36 



science and more effective public involvement in the decisionmak- 

 ing process. We strongly urge you not to pursue a policy that would 

 lead to the dismemberment of the national Forest Service system, 

 but, instead, recognize that conflict and controversy are inherent 

 parts of natural resource management which cannot be fixed by 

 shifting responsibility from Federal to State management. The 

 economies of Southeast Alaska are in transition. The communities 

 and the increasingly diverse businesses of the region need assur- 

 ances of a stable supply of all goods and services produced on the 

 Tongass. The administration recognizes the vital role that natural 

 resources play in the economy of the region and is committed to the 

 economy of Southeast Alaska and to providing a sustainable and 

 dependable supply of timber and other resources from the Tongass. 

 The proposed legislation, however, would have adverse effects to- 

 ward accomplishing economic stability and create additional eco- 

 nomic uncertainties. 



H.R. 2413 would undo the long-established working relationships 

 the Forest Service has developed with the State of Alaska, local 

 governments, and Alaska Natives. The Tongass is an ecological 

 treasure, a vast expanse of temperate rain forest. Recognizing its 

 value, the American public has invested major financial resources 

 in the Tongass to ensure the wise and judicious use of all its natu- 

 ral resources. This, in turn, has greatly contributed directly and in- 

 directly to the growth of the Southeast Alaska economy and the 

 health of our nation. The Forest Service has worked hard to assure 

 sustained growth in all sectors of the economy. 



The investment of programs and infrastructure the taxpayers of 

 this country have made to the resources of the Tongass and the 

 economy of Alaska since the Tongass was established in 1907 is 

 substantial. Even if transfer of the Tongass makes sense from a 

 management standpoint, the administration would object to relin- 

 quishing 17 million acres of valuable Federal property and im- 

 provements without adequate compensation to the Federal treas- 

 ury. 



H.R. 2413 would also change the flow of economic benefits that 

 Forest Service programs have created for the 33 communities and 

 local governments within the Tongass. The Forest Service shares 

 25 percent of all revenues from timber and other activities in the 

 national forest. For the Tongass in 1995, this amounts to $7.6 mil- 

 lion. Of this total, the city of Sitka alone received $820,000. As it 

 is for other communities in Southeast Alaska, these revenues are 

 a key component of Sitka's government finances. If they were di- 

 minished or lost, the alternatives might be to raise taxes, cut back 

 on services, or both. 



The economy of Alaska would be further affected by the loss of 

 the estimated sixty to eighty million dollars per year of Federal 

 Government spending to operate programs on the Tongass at cur- 

 rent levels. The cost of managing the Tongass would remain rel- 

 atively unchanged if H.R. 2413 were enacted, yet the loss of this 

 influx of Federal money, coupled with the additional burden to the 

 State budget, is certain to prove detrimental to the stability of the 

 Alaska economy. 



Additionally, the revenue generated by the 565 permanent em- 

 ployees on the Tongass whose salaries are spent and re-spent in 



