2014 BRAC


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2014 BRAC

  1. 1. What We Have Using a standard Economic Impact multiplier of 2.2 – Total Economic Impact is $5.6Billion LARGEST LARGEST INDUSTRY IN THE INDUSTRY IN THE SAVANNAH REGION SAVANNAH REGION In 2012 Fort Stewart/Hunter Army Airfield had an annual payroll of $1,528,444,989 Annual expenditures of $685,715,000 Economic Impact Economic Impact $5.6 Billion Per Annum $5.6 Billion Per Annum Retiree payroll of $151,092,000 2
  2. 2. Fort Stewart and Hunter AAF COUNTY Liberty County Chatham County On Post (Stewart and Hunter) Bryan County Long County Tattnall County Wayne County Effingham County Bulloch County Evans County McIntosh County Glynn County Other Total # OF PEOPLE 10,694 8,776 8,726 1,441 692 447 94 35 31 25 22 9 1,588 SALARIES $485,704,971 $416,379,835 $410,489,521 $72,422,301 $35,411,564 $26,597,322 $4,875,167 $1,788,873 $1,589,622 $1,754,988 $1,243,724 $448,588 $69,738,513 26,762 $1,528,444,989 3
  3. 3. 3 Storms Coming 1) Sequestration 2) Outside of BRAC 3) BRAC 4
  4. 4. BRAC History Congress created the BRAC process in 1988 as a more politically palatable method to pursue infrastructure reductions. More than 350 installations have been closed in five BRAC rounds: 1989, 1991, 1993, 1995, and the most recent BRAC round completed in 2005. Next BRAC will focus on reducing excess capacity – closing facilities and reducing infrastructure costs. 5
  5. 5. DOD Gets Serious About BRAC Defense officials allocated $2.4 billion in the FY 2014 budget proposal to cover the upfront BRAC process costs. DOD has indicated a BRAC authorization will be requested again in the FY 2015 budget request. 2005 BRAC was projected to cost $21 billion, the actual cost was $35.1 billion. 6
  6. 6. Service BRAC Position The Army’s BRAC position is based on budget-driven force reductions, which top leaders say must be matched to associated infrastructure.  The Army plans to accomplish its drawdown in forces by eliminating 10 brigade combat teams in the U.S.  Active Army forces are currently projected to be reduced to 520,000 in FY 2014, to 490,000 by 2017, and could go as low as 420,000 if sequestration continues.  National Guard end strength will decline by 8,000, while authorizations in the Army Reserve will decrease by 1,000 to 205,000 between FY 2012 and FY 2017. 7
  7. 7. Congress Presently Opposed BUT …..! The House and Senate Armed Services Committees have rejected BRAC in their respective versions of the FY14 defense authorization bill. The House VA/MilCon Appropriations Committee also rejected BRAC.  However, there are folks in DC who are reviewing their thinking and the possibility that a BRAC could occur is looming larger for 2017. 8
  8. 8. ‘Outside of BRAC’ Actions With or without a BRAC, we will be cutting uniform and civilian personnel. Is it better to have a BRAC or face the consequences of DOD cuts “outside of BRAC?” One of the strengths of the BRAC process is the ability for a community to plead its case to a ‘nonpartisan’ body – there is no institutional protection “outside of BRAC.” DOD officials have repeatedly warned in congressional testimony and in public speeches that actions ‘outside of BRAC’ will occur absent a BRAC authorization. 9
  9. 9. Sequestration In FY 2013, DOD and all of the services were allocated $620 billion under a full-year Continuing Resolution (CR). Before sequestration, DOD was planning for $487 billion in cuts over 10 years as mandated by the Budget Control Act (BCA) of 2011. With full sequestration, DOD would cut an additional $500 billion through 2021, approximately $50 billion per year. 10
  10. 10. How Do We Weather The Storm? • Unified message leveraging all resources • Be aggressive and proactive • Well timed meetings in Washington D.C. (Pentagon and Congress) • Quick reaction to changing conditions 11
  11. 11. Fort Stewart and Hunter AAF April 2009: Secretary of Defense Robert Gates announces cuts to the 5th Brigade Combat Team (BCT) – cut of 3,500 soldiers. June 25, 2013: The Army announces cuts to the 2nd BCT, 3rd Infantry Division (Armor Heavy)– cut of 1,350 soldiers. Soldier end strength as January 2013 -- roughly 21,157 . By 2019, it was projected to be 19,785. It’s coming down again. Our objective – avoid cuts to another BCT. 12