MORE ABOUT . . .
Statehood
(Continued from Page 1)
the Social Security Act. Public
welfare is budgeted to the ex
tent of $3 million and the public
school system to $11 million an
nually.
First among the functions of
state government to be assumed
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Madison 143
is operation of the Fish & Wild
life Service. We get a rebate in
fees, licenses, etc., on this
amounting to almost $500,000,
which constitutes a part of their
program which is self-support
ing and which even the Federal
Government does not get. In ad
dition there is a federal grant of
$200,000 made to other states
carrying on the functions of the
F&WS. With these two sums in
mind, Mrs .Hermann places the
amount for F&WS at $1,500,000.
Another thing we would have
to take over as a state is the
judiciary. This figure is set at
$600,000. To justify this low es
timate, Mrs. Hermann explains
that the State of Alaska could
get along with three courts in
stead of the present four. The
Federal government must al
ways maintain at least one court
in Alaska because there are so
many questions that are strictly
federal problems. (As it is, all
courts, excepting the municipal
magistrates' courts, arc federal,
and continually falling behind
in the case load.)
Mrs. Hermann deletes the
$525,000 for the support of fed
eral prisoners in the last year,
because, she says, she does not
expect the government to turn
over the support of their present
prisoner load upon the new
State.
There is the further fact that
the newly created Territorial
Police Force will take over a
great deal of the law enforce
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ment in the Territory. $200,000
has already been appropriated
for administrative expenses of
this police force and the Legis
lature made available $750,000
more from the gas-tax fund. The
new enforcement agency is much
superior to the old Highway
Patrol and will eliminate that
item which is now charged up
as U.S. Marshal’s salaries, thus
reducing the expense of the
courts.
Next, we have the expense of
care of the insane, which is now
borne by Federal government.
The bill now under considera
tion provides that the Federal
government will continue the
care of insane persons who al
ready have been committed to
institutions, which will start our
statehood without that case load.
With this in mind, it is felt that
$250,000 will be fully adequate
for the first few years of state
hood.
Another item of expense in
cident to statehood is that of
building and maintenance of
State buildings for various in
stitutions— prisons, insane asy
lums, and other buildings for
offices, etc.
Mrs. Hermann sets asido the
sum of $5 million for this pur
pose, which would be amortized
over the period of 20 years at
four per cent, amounting to
$355,000 per year.
She estimates that $4 million
along vvith the amount available
under the Federal Highway Act
will be adequate to keep us
maintaining roads and building
new ones as they are needed.
The total amount reached as
a basis for increased expense
due to having a state instead of
a Territorial government runs
to $6,779,000, just under $7 mil
lion per year or $14 million bi
ennium.
The entire income of the Ter
ritory from all tax sources last
biennium was $31 million. To
offset the added expense of
statehood. Mrs. Hermann points
out that the present statehood
bill IIK2982 would net the State
of Alaska $1,600,000 from the
Pribilof seal fisheries. Another
income would be a minimum
of $238,000 from sale of timber
and $500,000 for leases, stump
age, royalties, sale of state lands,
etc.
As additional tax revenue the
Lots %
an
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LOCATED IN BEAUTIFUL TIMBERED AREA
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REAL ESTATE
Phone Main 283 41h and Adams
general land tax which was re
pealed this year as illegal under
the Organic Act of 1912, would
be possible under statehood; thus
revenue would be available from
lands now held in Alaska by
individuals and corporations
Outside, and which are now tax
free.
As another tax source, Mrs.
Hermann mentioned the sever
ance tax which in most states
where mining and the depletion
of natural resources by other
means occurs, is levied as a mat
ter of course, but is not in effect
in the Territory.
As summation, Mrs. Hermann
presents figures from the office
of the Territorial treasurer
showing as of March 31, 1953
a cash balance in the general
fund of $8,246,030.77. Annual
total of expenditures for the
next biennium excluding defi
ciency appropriations, $11,912,
889. Actual revenues per year
for the next biennium, $16,869,
000. Potential revenue, $19,119,
000; proving that Alaska could
finance statehood.
Several copies of the complete
report of the Hearing in Wash
ington are in town. One is ini
the Community Library.
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