Bill > SB36

This bill modifies Alaska's state appropriation limit by changing the method of calculating budget constraints and adding new reporting requirements for the governor. Specifically, the bill replaces the existing appropriation limit calculation (which was based on previous year's appropriations plus population and inflation changes) with a new method that ties the limit to the state's real gross domestic product (GDP). The new calculation would restrict annual appropriations to 12 percent of the average real GDP for the five preceding calendar years, excluding certain types of spending such as permanent fund dividends, bond proceeds, disaster response funds, and trust fund appropriations. The bill also requires the governor to submit a report with each budget calculation showing how proposed appropriations relate to this new limit, and mandates updates to this report when submitting supplemental appropriation bills or budget amendments. Importantly, the bill's implementation is contingent on a constitutional amendment that would formally establish this new appropriation limit methodology. The changes are set to take effect on July 1, 2025, providing time for legislative and voter approval of the related constitutional amendment.

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https://www.akleg.gov/basis/Bill/Detail/34?Root=SB36