Jay Hammond - Governor of Alaska

Governor of Alaska

Hammond was elected governor in 1974 in a close result over incumbent William A. Egan. The race was complicated by two major factors, amongst others. One was a reversal of roles of sorts, where Hammond and his running mate Lowell Thomas, Jr. were identified as conservationists, confusing and splitting the traditional party base. The other was the appearance, for the first time, of a substantial third-party candidate, Fairbanks miner and real estate developer Joe Vogler. Vogler's open contempt for the environmental movement created a further voter rift which no doubt helped Hammond.

As governor during the biggest economic boom in Alaska's history, the construction of the Trans-Alaska Pipeline System, Hammond oversaw the creation of the Alaska Permanent Fund. The concept of the Permanent Fund, originally championed in 1969 by then-governor Keith Miller and Anchorage Times publisher and editor Robert Atwood on the eve of the Prudhoe Bay oil lease sale, lay dormant for years as a result of the legislature spending the proceeds of the lease sale and construction delays associated with the pipeline. During his first term as governor, Hammond, along with a young state representative from Kenai named Hugh Malone, conceived a program to invest oil royalties to cover future state budget shortfalls as well as create a long-term savings account. Alaska voters approved a constitutional amendment establishing the Permanent Fund in 1976, one of the rare exceptions to the constitutional intent of not dedicating funds for a specific purpose.

Since the early 1980s, the Permanent Fund has paid annual dividends to Alaska residents, under a program in which credit has been variously given to, or taken by, Hammond, Malone, Libertarian state representative Dick Randolph and numerous other Alaskan politicians of the day. At around the same time, Alaska eliminated its state income tax. Hammond is often erroneously credited for this; in fact, he was actually staunchly opposed to the idea. The elimination of the income tax was actually championed by Randolph, who persuaded his fellow legislators to pass the bill after mounting an initiative to force a public vote should the legislature not act. A 1980 episode of the public television program Alaska Review (currently held in the collections of the Alaska Film Archives) prominently featured an edited "debate" between Hammond and Randolph on the subject, centered on the fact that Alaska faced a one-billion-dollar budget surplus that year.

As governor, Hammond advocated for fiscal responsibility, and introduced an amendment to the Alaska Constitution limiting state spending. This was mocked by one legislator as "Spendy Limitation," with an accompanying elegant and obfuscatory statement mimicking Hammond's unique way with the English language. He advocated for another constitutional amendment providing for governors to serve a single 6 year term without possibility of further service. He felt it would allow governors a free hand in accomplishing their goals. He also championed a program which opened large amounts of state-owned lands near Delta Junction for agricultural use. While greater aspects of the program have been variously condemned as a "boondoggle" over the years, Delta Junction has managed to emerge as one of the larger agricultural producing communities in Alaska. He also vigorously fought with the legislature over power struggles between the two branches of government, culminating with four proposed constitutional amendments on the 1980 ballot, all of which failed by large margins.