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Afterward, Rep. Beth Kerttula, D-Juneau, presented a Democratic response on the Gavel-to-Gavel network that largely agreed with Palin's goals of saving for the future while targeting investments for building the economy.

Palin said the state's efforts to develop its natural gas under the Alaska Gasline Inducement Act were moving forward well.

"A respected pipeline construction company, TransCanada, submitted a proposal that meets all of Alaska's requirements," she said.

ConocoPhillips, Alaska's biggest oil producer and holder of rights to significant North Slope natural gas reserves, is challenging that process with its own proposal outside the AGIA framework, however.

Sen. Gene Therriault, R-North Pole, said he was impressed that Palin was sticking to her guns with AGIA.

"It's not just the governor's plan," he said. "AGIA was passed by this Legislature, not a past Legislature, but this Legislature."

Palin's conservatism was also in evidence, as she endorsed personal responsibility as a way of dealing with some of Alaska's problems.

"Government cannot cure all ills," she said. "And don't assume more laws foisted on Alaskans are the only answer - most 'bad activity' is already illegal."

Some of Alaskans' bad choices have led to heart disease, diabetes, underage drinking, drugs, violence and abuse, she said.

The Palin administration is looking to see what other fiscally conservative states have done to encourage employers to provide medical insurance for employees, she said.

Reform must not only take place in government, but also involve Alaskans taking responsibility for their choices, she said.

Palin also said she was supporting more funding for schools, quoting Victor Hugo's saying, "He who opens a school door closes a prison."

Her three-year schools program invests more than a billion dollars each year into education, and she said schools must get their money ahead of time, so districts don't have to provide "pink slip" layoff notices to teachers because they don't know what they'll be getting each year.

"We must forward-fund education, letting schools plan ahead," she said.

Palin also again supported her plan for a $250 million renewable energy fund that would help develop alternative energy, such as hydro, wind, geothermal and biomass.

"These projects cannot even flirt with snake-oil science - they have to be real, doable and economic," she said.

She said she'll appoint an energy coordinator to activate a statewide energy plan.

Rep. Andrea Doll, D-Juneau, has been advocating similar energy efforts, and said she was encouraged by Palin's support.

"I was actually kind of impressed with her talk," she said.

Palin's budget, published earlier, calls for "trickling down state wealth to communities" by boosting revenue sharing to local governments.

Kerttula endorsed that in her counterpoint to Palin's speech.

"Now is the time to make municipal revenue sharing a permanent reality, so communities can make their own decisions, and so every Alaskan can benefit from the state's resource wealth," she said.

• Contact Pat Forgey at 586-4816 or patrick.forgey@juneauempire.com.