The handshake finally came just before 3 a.m.

When state Rep. Marcus Oshiro and state Sen. David Ige agreed early Saturday on an $11.2 billion state budget and a capital improvement project outlay, it ended a lengthy stalemate. A difference of opinion over how much money to invest in bond-financed state construction moved from philosophical to intractable, pushing negotiations past a midnight deadline and prompting House and Senate leadership to extend the cutoff for other finance-related bills until Monday morning.

Negotiators approved $428 million in new bond-financed state construction, including $250 million for repair and maintenance projects, more money than the House and Gov. Neil Abercrombie had proposed but less than the Senate had wanted to spur economic recovery. The additional money takes the general obligation bond portion of the budget to $825 million next fiscal year.

For lawmakers who had managed to complete the budget on time during the depths of the recession and in the boom years of a surplus, the delay this year was unexpected.

"Iron sharpens iron," said Oshiro (D, Wahiawa-Poamoho), the lead House budget negotiator. "And I think the hard work and discussion and collaboration and partnering with chair Ige allowed us to come up with a good product. It was worth the effort. It was worth the time. And I think we’ve done well for the citizens of Hawaii."

Negotiators were unable to resolve their differences over regulatory exemptions tied to the state construction blueprint, so it is unclear whether any will advance.

"The negotiation process took a little longer than normal, but I think in the end, we’re happy with the end product," said Senate President Shan Tsutsui (D, Wailuku-Kahului). "I think there are a number of really good components, especially on the CIP part of it. We’re going to be somewhat aggressive in repair and maintenance, and hopefully that will kick-start the economy."

While there was a brief sense of relief among lawmakers that the budget had closed, the focus quickly turned to which other bills would be eligible for consideration by the new deadline on Monday.

Just after midnight, Tsutsui and House Speaker Calvin Say (D, St. Louis Heights-Wilhelmina Rise-Palolo Valley) announced that they would grant the extension for bills that add no more than $50 million in general-fund state spending. The bills also had to have been ready to move on Friday but were held up because of the delay over the budget.

"We believe that due to the delay in the passage of the budget, allowing these bills to die based on an internal procedural deadline is not in the best interests of the people of Hawaii," Tsu­tsui explained.

Say, who has had his hand in many budget battles during his more than three decades at the Legislature, was apologetic. He said the delay was due to the intense negotiations on the budget.

Lawmakers are expected to publicly release the eligible bills today.

Kalbert Young, the state’s budget director, expressed concern that two bills the Abercrombie administration considers important to the state’s finances might not make the cut. Lawmakers have not agreed to an extension of a rental-car surcharge that budget analysts believe could help keep the budget in balance over the next several years. Lawmakers have also not committed to immediately replenishing the state’s hurricane relief and rainy-day funds, which were tapped to help close budget deficits.

Young said that putting even a small amount of money back into the emergency funds shows bond-rating agencies that the state is intent on maintaining adequate cash reserves. He said the administration would be "significantly disappointed" if lawmakers decline.

"It’s the effort that we want," he said.

Lawmakers also appear unlikely to extend or expand a film tax credit that many had hoped would encourage more movie and television productions in the islands and help with job creation. Ige, the lead Senate budget negotiator, listed an enhanced film tax credit as a Senate priority as late as Friday.

Several lawmakers are optimistic that a reconfigured solar tax credit may still advance. A draft compromise, which has won the support of the solar industry and environmental advocates, would address some of the concerns by the state that the tax incentive has grown too costly.

Lawmakers are also hopeful about a bill that would provide more than $1 million to help with ambulance service on the Leeward coast in response to the bankruptcy and closure of Hawaii Medical Center-West in Ewa Beach.

The bills that are saved by Monday’s new deadline would be scheduled for final votes by Thursday, the last day of the session.