OPINION
Before BOOCHEVER, C. J., RABINOW-ITZ, CONNOR and BURKE, JJ., and DIMOND, Senior Justice.
BOOCHEVER, Chief Justice.
This consolidated appeal concerns the constitutional validity of an initiative which was enacted by the voters as “The Alaska Homestead Act.”1
[2]*2In two different court actions, the initiative was attacked as unconstitutional. After the superior court ruled in both cases that the initiative was invalid,2 the cases came before us on an expedited basis, before the general election at which the initiative could be considered. After hearing argument, we determined that the difficult constitutional questions presented in these cases could not be decided properly within the short time remaining before the election. We ordered that the initiative should be submitted to the electorate, reserving our determination on the merits for later decision. At the election, the initiative was approved, thus requiring that we decide the constitutional challenges.3
Four main issues have been presented to us:4
1. Does the initiative make an appropriation, which is prohibited by the state constitution?
2. Does the initiative amount to special legislation which is prohibited by the Alaska Constitution?
3. Does the initiative amount to a denial of equal protection of the laws under the state and federal constitutions?
4. Was ch. 181, SLA 1978 substantially the same measure as the initiative, thus voiding the initiative?
We have determined that the first issue is dispositive, and thus we do not consider the rest.
According to Alaska’s Constitution, the power of initiative “shall not be used to . make or repeal appropriations.” 5 The superior court found that the initiative for an act entitled “The Alaska Homestead Act,” popularly known as the Beirne Initiative,6 constituted an appropriation. For reasons that follow, we affirm that decision.
The Beirne Initiative makes available 30 million acres of state land to residents of Alaska.7 Under the terms of the proposed statute, certain Alaska residents are eligible to receive specified amounts of land, the exact amount of land being determined by the person’s length of residency: a resident of three years may receive up to 40 acres, a resident of five years up to 80 acres, and a resident of ten years up to 160 acres.8 Section 2 of the Initiative contains a part, Eligibility and Application,9 which indicates what a person must do to receive a grant:
A person . . . shall receive a homestead grant upon
(1) recording a written application in the form prescribed by AS 34.15.045 in the recording district in which the . land is located; and
(2) filing with the director the following materials:
(A) a copy of the recorded application,
(B) proof of residency,
(C) a $100 filing fee, unless the applicant submits a title search as provided in (b) of this section, in which case the filing fee is $75.
[3]*3The applicant must also publish notice containing a description of the parcel and stating that application has been made under the Alaska Homestead Act to obtain title to the parcel.10 Finally, a survey of the land must be provided within five years after the grant is received or it is forfeited.11
The people, when approving Alaska’s Constitution, retained in article XI, section I, power to “propose and enact laws by the initiative, and approve or reject acts of the legislature by the referendum.”12 The right of initiative and referendum, sometimes referred to as direct legislation, should be liberally construed to permit exercise of that right.13 The reason given by the Supreme Court of Arizona for this rule of interpretation applies to Alaska:
It is, of course, a mere platitude to say that the people are the supreme power in our system of government. The history of our constitution and its adoption . shows beyond the possibility of contradiction that the people themselves deliberately and intentionally announced that, by its adoption, they meant to exercise their supreme sovereign power directly to a far greater extent than had been done in the past .
Whitman v. Moore, 59 Ariz. 211, 125 P.2d 445, 450-51 (1942), overruled on other grounds, Renck v. Superior Court, 66 Ariz. 320, 187 P.2d 656, 660-61 (1947).14
The people did not, however, choose to retain unlimited powers of initiative. Rath[4]*4er, in section 7 of article XI, they declared that certain types of laws could not be enacted by initiative:
Restrictions. The initiative shall not be used to dedicate revenues, make or repeal appropriations, create courts, define the jurisdiction of courts or prescribe their rules, or enact local or special legislation.
The issue before us is whether the law proposed by the Beirne Initiative is, for purposes of section 7 of article XI, a law making an appropriation and, therefore, an illegitimate subject for initiative.
The basic principles for interpreting statutes apply to constitutions,15 and thus, to resolve this question, we shall turn to the language of section 7 construed in light of the purpose gf the provision.16 We are especially sensitive to the policy concerns embodied in constitutional provisions because a constitution is a document “unchangeable by ordinary means,” Marbury v. Madison, 5 U.S. (1 Cranch) 137, 177, 2 L.Ed. 60, 73 (1803), which “must be considered as a living document adaptable to changing conditions and circumstances unanticipated at the time it was written.” Warwick v. State ex rel. Chance, 548 P.2d 384, 391 (Alaska 1976) (footnote omitted).17
Appellants argue that “appropriations” refers only to statutes setting aside a specific amount of money and designating it for a particular use. Appellees argue that “appropriations” includes statutes that set aside a specific amount of lands and direct it be given away in the manner required by the Beirne Initiative. The statute proposed by the Initiative gives away — to any resident of three or more years who will conduct a survey, file two papers, and pay a nominal filing fee — public assets in the form of state land. The proposed statute imposes no obligations on the applicant after he or she receives the land — the applicant need not homestead the land or live on it at all. The applicant may sell the land after one year and during that one-year period, the applicant incurs no tax liability.
The language of section 7 prohibits initiatives for the purpose of making appropriations. Though most state constitutions with referendum and initiative provisions have some limitation relating to appropriations, Alaska’s appropriation limitation is worded more generally than that of most other states.18 We found no decisions ex
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OPINION
Before BOOCHEVER, C. J., RABINOW-ITZ, CONNOR and BURKE, JJ., and DIMOND, Senior Justice.
BOOCHEVER, Chief Justice.
This consolidated appeal concerns the constitutional validity of an initiative which was enacted by the voters as “The Alaska Homestead Act.”1
[2]*2In two different court actions, the initiative was attacked as unconstitutional. After the superior court ruled in both cases that the initiative was invalid,2 the cases came before us on an expedited basis, before the general election at which the initiative could be considered. After hearing argument, we determined that the difficult constitutional questions presented in these cases could not be decided properly within the short time remaining before the election. We ordered that the initiative should be submitted to the electorate, reserving our determination on the merits for later decision. At the election, the initiative was approved, thus requiring that we decide the constitutional challenges.3
Four main issues have been presented to us:4
1. Does the initiative make an appropriation, which is prohibited by the state constitution?
2. Does the initiative amount to special legislation which is prohibited by the Alaska Constitution?
3. Does the initiative amount to a denial of equal protection of the laws under the state and federal constitutions?
4. Was ch. 181, SLA 1978 substantially the same measure as the initiative, thus voiding the initiative?
We have determined that the first issue is dispositive, and thus we do not consider the rest.
According to Alaska’s Constitution, the power of initiative “shall not be used to . make or repeal appropriations.” 5 The superior court found that the initiative for an act entitled “The Alaska Homestead Act,” popularly known as the Beirne Initiative,6 constituted an appropriation. For reasons that follow, we affirm that decision.
The Beirne Initiative makes available 30 million acres of state land to residents of Alaska.7 Under the terms of the proposed statute, certain Alaska residents are eligible to receive specified amounts of land, the exact amount of land being determined by the person’s length of residency: a resident of three years may receive up to 40 acres, a resident of five years up to 80 acres, and a resident of ten years up to 160 acres.8 Section 2 of the Initiative contains a part, Eligibility and Application,9 which indicates what a person must do to receive a grant:
A person . . . shall receive a homestead grant upon
(1) recording a written application in the form prescribed by AS 34.15.045 in the recording district in which the . land is located; and
(2) filing with the director the following materials:
(A) a copy of the recorded application,
(B) proof of residency,
(C) a $100 filing fee, unless the applicant submits a title search as provided in (b) of this section, in which case the filing fee is $75.
[3]*3The applicant must also publish notice containing a description of the parcel and stating that application has been made under the Alaska Homestead Act to obtain title to the parcel.10 Finally, a survey of the land must be provided within five years after the grant is received or it is forfeited.11
The people, when approving Alaska’s Constitution, retained in article XI, section I, power to “propose and enact laws by the initiative, and approve or reject acts of the legislature by the referendum.”12 The right of initiative and referendum, sometimes referred to as direct legislation, should be liberally construed to permit exercise of that right.13 The reason given by the Supreme Court of Arizona for this rule of interpretation applies to Alaska:
It is, of course, a mere platitude to say that the people are the supreme power in our system of government. The history of our constitution and its adoption . shows beyond the possibility of contradiction that the people themselves deliberately and intentionally announced that, by its adoption, they meant to exercise their supreme sovereign power directly to a far greater extent than had been done in the past .
Whitman v. Moore, 59 Ariz. 211, 125 P.2d 445, 450-51 (1942), overruled on other grounds, Renck v. Superior Court, 66 Ariz. 320, 187 P.2d 656, 660-61 (1947).14
The people did not, however, choose to retain unlimited powers of initiative. Rath[4]*4er, in section 7 of article XI, they declared that certain types of laws could not be enacted by initiative:
Restrictions. The initiative shall not be used to dedicate revenues, make or repeal appropriations, create courts, define the jurisdiction of courts or prescribe their rules, or enact local or special legislation.
The issue before us is whether the law proposed by the Beirne Initiative is, for purposes of section 7 of article XI, a law making an appropriation and, therefore, an illegitimate subject for initiative.
The basic principles for interpreting statutes apply to constitutions,15 and thus, to resolve this question, we shall turn to the language of section 7 construed in light of the purpose gf the provision.16 We are especially sensitive to the policy concerns embodied in constitutional provisions because a constitution is a document “unchangeable by ordinary means,” Marbury v. Madison, 5 U.S. (1 Cranch) 137, 177, 2 L.Ed. 60, 73 (1803), which “must be considered as a living document adaptable to changing conditions and circumstances unanticipated at the time it was written.” Warwick v. State ex rel. Chance, 548 P.2d 384, 391 (Alaska 1976) (footnote omitted).17
Appellants argue that “appropriations” refers only to statutes setting aside a specific amount of money and designating it for a particular use. Appellees argue that “appropriations” includes statutes that set aside a specific amount of lands and direct it be given away in the manner required by the Beirne Initiative. The statute proposed by the Initiative gives away — to any resident of three or more years who will conduct a survey, file two papers, and pay a nominal filing fee — public assets in the form of state land. The proposed statute imposes no obligations on the applicant after he or she receives the land — the applicant need not homestead the land or live on it at all. The applicant may sell the land after one year and during that one-year period, the applicant incurs no tax liability.
The language of section 7 prohibits initiatives for the purpose of making appropriations. Though most state constitutions with referendum and initiative provisions have some limitation relating to appropriations, Alaska’s appropriation limitation is worded more generally than that of most other states.18 We found no decisions ex[5]*5amining whether the term “appropriations” in the context of limiting the subject of initiatives prevents initiatives from appropriating land, or applies only to money.19 The term “appropriations” is sometimes used in the context of selecting land and designating its use,20 though appellants are correct that the usual context of appropriations is setting aside an amount of money and designating it for a particular use.21
[6]*6Appellants, by defining appropriations as exclusively referring to money, implicitly agree that if the Beirne Initiative granted each Alaskan resident, depending on the length of residence, a sum of money, it would be an appropriations initiative and hence illegitimate. Does the fact that the proposed statute gives away land, rather than money, permit it to be enacted by initiative?
Appellants emphasis a change that occurred in the writing of the section restricting the subject of the initiative and referendum.22 The version proposed by the Committee on Direct Legislation stated:
Section 5. Neither the initiative nor referendum may be used as a means of making or defeating appropriations of public funds or earmarking of revenues nor for local or special legislation. Emergency acts are not subject to referendum.23
The Committee on Style and Drafting eliminated the phrase “of public funds” because:
We felt “of public funds” was not necessary because the only appropriations with which the state could deal are public funds anyway . . ,”24
The words “of public funds,” like the word “appropriations,” may convey different meanings. In one sense, funds may refer to money, while, in another sense, it refers to assets generally.25 Even if the [7]*7initiative provision referred to appropriations “of public funds,” the issue would still be whether public funds refers generically to the state’s assets or only those assets in the form of money.26 We have concluded that by the term “appropriations,” article XI, section 7 prohibits an initiative whose primary object is to require the outflow of state assets in the form of land as well as money.
Victor Fischer writes of the complex of concerns that produced the various limitations on the subject matter of an initiative:
Further restrictions on direct legislation were added after expressions of concern about its potential use affecting fiscal legislation, local laws, the judicial system, and other “critical” areas. The convention reduced from three to two years the time limits during which an initiative could not be repealed by the legislature, and it provided that the initiative could be amended by the legislature at any time. These moves were considered necessary to assure consistency of initiative enactments with other laws of the state and with the general public interest as seen by the state legislature. The limitations upon direct popular legislative authority were a compromise designed to reserve basic authorities to the people while protecting the state against rash, discriminatory, and irresponsible acts.
V. Fischer, Alaska s Constitutional Convention 80-81 (1975) (emphasis added).
Initiatives for the purpose of requiring appropriations were thought to pose a special danger of “rash, discriminatory, and irresponsible acts.” The delegates were influenced by the experience of other states whose constitutions placed no restrictions on the subject matter of initiatives. They adopted the appropriations restriction to avoid the bad experiences of those states.27
The delegates wanted to prohibit the initiative process from being used to enact give-away programs, which have an inherent popular appeal, that would endanger the state treasury. A rather lengthy statement by Delegate Taylor 28 explains the delegates’ concerns:
Now in practically all the states that have initiative and referendum there are certain limitations put upon the matters that can be acted upon by those measures. Now appropriations are not subject to the initiative or the referendum. Some states made a great mistake by not restricting the initiative measures and allowed pressure groups to gather great numbers of signatures to a petition and that petition would require the expenditure of large amounts of money, perhaps a great deal more than the state could possibly afford and sometimes they would also initiate some legislation to raise money, a revenue measure and then directed [8]*8that the proceeds of that measure would be utilized for a particular purpose. In other words, it took the making of revenue measures and expenditure of the funds away from the legislature and in some instances the governmental functions and governmental institutions suffered a great deal. And it was necessary within as short a time as possible to undo the damage that has been done.
Of course, if the proper safeguards are not put around the type of legislation that can be initiated by the people, as I said before, they can do a lot of harm. There was one in California that within a year they found out it was bankrupting the state, and they had to get out another initiative and do away with the first one. Colorado had the same experience, and the State of Washington, because they were levying taxes under those bills and directing where these taxes were going, and the State of Washington in a period of about eighteen months found themselves with not only losing a 60,000,000 dollar surplus that it had in the treasury but also 120,000,000 dollars in the hole. Colorado was about the same way.29
In Alaska, land is a primary asset of the state treasury. No other state government owns as much land.30 We cannot imagine the delegates’ concern over initiatives which depleted, for example, the Colorado treasury of its prime asset, public monies, coexisting with approval of an initiative which depletes Alaska’s treasury of its prime asset, public land.
The outflow of dollars from the state treasury is significant, not in and of itself, but because it represents an expenditure of the state’s assets. We see no rational set of policy concerns that would prohibit an initiative from giving away $9,000,000,000 but would permit it to give away 30 million acres, valued at that sum.31
Appellants attempt to distinguish this grant of land from a grant of money in two ways. First, they argue that private land ownership is a desirable policy goal from which the state will reap benefits, especially in the form of future tax revenues. Second, they argue that the cost of surveying the land may be substantial.
The benefits or lack thereof from a policy of private land ownership misconceives the issue. The question is whether this policy may be implemented through initiative, rather than through legislative action.32 The restrictions on permissible subjects for direct legislation represent “a recognition . that certain particularly sensitive or sophisticated areas of legislation should not be exposed to emotional electoral dialogue and impulsive enactment by the general public.” Stewart, The Law of Initiative Referendum in Massachusetts, 12 N.Engd.L.Rev. 455, 461 (1977) (footnote omitted). The danger with direct legislation relating to appropriations is that it “tempt[s] the voter to [prefer] his immediate financial welfare at the expense of vital government activities.” Note, Referendum: The Appropriations Exception in Nebraska, 54 Neb.L.Rev. 393, 394 (1975). Cf. Brown v. Ward, 593 P.2d 247 (Alaska 1979). The lure of an immediate grant of land poses the same temptation as an immediate grant of money. Both decisions are the kind that require the reasoned deliberation characteristic of legislative actions.
[9]*9The fact that a survey may be costly does not change the essential nature of the Alaska Homestead Act as an appropriations initiative. The applicant pays the surveyor; 33 no compensation or service is rendered to the state.34 The stated purpose and effect of the Initiative on the state treasury is still an expenditure of state assets in the form of public lands.
Thus, the Alaska Homestead Act would substantially deplete the state government of valuable assets just as surely as an initiative allotting to residents of specified years large sums of money. In the same manner, it constitutes an appropriation and hence may not be enacted by initiative.
AFFIRMED.
MATTHEWS, J., not participating.