Civilian BRAC/Civilian Property Realignment

July 20, 2011

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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

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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

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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”

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What does/could this mean?

Disposal of excess property agencies don’t want (OMB website link)

or Significant evaluation and transformation

of federal footprint

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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)

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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

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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)

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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

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Key Issues to Watch

Issa vs Denham CBO Scoring Senate approach Breaking apart the proposal