closures

While the loss of jobs for DOD civilians and other adverse effects are in the short term inescapable byproducts of base closures, such effects can continue for some time. Several factors affect the economic recovery of communities near base realignments and closures. Economic data related to unemployment rates and average annual real per capita income growth suggest that the majority of communities surrounding closed bases are faring well economically in relation to the U.S. rates and show some improvement since base realignments and closures began with the 1988 BRAC round. BRAC Actions Are Essentially Completed, but Transfer of Unneeded Base Property Is Only Partially Complete

As of August 20, 2001, DOD reported that it has essentially implemented all of the BRAC Commissions’ 451 recommendations. In most of the transfers, DOD has continued the cleanup activities, but in some cases the new property owner is cleaning up the property. Environmental Cleanup Is Progressing but Will Require Many Years to Fully Complete

While DOD has made progress and has established numerous initiatives to expedite environmental cleanups, many cleanup activities remain. The Air Force’s base closure environmental activities account for 52 percent of the total estimated costs after fiscal year 2001. The Report of the Department of Defense on Base Realignment and Closure, Department of Defense, April 1998.
Why GAO Did This Study

This testimony reviews the progress of the Department of Defense's (DOD) base realignments and closures (BRAC) in 1988, 1991, 1993, and 1995 and the implementation of the BRAC Commissions' recommendations.

What GAO Found

Although some communities surrounding closed base areas are faring better than others, most are recovering from the initial economic impact of base closures. The short-term impact can be very traumatic for BRAC-affected communities, but the long-term economic recovery of communities depends on several factors, including the strength of the national and regional economies and successful redevelopment of base property. Key economic indicators show that the majority of communities surrounding closed bases are faring well economically in relation to U.S. unemployment rates and show some improvement since the time closures began in 1988. Implementation of BRAC recommendations is essentially completed, but title to only 41 percent of unneeded base property has been transferred. As of August 20, 2001, DOD reported that it has essentially implemented all of the BRAC Commission's 451 recommendations. Although DOD has made progress and established numerous initiatives to expedite cleanup, many cleanup activities remain. Cleaning up environmental contamination on BRAC-affected installations has proven to be costly and challenging for DOD and can delay the transfer of the title of property to other users. DOD expects to continue its environmental efforts well beyond fiscal year 2001, the final year of the base closure implementation authority.