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Stuart Denslow Tongass Testimony Page 5 



Local government administration would lose significant state funding and 

 result in layoffs in the schools, hospital, public services, and other 

 municipal staff. Everyday services such as police and fire protection, street 

 maintenance, and utilities would be reduced. Bonding ability of the 

 municipality would be significantly reduced. 



A severe econonic recession increases the need for social services, but a 

 smaller population and less money results in less social services to meet the 

 demand. Such problems as domestic violence, alcohol and drug abuse, divorces, 

 bankruptcies, and job loss and financial stress are all exacerbated. 



The 70 percent of households in Sitka which own their hones would have 

 negative equity in their investments, losing an estimated $48,000 in value on 

 the major source of financial security. They would be unable to sell their 

 homes for what they owe on them and may not be able to sell them at any price. 



Discretionary spending would be severely reduced, with those in the 

 durable goods business often the first to close. Donations to charities would 

 suffer, providing less resources to help the needy. The poorest families would 

 suffer disproportionately, as they have the least resources to find other 

 enplonent. An APC closure would have especially severe effects on the Native 

 population. 145 Natives hold mill jobs at APC, and Native people have less 

 economic mobility and would have a greater degree of economic and emotional 

 duress due to less average income and fewer alternatives for work. 



