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DCCI1MENT BESUME
02042 - [k12!2232] J
Proposed Closure of Kincheloe \ir force Base, Michigan.
LCD-77-321; B-168700. April 29, 1977. 15 pp.
Report to Rep. Philip E. Ruppe; y Robert P. Keller, Deputy
Comptroller General.
Issue Area: Facilities and Material Management (700).
Contact: Logistics ard Communicaticns Div.
Budget Function: National Defense: Defense-related Activities
(054).
Organizaticn Concerned: Department of the Air Force; Department
of the Air Force: Kincheloe AFE, HI.
Congressional Relevance: Pep. Philip E. Ruppe.
The proposed closure of Kincheloe Air force Base is
part of a continuing effort by the Air Force to reduce support
and overhead costs and to reallocate additional resources for
force modernization and increased combat capability.
Findings/Conclusions: Numerous errors were found in the Air
Force's estimate of costs and savings if Kincheloe were closed.
The current proposed cloiure could result in annual recurrinq
savings of about $2e millicn; one-time costs of about $27.9
million; and one-time cost avoidances of about $9 million. The
closure would further deprers the economy in the eastern part of
Michigan's Upper Peninsula, and undoubtedly would result in
increased Federal expenditures to assist affected communities
and individuals. The total estimated one-time costs include
estimates for impact aid to school districts and for
unemployment compensation and food stamps for affected
Kinocheloe employees. Closure of tbe base would also drastically
affect the local eccncmy by causing an increased housing vacancy
rate, depressing real estate values, and causing a substantial
business loss in the area. Federal response to the closing might
also include establishing a local development organization,
developing a regional plan to attract private investment,
training unemployed persons to fill existing or new jobs,
converting Department of Defense facilities for civilian use,
and providing loans to build and equip plants for e, industry.
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