Gov. Neil Abercrombie declared Tuesday that the state now stands on solid financial ground and is entering a new phase in which investments in early childhood education, a minimum wage increase, land conservation and tax relief for seniors are possible.

Closing the book on the recession, Abercrombie used his annual State of the State address to mark the state’s economic turnaround. The governor said a record $844 million budget surplus provides the state with an opportunity to take action.

"I am able to report to you today, our state government’s financial house now stands on solid ground," the governor told the state House and Senate.

Abercrombie made only passing reference to the fact that this is an election year, but the economic turnaround is the theme of his re-election campaign. The Demo­crat emphasized the budget surplus in his first television advertisement for his re-election, which debuted Tuesday evening to coincide with his address.

Governors usually get to take credit when the economy is strong — and get blamed when the economy is weak — but some of Abercrombie’s fellow Demo­crats in the Legislature cast doubt on the governor’s role.

State Rep. Sylvia Luke (D, Punchbowl-Pauoa-Nuu­anu), chairwoman of the House Finance Committee, and state Sen. David Ige (D, Pearl Harbor-Pearl City-Aiea), chairman of the Senate Ways and Means Committee, who is challenging Abercrombie in the Demo­cratic primary, said there may not have been such a large surplus if the Legislature had approved all of the governor’s spending requests over the past three years.

"We’re concerned about the budget and making sure that it balances," said Ige, who noted that state tax collections are down when compared with the previous fiscal year. "We need to live within our means."

Abercrombie disputed — but also made light of — the criticism of his new spending requests. "I would certainly dispute that," he told reporters. "I think if everybody did everything I wanted, we’d all be much better off."

Lawmakers also indicated that one of Abercrombie’s legislative priorities — additional money for early childhood education — might fail unless the governor and his advisers can thoroughly explain the policy rationale.

Voters will decide in November whether to amend the state Constitution and allow public money to be used on private preschool, but Abercrombie does not want lawmakers to wait to approve more money for early childhood education.

Abercrombie has asked for an additional $2.5 million for parent subsidies in Preschool Open Doors, a child care program that the Legislature expanded by $6 million last session, and $4.5 million for a free preschool program for low-income children at 30 public schools.

"Now, I realize this is an election year. Political agendas and ambitions are being formulated," the governor told lawmakers. "But let us take children out of these equations. Let us resolve — all of us — to be champions of children. You have my pledge and my word on that."

Luke and Ige questioned, however, whether Abercrombie now appears to be moving in the direction of free preschool at public schools as the model for an initiative that would eventually cover all of the state’s 17,200 4-year-olds. If so, it would diminish the need for the constitutional amendment that would enable private preschools to receive state money.

"So I think one of the questions we have is whether there is a need for a con-am anymore," Luke said.

Abercrombie told reporters that "the only direction that we need to go in is to see that all of our children get the best possible start in life they can. So it’s the legislative session. Everything is a work in progress."

As in last year’s State of the State address, Abercrombie called for an increase to the minimum wage.

The governor cited the state’s 4.4 percent unemployment rate — among the lowest in the nation — and the state’s recent reduction in unemployment insurance tax rates on businesses, which will save businesses $130 million this year.

The state’s $7.25-an-hour minimum wage has not been increased since 2007. Abercrombie would raise the wage to at least $8.75 an hour starting in January 2015.

The governor said he is prepared to accept a "reasonable accommodation" on expanding the 25-cent-an-hour tip credit, which businesses can deduct from the minimum wage for workers such as waiters and valets who earn tips. House and Senate negotiators could not agree on the size of the tip credit last session, which killed a minimum wage increase.

"Let’s move quickly and resolutely on this issue," said Abercrombie, who added that he once earned tips waiting tables at Chuck’s Steak House in Waikiki.

State Sen. Clayton Hee (D, Heeia-Laie-Waia­lua), chairman of the Senate Judiciary and Labor Committee, has proposed a bill that would take the minimum wage to $10.10 an hour by January 2017. The bill would also tie the wage to the consumer price index in future years.

Hee’s bill would eliminate the tip credit entirely, a clear message about the direction of the negotiations, since others in the Senate had wanted to increase the tip credit to $2 last session.

State Rep. Mark Naka­shima (D, Kukui­haele-Lau­pa­hoe­hoe-North Hilo), chairman of the House Labor Committee, said a House bill would increase the minimum wage to $9.50 over three years. The House’s version, he said, would also eliminate the tip credit. House negotiators had recommended raising the tip credit to 35 cents last session.

In a policy reversal, Abercrombie, who had recommended a pension tax in 2011, asked lawmakers for tax relief for low- to middle-income seniors.

Abercrombie said he accepted and understood the opposition to his earlier pension tax plan. The governor would provide exemptions on all sources of taxable income for single seniors who are 65 and older with adjusted gross income of $25,000, heads of households at $35,000 and joint filers at $45,000. The tax relief would apply to about 25,000 seniors and cost the state an estimated $5 million a year.

The governor would also double the refundable food/excise tax credit for seniors who are 65 and older and earn less than $50,000. The larger tax credit would cover about 110,000 seniors and cost the state about $7 million a year.

House Speaker Joseph Souki (D, Wai­hee-Wai­ehu-Wai­luku), who had proposed a pension tax on wealthy seniors last week, called Abercrombie’s tax relief proposal for seniors a "complete U-turn" by the governor.

Abercrombie’s 28-minute speech — which also included plans to acquire and preserve land controlled by Turtle Bay Resort and Dole Food Co., expand prisons, invest in programs to counter climate change and invasive species, and reduce homelessness — was shorter than the governor’s previous State of the State addresses and uncharacteristically restrained in tone.

The governor opened by asking for a moment of silence for Hawaii Army National Guard Sgt. Drew Scobie of Kai­lua, who was killed in Af­ghani­stan this month. He closed by remembering Loretta Fuddy, the late director of the state Department of Health, who died of cardiac arrhythmia after a plane crash off Molo­kai in December.

Abercrombie said lawmakers could honor Fuddy by approving his $1.2 million budget request for early intervention services, which helps newborns to 3-year-olds who have developmental delays.

"This will serve as a fitting tribute and appropriate legacy to honor Loretta," the governor said. "There will be lasting benefits for the affected families and children — the children she loved and cared for passionately to her last day."