HJR 6: Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit; and relating to the budget reserve fund.
00 HOUSE JOINT RESOLUTION NO. 6 01 Proposing amendments to the Constitution of the State of Alaska relating to an 02 appropriation limit; and relating to the budget reserve fund. 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 amended to read: 05 Section 16. Appropriation Limit. Except for appropriations for Alaska 06 permanent fund dividends, appropriations to the Alaska permanent fund, 07 appropriations of revenue and general obligation bond proceeds, appropriations 08 required to pay the principal and interest on revenue and general obligation bonds, 09 appropriations to a State savings account, appropriations to meet a state of 10 disaster declared by the governor as prescribed by law, and appropriations of 11 money received from a non-State source in trust for a specific purpose [, INCLUDING 12 REVENUES OF A PUBLIC ENTERPRISE OR PUBLIC CORPORATION OF THE 13 STATE THAT ISSUES REVENUE BONDS], appropriations from the treasury made 14 for a fiscal year shall not exceed the average of the appropriations made in the 15 previous three fiscal years [$2,500,000,000] by more than the cumulative percent
01 change, derived from [FEDERAL] indices as prescribed by law, in population or 02 [AND] inflation, whichever is greater, over the previous three calendar years 03 [SINCE JULY 1, 1981. WITHIN THIS LIMIT, AT LEAST ONE-THIRD SHALL BE 04 RESERVED FOR CAPITAL PROJECTS AND LOAN APPROPRIATIONS. THE 05 LEGISLATURE MAY EXCEED THIS LIMIT IN BILLS FOR APPROPRIATIONS 06 TO THE ALASKA PERMANENT FUND AND IN BILLS FOR 07 APPROPRIATIONS FOR CAPITAL PROJECTS, WHETHER OF BOND 08 PROCEEDS OR OTHERWISE, IF EACH BILL IS APPROVED BY THE 09 GOVERNOR, OR PASSED BY AFFIRMATIVE VOTE OF THREE-FOURTHS OF 10 THE MEMBERSHIP OF THE LEGISLATURE OVER A VETO OR ITEM VETO, 11 OR BECOMES LAW WITHOUT SIGNATURE, AND IS ALSO APPROVED BY 12 THE VOTERS AS PRESCRIBED BY LAW. EACH BILL FOR APPROPRIATIONS 13 FOR CAPITAL PROJECTS IN EXCESS OF THE LIMIT SHALL BE CONFINED 14 TO CAPITAL PROJECTS OF THE SAME TYPE, AND THE VOTERS SHALL, AS 15 PROVIDED BY LAW, BE INFORMED OF THE COST OF OPERATIONS AND 16 MAINTENANCE OF THE CAPITAL PROJECTS. NO OTHER APPROPRIATION 17 IN EXCESS OF THIS LIMIT MAY BE MADE EXCEPT TO MEET A STATE OF 18 DISASTER DECLARED BY THE GOVERNOR AS PRESCRIBED BY LAW]. The 19 governor shall cause any unexpended and unappropriated balance to be invested so as 20 to yield competitive market rates to the treasury. 21 * Sec. 2. Article IX, sec. 17(a), Constitution of the State of Alaska, is amended to read: 22 (a) There is established as a separate fund in the State treasury the budget 23 reserve fund. Except for money deposited into the permanent fund under Section 15 of 24 this article, all money received by the State [AFTER JULY 1, 1990,] as a result of the 25 termination, through settlement or otherwise, of an administrative proceeding or of 26 litigation in a State or federal court directly involving mineral lease bonuses, rentals, 27 royalties, royalty sale proceeds, federal mineral revenue sharing payments or bonuses, 28 or involving taxes imposed on mineral income, production, or property, shall be 29 deposited in the budget reserve fund. The [MONEY IN THE BUDGET RESERVE] 30 fund shall be invested so as to yield competitive market rates [TO THE FUND]. 31 Income of the fund shall be retained in the fund. Deposits [SECTION 7 OF THIS
01 ARTICLE DOES NOT APPLY TO DEPOSITS] made to the fund under this 02 subsection are not prohibited under Section 7 of this article. Money may be 03 appropriated from the fund only as authorized under (b) [OR (c)] of this section. 04 * Sec. 3. Article IX, sec. 17(b), Constitution of the State of Alaska, is amended to read: 05 (b) If the amount in the general fund available for appropriation for a fiscal 06 year is less than the appropriation limit under Section 16 of this article [AMOUNT 07 APPROPRIATED FOR THE PREVIOUS FISCAL YEAR], an appropriation may be 08 made from the budget reserve fund. However, the amount appropriated from the fund 09 under this subsection [MAY NOT EXCEED THE AMOUNT NECESSARY], when 10 added to other funds in the general fund available for appropriation, may not exceed 11 the appropriation limit under Section 16 of this article. For purposes of this 12 subsection, the amount in the general fund available for appropriation does not 13 include the exceptions to the appropriation limit set forth in Section 16(a) of this 14 article [TO PROVIDE FOR TOTAL APPROPRIATIONS EQUAL TO THE 15 AMOUNT OF APPROPRIATIONS MADE IN THE PREVIOUS CALENDAR 16 YEAR FOR THE PREVIOUS FISCAL YEAR]. 17 * Sec. 4. Article XV, Constitution of the State of Alaska, is amended by adding new 18 sections to read: 19 Section 30. Application of Appropriation Limit. The 2022 amendment 20 limiting appropriation increases applies to appropriations made for the fiscal year 21 ending June 30, 2024, and thereafter. 22 Section 31. Budget Reserve Fund Transition. Under the 2022 amendments 23 to the budget reserve fund (art. IX, sec. 17), the repeal of Section 17(d) of Article IX 24 in the 2022 amendments to the budget reserve fund eliminates any repayment required 25 under that subsection through the fiscal year ending June 30, 2023. 26 * Sec. 5. Article IX, secs. 17(c) and 17(d), Constitution of the State of Alaska, are repealed. 27 * Sec. 6. The amendments proposed by this resolution shall be placed before the voters of 28 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the 29 State of Alaska, and the election laws of the state.