44 



Federal government accounts for about 2,800 jobs in Southeast Alaska. About 1,800 

 of these federal jobs serve the national interest and are therefore basic industry. All 

 other federal jobs serve only the local population - such as postal workers - and are 

 part of the support sector. The Forest Service and the U.S. Coast Guard are the 

 largest fodoraJ basic industry rmployers jp Southeast. 



The role of the Tongass forest products Industry among all basic industry, Including 

 government, is substantial. The Tongass forest products industry including related 

 Forest Service employment accounts for nearly one-quarter (24%) of all basic 

 industry employment in Southeast Alaska. 



Southeast Alaska's 

 Total Private and Government Basic Economy 



(Measured In Terms tf Annual Average Enjoyment) 

 1989 



Al Other Basic Industry: 1%. 200 jobs 

 Tourism: 9%, 1,300)obe 



Mining: 2%, 300 Jobs 



Federal Government: 

 10%, 1,400 jot* 



Sale Government: 

 21%, 3,000 jobs 



Tongass Forest Products: 24%, 3,500 Jobs 

 (including 450 Forest Service jobs) 



All Other Forest Products: 7%, 1 ,000 jobs 



Sealood: 27%. 3,990 jobs 



It is beyond the scope of this study to measure the indirect and Induced impacts of 

 the Tongass timber industry on the Southeast economy. However, it is important to 

 note that the industry does have important secondary impacts and that indirect and 

 induced impacts vary from one segment of the industry to another. The pulpmills 

 have by far the greatest impact. They provide hundreds of high-paying, entirely 

 resident jobs which account for a high level of local spending. 



Further, pulpmills represent an important property tax base in Sitka and Ketchikan. 

 The pulpmills add millions of dollars to local government coffers either through 

 property tax payments or through electric power purchases, water purchases, and 

 purchases of other public utilities. These property tax payments and high volume 

 purchases of public utilities help keep local government and public utility costs 

 lower for residents of the communities. 



All told, without the pulp mills, the economies of Sitka and Ketchikan would ■* 

 shrink by nearly one-third and some costs of living for remaining residents would 

 increase significantly. Hardest hit would be property values. The Anchorage real 



