This bill amends existing laws regarding the appropriation limit in Alaska, specifically addressing the budget responsibilities of the governor. Key changes include the insertion of provisions that allow for appropriations of revenue bond and general obligation bond proceeds, as well as appropriations required to pay the principal and interest on these bonds. Additionally, the bill introduces new exclusions from the appropriation limit calculation, such as appropriations to a state account that requires subsequent appropriations, and those made to address a state of disaster declared by the governor. The previous method of calculating the appropriation limit, which included adjustments for population growth and inflation, is replaced with a new formula based on the average value of the state's real gross domestic product over the preceding five years.

Furthermore, the bill mandates that the governor submit a report detailing the appropriations in relation to the new appropriation limit, which must be updated with any supplemental appropriation bills or budget amendments. The bill also includes a conditional effect clause, stating that its provisions will only take effect if an amendment to the state constitution is enacted to change the appropriation limit accordingly. The act is set to take effect on July 1, 2025.

Statutes affected:
HB0051A, AM HB 51, introduced 01/22/2025: 37.05.540, 37.14.036, 37.14.031, 37.07.020, 37.07.070