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

HB 275 sets a 5% annual limit on increases to most state government spending in Alaska, adjusted for population growth and inflation. It applies to general fund appropriations (excluding permanent fund dividends, mental health trust funds, and specific bond-related spending), requiring that new annual spending cannot exceed the previous year's total by more than 5% plus these adjustments. The bill uses Anchorage's Consumer Price Index for inflation and annual population estimates from the Department of Labor to calculate the adjusted cap. This bill affects all state budget allocations subject to the limit and takes effect July 1, 2027.