I haven't made anything up. All I've been doing is quoting from the decision. 
http://www.courtrecords.alaska.gov/webdocs/opinions/ops/sp-7194.pdf

The constitution is law. It supersedes anything in the statute. The constitution DOES require the legislature to make an appropriation,  art. IX, § 13 “No money shall be withdrawn from the treasury except in accordance with appropriations made by law.”

It all boils down to this, the State, argued that "the 1976 constitutional amendment created a an anti-dedication clause exemption only for revenues going into the Permanent Fund and not for revenues going out of the Permanent Fund." The court unanimously agreed.

PFDs are revenues going out of the fund. The court  found the money used to pay the Permanent Fund Dividend is NOT exempted and is subject to normal appropriation and veto budgetary processes. 


End of story. Get over it.