HB 4006: "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. 4006 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 and general obligation bond proceeds, appropriations required to pay the 08 principal of and interest on revenue bonds and general obligation bonds, 09 appropriations to a state account or fund that requires a subsequent 10 appropriation from that account or fund as prescribed by law, appropriations to 11 meet a state of disaster declared by the governor as prescribed by law, [AND] 12 appropriations of money received from a nonstate source in trust for a specific purpose 13 [, INCLUDING REVENUE OF A PUBLIC ENTERPRISE OR PUBLIC 14 CORPORATION OF THE STATE THAT ISSUES REVENUE BONDS],
01 appropriations from the mental health trust settlement income account (AS 37.14.036), 02 and appropriations made to the mental health trust fund (AS 37.14.031), 03 appropriations from the treasury made for [IN] a fiscal year may not exceed an 04 amount equal to 11.5 percent of the average of the value of the real gross 05 domestic product of the state reported by the Bureau of Economic Analysis in the 06 United States Department of Commerce for the five fiscal years immediately 07 preceding the previous fiscal year. The value of the real gross domestic product 08 in this section may not include expenditures for government spending 09 [APPROPRIATIONS MADE IN THE PRECEDING FISCAL YEAR BY MORE 10 THAN FIVE PERCENT PLUS THE CHANGE IN POPULATION AND 11 INFLATION SINCE THE BEGINNING OF THE PRECEDING FISCAL YEAR]. 12 For purposes of applying this limit, an appropriation is considered to be made in the 13 fiscal year in which it is enacted and a reappropriation remains attributed to the fiscal 14 year in which the original appropriation is enacted. [THE DETERMINATION OF 15 THE CHANGE IN POPULATION FOR PURPOSES OF THIS SUBSECTION 16 SHALL BE BASED ON AN ANNUAL ESTIMATE OF POPULATION BY THE 17 DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT. THE 18 DETERMINATION OF THE CHANGE IN INFLATION FOR PURPOSES OF THIS 19 SUBSECTION SHALL BE BASED ON THE CONSUMER PRICE INDEX FOR 20 ALL URBAN CONSUMERS FOR ANCHORAGE PREPARED BY THE UNITED 21 STATES BUREAU OF LABOR STATISTICS.] The amount of money received by 22 the state that is subject to the appropriation limit includes the balance in the general 23 fund carried forward from the preceding fiscal year. 24 * Sec. 2. AS 37.07.020 is amended by adding a new subsection to read: 25 (f) In addition to the budget and bills submitted under (a) of this section and 26 the capital improvements program and fiscal plan submitted under (b) of this section, 27 the governor shall submit a report with a calculation of appropriations provided in the 28 budget prepared under (a) of this section as applied to the appropriation limit under 29 AS 37.05.540. The governor shall update the report upon submission of the governor's 30 supplemental appropriation bills and the governor's budget amendments in accordance 31 with the time limits prescribed in AS 37.07.070.
01 * Sec. 3. AS 37.05.540(e) is repealed. 02 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 CONDITIONAL EFFECT. This Act is contingent on enactment into law of an 05 amendment to art. IX, sec. 16, Constitution of the State of Alaska, changing the appropriation 06 limit to provide that 07 (1) appropriations from the treasury made for a fiscal year may not exceed an 08 amount equal to a percentage of the average of the value of the real gross domestic product of 09 the state reported by federal indices as prescribed by law for the five fiscal years immediately 10 preceding the previous fiscal year; and 11 (2) general obligation bond proceeds, appropriations required to pay the 12 principal of and interest on revenue bonds, appropriations to a state account or fund that 13 requires a subsequent appropriation from that account or fund as prescribed by law, and 14 appropriations to meet a state of disaster declared by the governor as prescribed by law must 15 be excluded when calculating the appropriation limit. 16 * Sec. 5. This Act takes effect July 1, 2023.