Legislature(2021 - 2022)

2021-01-22 Senate Journal

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2021-01-22                     Senate Journal                      Page 0029
SJR 5                                                                                                                         
SENATE JOINT RESOLUTION NO. 5 BY THE SENATE RULES                                                                               
COMMITTEE BY REQUEST OF THE GOVERNOR,                                                                                           
               Proposing amendments to the Constitution of the                                                                 
           State of Alaska relating to an appropriation limit; and                                                             
          relating to the budget reserve fund.                                                                                  
was read the first time and referred to the State Affairs, Judiciary and                                                        
Finance Committees.                                                                                                             
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Office of the Governor                                                                                
Governor's transmittal letter dated January 19:                                                                                 
Dear President Micciche:                                                                                                        
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill proposing a resolution to amend                                                          
the Constitution of the State of Alaska, Article IX, Sections 16 and 17.                                                        
The proposed amendment would change the baseline for the                                                                        
constitutional appropriation limit so that appropriations for a fiscal                                                          
year would not exceed the average of the appropriations for the                                                                 
previous three years plus the cumulative percent change in inflation or                                                         
population, whichever is greater, over the previous three year period.                                                          
The amendment would exempt from the spending limit appropriations                                                               
to state savings accounts, the permanent fund and for permanent fund                                                            
dividend payments, appropriations of bond proceeds and the principal                                                            
and interest on those bonds, and appropriations of money from a non-                                                            
state source.                                                                                                                   

2021-01-22                     Senate Journal                      Page 0030
Additionally, the proposed amendment would change the budget                                                                    
reserve fund established in Article IX, Section 17 so that it can only be                                                       
used as a funding source, if the amount in the general fund for a given                                                         
year, is less than the appropriation limit. The budget reserve would be                                                         
available for no other purpose.                                                                                                 
We must develop a stable and sustainable budget in order to assure                                                              
economic growth in our State. This amendment provides an important                                                              
tool for curbing unsustainable growth in government spending by                                                                 
indexing future appropriations to those made in prior fiscal years while                                                        
ensuring the State has a reserve balance to stabilize revenues during                                                           
years of unexpected decline.                                                                                                    
This resolution is a simple but powerful way to structurally cap                                                                
government growth. I urge your prompt and favorable action on this                                                              
Mike Dunleavy