428 



We estimate that the Sitka School District would lose about 25 

 percent of our student body between the closing of the pulp mills 

 and whatever loss there might be to the Forest Service. 



This, of course, would produce a condition where we would lose 

 at least 25 percent of our youngest teachers and the higher-salaried 

 teachers would stay on and the lower-salaried teachers would be 

 laid off, which would drive up the cost per student. 



There is an indirect condition that would hurt our School Dis- 

 trict, not in dollars and cents but rather in quality of education. 

 With 426 students in Sitka High School, we are presently able to 

 offer advanced math, science, and foreign language courses that we 

 would certainly not be able to offer if our high school enrollment 

 fell to 320, a 25 percent reduction. 



Presently, our funding amounts to 70 percent from the state and 

 30 percent from the community. The formula is student driven, 

 and any reduction in students will result in the corresponding loss 

 of revenue. Additionally, our community bonded itself for $18 mil- 

 lion in 1986 so that we could build a new elementary school and 

 remodel and add on to our existing middle school. Education is im- 

 portant in Sitka, and people are willing to put their money where 

 their mouth is. The number of classrooms for the new elementary 

 school did not allow for a 25 percent reduction of the students in 

 the 1990s. 



Presently, Alaska education is in a constant state of adjustment 

 and cutbacks due primarily to the cost of oil. Some of our cities 

 have been severely crippled by $10 a barrel oil. Of course, with the 

 oil economy comes the potential for disaster, such as what hap- 

 pened in Valdez this spring. However, we are coping with these 

 hardships. 



Alaskans understand about financial cuts, disasters and hard- 

 ships, but what we do not understand is Senate Bill 346, which 

 would methodically and deliberately add more financial cuts, disas- 

 ters and hardships to the people of Alaska. The timber industry is 

 a big part of our lives. We have made long-range plans based on 

 the long-term commitments that are in effect today. 



The proposed changes in Senate Bill 346 would not create a wil- 

 derness. They would create an economic wasteland. Is that your in- 

 tention? 



Senator Wirth. Thank you very much. 



Mr. Hames. 



STATEMENT OF ROGER HAMES, PRESIDENT, HAMES CORP. 



Mr. Hames. My name is Roger Hames. I am president of two cor- 

 porations, one located in Sitka and the other one in Ketchikan. We 

 are primarily in the retail grocery business. With my brother and 

 sister, we represent a transfer into a third-generation, family- 

 owned business, extending back over 50 years in this area. 



We are about to complete a major remodel at one of our stores 

 and incur a major debt for completion. I must pause to contemplate 

 the future and what our business will be like if the economic 

 "rules" are changed. Will we grow, stagnate or be on the decline. I 

 consider myself and my family to be aggressive and optimistic 

 when it comes to living and doing business here in Southeast 



