The Department of Education will ask the governor for a hefty slice of the $400 million surplus the state has accumulated to make up what education officials called large shortfalls over the past year and to continue making major repairs in Hawai'i's aging public schools.

State Superintendent of Education Patricia Hamamoto received initial approval from a Board of Education committee yesterday for a proposed supplemental budget of $84.3 million in operating funds and $359 million in capital improvement funds — including money to build a new middle school to serve the 'Ewa area and a new eight-room classroom building at Campbell High School.

Hamamoto is asking that capital improvement funds be broken down into $160 million in cash from the general fund and $199 million in bonds.

"We're going in for what we believe is our fair share," Hamamoto said. "Knowing the schools are in disrepair, with the $400 million in surplus, the department is asking for something that can make a difference. ... We look at our budget and it gets very difficult. We are underfunded."

Nonetheless, both Hamamoto and some board members winced, noting in the past that operating request supplements have been closer to $30 million. However, this year's request is still a small percentage of an overall DOE operating budget of about $2 billion.

"This is a huge supplemental budget request," committee chairwoman Karen Knudsen said. "Some people may not be happy with it, but I believe it's defensible."

In defending the requests, department and board officials pointed to the increasing costs of educating children, including skyrocketing electric bills and fuel costs, the need to continue renovation projects on the oldest public schools and the necessity of making the department more efficient by improving its technology systems.

"There's no question we need the money," BOE chairman Breene Harimoto said.

In 2002, the department launched necessary upgrades of 232 schools under a six-year timetable, but so far projects have begun or been completed only on 135 schools.

"An infusion of $160 million would enable us to complete the remaining 97 schools," Hamamoto said.

The biennium budget approved by the Legislature this year allotted the department $65.3 million for construction projects in 2007, cutting another $25 million in projects the department had requested.

Board member Mary Cochran noted that an independent study found Hawai'i's legislative funding of education at least $287 million short of what's needed.

Cochran also questioned whether there was a greater need for a new middle school to serve the 'Ewa Makai area or for a new high school to serve the growing development in the Kihei area of Maui.

"This sticks in my craw," Cochran said. "Kihei is the fastest-growing area of the state."

Hamamoto said the board is free to change the recommendation and said the department has been closely watching the growth in the Kihei area as it evaluates need. She pointed out that a new middle school for the 'Ewa Makai area has "been in the pipeline since 2000."

Before adjourning, the committee added a maximum of $5 million to look at increasing its high-tech efficiency as well as $5 million more to supplement electricity costs to allow individual schools to add air conditioners where necessary.

Harimoto made the latter suggestion, saying it would "allow flexibility if schools have air-conditioners donated."

Hamamoto said the department would certainly approve that idea on a case-by-case basis.

"We'd have to know if the schools could handle the upgrade," she said.

The board committee on budget and fiscal accountability, chaired by Knudsen, said a final budget would come before the full board next week and could still be amended.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com.