Latest Posts

  • ‘Right Time’ to Broach Partnerships

    At the conclusion of an ADC 2011 Winter Forum session highlighted by talk of a pending government shutdown and the prospect of constrained budgets for the Pentagon in future years, one speaker pointed out the immense opportunity the fiscal challenges create for defense communities. After several years, there should be numerous openings for communities to propose forming partnerships with DOD and other federal agencies, said David Berteau, senior advisor and director of the defense-industrial initiatives group for the Center for Strategic and International Studies …

  • New Political Dynamic Creates Uncertainty for Prognosticators

    Passing the essential spending bills needed to keep the federal government running may be beyond the capabilities of the 112th Congress, but watching the drama unfold as the House Republican leadership gives way to the newly ascendant tea party freshmen is sure to be entertaining, according to a panel of inside-the-beltway experts at the ADC 2011 Winter Forum kickoff super session. “This is really unprecedented,” George Schlossberg, a partner with Kutak Rock LLP, said of the rise of a third political caucus in Congress — the tea party — and its potential to prevent House leaders from reaching a compromise with the Senate over funding the government through the remainder of fiscal 2011. And as a result, a federal shutdown looms when the current continuing resolution funding federal operations runs out March 4 …

  • Milcon Cut Proposed in Austere 2012 DOD Budget

    Spending on military construction, family housing, BRAC and related programs would fall $2.6 billion, compared to current spending levels, under the fiscal 2012 budget request released Monday by the Pentagon. Much of the decline, $1.9 billion, is the result BRAC 2005 implementation concluding, but military construction for active and reserve components still would absorb a $485 million reduction under President Obama’s request. The large drop-off in the request for BRAC 2005 — from the current spending level of $2.2 billion to $259 million — was expected with the military slated to finish carrying out the recommendations by Sept. 15. The FY 2012 funding primarily would go toward cleaning up closed bases. Spending on cleanup at sites closed under the first four rounds would decline $36 million to $324 million under the request …

  • San Antonio Utility Fuels Expansion at Area Installations

    Over $3 billion in construction at three San Antonio military installations. The arrival of almost 50,000 medic students each year at Fort Sam Houston. The establishment of the San Antonio Military Medical Center at Fort Sam and Lackland Air Force Base. The creation of Joint Base San Antonio, the military’s largest installation by population. Unless you were confined to a deep bunker at an undisclosed location for the past six years, it would have been difficult to miss the news that BRAC 2005 is transforming San Antonio into DOD’s principal center for medical training, bringing a projected $15 billion annual economic impact. What the headlines don’t mention is the military’s partnership with CPS Energy, the area’s municipally owned utility that is supporting the growth through investments to ensure the area’s bases have a reliable source of energy …

  • House 2011 Funding Plan Shields Defense, Milcon

    Spending on DOD, including military construction, largely would be protected under the bill introduced last week by House Republicans to fund the federal government through the remainder of fiscal 2011. While non-security programs would suffer an $81 billion cut compared to the Obama administration’s FY 2011 budget request, spending on defense would drop $15 billion, with milcon and veterans programs declining $2 billion, compared to the president’s request.

  • California Budget Proposal Threatens Base Redevelopment

    Base closure communities in California have joined together with ADC to reverse a proposal by Gov. Jerry Brown (D) that would eliminate the ability of redevelopment agencies to take advantage of tax increment financing to revitalize former military installations. Funding raised via tax increment financing that currently is allotted to redevelopment agencies in the state would be reallocated to other public services such as public safety and education under the governor’s proposal. Brown’s plan would shift about $1.7 billion to other programs. Abolishing redevelopment agencies is one element of the governor’s strategy to balance the state’s budget by cutting $12.5 billion in spending in the coming fiscal year …

  • House Plan Would Leave DOD’s 2011 Budget Largely Intact

    Defense spending would rise by $9.6 billion in the current fiscal year compared to fiscal 2010, with military construction and veterans affairs spending falling by $1.9 billion, under the allocation released this week by the House Budget Committee for each of the fiscal 2011 appropriations bills. Spending in both defense-related bills would drop when compared to the president’s FY 2011 request — defense by $13.2 billion and milcon and veterans affairs by $1.3 billion. The House plan would provide a total of $517.7 billion for defense spending and $74.7 billion for milcon and veterans affairs in FY 2011. Of the allocations for the 12 appropriations panels, defense is the only one that would not fall, compared to 2010, with federal-wide discretionary spending dropping on a net basis by $32 billion …

  • Navy Expected to Hand over Federal City Property to Community

    The majority of the site the Navy is leasing to a local redevelopment agency for the Federal City project may be turned over to the community after Marine Forces Reserve moves into the headquarters the New Orleans Federal Alliance is constructing for the command. Awarding ownership of the property to the alliance’s partner, the Algiers Development District, would help the nonprofit attract private financing to carry out the master plan prepared for the Naval Support Activity New Orleans site, located on the west bank of the Mississippi River in the city’s Algiers section, said David Mize, president and CEO of the alliance. The authority for the Navy to transfer the site is included in the fiscal 2011 defense authorization bill, H.R. 6523, signed into law by President Obama on Jan. 7 …


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