Analysts say there's no way that the City of El Segundo, with apopulation of 16,200 and an annual operating budget of $36 million,can provide such massive subsidies by itself. Though El Segundoofficials have indicated they're willing to put up part of thecash, additional monies would have to come from surrounding cities,LA County, the state government—or a combination of the three.

The El Segundo base is just a few miles south of Los AngelesInternational Airport. Nearly 5,000 people work at the base,including almost 3,500 civilians. Thousands more are employed bythe hundreds of companies that provide everything from aircraftparts to the food served at the base's commissary.

Companies that do business with the base have also played a keyrole in the South Bay's plunging office vacancy rate and growingdemand for industrial space. El Segundo officials have scheduled ahearing on Sept. 5 to discuss the Air Force's request.