https://www.adn.com/politics/2016/11/17/judge-hears-arguments-over-gov-walkers-partial-veto-of-pfds/Judge tosses legal challenge to Walker's PFD veto
Author: Alaska Dispatch News Updated: 19 minutes ago Published 1 hour ago
Judge William Morse challenges plaintiff and state Sen. Bill Wielechowski during oral arguments at the Nesbett Courthouse on Thursday, Nov. 17, 2016. (Loren Holmes / Alaska Dispatch News)
Anchorage Superior Court Judge William Morse ruled from the bench Thursday that Gov. Bill Walker had the legal authority to veto half the transfer of state funds into the Alaska Permanent Fund dividend account, rejecting a judgment sought in a lawsuit by a state senator.
Prior to issuing his ruling, Morse was openly skeptical of the arguments brought by Sen. Bill Wielechowski in his lawsuit, though he also challenged the state's defense attorney, Assistant Attorney General Margaret Paton-Walsh.
The closely watched lawsuit was brought by Wielechowski and two other plaintiffs in an effort to restore more than $600 million to Alaska's 2016 Permanent Fund dividend program, following the veto this year by Walker.
Wielechowski said outside the courtroom that he will appeal Morse's decision to the Alaska Supreme Court.
Walker vetoed half the Alaska Legislature's deposit into the Permanent Fund's dividend program in June. The veto had the effect of cutting this year's dividend checks for most Alaskans in half, to a little more than $1,000.
Morse said Alaska's Constitution grants the governor extraordinary powers to make line-item vetoes from the budget, especially at times of economic troubles.
"And we're in crunch time," Morse said.
While much of the case turned on technical words of state finance, such as the difference between an "appropriation" and a "dedicated fund," Morse ultimately said the framers of Alaska's Constitution clearly wanted to give the governor strong veto power.
Wielechowski, in arguing for a summary judgment declaring Walker's veto unconstitutional, said the fund was enshrined in the Constitution and the governor had no right to veto the transfer.
A small group of protesters outside the state courthouse in downtown Anchorage demanded restoration of the full dividend, supporting Wielechowski's lawsuit.
Supporters of the lawsuit, including Chugiak resident Rocky Dippel, left, wave signs before oral arguments Thursday morning, Nov. 17, 2016, outside the Nesbett courthouse in Anchorage.
Supporters of the lawsuit, including Chugiak resident Rocky Dippel, left, wave signs before oral arguments Thursday morning, Nov. 17, 2016, outside the Nesbett courthouse in Anchorage.
Walker said that the Legislature's failure to produce a fiscal plan in the face of huge deficits forced him to veto the money.