00                            HOUSE BILL NO. 369                                                                          
01 "An Act relating to an appropriation limit; and providing for an effective date."                                       
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
04 to read:                                                                                                                
05       LEGISLATIVE INTENT. It is the intent of the legislature that the legislature                                      
06 reevaluate the statutory appropriation limit under AS 37.05.545, enacted by sec. 3 of this Act,                         
07 three years after the effective date of sec. 3 of this Act.                                                             
08    * Sec. 2. AS 37.05.540(a) is amended to read:                                                                      
09            (a)  There is established as a separate fund in the state treasury the budget                                
10 reserve fund. The budget reserve fund consists of appropriations to the fund.                                           
11 [MONEY RECEIVED BY THE STATE THAT IS SUBJECT TO THE                                                                     
12 APPROPRIATION LIMIT UNDER (b) OF THIS SECTION AND THAT EXCEEDS                                                          
13 THAT LIMIT, MAY BE APPROPRIATED TO THE BUDGET RESERVE FUND.]                                                            
14    * Sec. 3. AS 37.05 is amended by adding a new section to read:                                                     
15            Sec. 37.05.545. Appropriation limit. (a) Unrestricted general fund                                         

01 appropriations made for a fiscal year may not exceed $4,100,000,000 by more than the                                    
02 cumulative change in inflation since January 1, 2018, derived from federal indices.                                     
03 The determination of the change in inflation for purposes of this subsection shall be                                   
04 based on the Consumer Price Index for all urban consumers for Anchorage prepared                                        
05       by the United States Bureau of Labor Statistics.                                                                  
06            (b)  The appropriation limit in (a) of this section does not apply to an                                     
07       appropriation                                                                                                     
08                 (1)  to the Alaska permanent fund;                                                                      
09                 (2)  for payment of permanent fund dividends;                                                           
10                 (3)  required to pay debt obligations of the state;                                                     
11                 (4)  for a capital project; or                                                                          
12 (5)  to meet a state of disaster declared by the governor under                                                         
13       AS 26.23.020.                                                                                                     
14 (c)  A designated general fund appropriation is subject to the appropriation                                            
15       limit under (a) of this section if the                                                                            
16 (1)  appropriation replaced unrestricted general funds with designated                                                  
17 general funds, as compared to the appropriations for the operating expenditures of                                      
18       state government for fiscal year 2019, enacted on or before July 1, 2018; and                                     
19 (2)  unrestricted general funds that are replaced with designated general                                               
20       funds are not due to increased designated general fund revenue.                                                   
21            (d)  In this section,                                                                                        
22                 (1)  "capital project" has the meaning given in AS 37.07.120;                                           
23 (2)  "designated general fund" means money deposited in the state                                                       
24 treasury that has been dedicated or designated for use by the Constitution of the State                                 
25       of Alaska or by law;                                                                                              
26 (3)  "unrestricted general fund" means money deposited in the state                                                     
27 treasury that has not been dedicated or designated for use by the Constitution of the                                   
28 State of Alaska or by law; "unrestricted general fund" does not include program                                         
29       receipts, as described in AS 37.05.146, or reappropriations.                                                      
30    * Sec. 4. AS 37.05.540(b), 37.05.540(c), and 37.05.540(e) are repealed.                                            
31    * Sec. 5. This Act takes effect July 1, 2018.