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Analysis of a Proposal to Expedite the Disposal of Federal Civilian Real Property 1 (June 27, 2011)

handle is hein.congrec/cbo10566 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Douglas W. Elmendorf, Director U.S. Congress Washington, DC 20515 June 27, 2011 Honorable Darrell E. Issa Chairman Committee on Oversight and Government Reform U.S. House of Representatives Washington, DC 20515 Dear Congressman, This letter responds to your request for the Congressional Budget Office (CBO) to analyze the President's legislative proposal to expedite the disposal of federal civilian real property. The President included such a proposal in his 2012 budget submission to the Congress in February; recently, the Administration also transmitted draft legislation to the Congress entitled the Civilian Property Realignment Act, which is similar to the proposal in the President's 2012 budget. In its estimate of the proposal included in the President's budget submission, CBO concluded that the proposal would increase direct spending by $60 million over the 2012-2021 period. Such increases would result because, although the legislation might induce some agencies to sell additional properties that may not be sold under current law, the proposal also would allow agencies to spend a portion of sale proceeds that will accrue to the federal government under current law and that otherwise could not be spent. In addition, CBO estimates that implementing the proposal would cost $420 million over the 2012-2016 period, assuming the appropriation of the necessary amounts, to prepare properties for sale or transfer. The Administration estimates that its proposal would result in more than $16 billion in additional gross receipts over the 2013-2017 period-or an average of more than $3 billion per year from property sales. CBO reviewed the results of similar efforts in the past to dispose of unneeded