Alaska Senate Bill SJR3

Alaska 2023-2024 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23

Caption

Const. Am: Approp Limit

Impact

If passed, the resolution would amend Article IX, Section 16 of the Alaska Constitution, which currently regulates appropriations by providing a structured framework limiting how much the state can spend based on residents' personal income. The resolution allows appropriations for capital improvements that exceed that limit only if passed by a two-thirds majority in both legislative houses, ensuring higher scrutiny and control over state expenditure. This could lead to a more disciplined approach to state budgeting and spending, potentially preventing overwhelming debt accumulation and promoting fiscal sustainability.

Summary

SJR3 is a Senate Joint Resolution that proposes amendments to the Constitution of the State of Alaska, specifically concerning the limit on state appropriations. It sets forth that the spending for each fiscal year should not exceed a percentage of the average value of personal income from the preceding five years, with specific exclusions for funds allocated for permanent dividends, capital improvement projects, and other designated purposes. The aim of this resolution is to enforce fiscal responsibility and ensure that state spending aligns with the economic capacity of the residents of Alaska.

Contention

The proposed changes have sparked significant debate among legislators, with varying perspectives on fiscal policy. Supporters of SJR3 argue that it advances fiscal responsibility and curtails the potential for extravagant government spending, fostering economic stability. Meanwhile, opponents raise concerns about the rigidity of such a limit, suggesting it could hinder the state’s ability to respond to economic crises or urgent needs, particularly in the face of emergencies that require unanticipated expenditures. The final decision on the proposed amendments will rest with the voters at the next general election.