Sounds contradictory, but this prosecutor seems to have been very careful.  From what I read it looks like he thought Monegan had been fired at least partially because of not firing Wooten, but that Palin had the right to fire Monegan for any reason she saw fit.
The abuse of power comes in with her (and Todd's) interfering in an attempt to get Wooten fired. 
I'm not a lawyer, but seems to me this report gives the Troopers' union a big basis for their suit.
Anyone who want to enjoy themselves should read the part about what the judge who was presiding at Wooten's divorce said.  It's pretty funny.