Wielechowski v. AlaskaAnnotate this Case
In the course of the 2016 budgetary process, the Alaska legislature appropriated a sum of money for dividend distributions. But the governor vetoed about half of the appropriation, and the legislature did not override the veto. One current and two former legislators later sued to effectively set aside the governor’s veto. The thrust of their argument was that a 1976 constitutional amendment creating the Alaska Permanent Fund gave the legislature constitutional authority to pass laws dedicating use of Permanent Fund income without need for annual appropriations and, therefore, not subject to annual gubernatorial veto. The legislators argued that the longstanding dividend program was a law exempt from the anti-dedication clause. The superior court ruled against the legislators, concluding the legislature’s actual use of the income remained subject to normal appropriation and veto budgetary processes. The narrow question this case presented for the Alaska Supreme Court's review was whether the 1976 amendment to the Alaska Constitution exempted the legislature’s use of Permanent Fund income from the Constitution’s anti-dedication clause. The Court concluded "no" — the 1976 amendment did not exempt the legislature’s use of Permanent Fund income from the Constitution’s anti-dedication clause. Although the superior court did not reach this question, the court’s ultimate conclusion nevertheless was correct: the legislature’s use of Permanent Fund income is subject to normal appropriation and veto budgetary processes.