Bill > HB51

This bill modifies Alaska's state appropriation limit and budget reporting requirements by changing how the annual spending cap is calculated and requiring additional gubernatorial budget reporting. Specifically, the bill replaces the existing appropriation limit (which was based on the previous year's appropriations plus population and inflation changes) with a new limit tied to the state's real gross domestic product (GDP). Under the new calculation, annual appropriations from the treasury cannot exceed 12 percent of the average real GDP for the five calendar years preceding the fiscal year. The bill also requires the governor to submit a report calculating how proposed appropriations relate to this new limit, with updates required when submitting supplemental appropriation bills or budget amendments. Certain types of appropriations would be excluded from this limit, including permanent fund dividends, budget reserve fund appropriations, bond proceeds, debt service payments, appropriations from non-state sources, and funds for declared disasters. Importantly, the bill's implementation is contingent on a corresponding constitutional amendment changing the appropriation limit, and it is set to take effect on July 1, 2025. The goal appears to be creating a more dynamic and economically responsive approach to state spending limits.

Budget and Finance, Justice

https://www.akleg.gov/basis/Bill/Detail/34?Root=HB51