Gov. Sarah Palin meets the press Friday. (Brian Wallace.Juneau Empire via AP)

From Sean Cockerham in Juneau –

Gov. Sarah Palin told news media here this morning she’s willing to accept the federal economic stimulus money -- if legislators agree to use some of it to replace state spending.

“We can back out state (general fund) dollars and replace them with stimulus dollars…I’ll feel better about it because then those dollars won’t just be additional dollars they’ll be replacement dollars,” Palin said.

Palin made her comments in a wide ranging "availability" with reporters this morning, in which she also talked about subjects including abortion, the rejection of her state Senate appointee, and Levi Johnston, the father of her grandchild.

Palin said she still has problems with the stimulus money but it’s clear to her that legislators want to take it all. Palin could still veto or refuse to spend the money if she wanted, but she doesn’t seem inclined to do so at this point.

Palin said her administration has identified $250 million in state spending that could be replaced with stimulus money. She said she plans to meet with legislators this afternoon to argue that doing so would be legal and technically feasible.

On abortion, Palin said she’s now willing to compromise on a bill that would require parents to give their permission before girls under age 17 could get an abortion.

Palin said she’s willing to drop the requirement for consent and just accept a bill that would require parents to be notified about their teenager’s plan to have an abortion.

Palin said late last month she was not interested in the compromise.

But she said this morning it’s clear to her now that's the only way to possibly get the bill passed, with just nine days left in the 2009 session of the Legislature.

Palin also talked about the rejection of her state Senate pick, Joe Nelson, and the media furor around statements made by Levi Johnston, who has been going on national TV talk shows.

Senate Democrats today rejected Joe Nelson, Palin's latest appointee to Juneau's open state Senate seat.

"That's disappointing lawmakers have chosen not only to not discuss and vote in public but disappointed that a very experienced, educated, young dynamic Native leader was not accepted by the Senate Democrats," she said.

In response to a question from a television reporter, Palin also talked about some of the ongoing drama surrounding her family. Levi Johnston said during an interview on CBS’s “Early Show” that he moved into the governor’s house a few weeks before Bristol Palin gave birth to their child.

"I know the truth about my family. I know details about whether Levi Johnston was allowed to live with my teenage daughter or not. By the way, it would be over my dead body that a kid would live with my teenage daughter," Palin said.