AK SB97

Reduces the maximum total unpaid principal amount of pension obligation bonds that all state entities may issue from $5,000,000,000 to $1,500,000,000, or until a funding ratio of actuarial assets to accrued liability reaches 85 percent, whichever is less.

Requires state entities, subsidiaries, and the Alaska Municipal Bond Bank Authority to submit bond issuance proposals to the Legislative Budget and Audit Committee at least 45 days before issuing pension obligation bonds, unless the committee recommends earlier approval.

Allows entities to issue bonds before the 45-day period expires only if the committee provides early recommendation to proceed.

Requires entities to submit written justification to the Legislative Budget and Audit Committee if they choose to issue bonds despite a negative committee recommendation.

Maintains requirement that the state bond rating must be equivalent to AA- or better for all pension obligation bond issuances.