AK HJR404

Amends Alaska Constitution Article IX, Section 15 to allow both the principal and income of the permanent fund to be retained in the fund, with appropriations limited to amounts specified in the new subsection (b).

Creates new permanent fund distribution formula: 21 percent of the average annual net income from the last five fiscal years becomes available for distribution, split equally between dividend payments to residents and potential legislative appropriations, with inflation adjustments retained in the fund.

Amends Article IX, Section 16 to revise the appropriation limit from a fixed $2.5 billion baseline to the average of state revenue generated in the previous three fiscal years, adjusted for cumulative inflation over the previous two calendar years using the Consumer Price Index.

Allows appropriations to exceed the inflation-adjusted limit by an additional amount if annualized monthly inflation exceeds 10 percent between the second calendar year and fiscal year start.

On June 30, 2023, transfers the unencumbered balance of the earnings reserve account to the permanent fund principal and implements transition rules for the new permanent fund and appropriation limit provisions beginning with fiscal year 2024.

Submits all proposed amendments to Alaska voters at the next general election.