24 



management, and I think it can be done, as you said, on a closer 

 level. 



Cindy, you said you were in the business of building roads. What 

 are you doing now? 



Ms. McGraw. Well, we still have a construction business, though 

 smaller. For the last two years, we did not work at all. We are just 

 trying to fmd work around here, which is almost impossible. We 

 have had to go out of town, into Wrangell, Craig. 



The Chairman. Are you still in road building? 



Ms. McGraw. Well, road construction or water and sewer lines, 

 stuff like that. 



The Chairman. How many people do you employ now? 



Ms. McGraw. Now we employ, permanently, three — my husband 

 and my two sons. One son — they have had to leave town. The old- 

 est son had to go to Craig to work, the middle one had to go to 

 Wrangell to work and live, which is not a preferable alternative, 

 but we do not have much choice. We are working but 



The Chairman. Just hanging on? 



Ms. McGraw. Just hanging on. 



The Chairman. In your insurance business, do you find any fric- 

 tion claims? 



Ms. Scott. Well, I have been mostly in employee benefits now, 

 so I have seen lots of layoffs in my clients, my clientele. I insure 

 a lot of clients in Southeast Alaska. And my husband has a con- 

 struction business and 



The Chairman. What is he constructing now? 



Ms. Scott. Homes, just a lot of homes. 



The Chairman. Are there new homes being built in town? What 

 is the ratio? 



Ms. Scott. A lot of new homes. 



Mr. Hallgren. There are a lot of new homes that — probably the 

 same level as the mid-1970's when we were at our peak. 



The Chairman. Who is the purchaser? 



Mr. Hallgren. We are not completely positive, but there are an 

 awful lot of people from out of town buying. 



However, SEAHC Hospital has also increased its employment in 

 the last year and a half. 



The Chairman. Which is a government hospital? 



Mr. Hallgren. Yes. 



Ms. Scott. I would say, based on our business, the majority of 

 homes are being purchased by people that live here. 



The Chairman. What about the economy? Both of you are in- 

 volved in it. Do you see — or have you been involved — what is your 

 enrollment in the schools? Are the young people increasing or de- 

 creasing? Anybody know? 



Ms. Scott. I would say decreasing. 



Mr. Hallgren. School enrollment has decreased, and we have 

 had a problem with that definitely since the mill shut down. With 

 this school year — and the school budget is based upon the estimate 

 for the next year, and the city contribution, as it is called, to the 

 local school district is our largest single expenditure on an annual 

 basis. This year's school census is down approximately 45, I think, 

 from what they estimated, and for next year they are estimating 



