By Jeremy Lawrence
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78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. Hammond 1996, 153. Hammond 1996, 152–53. Hammond 1996, 153; and Alaska Supreme Court 1978. Hammond 1996, 152. Hammond 1972, 3. Alaska Constitution, Article VIII, Section 2. Hammond 1996, 247–50. Hammond 1996, 254–55. Some supporters of direct distribution also mentioned how the dividend would serve as a safety net for low-income Alaskans. White 1982; and Groh 1982b, 73–75. Arguments for PFDs were set out in Groh 1982a, 5–9; and Groh 1997, 10–18. One commentator has observed that governors of Hawaii and New Jersey have executive powers comparable to those of Alaska’s governor, but Alaska’s governor has greater legislative power.
In 1980 the legislature repealed the individual income tax. The legislature initially eliminated the tax on anyone who had reported gross income in the state for the previous three years and provided lesser tax relief for others. After the Alaska Supreme Court struck that down as unconstitutional, the legislature passed legislation that repealed the individual income tax for everybody. Alaska State Legislature 1980b; and Alaska State Legislature 1980c, Second Special Session. Gov. Hammond signed the total repeal bill, but later he lamented his failure to veto the legislation.
But if allocation is permitted for one interest the denial of it to another is difficult, and the more special funds are set up the more difficult it becomes to deny other requests until the point is reached where neither the governor nor the legislature has any real control over the finances of the state. 34 Governor Jay Hammond, a bearded bush pilot who was first elected to office in 1974 and known for the doggerel he wrote mocking his opponents, vetoed this legislation, citing new legal advice from his attorney general reaching the opposite conclusion from the previous opinion.