Rotary Club of Richmond HillOctober 16, 2014

Using a standard Economic Impact multiplier of 2.2, the

Total Economic Impact $4.9 Billion

In 2012, Fort Stewart/Hunter Army Airfield had an annual payroll of $1,528,444,989

Annual expenditures of $685,715,000

Retiree payroll of $151,092,000

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The Economic Engine

LARGESTINDUSTRY IN

THESAVANNAH

REGIONEconomic Impact$4.9Billion Per

Annum

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Fort Stewart and Hunter Army Airfield

COUNTY POPULATION SALARIESLiberty County 10,694 $485,704,971 Chatham County 8,776 $416,379,835 On Post (Stewart and Hunter) 8,726 $410,489,521 Bryan County 1,441 $72,422,301 Long County 692 $35,411,564 Tattnall County 447 $26,597,322 Wayne County 94 $4,875,167 Effingham County 35 $1,788,873 Bulloch County 31 $1,589,622 Evans County 25 $1,754,988 McIntosh County 22 $1,243,724 Glynn County 9 $448,588 Other 1,588 $69,738,513

Total 26,762 $1,528,444,989

1) Sequestration2) Outside of

BRAC3) BRAC

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3 Storms Coming

Congress created the BRAC process in 1988 as a more politically palatable method to pursue infrastructure reductions.

More than 350 installations have been closed in five BRAC rounds1989199119931995Most recent BRAC round completed in 2005.

Next BRAC will focus on reducing excess capacity – closing facilities and reducing infrastructure costs.

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BRAC History

Defense officials allocated $2.4 billion in the FY 2014 budget proposal to cover the upfront BRAC process costs.

DOD has indicated a BRAC authorization will be requested again in the FY 2015 budget request.

2005 BRAC was projected to cost $21 billion, the actual cost was $35.1 billion.

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DOD Gets Serious About BRAC

The Army’s BRAC position is based on budget-driven

force reductions, which top leaders say must bematched to associated infrastructure.

The Army plans to accomplish its drawdown in forces by eliminating 10 brigade combat teams in the U.S.

Active Army forces are currently projected to be reduced to 520,000 in FY 2014, to 490,000 by 2017, and could go as low as 420,000 if sequestration continues.

National Guard end strength will decline by 8,000, while authorizations in the Army Reserve will decrease by 1,000 to 205,000 between FY 2012 and FY 2017.

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Service BRAC Position

The House and Senate Armed Services Committees have rejected BRAC in their respective versions of the FY14 defense authorization bill.

The House Veteran’s Affairs/Military Construction Appropriations Committee also rejected BRAC.

However, there are folks in DC who are reviewing there thinking and the possibility that a BRAC could occur is looming larger for 2017.

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Congress Presently OpposedBUT …

With or without a BRAC, we will be cutting uniform and civilian personnel.

Is it better to have a BRAC or face the consequences

of DOD cuts “outside of BRAC?”

One of the strengths of the BRAC process is the ability for a community to plead its case to a ‘nonpartisan’ body – there is no institutional protection “outside of BRAC.”

DOD officials have repeatedly warned in congressional testimony and in public speeches that actions ‘outside of BRAC’ will occur absent a BRAC authorization.

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‘Outside of BRAC’ Actions

In FY 2013, DOD and all of the services were allocated $620 billion under a full-year Continuing Resolution (CR).

Before sequestration, DOD was planning for $487 billion in cuts over 10 years as mandated by the Budget Control Act (BCA) of 2011.

With full sequestration, DOD would cut an additional $500 billion through 2021, approximately $50 billion per year.

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Sequestration

April 2009: Secretary of Defense Robert Gates announces cuts to the 5th Brigade Combat Team (BCT) – cut of 3,500 soldiers.

June 25, 2013: The Army announces cuts to the 2nd BCT, 3rd Infantry Division (Armor Heavy) – cut of 1,350 soldiers.

Soldier end strength as January 2013 - roughly 21,157. By 2019, it was projected to be 19,785.

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Fort Stewart and Hunter AAF

• What would you do if you lost 20% of your sales in your business?

• What would happen if 50,000 additional people needed to use our hospitals?

• How would our region adapt to 25% of businesses closing or reducing operations?

• How would our region be impacted if half of the residents left and moved outside of Coastal Georgia?

Our objective – avoid cuts to another BCT at Fort Stewart – Hunter Army Airfield

It’s coming down again…

• Unified message leveraging all resources

• Be aggressive and proactive

• Well-timed meetings in Washington D.C. (Pentagon and Congress)

• Quick reaction to changing conditions

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How Do We Weather The Storm?

• Join Southeast Georgia Friends of Fort Stewart and Hunter as a member or partner. Together, we will work to protect everyone’s economic and national security interests

• Attend the Nov. 17 Listening Sessionat 6 PM in Hinesville. (Location TBD)

What Can You Do?

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www.friendsofftstewartandhunter.comdirector@friendsofftstewartandhunter.co

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Questions?