Defense CommunitiesTown Hall

U.S. Department of DefenseOffice of Economic Adjustment

June 22, 2014Washington, DC

Growth From FY05-FY11*

Fort Hood

JBLM

Fort Bragg

Fort Knox

Fort Drum

Fort Stewart

Fort Carson

Fort Bliss

Fort Riley

Aberdeen PG

Fort Belvoir

Fort Benning

Fort Lee

Fort Leonard Wood

Fort Meade

Fort Polk

Fort Sill

Redstone Arsenal

0% 20% 40% 60% 80% 100% 120% 140%

2*Army Stationing and Installation Plan Data for Military and Civilian Personnel

Fort Hood

JBLM

Fort Bragg

Fort Knox

Fort Drum

Fort Stewart

Fort Carson

Fort Bliss

Fort Riley

Aberdeen PG

Fort Belvoir

Fort Benning

Fort Lee

Fort Leonard Wood

Fort Meade

Fort Polk

Fort Sill

Redstone Arsenal

-20% 0% 20% 40% 60% 80% 100% 120% 140%

3

Net Growth From FY05-FY15 *

*Army Stationing and Installation Plan Data for Military and Civilian Personnel

Fort Hood

JBLM

Fort Bragg

Fort Knox

Fort Drum

Fort Stewart

Fort Carson

Fort Bliss

Fort Riley

Aberdeen PG

Fort Belvoir

Fort Benning

Fort Lee

Fort Leonard Wood

Fort Meade

Fort Polk

Fort Sill

Redstone Arsenal

-25% -20% -15% -10% -5% 0% 5% 10%

4

Net Growth/Loss FY11-15*

*Army Stationing and Installation Plan Data for Military and Civilian Personnel

Defense Downsizing Response

• Areas of Concern Housing markets, schools/impact aid, businesses, workforce

Hollowing • Challenges

Less than certain process “Announced” reductions When should you respond? Waiting on authorization/appropriations

• Federal Funding Opportunity to be announced

6

FY14 Defense Spending

(in billions)Fairfax County, Virginia $19.1San Diego County, California $15.1Tarrant County, Texas $13.8Los Angeles County, California $8.0Santa Clara County, California $7.4District of Columbia Excluding Exceptions $7.0Madison County, Alabama $7.0Honolulu County, Hawaii $6.7Bexar County, Texas $6.6Newport News City, Virginia $6.2Middlesex County, Massachusetts $6.0St. Louis County, Missouri $5.0Maricopa County, Arizona $4.8King County, Washington $4.7Arlington County, Virginia $4.7Pima County, Arizona $4.6Norfolk City, Virginia $4.2Allegheny County, Pennsylvania $4.2El Paso County, Colorado $4.1Jefferson County, Kentucky $4.0Cumberland County, North Carolina $3.8Sacramento County, California $3.7Orange County, Florida $3.7New London County, Connecticut $3.6Pierce County, Washington $3.6

Top 25 Defense Spending Locations (Personnel and Contracts)

Sources: Defense Manpower Data Center and Chmura Economics & Analytics

Defense Industry Adjustment Program

• Community Assistance $46.1M available in FY15, $33.1M requested in PB16

• Eligibility March 9, 2015, Federal Funding Opportunity Announcement Weapon system, direct private sector impacts (weapon system,

layoffs, etc.) • Challenges

Supply networks “Announced” reductions Integrating workforce and business development activities Waiting on appropriations

8

Defense Industry Adjustment Projects

Base Realignment and Closure Program

• Community Assistance $120M+ in OEA grant assistance has been provided to BRAC 2005 $280M+ for legacy BRAC ($1.6 billion overall Federal assistance)

• Property Disposal (as of 09/30/14)

454,000 legacy (75,000 BRAC 05) excess acres 378,000 (83%) legacy (45,000 (60%) BRAC 05) acres disposed 12 Economic Development Conveyances totaling 31,000 acres have

been approved to support projected creation of 31,000 new jobs

• Lessons Learned• Challenges

Environmental advisory support Legal Clean-up Federal partner funding Guarantees

10

Base Realignment and Closure Projects

Compatible Use Program

• Community Assistance $11.7 million across 72 projects

• Eligibility April 3, 2015, Federal Funding Opportunity Announcement/Energy

Siting 12.610: Catalog of Federal Domestic Assistance

• Partnering to Preserve Our Military Presence Prevent further encroachment upon our local military operations Only program where local military sits down with the local

community, with Federal funds, to address compatibility issues

• Challenges Climate adaptation Energy siting decisions Multi-jurisdictions Environmental preservation

12

Compatible Use/JLUS Projects

Community Investment

Public Schools on Military Installations Program (PSMI)

• $945 M appropriated FY2011: $250M (FY2012: $250M, FY2013: $270M, and, FY2015: $175M) Invitation only as prioritized $437M obligated to date for planning,

design, renovation, construction and/or expansion of twenty-two (22) schools

$43.9M reduction due to FY13 sequester

$464.1 million remains available until expended

April 23, 2015, Federal Funding Opportunity Announcement

Ability to skip schools after considering state and local attempts to fund non-Federal share of project

14

Community Investment – Public Schools on Military Installations

Projects

Community Investment

Public Schools on Military Installations Program (PSMI)

• $945 M appropriated FY2011: $250M (FY2012: $250M, FY2013: $270M, and, FY2015: $175M) Invitation only as prioritized $437M obligated to date for planning,

design, renovation, construction and/or expansion of twenty-two (22) schools

$43.9M reduction due to FY13 sequester

$464.1 million remains available until expended

April 23, 2015, Federal Funding Opportunity Announcement

Ability to skip schools after considering state and local attempts to fund non-Federal share of project

Transportation Infrastructure Investments

• $300 M appropriated for transportation infrastructure improvements associated with medical facilities related to 2005 BRAC recommendations.

Competed

$288.9 M obligated to date for eight (8) projects to improve access to the Department’s military treatment facilities to date

$835,000 reduction due to FY13 sequester

Last project expected to be completed in FY18

16

Community Investment – Transportation Infrastructure

Investments

17

Overall OEA Program Footprint