HB 92: "An Act relating to the appropriation limit."

00 HOUSE BILL NO. 92 01 "An Act relating to the appropriation limit." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 37.05.540(a) is amended to read: 04 (a) There is established as a separate fund in the state treasury the budget 05 reserve fund. The budget reserve fund consists of appropriations to the fund. 06 [MONEY RECEIVED BY THE STATE THAT IS SUBJECT TO THE 07 APPROPRIATION LIMIT UNDER (b) OF THIS SECTION AND THAT EXCEEDS 08 THAT LIMIT, MAY BE APPROPRIATED TO THE BUDGET RESERVE FUND.] 09 * Sec. 2. AS 37.05.540(b) is amended to read: 10 (b) Except as provided in (f) of this section [FOR APPROPRIATIONS TO 11 THE PERMANENT FUND OR FOR ALASKA PERMANENT FUND DIVIDENDS, 12 APPROPRIATIONS TO THE BUDGET RESERVE FUND, APPROPRIATIONS OF 13 REVENUE BOND PROCEEDS, APPROPRIATIONS REQUIRED TO PAY THE 14 PRINCIPAL AND INTEREST ON GENERAL OBLIGATION BONDS, AND 15 APPROPRIATIONS OF MONEY RECEIVED FROM A NONSTATE SOURCE IN

01 TRUST FOR A SPECIFIC PURPOSE, INCLUDING REVENUE OF A PUBLIC 02 ENTERPRISE OR PUBLIC CORPORATION OF THE STATE THAT ISSUES 03 REVENUE BONDS, APPROPRIATIONS FROM THE MENTAL HEALTH TRUST 04 SETTLEMENT INCOME ACCOUNT (AS 37.14.036), AND APPROPRIATIONS 05 MADE TO THE MENTAL HEALTH TRUST FUND (AS 37.14.031)], 06 appropriations from the treasury made in a fiscal year may not exceed appropriations 07 made in the preceding fiscal year by more than [FIVE PERCENT PLUS] the average 08 cumulative change, derived from federal and state indices, in population and 09 inflation over the previous three years [SINCE THE BEGINNING OF THE 10 PRECEDING FISCAL YEAR. FOR PURPOSES OF APPLYING THIS LIMIT, AN 11 APPROPRIATION IS CONSIDERED TO BE MADE IN THE FISCAL YEAR IN 12 WHICH IT IS ENACTED AND A REAPPROPRIATION REMAINS ATTRIBUTED 13 TO THE FISCAL YEAR IN WHICH THE ORIGINAL APPROPRIATION IS 14 ENACTED]. The determination of the change in population for purposes of this 15 subsection shall be based on an annual estimate of population by the Department of 16 Labor and Workforce Development. The determination of the change in inflation for 17 purposes of this subsection shall be based on the consumer price index for all urban 18 consumers for Anchorage prepared by the United States Bureau of Labor Statistics. 19 [THE AMOUNT OF MONEY RECEIVED BY THE STATE THAT IS SUBJECT 20 TO THE APPROPRIATION LIMIT INCLUDES THE BALANCE IN THE 21 GENERAL FUND CARRIED FORWARD FROM THE PRECEDING FISCAL 22 YEAR.] 23 * Sec. 3. AS 37.05.540 is amended by adding new subsections to read: 24 (f) If the unrestricted state revenue available for appropriation in a fiscal year 25 is insufficient to cover the general fund appropriations from the treasury made for that 26 fiscal year, appropriations for that fiscal year shall not exceed the appropriations made 27 in the previous fiscal year. 28 (g) The limits under (b) and (f) of this section do not apply to appropriations 29 to the Alaska permanent fund for Alaska permanent fund dividends, appropriations of 30 revenue bond proceeds, appropriations required to pay the principal of and interest on 31 general obligation bonds, and appropriations of money received from a non-state

01 source in trust for a specific purpose, including revenue of a public enterprise or public 02 corporation of the state that issues revenue bonds. 03 (h) No other appropriation in excess of the limit under this section may be 04 made except to meet a state of disaster declared by the governor as prescribed by law. 05 (i) The governor shall cause any unexpended and unappropriated balance in 06 the general fund to be invested so as to yield competitive market rates to the treasury. 07 * Sec. 4. AS 37.05.540(c) and 37.05.540(e) are repealed.