00                             SENATE BILL NO. 104                                                                         
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(a) is amended to read:                                                                 
05 (a)  There is established as a separate fund in the state treasury the budget                                           
06 reserve fund. The budget reserve fund consists of appropriations to the fund.                                           
07 [MONEY RECEIVED BY THE STATE THAT IS SUBJECT TO THE                                                                     
08 APPROPRIATION LIMIT UNDER (b) OF THIS SECTION AND THAT EXCEEDS                                                          
09 THAT LIMIT, MAY BE APPROPRIATED TO THE BUDGET RESERVE FUND.]                                                            
10    * Sec. 2. AS 37.05 is amended by adding a new section to read:                                                     
11 Sec. 37.05.545. Appropriation limit. (a) Unrestricted general fund                                                    
12 appropriations made for a fiscal year may not exceed $5,000,000,000 by more than the                                    
13 average change in inflation in the previous five fiscal years. In this subsection, the                                  
14 change in inflation shall be based on the Consumer Price Index for Anchorage,                                           
01       Alaska.                                                                                                           
02            (b)  The appropriation limit in (a) of this section does not apply to an                                     
03       appropriation                                                                                                     
04                 (1)  to the principal of the Alaska permanent fund;                                                     
05                 (2)  required to pay debt obligations of the state;                                                     
06                 (3)  to meet a state of disaster declared by the governor as prescribed by                              
07       law; or                                                                                                           
08                 (4)  of money to a state savings account or fund that requires a                                        
09       subsequent appropriation from that account or fund.                                                               
10            (c)  In this section,                                                                                        
11                 (1)  "program receipts" has the meaning given in AS 37.05.146;                                          
12 (2)  "unrestricted general fund" means money deposited in the state                                                     
13 treasury that has not been dedicated or designated for use by the Constitution of the                                   
14 State of Alaska or by law; "unrestricted general fund" does not include program                                         
15       receipts or reappropriations.                                                                                     
16    * Sec. 3. AS 37.07.020 is amended by adding a new subsection to read:                                              
17 (f)  In addition to the budget and bills submitted under (a) of this section and                                        
18 the fiscal plan submitted under (b) of this section, the governor shall submit a report                                 
19 with a calculation of appropriations in the budget prepared under (a) of this section as                                
20 applied to the appropriation limit under AS 37.05.545. The report under this                                            
21 subsection must be updated upon submission of the governor's supplemental                                               
22 appropriation bills and the governor's budget amendments under the time limits                                          
23       prescribed in AS 37.07.070.                                                                                       
24    * Sec. 4. AS 37.05.540(b), 37.05.540(c), and 37.05.540(e) are repealed.                                            
25    * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to                          
26 read:                                                                                                                   
27 APPLICABILITY. AS 37.05.545, added by sec. 2 of this Act, and AS 37.07.020(f),                                          
28 added by sec. 3 of this Act, apply to appropriations that take effect in the fiscal year ending                         
29 June 30, 2021.                                                                                                          
30    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
31 read:                                                                                                                   
01 TRANSITION: CALCULATION OF APPROPRIATION LIMIT. Notwithstanding                                                         
02 AS 37.05.545(a), added by sec. 2 of this Act, unrestricted general fund appropriations made                             
03 for the fiscal year ending June 30, 2021, may not exceed $5,000,000,000, excluding                                      
04 appropriations under AS 37.05.545(b), added by sec. 2 of this Act.                                                      
05    * Sec. 7. This Act takes effect July 1, 2019.