The United States Department of Transportation, the parent of the Coast Guard, identified the Governors Island base for closure in 1995. The move was part of a series of Coast Guard base closures that would collectively save $100 million a year. Governors Island alone cost $60 million a year to maintain. By 1996, the Coast Guard had relocated all functions and residential personnel to offices and bases, but left a caretaker detachment to jointly maintain the island with the General Services Administration (GSA) while its future was determined. Other federal agencies were loath to take control of the island. Upon the announcement of the base's closure in 1995, President Bill Clinton offered to give up the island for $1 if Mayor Rudy Giuliani and Governor George Pataki could agree to reserve the island for public use. The city was initially reluctant to take up Clinton's offer because it would not have been financially beneficial to the city. The issue was exacerbated when the Balanced Budget Act was passed in 1997, stipulating that the GSA sell the island at a fair market value by 2002. The island's sale was expected to net the federal government $500 million.