SB223 • 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: SENATE RULES BY REQUEST OF THE GOVERNOR
Last action: 2026-01-23
Official status: (S) FIN
Effective date: Not listed

Plain English Breakdown

The provided text lists an effective date of July 1, 2027 in Section 2, but the bill metadata indicates it was only referred to committee on January 23, 2026. The final status is 'Passed Legislature' with no confirmed enactment or signature details shown, creating uncertainty about whether this specific text became law.

Alaska SB 223: Changing the State Spending Limit

This bill changes how much more money Alaska can spend each year by setting a limit of one percent growth and removing adjustments for population and inflation.

What This Bill Does

Changes the law so state spending from the treasury cannot grow by more than one percent over the prior year's amount.
Removes the rule that allowed extra spending based on changes in population size.
Removes the rule that allowed extra spending based on inflation rates.
Keeps exceptions for money going to the permanent fund, dividends, specific trust funds, and bond payments.

Who It Names or Affects

The Alaska Legislature when it creates annual budgets
State agencies receiving funding from the general treasury

Terms To Know

Appropriation limit: A rule that sets a maximum amount by which state spending can increase each year.
General fund: The main account where the state keeps most of its tax money for daily operations, including balances carried forward from previous years.

Limits and Unknowns

The bill does not explain how much total money will be saved or spent under this new limit.
The text does not describe what happens if a specific emergency requires spending more than the one percent increase allows.

Bill History

2026-01-23 1518
(S) REFERRED TO FINANCE
2026-01-23 1518
(S) GOVERNOR'S TRANSMITTAL LETTER
2026-01-23 1518
(S) FN1: ZERO(GOV)
2026-01-23 1518
(S) FIN
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