AK SB138

Amends AS 37.07.080(e) to allow state agency heads to make transfers or changes between objects of expenditures or allocations with office approval, but prohibits transfers between appropriations except as authorized by law.

Establishes limits on allocation transfers: capital project allocations cannot increase by more than 10 percent, and operating expense allocations cannot increase by more than 50 percent.

Requires governor to submit requests to the Legislative Budget and Audit Committee for operating expense increases between 10 and 50 percent, with a mandatory 45-day review period before implementation.

Allows the Legislative Budget and Audit Committee to recommend against a transfer, requiring the governor to provide written justification to the Committee if proceeding despite a negative recommendation.

Permits reimbursable service agreements to finance services if the requesting agency has legal authority and an appropriate appropriation, with billing based on actual costs or an office-approved cost allocation method.