HB 38: "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. 38 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 13 purpose, including revenue of a public enterprise or public corporation of the state that 14 issues revenue bonds, appropriations from the mental health trust settlement income
01 account (AS 37.14.036), and appropriations made to the mental health trust fund 02 (AS 37.14.031), appropriations from the treasury made for [IN] a fiscal year may not 03 exceed an amount equal to 11.5 percent of the average of the value of the real 04 gross domestic product of the state as estimated by the federal bureau 05 responsible for economic analysis according to federal law, expressed in current 06 dollars, for the five fiscal years immediately preceding the previous fiscal year. 07 The value of the real gross domestic product in this section may not include 08 expenditures for government spending [APPROPRIATIONS MADE IN THE 09 PRECEDING FISCAL YEAR BY MORE THAN FIVE PERCENT PLUS THE 10 CHANGE IN POPULATION AND INFLATION SINCE THE BEGINNING OF 11 THE PRECEDING FISCAL YEAR]. For purposes of applying this limit, an 12 appropriation is considered to be made in the fiscal year in which it is enacted and a 13 reappropriation remains attributed to the fiscal year in which the original appropriation 14 is enacted. [THE DETERMINATION OF THE CHANGE IN POPULATION FOR 15 PURPOSES OF THIS SUBSECTION SHALL BE BASED ON AN ANNUAL 16 ESTIMATE OF POPULATION BY THE DEPARTMENT OF LABOR AND 17 WORKFORCE DEVELOPMENT. THE DETERMINATION OF THE CHANGE IN 18 INFLATION FOR PURPOSES OF THIS SUBSECTION SHALL BE BASED ON 19 THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR 20 ANCHORAGE PREPARED BY THE UNITED STATES BUREAU OF LABOR 21 STATISTICS.] The amount of money received by the state that is subject to the 22 appropriation limit includes the balance in the general fund carried forward from the 23 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 as estimated by the federal bureau responsible for economic analysis according to 10 federal law, expressed in current dollars, for the five fiscal years immediately preceding the 11 previous fiscal year; and 12 (2) general obligation bond proceeds, appropriations required to pay the 13 principal of and interest on revenue bonds, appropriations to a state account or fund that 14 requires a subsequent appropriation from that account or fund as prescribed by law, and 15 appropriations to meet a state of disaster declared by the governor as prescribed by law must 16 be excluded when calculating the appropriation limit. 17 * Sec. 5. This Act takes effect July 1, 2024.