SJR 301 — Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit; and relating to the budget reserve fund.

32-LS1161\B32-LS1161\A CS FOR SENATE JOINT RESOLUTION NO.

301(JUD)301 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-SECOND LEGISLATURE - THIRD SPECIAL SESSION BY THESENATOR SENATEMYERS JUDICIARYIntroduced: COMMITTEE Referred:

Finance9/1/21 Sponsor(s):Referred:

SENATORJudiciary, MYERSFinance A RESOLUTION Proposing amendments to the Constitution of the State of Alaska relating to an appropriation limit.limit;

and relating to the budget reserve fund.

Except for appropriations for Alaska permanent fund dividends, appropriations to the Alaska permanent fund, appropriations of revenue bond and general obligation bond proceeds, appropriations required to pay the principal and interest on revenue bonds and general obligation bonds, appropriations to a State account or fund that requires a subsequent appropriation from that account or fund as prescribed by law, appropriations to meet a state of disaster declared by the governor as prescribed by law, and appropriations of money received from a non-State source in trust for a specific purpose,purpose including[, corporateINCLUDING receiptsREVENUES [REVENUES]OF ofA aPUBLIC publicENTERPRISE enterpriseOR orPUBLIC publicCORPORATION corporationOF ofTHE theSTATE stateTHAT thatISSUES issuesREVENUE revenueBONDS], bonds, appropriations from the treasury made for a fiscal year shall not exceed an amount equal to a percentage of the average of the value of the personalreal incomegross ofdomestic theSJR301A residents of the State as SJR301B -1- CSSJRSJR 301(JUD)301 New Text Underlined [DELETED TEXT BRACKETED] 32-LS1161\B32-LS1161\A estimatedproduct byof the federalState bureaureported responsibleby forfederal economicindices analysisas accordingprescribed toby federal law for the five fiscal years immediately preceding the prior fiscal year.

The percentage that applies to the calculation in this section shall be established by law except that isthe notpercentage ashall lawbe enactednot asmore anthan appropriation bill or fourteen percent,percent. whichever is less.

UponThe anvalue affirmative vote of two-thirds of the membershipreal ofgross eachdomestic house,product thein legislaturethis maysection appropriateshall annot additionalinclude amountexpenditures for capitalgovernment improvementsspending in[$2,500,000,000 excessBY ofMORE theTHAN limitTHE underCUMULATIVE thisCHANGE, section,DERIVED exceptFROM thatFEDERAL theINDICES totalAS amountPRESCRIBED appropriatedBY shallLAW, notIN exceedPOPULATION anAND amountINFLATION equalSINCE toJULY fourteen1, percent1981. of the average calculated under this section.

The value of the personal income of the residents in this section shall not include compensation for state and local government employees and shall not include distributions of the permanent fund dividend [$2,500,000,000 BY MORE THAN THE CUMULATIVE CHANGE, DERIVED FROM FEDERAL INDICES AS PRESCRIBED BY LAW, IN POPULATION AND INFLATION SINCE JULY 1, 1981.

THE GOVERNOR SHALL CAUSE ANY UNEXPENDED AND UNAPPROPRIATED BALANCE TO BE INVESTED SO AS TO YIELD COMPETITIVE MARKET CSSJR 301(JUD) -2- SJR301B New Text Underlined [DELETED TEXT BRACKETED] 32-LS1161\B RATES TO THE TREASURY].

Article IX, sec.

17(b), Constitution of the State of Alaska, is amended to read:

(b) If the amount in the general fund available for appropriation for a fiscal year is less than the appropriation limit under Section 16 of this article [AMOUNT APPROPRIATED FOR THE PREVIOUS FISCAL YEAR], an appropriation may be made from the budget reserve fund.

However, the amount appropriated from the fund SJR 301 -2- SJR301A New Text Underlined [DELETED TEXT BRACKETED] 32-LS1161\A under this subsection [MAY NOT EXCEED THE AMOUNT NECESSARY], when added to the amount in the general fund [OTHER FUNDS] available for appropriation, may not exceed the appropriation limit under Section 16 of this article.

For purposes of this subsection, the amount in the general fund available for appropriation does not include the exceptions to the appropriation limit set forth in Section 16 of this article [TO PROVIDE FOR TOTAL APPROPRIATIONS EQUAL TO THE AMOUNT OF APPROPRIATIONS MADE IN THE PREVIOUS CALENDAR YEAR FOR THE PREVIOUS FISCAL YEAR].

* Sec.

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SJR301BSJR301A -3- CSSJRSJR 301(JUD)301 New Text Underlined [DELETED TEXT BRACKETED]