Spruce beetle declined slightly, by 80,000 acres, in 1994. Hardwood defoliation declined from 113,000 acres in 1993 to only 24,221 acres in 1994. Spruce forests, however, showed an increase of insect activity of nearly 200,000 acres primarily due to the budworm outbreak near Tanana. In southeast Alaska, the black-headed budworm outbreak impacted vast areas for the fourth consecutive year. Over 193,000 acres of defoliation were observed. Hemlock sawfly populations declined significantly. Yellow-cedar decline was observed on more than 550,000 acres of southeast Alaskan forests. Wood decay of live trees and hemlock dwarf mistletoe continue to be the two other most significant diseases of southeast Alaskan forests. Foliar diseases of conifers were at moderate levels.