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I don't see anything overly shocking in that dippin. You see such claims all over the place. "It cost the city $300,000 to have its engineers design this road." . . . So the city wouldn't have paid the engineer's salaries if it hadn't been for the road? Obviously not.
I think this blog is trying a bit too hard. Palin could easily have meant "I don't want the lawyers to be paid to defend my office, but to do other work for the state."
That said, I do think the reasons she gave are highly suspect.
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