FY 2002 Amended Budget Submission
Office of Economic Adjustment (OEA)
June 2001
OEA - 1
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
I.
Description of Operations Financed:
The Office of Economic Adjustment provides technical and financial assistance to
communities: (a) that are affected by base closures, realignments, and reductions in
defense industry employment; (b) where the local economy is heavily dependent on defense
expenditures; (c) where expansion of the local military installation significantly
increases the demand for public facilities and services: or (d) when community development
and encroachment threatens the mission of an installation. In FY 2002, 105 communities
will continue to receive technical and/or grant assistance from OEA.
The Office of Economic Adjustment (OEA)’s FY 2002 funding will be used to continue
assistance to BRAC communities and those affected by other changes in DoD programs. Most
communities will have completed their initial base reuse plans but will require OEA
funding to undertake follow-on, specialized plans and for additional organizational
support to facilitate the re-use of the base. Assistance to defense industry communities
averages $200,000 annually and is required for two to three years. It is also expected
that more than twenty military installations will request assistance in preventing further
community development from encroaching on the operational effectiveness of the base.
Grant assistance will be provided to a small number of communities for advanced planning
assistance and state adjustment assistance.
OEA project managers will continue active support and oversight of base closure
communities that have completed base reuse planning and are moving into implementation,
even if OEA grant assistance has ended. In addition, OEA will continue to develop
strategies and implementation of early property transfer opportunities; which includes the
use of environmental insurance in cases where it facilitates faster, more cost-effective
property transfers; and possible changes in a new base closure process.
OEA will also continue program support to the Under Secretary of Defense (Policy)
for international defense restructuring and reforms, primarily in Eastern Europe and the
OEA - 2
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
Newly Independent States.
OEA - 3
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
I.
Description of Operations Financed (cont’d):
The largest change in the FY 2002 budget request is the removal of $34.5 million net
Congressional additions for special interest items in the FY 2001 OEA budget. The program
budget reflects an anticipated decreased demand for OEA community planning assistance
grants.
II.
Force Structure Summary:
III.
Financial Summary (O&M:
A.
B.
Activity Group:
Office of Economic
Adjustment
(N/A)
$ in Thousands):
FY 2000
Actuals
72,108
FY 2001______________
Budget
Current
Request Appropriated
Estimate
22,495
56,791
FY 2002
Estimate
54,866
16,972
Reconciliation Summary:
Change
Change
FY 2001/FY 2001
FY
2001/2002
1. Baseline Funding
22,495
54,866
a. Congressional Adj. (Dist.)
34,500
-
-167
-
-0-
-
0b. Congressional Adj. (Undist.)
0c. Congressional Adj. (Gen. Prov.)
0OEA - 4
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
d. Congressional Earmarks
-37
-
e. Earmark Billpayers
-0-
-
56,791
-
-0-
-
-125
-
-0-
-
002. Appropriated Amount (Subtotal)
0a. Adjustment to Meet Cong. Intent
0b. Across-the-board Reduction
0c. Approved Reprogrammings/Transfers
03. Price Change
-0-
975
4. Program Change
-1,800
5. Current Estimate
54,866
-
38,869
16,972
III. Financial Summary (O&M:
C.
$ in Thousands) (Cont’d):
Reconciliation of Increases & Decreases:
1.
FY 2001 President's Budget Request
2.
Congressional Adjustments (Distributed)
a. Fitzsimmons Army Hospital
b. Pico Rivera
c. Adak Reuse Support
d. MCAS El Toro
e. Fort Greely
OEA - 5
22,495
10,000
2,000
7,000
1,500
1,000
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
f. Charleston Naval Shipyard, Bldgs. 3&4
g. NAS Cecil Field
Total Congressional Adjustments (Distributed)
3.
4.
III.
34,500
Congressional Adjustments (Undistributed)
a. HQ Personnel Reduction
b. DJAS
c. Additional HQ Personnel Reduction
Total Congressional Adjustments (Undistributed)
-87
-38
-42
Congressional Earmarks
a. Indian Lands Mitigation
b. Mid East Regional Security Issues Pgm.
c. Bosque Redondo Memorial
Total Congressional Earmarks
-28
-3
-6
5.
FY 2001 Appropriated Amount
6.
FY 2001 Rescission
Financial Summary (O&M:
C.
10,000
3,000
-167
-37
56,791
-125
$ in Thousands) (Cont’d):
Reconciliation of Increases & Decreases (cont’d):
7.
Functional Transfers - In
-0-
8.
Other Transfers In
-0-
9.
Functional Transfers – Out
-0OEA - 6
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
10. Other Functional Transfers - Out
-0
11. Price Growth
-0-
12. Program Increases
-0-
13. Program Decreases
Reduced Base Closure requirements
14. Total Program Decreases
15. Revised FY 2001 Estimate
-0-1,800
-1,800
54,866
16. Price Changes
975
17. Transfers – In
-0-
18. Transfers – Out
-0-
OEA - 7
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
III.
Financial Summary (O&M:
C.
$ in Thousands) (Cont’d):
Reconciliation of Increases & Decreases (cont’d):
19. Program Increases
a. Equipment maintenance on copiers
b. Additional contract study for
BRAC community
20. Total Program Increases
21. Program Decreases
a. One-time FY 2001 Costs
(1) Adak Reuse Support
(2) Fitzsimmons Army Hospital
(3) Charleston Naval Shipyard
(4) MCAS El Toro
(5) Pico Rivera
(6) Fort Greely
(7) NAS Cecil Field
Total One-time FY 2001 Costs
b. Reduced base closure requirements
c. Decreased travel requirements
d. Decreased service requirements
from DFAS-Indianapolis
e. Decreased communications requirements
f. Cost savings from “Economic
Adjustment Data System” IT system
installed in FY 2001
g. One time equipment purchase in FY 2001
h. Decrease in office space required
22. Total Program Decreases
OEA - 8
-05
43
48
-7,103
-10,148
-10,148
-1,522
-2,030
-1,015
-3,044
-35,010
-3,609
-29
-107
-15
-112
-11
-24
-38,917
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
23. FY 2002 Budget Request
16,972
OEA - 9
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
IV.
Performance Criteria and Evaluation Summary:
The decrease in demand for OEA grant funds continued in FY 2001, with most BRAC
communities completing their initial base reuse planning. With this reduction in demand,
the distribution of OEA grant funds follows:
FY 2000 FY 2001
FY 2002
Actuals Estimate
Estimate
Base Closure Grants/Realignments
Defense Industry Impacts
Joint Land Use Studies
State Grants
Advance Planning
Privatization Grants
V.
64
5
4
3
2
0
55
5
19
3
4
0
45
2
20
4
2
0
Personnel Summary:
Change
FY 2000
FY 2001/FY 2002
Military End Strength
Officer
Enlisted
Total
Civilian End Strength
US Direct Hire
Military FTE’s
Officer
Enlisted
Total
Civilian FTE’s
FY 2001
FY 2002
3
0
3
3
0
3
3
0
3
0
0
0
34
32
31
0
3
0
3
3
0
3
3
0
3
0
0
0
OEA - 10
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
US Direct Hire
34
31
OEA - 11
31
0
OFFICE OF ECONOMIC ADJUSTMENT
Operation and Maintenance, Defense-Wide
FY 2002 Amended Budget Submission
Budget Activity 4: Administration and Service-Wide Activities
VI. OP 32 Line Items:
FY 2000
Actual
101 Exec, Gen &
Spec Schedules
308 Travel of Persons
673 Payments to DFAS
912 SLUC (GSA Leases)
914 Purchased Comm.
915 Rents
920 Supplies
& Materials
921 Printing &
Reproduction
922 Equipment
Maintenance
925 Equipment
(Non-fund)
933 Contract Studies
and Analysis
988 Grants
989 Other
Contracts
9999
Total
Change
FY 2000/FY 2001
Price
Program
Growth
Growth
FY 2001
Estimate
Change
FY 2001/FY 2002
Price
Program
Growth
Growth
FY 2002
Estimate
3,081
270
329
266
112
50
123
4
16
5
1
1
181
0
-12
-2
0
-1
3,385
274
333
269
113
50
122
5
-16
5
2
1
0
-29
-107
-24
-15
0
3,507
250
210
250
100
51
55
1
-15
41
1
0
42
28
0
-16
12
0
0
12
0
0
0
0
0
5
5
57
1
12
70
1
-11
60
100
66,590
2
1,065
-37
-18,300
65
49,355
2
839
43
–38,619
110
11,575
1,170
72,108
18
1,237
-289
-18,479
899
54,866
13
975
-112
-38,869
OEA - 12
800
16,972