With the state budget nearly settled, state lawmakers will consider how much to invest in new bond-financed state construction and whether to streamline permitting and procurement to get proj­ects started faster and help with economic recovery.

House negotiators appear committed to about $300 million in new general obligation bond-financed state construction spending, the amount requested by Gov. Neil Abercrombie. The Senate has called for up to $500 million in new construction money for repair and maintenance at public schools, hospitals and other public buildings, but senators acknowledge the proposal — their signature idea for the session — is now unlikely.

Senators have suggested a streamlined permitting and procurement process for state repair and maintenance proj­ects of less than $1 million. The relaxed regulations would be in place for two years, and a legislative oversight committee would monitor the proj­ects to ensure transparency in bidding and contracting.

The House, however, still wants to give the governor the authority to temporarily exempt certain types of state proj­ects from environmental review, a concept that many in the Senate believe is too broad.

With a procedural deadline on Friday to have bills ready for final votes before session adjourns next week, lawmakers have only a few days to find a compromise or leave the existing regulatory process in place. House and Senate leaders wanted to streamline regulations so new construction money could hit the streets sooner and stimulate job growth and economic recovery.

Sen. David Ige (D, Aiea-Pearl City), chairman of the Senate Ways and Means Committee, said senators still believe the state should take advantage of low interest rates and be more aggressive with bond-financed state construction.

"We still believe it’s a great time," he said.

But the House has drawn a harder line.

Rep. Marcus Oshiro (D, Wahiawa-Poamoho), chairman of the House Finance Committee, said there is already a significant amount of state construction approved and awaiting action. He said lawmakers do not want to go much beyond the additional $300 million requested by Abercrombie. Another $50 million in construction money that has lapsed for state proj­ects stuck on the drawing board could be redirected to new proj­ects.

"There is no need to incur additional debt when you have so many capital improvement proj­ects yet to be expended, contracts yet to be let out," Oshiro said.

The new bond-financed state construction will likely be contained in the state’s capital improvement proj­ect blueprint. Senators had wanted to set aside bond money for repair and maintenance proj­ects in a stand-alone bill that included streamlined permitting and procurement, but have conceded that new money will likely go into the CIP budget.

House Speaker Calvin Say (D, St. Louis Heights-Wilhelmina Rise-Palolo Valley), who has been the target of criticism from environmental and good-government groups for pushing for environmental exemptions on state construction, still hopes some regulatory exemptions will be approved. But the speaker acknowledged that the Senate does not appear as interested.

"The thought was if you could just try to cut back on the permitting process to some degree — on the environmental side, regulatory side and the procurement side — you would be saving the taxpayers money," he said. "Because the longer you delay and defer, the costs will rise."

On Tuesday night, House and Senate negotiators moved closer to completing an $11 billion supplemental state budget for fiscal year 2013. Negotiators agreed to Abercrombie’s request for $25 million to help cover an increase in public school bus costs, far less than the state Department of Education has said is needed. Some in the department have warned of massive cuts to bus service.

"The shortfall is still significant," said Kathryn Mata­yo­shi, state schools superintendent. She said the department would look at reducing costs or finding money from other parts of the education budget.

Negotiators also agreed to an additional $14 million for the department’s student spending formula to account for an increase in enrollment. Lawmakers described the new money as an investment in the classroom at a time when educators are preparing innovations and reform to improve struggling schools.

Negotiators also signed off on new money for Abercrombie’s justice reinvestment initiative and for information technology. Abercrombie took a seat in the front row of Room 309 at the state Capitol during the public portion of the budget deliberations, a rare appearance for a governor. The governor had privately greeted the negotiators last week before the conference committee opened.

House and Senate leaders said budget talks would resume tonight. Other bills with a finance-related component are on hold until a budget agreement is reached, leaving little time for discussion before Friday’s deadline.