Judge: Walker had authority to cut Alaska dividend amount

JUNEAU, Alaska – A state court judge ruled Thursday that Gov. Bill Walker had the authority to reduce this year’s Alaska Permanent Fund dividend, siding with the state in the politically charged case.

Superior Court Judge William Morse’s decision followed arguments presented by both sides in Anchorage on Thursday morning.

Morse said he expected the issue ultimately to be decided by the Alaska Supreme Court.

Democratic state Sen. Bill Wielechowski of Anchorage and two former lawmakers brought the lawsuit, arguing that the Alaska Permanent Fund Corp. was obligated by law to make available nearly $1.4 billion from the fund’s earnings reserve for dividends, in spite of a Walker veto reducing that amount.

The veto reduced the dividend to $1,022, roughly half of what it otherwise would have been. The plaintiffs wanted the rest restored.

Attorneys for the state said Walker properly exercised his veto authority.

Morse, who frequently interrupted Wielechowski’s arguments with questions, said governors in Alaska hold significant authority to reduce or eliminate spending.

Walker has defended his actions as prudent given the multibillion-dollar deficit the state is facing amid chronically low oil prices.