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SENATE BILL NO. 36
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR KAUFMAN
Introduced: 1/10/25
Referred: Prefiled
A BILL
FOR AN ACT ENTITLED
"An Act relating to an appropriation limit; relating to the budget responsibilities of the 1
governor; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 37.05.540(b) is amended to read: 4
(b) Except for appropriations to the permanent fund or for Alaska permanent 5
fund dividends, appropriations to the budget reserve fund, appropriations of revenue 6
bond and general obligation bond proceeds, appropriations required to pay the
7
principal of and interest on revenue bonds and general obligation bonds, 8
appropriations to a state account or fund that requires a subsequent 9
appropriation from that account or fund as prescribed by law, appropriations to 10
meet a state of disaster declared by the governor as prescribed by law, [AND] 11
appropriations of money received from a nonstate source in trust for a specific 12
purpose, including revenue of a public enterprise or public corporation of the state that 13
issues revenue bonds, appropriations from the mental health trust settlement income 14 34-LS0345\A
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account (AS 37.14.036), and appropriations made to the mental health trust fund 1
(AS 37.14.031), appropriations from the treasury made for [IN] a fiscal year may not 2
exceed an amount equal to 12 percent of the average of the value of the real gross 3
domestic product of the state as estimated by the federal bureau responsible for 4
economic analysis according to federal law, expressed in current dollars, for the 5
five calendar years immediately preceding the previous fiscal year. The value of 6
the real gross domestic product in this section may not include expenditures for 7
government spending [APPROPRIATIONS MADE IN THE PRECEDING FISCAL 8
YEAR BY MORE THAN FIVE PERCENT PLUS THE CHANGE IN 9
POPULATION AND INFLATION SINCE THE BEGINNING OF THE 10
PRECEDING FISCAL YEAR]. For purposes of applying this limit, an appropriation 11
is considered to be made in the fiscal year in which it is enacted and a reappropriation 12
remains attributed to the fiscal year in which the original appropriation is enacted. 13
[THE DETERMINATION OF THE CHANGE IN POPULATION FOR PURPOSES 14
OF THIS SUBSECTION SHALL BE BASED ON AN ANNUAL ESTIMATE OF 15
POPULATION BY THE DEPARTMENT OF LABOR AND WORKFORCE 16
DEVELOPMENT. THE DETERMINATION OF THE CHANGE IN INFLATION 17
FOR PURPOSES OF THIS SUBSECTION SHALL BE BASED ON THE 18
CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR 19
ANCHORAGE PREPARED BY THE UNITED STATES BUREAU OF LABOR 20
STATISTICS.] The amount of money received by the state that is subject to the 21
appropriation limit includes the balance in the general fund carried forward from the 22
preceding fiscal year. 23
* Sec. 2. AS 37.07.020 is amended by adding a new subsection to read: 24
(h) In addition to the budget and bills submitted under (a) of this section and 25
the capital improvements program and fiscal plan submitted under (b) of this section, 26
the governor shall submit a report with a calculation of appropriations provided in the 27
budget prepared under (a) of this section as applied to the appropriation limit under 28
AS 37.05.540. The governor shall update the report upon submission of the governor's 29
supplemental appropriation bills and the governor's budget amendments in accordance 30
with the time limits prescribed in AS 37.07.070. 31 34-LS0345\A
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* Sec. 3. AS 37.05.540(e) is repealed. 1
* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 2
read: 3
CONDITIONAL EFFECT. This Act is contingent on enactment into law of an 4
amendment to art. IX, sec. 16, Constitution of the State of Alaska, changing the appropriation 5
limit to provide that 6
(1) appropriations from the treasury made for a fiscal year may not exceed an 7
amount equal to a percentage of the average of the value of the real gross domestic product of 8
the state as estimated by the federal bureau responsible for economic analysis according to 9
federal law, expressed in current dollars, for the five calendar years immediately preceding 10
the previous fiscal year; and 11
(2) general obligation bond proceeds, appropriations required to pay the 12
principal of and interest on revenue bonds, appropriations to a state account or fund that 13
requires a subsequent appropriation from that account or fund as prescribed by law, and 14
appropriations to meet a state of disaster declared by the governor as prescribed by law must 15
be excluded when calculating the appropriation limit. 16
* Sec. 5. This Act takes effect July 1, 2025. 17