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Stuart Denslow Tongass Testioony Page 2 



in goveriunent services and additional job loss and outmigration as the effects 

 ripple through the support sector of the renaining economy. 



Population loss of 2.050 residents, 24 percent of Sitka's total, is based 

 on employment loss. It would occur for the most part within a year, though 

 outmigration may be slowed by people being unable to sell their houses. 

 Assuming households affected by APC's closure are typical of the community in 

 terms of number of school children, 413 of the 1713 Sitka public school 

 enrollment (24 percent) would be lost. A proportional share. $1.5 million, of 

 the State of Alaska School Foundation Fund, and other proportional funding 

 sources amounting to another $0.5 million, would also be lost. 



The basic industry losses of 375 APC employees plus a longshore crew of 

 20, with an APC payroll of $17 million, would be lost. Removal of the $17 

 million APC payroll from trade, service, and other private sector support 

 industries which benefit from APC accounts for 29 percent of all basic industry 

 income to Sitka. The likely loss of most or all of the U.S. Forest Service 

 employment of HI and their payroll of $3.4 million would increase all impacts 

 shown in this analysis by another 28 percent. For example, population loss 

 would total 2,624 or nearly one-third of the community, rather than the 24 

 percent shown in this analysis, which is confined to the direct loss of APC 

 operations. 



Support industry employment loss would total an additional 599 persons, 

 with an estimated 459 jobs in the private support sector and 140 support 

 industry government jobs lost. In total, about one-fourth of all Sitka jobs 

 would be lost, including all of those in the highest paying industry, forest 



