Anchorage Daily News

JUNEAU -- Scuffling over the state budget continued Thursday when Gov. Sarah Palin rejected nearly $58 million in projects lawmakers had tried to salvage from last year's veto heap.

Lawmakers widely expected the action, however, and little of the rancor from earlier this week was heard from them or the governor.

Still, the lawmakers have five days under the Alaska Constitution to try to muster the votes to override Palin's vetoes, if they choose such a confrontation. It would take 45 of the combined 60 votes in the full Legislature.

Senate President Lyda Green, who like Palin is a Republican from Wasilla, said that would be a rare feat.

"I always say an override is very difficult, particularly on an appropriations bill," said Green, as she sat in her dark Capitol office, thumbing through pages marked with a big X signifying a veto.

Two floors up, in Palin's office, the governor turned up the volume on the 6 o'clock news as husband Todd sat nearby and 7-year-old daughter Piper frolicked about.

"Each lawmaker on TV so far was smiling -- holy moly!" Palin said aloud for everybody.

Indeed, many seemed to take solace that Palin signaled she might yet tolerate many of the rejected projects if lawmakers try a different -- and in her view, better -- budgeting method before the Legislature adjourns April 13.

The political struggle over $70 million in hometown school, road and other projects overshadowed Palin's signing of a monumental $4.3 billion bill that puts $3.6 billion of surplus oil revenue into savings and $300 million into home insulation programs for Alaskans reeling from high heating costs.

Senate Bill 256 began as a routine supplemental budget request Palin submitted to legislators to cover current year cost overruns.

Lawmakers still smarting from Palin's vetoes last year decided to tack some of the rejected projects onto the supplemental budget.

That didn't square with Palin, who scolded lawmakers for inappropriately "stuffing" a supplemental bill.

She said if lawmakers didn't want her to simply veto the projects again, they could make an appointment to come to her office and explain why the projects were worthy of funding. Palin personally attended more than a dozen meetings with lawmakers, and even opened them to the media.

On Thursday, members of her staff hand-delivered the results to lawmakers.

Of the $70 million in projects at issue, Palin accepted 52 projects totaling $12.4 million, chopped 16 worth $22.3 million, and put 155 projects worth $35.4 million in what she designated the "move" category.

Palin signaled she might accept those 155 projects if lawmakers roll them into what's known as the capital budget, which is a major bill -- likely to be among the last to pass this session -- where lawmakers traditionally pay for pet projects back home.

That was the proper place for the disputed projects that were in the supplemental bill, Palin said.

Rep. Kevin Meyer, R-Anchorage, manages the capital budget as co-chairman of the powerful House Finance Committee. On Thursday, he huddled in his office with House Speaker John Harris, R-Valdez, and Sen. Bert Stedman, R-Sitka, who manages the capital budget on the Senate side.

The way Meyer saw it, the governor essentially approved 70 percent of what lawmakers sought. As for the items Palin rejected, "she's got a good rationale for us," he said.

"I'm not worried about it," added Harris, though he wouldn't rule out the idea of a veto override vote.

Items Palin approved included a $495,000 expansion of Eagle River's Fire Station 11, and Bush projects where having money in the supplemental budget would result in faster funding -- in time to barge out materials for the short summer building season.

Vetoed items included $10 million for the Anchorage seaport expansion. A $5 million request for maintenance work at the Anchorage museum was in the "move" category. Meyer said he was confident lawmakers can find a way to fund both this session.

Green, the Senate president, seemed less upbeat, saying any item included in Palin's "move" category is "just a veto."

She singled out one such casualty from her Mat-Su district -- a $2 million request for a community recycling center. Builders and volunteers were counting on the state's money this summer to supplement borough and private contributions, she said.

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