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Last Update: 1:36 PM

Budget banter between Palin, legislators threatens process

JUNEAU -- A dispute over last year's vetoed capital projects threatens to hold up this year's budget process.

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Gov. Sarah Palin and House leaders met in private Monday to discuss the future of those projects.

Lawmakers were angered when Palin vetoed hundreds of capital projects last summer.

The Senate, in turn, drew Palin's ire when it restored about $50 million for the projects in the supplemental budget, a spending plan for the current fiscal year.

The House appeared poised to follow suit but has delayed committee consideration of the capital items.

Following the meeting with Palin, House Speaker John Harris of Valdez said he's hoping they can reach a peaceful resolution. They plan to meet again Tuesday -- with Senate leaders included this time.

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