"I've offered to sit down with them and take out even more projects," Palin said. "This deficit spending this state is in, it's not a comfortable place for Alaska to be."
It's been no secret that Sitka Republican Bert Stedman, Senate Finance co-chair, has some serious differences with the governor, especially over the federal stimulus program.
The outcry in the Mat-Su Borough over the loss of some major capital projects has some wondering if the Valley is being used as a political football.
"Clearly this is not a budget to stick it to the governor," Stedman said. "This is a budget to address deficit reduction and stimulate the economy. And unfortunately, there's more to the state than Mat-Su."
Palin insists that her relationship with the Legislature this session has been productive and healthy.
"Our door is always open," Palin said. "We meet with them, and every single day we're meeting with lawmakers."
Legislative leadership has met regularly with the governor, and lawmakers have said those meetings have sometimes been productive -- but sometimes they are not.
"I'm OK with her right now," Rep. Mike Chenault, R-Nikiski said. "We may not be as far down the road as I would like to be."
There are signs that the governor's run for the vice presidency has changed the game here in Juneau, especially among the Democrats, who feel her objections to accepting stimulus money were tied to her political ambitions.
"We had to spend an extra month to debunk myths that came out of the third floor (of the capitol)," Rep. Les Gara, D-Anchorage, said.
"To a certain extent we got back a different Sarah Palin then we sent out there," Rep. Mike Doogan, D-Anchorage, said.
Palin would not discuss her vice presidential run because of fears it might trigger an ethics charge, but she did say it's hard to be under a national media microscope.
"I pray about it. I ask for strength. I ask for revelation of truth," Palin said. "I still believe there will be more revelation of truth in who I am, who my family is, and who Alaska is."
One question lawmakers frequently ask is who Sarah Palin is: Alaska's governor, a national candidate -- or both.
Palin said she wished she didn't feel like she had to ask lawmakers permission to leave the state for a right to life dinner next week, which she stressed was only for a day.
She had drawn criticism for leaving the state at the end of session.
Contact Rhonda McBride at email@example.com