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SJR 1: Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit.

00                       SENATE JOINT RESOLUTION NO. 1                                                                     
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  Article IX, sec. 16, Constitution of the State of Alaska, is repealed and                            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 and                                  
07       except as provided in this section, appropriations made for a current fiscal year shall                           
08       not exceed the amount appropriated in the immediately preceding fiscal year by more                               
09       than the product of the prior year appropriations multiplied by the sum of one plus the                           
10       percentage change in State population, and then multiplying that resultant product by                             
11       one plus the percentage change in the Consumer Price Index.  However, the                                         
12       percentage change in the Consumer Price Index shall be no greater than the percentage                             
13       change in personal income of State residents.  The Department of Commerce,                                        
14       Community, and Economic Development or its successor agency shall determine the                                   
15       change in per capita personal income based upon the Alaska personal income statistics                             
16       produced by the Bureau of Economic Analysis in the United States Department of                                    
01       Commerce.  In this subsection,                                                                                    
02                 (1)  "percentage change in State population" means the percentage                                       
03       change for the latest available estimates as compiled by a State agency;                                          
04                 (2)  "percentage change in the Consumer Price Index" means the                                          
05       percentage change for the latest available estimates for all urban consumers for the                              
06       Anchorage metropolitan area as compiled by a federal agency.                                                      
07            (b)  If the appropriation limit amount calculated in this section for a current                              
08       fiscal year is less than the appropriation limit amount calculated for the immediately                            
09       preceding fiscal year, the appropriation limit amount for the immediately preceding                               
10       fiscal year shall apply to the current fiscal year.                                                               
11            (c)  Calculations made under (a) of this section shall not include appropriations                            
12                 (1)  to the Alaska permanent fund established in Section 15 of this                                     
13       article;                                                                                                          
14                 (2)  of Alaska permanent fund income for payments of permanent fund                                     
15       dividends to State residents;                                                                                     
16                 (3)  of money received by the State from a source other than the State                                  
17       or federal government that is restricted to a specific use by the terms of a gift, grant,                         
18       bequest, or contract;                                                                                             
19                 (4)  of State general obligation bond and revenue bond proceeds;                                        
20                 (5)  required to pay obligations under revenue bonds;                                                   
21                 (6)  of money received from the federal government;                                                     
22                 (7)  of money received as tuition, fees, or contract receipts, or from                                  
23       other sources apart from the general fund by the University of Alaska;                                            
24                 (8)  of dedicated funds and trust funds;                                                                
25                 (9)  of money for expenditures by a State agency to provide services to                                 
26       another State agency that has also received an appropriation of the same money;                                   
27                 (10)  of money previously appropriated for a different purpose or to a                                  
28       different recipient; and                                                                                          
29                 (11)  made under (d), (g), or (k) of this section.                                                      
30            (d)  The appropriation limit imposed by this section may be exceeded for a                                   
31       fiscal year in an emergency as defined in (e) of this section.  Any expenditure                                   
01       exceeding the limit imposed by this section for a declared emergency as provided for                              
02       in this section shall be for that purpose only and shall be directly related to, and                              
03       proportional to the costs arising from, the emergency.  Furthermore, such funds shall                             
04       not be considered in the base for determining the following year's appropriation limit.                           
05            (e)  "Emergency," for the purposes of this section, means the existence, as                                  
06       declared by the governor, of conditions of disaster or of extreme peril to the safety of                          
07       persons an property within the State, or parts thereof, caused by an attack or probable                           
08       or imminent attack by an enemy of the United States, epidemic, fire, flood, drought,                              
09       storm, civil disorder, earthquake, or volcanic eruption.  "Emergency" does not include                            
10       revenue shortfalls, excessive spending, or similar conditions limiting the ability to                             
11       fund government operations.                                                                                       
12            (f)  The commissioner of revenue, or the head of a successor agency, shall, on                               
13       a quarterly basis, report to the governor and the members of the Finance Committees                               
14       in each house regarding the State's compliance with the appropriation limit imposed                               
15       by this section for the current fiscal year.  The report shall include updated estimates                          
16       of revenues and expenditures and the appropriation limit for the current fiscal year.  If                         
17       the Department of Revenue estimates that current fiscal year total expenditures might                             
18       exceed the appropriation limit imposed by this section, the report shall include                                  
19       recommendations for corrective actions.                                                                           
20            (g)  If total general and other fund revenues exceed the amount that may be                                  
21       expended in the current fiscal year due to the appropriation limit imposed by this                                
22       section, the amount of the excess shall be allocated from the general fund as follows:                            
23                 (1)  If the budget reserve fund set forth in Section 17 of this article has                             
24       a total of less than $5,000,000,000, then 100 percent of the excess revenues shall be                             
25       deposited in the budget reserve fund to the extent that this fund contains an amount of                           
26       no more than $5,000,000,000.  Any funds that may not be allocated to the constitution                             
27       budget reserve fund due to the $5,000,000,000 limitation shall be allocated under (3),                            
28       (4), and (5) of this subsection.                                                                                  
29                 (2)  Any funds expended from the budget reserve fund shall not be                                       
30       considered as part of the base for the purposes of determining the amount of allowable                            
31       appropriations of subsequent years.                                                                               
01                 (3)  Fifty percent of the excess revenues not allocated to the budget                                   
02       reserve fund in accordance with (1) of this subsection shall be deposited into the                                
03       Alaska permanent fund as established in Section 15 of this article.                                               
04                 (4)  Twenty-five percent of the excess revenues not allocated to the                                    
05       budget reserve fund in accordance with (1) of this subsection shall be returned to the                            
06       citizens of Alaska as a supplement to the permanent fund dividend to those citizens                               
07       entitled to receive a permanent fund dividend.                                                                    
08                 (5)  Twenty-five percent of the excess revenues not allocated to the                                    
09       budget reserve fund in accordance with (1) of this subsection shall be deposited to a                             
10       schools, roads, and highways deferred maintenance fund, which is hereby created in                                
11       the treasury as a trust fund, which shall be available for allocation by the legislature to                       
12       local agencies and school districts for deferred maintenance of roads, highways, and                              
13       schools.                                                                                                          
14            (h)  If, following enactment of the budget bill, the governor determines that,                               
15       for that fiscal year, general fund revenues will decline substantially below the estimate                         
16       of general fund revenues upon which the budget bill for that fiscal year, as enacted,                             
17       was based, or general fund expenditures will increase substantially above the estimate                            
18       of general fund revenues, or both, or if, following the enactment of the budget bill for                          
19       fiscal year, the governor determines that, for that fiscal year, total expenditures are                           
20       expected to exceed the appropriation limit imposed by this section for that fiscal year,                          
21       the governor may issue a proclamation declaring a fiscal emergency and shall cause                                
22       the legislature to assemble in special session solely for that purpose.  The                                      
23       proclamation shall identify the nature of the fiscal emergency and shall be submitted                             
24       by the governor to the legislature, accompanied by proposed legislation to address the                            
25       fiscal emergency.  Any legislation proposed or enacted in response to the fiscal                                  
26       emergency declared under this section shall comply with the requirements of this                                  
27       section.                                                                                                          
28            (i)  If the legislature fails to pass and send to the governor a bill or bills to                            
29       address the fiscal emergency declared under (h) of this section by the tenth day                                  
30       following the issuance of the proclamation, the legislature may not adjourn for a joint                           
31       recess until that bill or those bills have been passed and signed by the governor.                                
01       Neither the governor nor any member of the legislature shall be entitled to any salary,                           
02       per diem, or other expense allowance for any day after the tenth day following the                                
03       issuance of the proclamation until legislation addressing the fiscal emergency has been                           
04       passed and signed into law by the governor.  No forfeited salary, per diem, or expense                            
05       allowance shall be paid retroactively.                                                                            
06            (j)  A bill addressing the fiscal emergency declared under (h) of this section                               
07       shall contain a statement to that effect.                                                                         
08            (k)  Whenever, based on the most recent Department of Revenue estimates, or                                  
09       the estimates of its successor agency, and based on laws then in effect, the estimated                            
10       total amount of debt service for the current fiscal year or any of the succeeding four                            
11       fiscal years on non-self-liquidating general obligation bonds and general-fund-                                   
12       supported lease revenue bonds exceeds six percent of the estimated general fund                                   
13       revenues for that fiscal year, exclusive of transfers from other funds during that fiscal                         
14       year, the treasurer many not sell any additional not-self-liquidating general obligation                          
15       bonds or general-fund-supporting lease revenue bonds.                                                             
16            (l)  If  the percentage under (k) of this section is six percent or less, the                                
17       treasurer may sell those bonds to the extent that, based on the most recent Department                            
18       of Revenue estimates, or the estimates of its successor agency, and based on laws then                            
19       in effect, the additional debt service will not cause the percentage to exceed six                                
20       percent for the current fiscal year or any of the succeeding four fiscal years.                                   
21    * Sec. 2.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
22 section to read:                                                                                                        
23            Section 30.  Application, Transition, and Repeal.  The 2006 amendment                                      
24       relating to an appropriation limit (art. IX, sec. 16) first applies to appropriations made                        
25       for fiscal year 2008.  However, for purposes of making calculations under the                                     
26       appropriation limit for fiscal years 2008 through 2010, it shall be assumed that,                                 
27       excluding appropriation listed under Section 16(c) of Article IX, the amount                                      
28       appropriated for                                                                                                  
29            (1)  fiscal year 2006 equals $3,250,000,000; and                                                             
30            (2)  fiscal year 2007 equals $3,393,000,000.                                                                 
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.