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CSHJR 9(FIN): Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit.

00 CS FOR HOUSE JOINT RESOLUTION NO. 9(FIN) 01 Proposing amendments to the Constitution of the State of Alaska relating to an 02 appropriation limit. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. Article IX, sec. 16, Constitution of the State of Alaska, is repealed and 05 readopted to read: 06 Section 16. Appropriation Limit. (a) Appropriations made for a current 07 fiscal year shall not exceed the average amount appropriated for the earliest three of 08 the four fiscal years immediately preceding that current fiscal year, increased or 09 decreased by the lesser of 10 (1) seventy-five percent of the sum of the following: 11 (A) the percentage rate of change in the cost of living for the 12 three calendar years preceding the calendar year during which the immediately 13 preceding fiscal year began; plus 14 (B) the percentage rate of change in the State population for the 15 three calendar years preceding the calendar year during which the immediately 16 preceding fiscal year began; or

01 (2) the percentage rate of change in the personal incomes of State 02 residents for the three calendar years preceding the calendar year during which the 03 immediately preceding fiscal year began. 04 (b) The legislature shall implement (a) of this section by law. 05 (c) An appropriation that exceeds the limit under (a) of this section by not 06 more than two percent may be made for any public purpose upon affirmative vote of at 07 least two-thirds of the members of each house of the legislature. An appropriation that 08 exceeds the limit under (a) of this section by not more than four percent may be made 09 for any public purpose upon affirmative vote of at least three-fourths of the members 10 of each house. However, the total amount of appropriations under this subsection 11 made for a fiscal year may not exceed the limit under (a) of this section by more than 12 four percent. A bill making one or more appropriations under this subsection must be 13 confined to appropriations made under this subsection. 14 (d) Calculations made under (a) or (c) of this section shall not include 15 (1) an appropriation to the Alaska permanent fund established in 16 Section 15 of this article; 17 (2) an appropriation for payments of permanent fund dividends to State 18 residents; 19 (3) an appropriation to meet a state of natural disaster declared by the 20 governor as prescribed by law; 21 (4) an appropriation to a separate fund or account in the general fund 22 from which expenditures may not be made without an additional appropriation from 23 that separate fund or account; 24 (5) an appropriation of State general obligation and revenue bond 25 proceeds; 26 (6) an appropriation required to pay obligations under revenue or 27 general obligation bonds issued by the State; 28 (7) an appropriation of money received from the federal government; 29 (8) a reappropriation of money already appropriated under an 30 unobligated appropriation that is not void under Section 13 of this article; 31 (9) an appropriation of money for expenditure by a State agency to

01 provide services to part of that same agency or to another State agency if the other part 02 or the other agency has also received an appropriation of the same money; 03 (10) an appropriation of money held in trust by the State for a 04 particular purpose; 05 (11) an appropriation of money from tuition of the University of 06 Alaska; 07 (12) an appropriation of money received by the state from a source 08 other than the state or federal government that is restricted to a specific use by the 09 terms of a gift, grant, bequest, or contract; 10 (13) an appropriation of money deposited into the budget reserve fund 11 under Section 17(d) of this article back to the funds and accounts from which the 12 money came; 13 (14) an appropriation of dedicated funds; 14 (15) an appropriation made under (c) of this section. 15 * Sec. 2. Article XV, Constitution of the State of Alaska, is amended by adding a new 16 section to read: 17 Section 30. Application, Transition, and Reconsideration of 18 Appropriation Limit. (a) The 2004 amendment relating to an appropriation limit 19 (art. IX, sec. 16) first applies to appropriations made for fiscal year 2006; however, for 20 purposes of making calculations under the appropriation limit for fiscal years 2006 21 through 2008, it shall be assumed that, excluding appropriations listed under Section 22 16(d) of Article IX, the amount appropriated for 23 (1) fiscal year 2004 equals $3,300,000,000; and 24 (2) fiscal year 2005 equals $3,400,000,000. 25 (b) Notwithstanding Section 1 of Article XIII, the lieutenant governor shall 26 place the ballot title and proposition for the 2004 amendment relating to an 27 appropriation limit (art. IX, sec. 16) on the ballot again at the general election in 2010 28 and every six years thereafter unless it is rejected. If the majority of those voting on 29 the proposition rejects the amendment, Section 16 of Article IX is repealed on the date 30 the election is certified. 31 * Sec. 3. The amendments proposed by this resolution shall be placed before the voters of

01 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the 02 State of Alaska, and the election laws of the state.