HB275 • 2026

APPROPRIATION LIMIT

An Act relating to an appropriation limit; and providing for an effective date.

Budget Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: HOUSE RULES BY REQUEST OF THE GOVERNOR
Last action: 2026-01-23
Official status: (H) FIN
Effective date: Not listed

Plain English Breakdown

The official text does not specify how the one percent limit applies if excluded funds fluctuate significantly, leaving some calculation details open to interpretation by future administrators.

HB 275: Changing the State Spending Limit

This bill changes how much Alaska can increase its yearly budget by lowering the spending cap to one percent and removing adjustments for population growth or inflation.

What This Bill Does

Changes the law so that annual state spending increases cannot be more than one percent over the previous year's amount.
Removes the rule that allowed adding extra money based on changes in state population or rising prices (inflation).
Excludes specific funds from this limit, including the permanent fund, budget reserve fund, bond payments, nonstate trust accounts, and mental health trust accounts.
Sets a start date of July 1, 2027, for these new spending rules to begin.

Who It Names or Affects

The Alaska state legislature when it creates the annual budget.
State agencies that receive funding from the general treasury subject to this limit.

Terms To Know

Appropriation: Money officially set aside or approved for a specific government purpose in the budget.
General Fund: The main account where most state tax money is kept and from which general spending comes, including balances carried forward from previous years.

Limits and Unknowns

The bill does not explain what happens if a program needs more than the allowed increase due to emergencies or new laws.
It does not provide data on whether current spending is already above or below this new limit.

Bill History

2026-01-23 1480
(H) REFERRED TO FINANCE
2026-01-23 1480
(H) GOVERNOR'S TRANSMITTAL LETTER
2026-01-23 1480
(H) FN1: ZERO(GOV)
2026-01-23 1480
(H) FIN
2026-01-23 1480
(H) READ THE FIRST TIME - REFERRALS

Official Summary Text

APPROPRIATION LIMIT
An Act relating to an appropriation limit; and providing for an effective date.

Current Bill Text

Read the full stored bill text

HB0275a -1- HB 275
New Text Underlined [DELETED TEXT BRACKETED]

34-GH2102\A

HOUSE BILL NO. 275

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR

Introduced: 1/23/26
Referred: Finance

A BILL

FOR AN ACT ENTITLED

"An Act relating to an appropriation limit; and providing for an effective date." 1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 2
* Section 1. AS 37.05.540(b) is amended to read: 3
(b) Except for appropriations to the permanent fund or for Alaska permanent 4
fund dividends, appropriations to the budget reserve fund, appropriations of revenue 5
bond proceeds, appropriations required to pay the principal and interest on general 6
obligation bonds, and appropriations of money received from a nonstate source in trust 7
for a specific purpose, including revenue of a public enterprise or public corporation 8
of the state that issues revenue bonds, appropriations from the mental health trust 9
settlement income account (AS 37.14.036), and appropriations made to the mental 10
health trust fund (AS 37.14.031), appropriations from the treasury made in a fiscal 11
year may not exceed appropriations made in the preceding fiscal year by more than 12
one [FIVE] percent [PLUS THE CHANGE IN POPULATION AND INFLATION 13
SINCE THE BEGINNING OF THE PRECEDING FISCAL YEAR]. For purposes of 14
applying this limit an appropriation is considered to be made in the fiscal year in 15
34-GH2102\A
HB 275 -2- HB0275a
New Text Underlined [DELETED TEXT BRACKETED]

which it is enacted and a reappropriation remains attributed to the fiscal year in which 1
the original appropriation is enacted. [THE DETERMINATION OF THE CHANGE 2
IN POPULATION FOR PURPOSES OF THIS SUBSECTION SHALL BE BASED 3
ON AN ANNUAL ESTIMATE OF POPULATION BY THE DEPARTMENT OF 4
LABOR AND WORKFORCE DEVELOPMENT. THE DETERMINATION OF THE 5
CHANGE IN INFLATION FOR PURPOSES OF THIS SUBSECTION SHALL BE 6
BASED ON THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS 7
FOR ANCHORAGE PREPARED BY THE UNITED STATES BUREAU OF 8
LABOR STATISTICS.] The amount of money received by the state that is subject to 9
the appropriation limit includes the balance in the general fund carried forward from 10
the preceding fiscal year. 11
* Sec. 2. This Act takes effect July 1, 2027. 12