AK HB38

Replaces the previous appropriation limit formula (5 percent plus population and inflation changes) with a fixed limit of 11 percent of the average real gross domestic product of the state for the five calendar years immediately preceding the previous fiscal year.

Excludes expenditures for government spending from the GDP calculation used to determine the appropriation limit.

Requires the governor to submit a report calculating appropriations against the limit under AS 37.05.540, with updates upon submission of supplemental appropriation bills and budget amendments.

Repeals AS 37.05.540(e), which contained the previous formula for determining population and inflation adjustments.

Takes effect July 1, 2024, contingent on passage of a constitutional amendment (Article IX, Section 16) that revises the state appropriation limit framework.