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The Department of Defense’s Base Realignment and Closure (BRAC) process responds to the changing needs of the U.S. Military. This often means that some military communities will expand or decrease. During the 2005 BRAC announcements, many military communities in the Fifth Federal Reserve District (Maryland, North Carolina, South Carolina, Virginia, the District of Columbia, and most ofWest Virginia) were slated for growth.

 These localities will have to consider community development issues such as affordable housing, infrastructure and education. This article gives an overview of the BRAC process, identifies resources for growth communities and points out the importance of stakeholder involvement.

President’s Message:

When a new industry moves into a region, whether it’s manufacturing, retail, or technology, economic changes and policy considerations don’t lag too far behind.

The same holds true for military communities that change because of Base Realignments and Closures (BRAC). Many states in the Fifth District will see a significant expansion in the military industry because of the Department of Defense’s 2005 BRAC recommendations. Such expansions are often welcomed for the economic spillovers they bring to local businesses. But along with this growth come tradeoffs and unanswered questions.

Where will new residents live? Where will they work?How will schools accommodate an influx of new students? Will the current infrastructure support this growth? While it may seem tempting to preserve open space and avoid the infrastructure costs associated with the growing population, that strategy can be costly. The community will appear less attractive as an employment option when property values increase and traffic becomes more congested. Workers may have to endure long commutes to avoid increasing housing prices.

These are just some of the challenges and hard choices that BRAC communities face as they reap the benefits and weigh the costs of military base expansions.

JEFFREY M. LACKER, President
Federal Reserve Bank of Richmond

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The mission of MARKETWISE is to provide both progressive and practical information about community economic development that supports economic growth in the Fifth District. The Fifth District consists of Maryland, North Carolina, South Carolina, Virginia, most of West Virginia and the District of Columbia.

MARKETWISE is published two times a year by the Federal Reserve Bank of Richmond. Free subscriptions and additional copies are available upon request.

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