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

00 SENATE CS FOR CS FOR HOUSE JOINT RESOLUTION NO. 9(FIN)(fld S) 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 Article IX, sec. 16, Constitution of the State of Alaska, is repealed and 05 readopted to read: 06 Section 16.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) Subject to (b) of this section, 07 appropriations made for a current fiscal year shall not exceed the average amount 08 appropriated for the earliest three of the four fiscal years immediately preceding that 09 current fiscal year, increased or 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. If the 05 appropriation limit calculated under (a) of this section, as implemented by law, for a 06 current fiscal year is less than the appropriation limit amount calculated for the 07 immediately preceding fiscal year, the appropriation limit amount for the immediately 08 preceding fiscal year shall apply to the current fiscal year. 09 (c) An appropriation that exceeds the limit under this section by not more than 10 two percent may be made for any public purpose upon affirmative vote of at least two- 11 thirds of the members of each house of the legislature. An appropriation that exceeds 12 the limit under this section by not more than four percent may be made for any public 13 purpose upon affirmative vote of at least three-fourths of the members of each house. 14 However, the total amount of appropriations under this subsection made for a fiscal 15 year may not exceed the limit under this section by more than four percent. A bill 16 making one or more appropriations under this subsection must be confined to 17 appropriations made under this subsection. 18 (d) Calculations made under (a) or (c) of this section shall not include 19 (1) an appropriation to the Alaska permanent fund established in 20 Section 15 of this article; 21 (2) an appropriation for payments of permanent fund dividends to State 22 residents; 23 (3) an appropriation to meet a state of natural disaster declared by the 24 governor as prescribed by law; 25 (4) an appropriation to a separate fund or account in the general fund 26 from which expenditures may not be made without an additional appropriation from 27 that separate fund or account; 28 (5) an appropriation of State general obligation or revenue bond 29 proceeds or an appropriation of State lease debt sale proceeds; 30 (6) an appropriation required to pay obligations under revenue or 31 general obligation bonds issued by the State or a lease debt owed by the State;

01 (7) an appropriation of money received from the federal government; 02 (8) a reappropriation of money already appropriated under an 03 unobligated appropriation that is not void under Section 13 of this article; 04 (9) an appropriation of money for expenditure by a State agency to 05 provide services to part of that same agency or to another State agency if the other part 06 or the other agency has also received an appropriation of the same money; 07 (10) an appropriation of money held in trust by the State for a 08 particular purpose; 09 (11) an appropriation of money received as tuition, fees, contract 10 receipts, or from other sources apart from the general fund by the University of 11 Alaska; 12 (12) an appropriation of money received by the state from a source 13 other than the state or federal government that is restricted to a specific use by the 14 terms of a gift, grant, bequest, or contract; 15 (13) an appropriation of money deposited into the budget reserve fund 16 under Section 17(d) of this article back to the funds and accounts from which the 17 money came; 18 (14) an appropriation of dedicated funds; 19 (15) an appropriation made under (c) of this section. 20 * Sec. 2. Article XV, Constitution of the State of Alaska, is amended by adding a new 21 section to read: 22 Section 30. Application, Transition, and Repeal of Appropriation Limit. 23 (a) The 2004 amendment relating to an appropriation limit (art. IX, sec. 16) first 24 applies to appropriations made for fiscal year 2006; however, for purposes of making 25 calculations under the appropriation limit for fiscal years 2006 through 2008, it shall 26 be assumed that, excluding appropriations listed under Section 16(d) of Article IX, the 27 amount appropriated for 28 (1) fiscal year 2004 equals $3,150,000,000; and 29 (2) fiscal year 2005 equals $3,250,000,000. 30 (b) Section 16 of Article IX (appropriation limit) is repealed July 1, 2009. 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.