CSSJR 6(JUD): Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit, relating to the budget reserve fund, and relating to the permanent fund.
00 CS FOR SENATE JOINT RESOLUTION NO. 6(JUD) 01 Proposing amendments to the Constitution of the State of Alaska relating to an 02 appropriation limit, relating to the budget reserve fund, and relating to the permanent 03 fund. 04 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. Article IX, sec. 16, Constitution of the State of Alaska, is repealed and 06 readopted to read: 07 Section 16. Appropriation Limit. (a) Except as provided in (b) of this 08 section, appropriations made for a fiscal year shall not exceed the average of the 09 appropriations made in the previous three fiscal years by more than the average 10 change in inflation in the previous five fiscal years. In this subsection, the change in 11 inflation shall be based on the Consumer Price Index for Anchorage, Alaska, as 12 prescribed by law. This subsection does not apply to an appropriation 13 (1) to the principal of the Alaska permanent fund and from the Alaska 14 permanent fund income for the administration of the fund or payment of permanent 15 fund dividends;
01 (2) to meet a state of disaster declared by the governor as prescribed by 02 law; 03 (3) to pay obligations or spend the proceeds or revenue of State general 04 obligation bonds and revenue bonds; 05 (4) that is a reappropriation of a previous unobligated appropriation; 06 (5) that is duplicating the authorization to expend funds from another 07 appropriation; 08 (6) from a non-State source in trust for a specific purpose, including 09 revenues of a public enterprise or public corporation of the State that issues revenue 10 bonds; and 11 (7) of money to a State savings account or fund that requires a 12 subsequent appropriation from that account or fund as prescribed by law. 13 (b) The legislature may appropriate an additional amount in excess of the 14 appropriation limit under (a) of this section for capital improvements, except that the 15 amount for capital improvements made in excess of the appropriation limit in a fiscal 16 year shall not exceed ten percent of the total appropriation limit for that fiscal year. 17 Appropriations for capital improvements that exceed the appropriation limit shall not 18 be used in calculating the appropriation limit in subsequent fiscal years. 19 (c) Any unexpended, unobligated, and unappropriated balance in the general 20 fund at the end of a fiscal year shall be deposited into the following funds in the 21 priority order listed: 22 (1) the permanent fund under Section 15 of this article in an amount 23 not to exceed fifty-percent of the income produced from the permanent fund during 24 the fiscal year just ended; 25 (2) the budget reserve fund under Section 17 of this article in an 26 amount necessary to bring the budget reserve fund balance equal to the appropriation 27 limit for the next fiscal year; 28 (3) the permanent fund under Section 15 of this article. 29 (d) Section 7 of this article does not apply to deposits made to the permanent 30 fund under (c) of this section. 31 * Sec. 2. Article IX, sec. 17(a), Constitution of the State of Alaska, is amended to read:
01 (a) There is established as a separate fund in the State treasury the budget 02 reserve fund. Except for money deposited into the permanent fund under Section 15 of 03 this article, all money received by the State [AFTER JULY 1, 1990], as a result of the 04 termination, through settlement or otherwise, of an administrative proceeding or of 05 litigation in a State or federal court directly involving mineral lease bonuses, rentals, 06 royalties, royalty sale proceeds, federal mineral revenue sharing payments or bonuses, 07 or involving taxes imposed on mineral income, production, or property, shall be 08 deposited in the budget reserve fund. Money in the budget reserve fund shall be 09 invested so as to yield competitive market rates to the fund. Income of the fund shall 10 be retained in the fund. Section 7 of this article does not apply to deposits made to the 11 fund under this subsection. Money may be appropriated from the fund only as 12 authorized under (b) [OR (c)] of this section. 13 * Sec. 3. Article IX, sec. 17(b), Constitution of the State of Alaska, is amended to read: 14 (b) If the amount in the general fund available for appropriation for a fiscal 15 year is less than the appropriation limit under Section 16 of this article [AMOUNT 16 APPROPRIATED FOR THE PREVIOUS FISCAL YEAR], an appropriation may be 17 made from the budget reserve fund. However, the amount appropriated from the fund 18 under this subsection may not exceed the amount necessary, when added to other 19 funds in the general fund available for appropriation, to provide for total 20 appropriations equal to the appropriation limit under section 16 of this article 21 [AMOUNT OF APPROPRIATIONS MADE IN THE PREVIOUS CALENDAR 22 YEAR FOR THE PREVIOUS FISCAL YEAR]. 23 * Sec. 4. Article XV, Constitution of the State of Alaska, is amended by adding new 24 sections to read: 25 Section 30. Application of Appropriation Limit. The 2020 amendment 26 limiting appropriation increases and requiring a portion of the unexpended, 27 unobligated, and unappropriated balance in the general fund to go to the permanent 28 fund (art. IX, sec. 15) applies to appropriations made for the fiscal year ending 29 June 30, 2022, and thereafter. 30 Section 31. Budget Reserve Fund Transition. The repeal of Section 17(d) of 31 Article IX in the 2020 amendments eliminates any repayment required under that
01 subsection through the fiscal year ending June 30, 2021. 02 * Sec. 5. Article IX, secs. 17(c) and 17(d), Constitution of the State of Alaska, are repealed. 03 * Sec. 6. The amendments proposed by this resolution shall be placed before the voters of 04 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the 05 State of Alaska, and the election laws of the state.