KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Alaska

SB223 • 2026

APPROPRIATION LIMIT

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

Budget
Passed Legislature

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

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

Plain English Breakdown

The official source material does not provide detailed information on what happens if the state exceeds the spending limit or how this will affect long-term budget planning for the state.

Setting a Limit on State Spending

This act sets a limit on how much money the state can spend each year compared to the previous year.

What This Bill Does

  • Sets a rule that the state cannot increase its spending by more than one percent from one fiscal year to the next, except for certain types of funds and payments.

Who It Names or Affects

  • The state government when deciding its budget each year.

Terms To Know

Fiscal Year
A period of one year used for budgeting and financial reporting by the government.
Appropriation
Money set aside or allocated by the government to fund specific activities or programs.

Limits and Unknowns

  • The bill does not specify what happens if the state exceeds the spending limit.
  • It is unclear how this will affect long-term budget planning for the state.

Bill History

  1. 2026-01-23 1518

    (S) REFERRED TO FINANCE

  2. 2026-01-23 1518

    (S) GOVERNOR'S TRANSMITTAL LETTER

  3. 2026-01-23 1518

    (S) FN1: ZERO(GOV)

  4. 2026-01-23 1518

    (S) FIN

  5. 2026-01-23 1518

    (S) 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 
SB0223A -1- SB 223
New Text Underlined [DELETED TEXT BRACKETED]

34-GS2102\A

SENATE BILL NO. 223

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE 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-GS2102\A
SB 223 -2- SB0223A
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