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Civilian BRAC/Civilian Property Realignment

Civilian BRAC/Civilian Property Realignment. July 20, 2011. Civilian BRAC/Civilian Property Realignment. Where do we stand? Why is this happening? What does or could this mean? How would it work? CBO Analysis Key issues to watch. Where we stand?.

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Civilian BRAC/Civilian Property Realignment

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  1. Civilian BRAC/Civilian Property Realignment July 20, 2011

  2. Civilian BRAC/Civilian Property Realignment • Where do we stand? • Why is this happening? • What does or could this mean? • How would it work? • CBO Analysis • Key issues to watch

  3. Where we stand? • President’s 2012 budget proposal called for a BRAC approach to expedite the disposal of unneeded property; estimated savings of $15 billion • House led by Congressman Denham (R-CA), Chair of the Subcommittee on Economic Development, Public Buildings and Emergency Management has released HR 1734, Civilian Property Disposal Act; Voted out of subcommittee and awaiting full committee vote • Senate led by Senator Carper (D-DE) has started exploring concept; held hearing in June; anticipate dropping bill in August

  4. Why is this happening? • “To decrease the decificit by realigning, consolidating, selling, disposing, and improving the efficiency of federal buildings and other civilian real property”

  5. What does/could this mean? • Disposal of excess property agencies don’t want (OMB website link) • or • Significant evaluation and transformation of federal footprint

  6. How would it work? (House plan) • Would includes all federal real property minus military installations and properties with national security interest • Establish commission/staff structure similar to BRAC in makeup (House plan for independent commission/WH commission reports to OMB) • Agencies submit recommendations to commission • Commission reviews recommendations based on criteria they establish (list of criteria)

  7. How would it work? (House plan) • At multiple increments each year, the commission would release recommendations • Congressional/Presidential Process similar to BRAC • Implementation – House plan involves commission and federal agencies; WH plan uses GSA • Proceeds from sale – both plans include some split of proceeds with federal agencies

  8. CBO Analysis of President’s Plan • Estimates that property disposal would not result in significant additional sales receipts – it would not significantly increase the proceeds from sale of unneeded federal property • BRAC has resulted in only modest sales • Other previous efforts to dispose of unneeded property had mixed results (examples: Governor’s Island and Presidio)

  9. CBO Analysis of President’s Plan • Many agencies with unneeded but valuable property would have little additional incentive to sell it • Current inventory of excess property has uncertain market value and is already being disposed under current law • Plan could reduce the need for future appropriations to maintain real property

  10. Key Issues to Watch • Issavs Denham • CBO Scoring • Senate approach • Breaking apart the proposal

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