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Office of Economic Adjustment

Department of DefenseNational Governors Association BRAC BriefingMay 10, 2005

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Why OEA?

Fundamental mission of DoD is national security• Expertise, experience, and apparatus to assist communities are well

established within OEA, as a DoD field activity, and the other federal agencies to assist communities

Created to help State and local governments plan and carry out community adjustment and diversification programs in response to Defense actions, including base closures or realignments• Technical assistance- provide information and advice on developing

and implementing projects that promote economic adjustment; bring agencies and services together to work as a team.

• Financial assistance – provide grants to help communities develop strategies and base reuse plans

Partner with an affected community to support community-based actions

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The Office of Economic Adjustment shall directly, and in coordination with the other resources of the Federal Government, assist communities to:

1.Plan and carry out responsive adjustment strategies;

2.Capably engage the private sector in planning and reuse of surplus property; and

3.Effectively partner with the Military Departments as they strive to implement BRAC actions in support of the Department’s warfighting mission.

Office of Economic AdjustmentMission Statement

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Community-based Approach

OEA BRAC Assistance 1989-2003• 78 multi-year grant recipients

Activities include: LRA support; detailed land-use planning studies; ops plan; business plan; reuse plan

• 29 single-year grant recipients Activity: Reuse plan

Assistance delivered through an assigned project manager

• Impacts vary by location, timing, and circumstances that will drive a tailored response (minimal, moderate, significant)

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Community Time to Organize and Plan for Reuse 1988-1995

1457

962716 610

0200400600800

1000120014001600

1988 1991 1993 1995

BRAC Year

Ave

rage

Day

s

Statutory Requirement: 12-15 Months

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Civilian Job Replacement at Major Closed Bases

11,975

21,422

36,525

42,390

41,364

24,063

39,785

22,2110

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1988 1991 1993 1995

BRAC

Jobs Lost New Jobs

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BRAC Lessons Learned

Flexibility - no two locations are alike Highest and best use - planned uses are not always consistent with the

former use Zoning power - Communities control/assist redevelopment through planning

and zoning Public and private funds for the purchase and redevelopment of BRAC

property are scarcer for rural communities Partnering with Military Departments –a cooperative relationship is key to

expediting the property disposal process

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Working with Federal Agencies Defense Economic Adjustment Program

• Managed and directed by OEA• DoD Directive and Executive Order

President’s Economic Adjustment Committee• Chaired by SECDEF and co-vice chaired by Secretaries of

Commerce and Labor• Executive Order updates membership and adds regulatory

issues to purview

Partner with an affected community to support community-based actions• OEA staff liaisons• Site team visits• Primary partners usually include EDA, Labor, and HUD• Periodically, Interior, FAA, Education, HHS, BoP, MARAD, RDA,

etc.

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OEA Federally Coordinated BRAC Assistance1989-Present* ($ mil)

$611

$223

$760

$280

Economic Development AdministrationDepartment of LaborFederal Aviation AdministrationOffice of Economic Adjustment

* Source: GAO 2005

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BRAC 05 OEA Community Assistance

Advanced Planning Grants (Jun 04- May 05)• Local conceptual reuse &/or diversification planning

State Planning Grants • State-wide adjustment or diversification

Dual Tracking Grants (16 May- Sept 05)• State/Local adjustment while S/L govt. pursues other options

Seed Grants (Issuance of BRAC Commission Report)• State/local adjustment with operational support

Complete Adjustment Assistance (Closure/Realignment Approval Date)

• State/local adjustment full support package Growth Planning Assistance (Depends on Situation)

• State/local adjustment preliminary to full support package

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Office of Economic AdjustmentState Grant Assistance

Assist a State in enhancing its capacities

• to assist communities, businesses, and workers adversely affected by a closure or realignment

• to support local adjustment and diversification initiatives; and,

• to stimulate cooperation between statewide and local adjustment and diversification efforts.

Eligible activities• Develop a State-wide adjustment or diversification

strategy responding to base closures/realignments;• Build staff capacity to assist or coordinate

assistance to defense-impacted communities, firms, and/or workers

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Office of Economic AdjustmentPrevious State Initiatives California

• Staff, newsletter, coordination, oversee matching grant program

Colorado• Statewide response, administrative capacity

Indiana• Identify state dependencies, coordinate state

and regional resources New York

• Coordinate state resources South Carolina

• Coordinate resources, identify statewide defense impacts, formulate diversification strategies