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HB 141: "An Act relating to an appropriation limit; relating to the budget responsibilities of the governor; and providing for an effective date."

00 HOUSE BILL NO. 141 01 "An Act relating to an appropriation limit; relating to the budget responsibilities of the 02 governor; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 37.05.540(b) is amended to read: 05 (b) Except for appropriations to the permanent fund or for Alaska permanent 06 fund dividends, appropriations to the budget reserve fund, appropriations of revenue 07 bond proceeds, appropriations required to pay the principal and interest on general 08 obligation bonds, appropriations for school bond debt reimbursement under 09 AS 14.11.100, appropriations to meet a state of disaster declared by the governor 10 as prescribed by law, and appropriations of money received from a nonstate source in 11 trust for a specific purpose, including revenue of a public enterprise or public 12 corporation of the state that issues revenue bonds, appropriations from the mental 13 health trust settlement income account (AS 37.14.036), and appropriations made to the 14 mental health trust fund (AS 37.14.031), appropriations from the treasury made for

01 [IN] a fiscal year may not exceed the average of the appropriations made in the three 02 fiscal years immediately preceding the fiscal year, adjusted by a percentage equal 03 to the average annual change in population or the average annual change in 04 inflation in the preceding three calendar years, whichever is greater 05 [PRECEDING FISCAL YEAR BY MORE THAN FIVE PERCENT PLUS THE 06 CHANGE IN POPULATION AND INFLATION SINCE THE BEGINNING OF 07 THE PRECEDING FISCAL YEAR]. For purposes of applying this limit an 08 appropriation is considered to be made in the fiscal year in which it is enacted and a 09 reappropriation remains attributed to the fiscal year in which the original appropriation 10 is enacted. The determination of the change in population for purposes of this 11 subsection must [SHALL] be based on an annual estimate of population by the 12 Department of Labor and Workforce Development. The determination of the change 13 in inflation for purposes of this subsection must [SHALL] be based on the Consumer 14 Price Index for Urban Alaska [ALL URBAN CONSUMERS FOR ANCHORAGE] 15 prepared by the United States Department of Labor, Bureau of Labor Statistics. The 16 amount of money received by the state that is subject to the appropriation limit 17 includes the balance in the general fund carried forward from the preceding fiscal 18 year. 19 * Sec. 2. AS 37.07.020 is amended by adding a new subsection to read: 20 (f) In addition to the budget and bills submitted under (a) of this section and 21 the fiscal plan submitted under (b) of this section, the governor shall submit a report 22 with a calculation of appropriations in the budget prepared under (a) of this section as 23 applied to the appropriation limit under AS 37.05.540. The governor shall update the 24 report upon submission of the governor's supplemental appropriation bills and the 25 governor's budget amendments in accordance with the time limits prescribed in 26 AS 37.07.070. 27 * Sec. 3. AS 37.05.540(e) is repealed. 28 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 APPLICABILITY. Sections 1 and 2 of this Act apply to appropriations that take effect 31 during or after the fiscal year ending June 30, 2023.

01 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION: CALCULATION OF AVERAGE OF APPROPRIATIONS. For the 04 fiscal years ending June 30, 2023, June 30, 2024, and June 30, 2025, to determine the average 05 of the appropriations made in the three fiscal years immediately preceding the fiscal year 06 under AS 37.05.540(b), as amended by sec. 1 of this Act, appropriations in prior fiscal years 07 for school bond debt reimbursement under AS 14.11.100 and appropriations made to meet a 08 state of disaster declared by the governor as prescribed by law shall be excluded from the 09 prior year appropriations. 10 * Sec. 6. This Act takes effect July 1, 2021.