A comparison of military base closures in metro and nonmetro counties.

• Author: Stenberg, Peter L.
• Position: Includes related article

In counties where military bases were closed from 1969 to 1988, two-thirds of the communities regained as many civilian jobs as were lost, but these outcomes varied considerably between counties located in metropolitan areas and those in nonmetropolitan areas.

Since 1961 more than 100 military bases have been converted to civilian use. An additional 121 bases are slated for closure, according to the 1988 and 1991 reports of the Defense Secretary's Commission on Base Realignment and Closure. Fewer than 50 of the 121 bases slated for closure are major bases.

Military facility shutdowns in all communities--both rural and urban--generally create fear and resistance among local residents and their elected officials. As with the loss of any major employer, job and income losses and the resulting damage to the local economy become the central focus. In addition, on-base health care services for military personnel who choose to resign and remain in the area, as well as for local military retirees, are lost. Finally, severe reductions in local school enrollments can occur. The economic damage may be worse in rural communities with their typically smaller, less-diversified economies.

On the other hand, closed military facilities with land, buildings and physical equipment often are provided to communities at little or no cost. These assets can prove valuable in redeveloping the base after the military leaves, especially in rural communities with few resources. The redevelopment may be more beneficial to the local economy than the base activities it replaces.

This report examines economic changes in selected counties where one or more military bases closed during the 1960s, 1970s and early 1980s. Comparisons are made between metro and nonmetro counties where bases closed and between these base-closing counties and their respective (metro and nonmetro) national means. Nonmetro counties are those counties that are not included in a Metropolitan Statistical Area, as defined by the Bureau of the Census, U.S. Department of commerce, as of 1983. The terms "nonmetro" and "rural" are used interchangeably in this report, as are "metro" and "urban." The analysis should give local officials and policy makers valuable information with which to assess the likely effects of base closures and to plan for conversion.

Previous Studies

The authors' review of previous studies of military base closings and conversions highlighted the following conclusions.

* The effects of base closure on a community vary depending on several factors. The factors include level of dependence by the local economy on the base, the general economic climate at time of closure (that is, expansion or contraction of the national economy), the size of the base, the region of the country (which is essentially a proxy for fundamental factors, such as climate or culture), the preparedness of the local community for conversion and other characteristics of the local community (such as, whether metro or nonmetro) all affect the outcome of base conversion.

* Rural areas face special problems when a military base closes. Because of their typically smaller size and less-diversified economies, rural areas are assumed to suffer more from base closure than urban areas. In fact, rural areas have shown a wide range of success in dealing with base closures--ranging from successful redevelopment...