CSSJR 1(JUD): Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit.

00                 CS FOR SENATE JOINT RESOLUTION NO. 1(JUD)                                                               
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  Article IX, sec. 16, Constitution of the State of Alaska, is repealed and                            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 for the fiscal year two years preceding the current                            
09       fiscal year by more than the product of that prior year's appropriations multiplied by                            
10       the sum of one plus the percentage change in State population, and then multiplying                               
11       that resultant product by one plus the percentage change in the Consumer Price Index.                             
12       However, the percentage change in the Consumer Price Index shall be no greater than                               
13       the percentage change in personal income of State residents.  The Department of                                   
14       Commerce, Community, and Economic Development or its successor agency shall                                       
15       determine the change in per capita personal income based upon the Alaska personal                                 
16       income statistics produced by the Bureau of Economic Analysis in the United States                                
01       Department of 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), (l), or (m) 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 (d) of this section, means the existence,                              
06       as declared by the governor, of conditions of disaster or of extreme peril to the safety                          
07       of persons or property within the State, or parts thereof, caused by an attack or                                 
08       probable or imminent attack by an enemy of the United States, epidemic, fire, flood,                              
09       drought, storm, civil disorder, earthquake, or volcanic eruption.  "Emergency" does                               
10       not include revenue shortfalls, excessive spending, or similar conditions limiting the                            
11       ability to 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, following enactment of the budget bill, the governor determines that,                               
21       for that fiscal year, general fund revenues will decline substantially below the estimate                         
22       of general fund revenues upon which the budget bill for that fiscal year, as enacted,                             
23       was based, or general fund expenditures will increase substantially above the estimate                            
24       of general fund revenues, or both, or if, following the enactment of the budget bill for                          
25       fiscal year, the governor determines that, for that fiscal year, total expenditures are                           
26       expected to exceed the appropriation limit imposed by this section for that fiscal year,                          
27       the governor may issue a proclamation declaring a fiscal emergency and shall cause                                
28       the legislature to assemble in special session solely for that purpose.  The                                      
29       proclamation shall identify the nature of the fiscal emergency and shall be submitted                             
30       by the governor to the legislature, accompanied by proposed legislation to address the                            
31       fiscal emergency.  Any legislation proposed or enacted in response to the fiscal                                  
01       emergency declared under this section shall comply with the requirements of this                                  
02       section.                                                                                                          
03            (h)  If the legislature fails to pass and send to the governor a bill or bills to                            
04       address the fiscal emergency declared under (g) of this section by the tenth day                                  
05       following the issuance of the proclamation, the legislature may not adjourn for a joint                           
06       recess until that bill or those bills have been passed and signed by the governor.                                
07       Neither the governor nor any member of the legislature shall be entitled to any salary,                           
08       per diem, or other expense allowance for any day after the tenth day following the                                
09       issuance of the proclamation until legislation addressing the fiscal emergency has been                           
10       passed and signed into law by the governor.  No forfeited salary, per diem, or expense                            
11       allowance shall be paid retroactively.                                                                            
12            (i)  A bill addressing the fiscal emergency declared under (g) of this section                               
13       shall contain a statement to that effect.                                                                         
14            (j)  Whenever, based on the most recent Department of Revenue estimates, or                                  
15       the estimates of its successor agency, and based on laws then in effect, the estimated                            
16       total amount of debt service for the current fiscal year or any of the succeeding four                            
17       fiscal years on non-self-liquidating general obligation bonds and general-fund-                                   
18       supported lease revenue bonds exceeds six percent of the estimated general fund                                   
19       revenues for that fiscal year, exclusive of transfers from other funds during that fiscal                         
20       year, the treasurer may not sell any additional non-self-liquidating general obligation                           
21       bonds or general-fund-supported lease revenue bonds.                                                              
22            (k)  If  the percentage under (j) of this section is six percent or less, the                                
23       treasurer may sell those bonds to the extent that, based on the most recent Department                            
24       of Revenue estimates, or the estimates of its successor agency, and based on laws then                            
25       in effect, the additional debt service will not cause the percentage to exceed six                                
26       percent for the current fiscal year or any of the succeeding four fiscal years.                                   
27            (l)  The legislature may, upon the affirmative vote of at least two-thirds of the                            
28       members of each house, adopt an appropriation that exceeds the limit under (a) of this                            
29       section if the governor requests the appropriation in response to extraordinary                                   
30       circumstances.  The governor's request must include at least the following                                        
31       information:  (1) identification of the specific extraordinary circumstances; (2) the                             
01       amount requested for appropriation; (3) the period of time over which the                                         
02       appropriation is intended to be used; and (4) a plan for recovering the amount of                                 
03       money appropriated under this subsection.  An appropriation made under this                                       
04       subsection may not be used for the payment of bonds, notes, or other evidences of                                 
05       indebtedness.  For purposes of this subsection, "extraordinary circumstances" shall be                            
06       defined by law passed by at least two-thirds of the members of each house.                                        
07            (m)  If the legislature, by law, declares that an extraordinary circumstance                                 
08       exists, upon the affirmative vote of at least two-thirds of the members of each house,                            
09       the legislature may pass an appropriation that exceeds the appropriation limit under                              
10       this section to address the extraordinary circumstance.                                                           
11    * Sec. 2.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             
12 section to read:                                                                                                        
13            Section 30.  Application, Transition, and Repeal.  The 2006 amendment                                      
14       relating to an appropriation limit (art. IX, sec. 16) first applies to appropriations made                        
15       for fiscal year 2008.  However, for purposes of making calculations under the                                     
16       appropriation limit for fiscal years 2008 through 2010, it shall be assumed that,                                 
17       excluding appropriation listed under Section 16(c) of Article IX, the amount                                      
18       appropriated for                                                                                                  
19                 (1)  fiscal year 2006 equals $3,250,000,000; and                                                        
20                 (2)  fiscal year 2007 equals $3,393,000,000.                                                            
21    * Sec. 3.  The amendments proposed by this resolution shall be placed before the voters of                         
22 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
23 State of Alaska, and the election laws of the state.