Plan to shed excess federal properties marches onward

A plan by the federal government to shed excess properties and potentially save billions of dollars to help reduce the deficit marches on behind the scenes as Congress considers legislative proposals. 

The Obama administration and lawmakers are working together to expand the White House's list of excess properties, including the most recent addition of a heating plant in Georgetown that hasn't been used in more than a decade. 

Rep. Jeff Denham (R-Calif.) has taken the lead in the House on a measure that would set up a system similar to that of the Pentagon's Base Closure and Realignment Commission (BRAC) to sell, demolish and consolidate property, with the potential of garnering upward of $15 billion on more than 14,000 properties that have been identified. 

"I am happy to be working with the Administration to reduce our federal footprint and save taxpayer dollars.” Denham said. "There has been inaction on these vacant and underused buildings for too long. Identifying excess property is step one," he said. 

Denham expressed concern that even with the plant's addition to the list, that property and the thousands of others already identified could remain stuck on the list because, under current law, there is no guarantee this valuable property will be sold.   

The plant has been identified as "truly unneeded." If sold, it could result millions of dollars in savings for the taxpayer, according to the Office of Management and Budget. 

Denham's measure — the Civilian Property Realignment Act (CPRA) — focuses on the long-term restructuring of how the federal government manages and consolidates its real estate with all savings going toward deficit reduction. 

"My bill also takes politics out of the process and cuts through the bureaucratic red tape to ensure the sale or consolidation of these properties, resulting in real savings to reduce our $14.3 trillion deficit," he said. 

The measure was approved and sent to the House on Oct. 13 by the House Transportation and Infrastructure Committee. 

The Senate has started work on similar legislation and has asked federal agencies to provide lists of properties that could be sold. 

The White House has estimated that $15 billion would be saved over three years in their plan. The CBO determined in a July report that the administration's proposal could increase direct spending by $60 million over 10 years and could increase discretionary spending by $420 million over five years.

The federal government owns and operates more than 1.2 million buildings costing about $20 billion a year to operate.