Outstanding Alaskan native art, historical art, historical objects, and archival materials continue to leave or remain outside the state because Alaskan museums, historical libraries, and archives do not have sufficient funding to compete effectively in the national and international markets where these objects are in great demand. In order to preserve essential Alaskan cultural materials within the state, it is proposed that the State of Alaska establish an endowment fund to enable the purchase of exceptional artifactual and archival materials by museums, historical libraries, and archives statewide. A Board of Trustees, governed by statute, would be created within the Department of Education to oversee expenditure of annual derived income, which would purchase exceptional artifactual and archival materials, pay for annual costs to manage the fund, and cover expenses of the Board of Trustees. There appears to be no legal obstacles to the establishment of such a fund if the Legislature annually appropriates derived income to the purposes of the endowment. An initial appropriation of $7.5 million, followed by an additional appropriation in 2 to 3 years is recommended. An investment of $7,750,000 would generate approximately $750,000 in revenues per year for statewide preservation of Alaska's heritage. (JHZ)