Summary: 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.
Numerous errors were found in the Air Force's estimate of costs and savings if Kincheloe were closed. The current proposed closure could result in annual recurring savings of about $28 million; one-time costs of about $27.9 million; and one-time cost avoidances of about $9 million. The closure would further depress 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 the base would also drastically affect the local economy 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 new industry.
