The Base Realignment and Closure (BRAC) Commission recently completed another round of work. This process always strikes fear in the hearts of every community in the country with a significant military installation. Many of these facilities have been around for decades and have become an integral part of the local economies. Infrastructure expenditures, school construction, and numerous other aspects of public and private investment become inextricably linked with the fortunes of local armed forces activity. When operations are reduced or eliminated, severe dislocations can occur.
Counterbalancing this adverse effect is the legitimate need to evaluate and restructure military missions on an ongoing basis. The nature and type of warfare has changed over time, technology is constantly evolving, and there is an obligation to use the tax dollars devoted to defense in an optimal manner.
These forces come together each time the BRAC process becomes active. States and local areas mobilize to protect their economic interests, and the military seeks to determine its requirements in a reasonably apolitical setting (which is difficult with every member of Congress looking over their shoulders). The communities seek to demonstrate the efficiency and necessity of their bases, at times quite successfully. More often than not, however, the cold, hard numbers prevail.
The recent round is an interesting case in point. While many states saw net losses, Texas was a substantial winner. Fort Bliss in El Paso will see notable gains in civilian and military personnel. Although several facilities in San Antonio are being closed or “realigned,” the city that is home to so much of our military is seeing a net gain as well.
Texarkana’s Red River Army Depot was slated for closure, but was saved at the last minute (for the second time in its proud and distinguished history). There were some minor force reductions in the area, but the loss of thousands of jobs was averted.
Despite these successes, however, there were some notable casualties. A substantial realignment at Sheppard Air Force Base in Wichita Falls is producing a significant loss of direct jobs. According to an analysis I performed with our economic impact system, the total annual losses in the area will be $1.067 billion in Total Expenditures, $531.7 million in Gross Product, and $340.5 million in Personal Income.
Another major loss occurred in the Corpus Christi area, where the Ingleside naval facilities and other local installations were hit hard. I remember the excitement of working successfully on the “Homeport” initiative from this area. Unfortunately, the ships slated to base at Naval Station Ingleside were decommissioned, and the facility was used for other purposes. According to our calculations, the annual losses will likely include $1.343 billion in Total Expenditures, $744.1 million in Gross Product, and $473.2 million in Personal Income.
Both of these areas made a powerful case for their facilities. After all, even in a global society, all economics is local in the final analysis. In particular, the major reductions along the Gulf Coast are a potential source of concern. The vast petrochemical complex of the area is essential to sustainable economic growth, and, hence, represents a major potential target for terrorists. We have evidently not yet reached a point where homeland security and military priorities are fully integrated. Baring a reprieve at the highest levels, these plans will move forward.
This is not the first time base closures have occurred, nor will it be the last. The silver lining for communities is that former bases are economic resources, and most of them end up with civilian uses which contribute notably to local business activity. This transition takes time, however, and the short-term effects are quite substantial.