The Senate Ways and Means Committee held its hearing on the state budget on Thursday as senators prepare to add their changes to the spending plan before a key deadline this week.

The money is a supplement to the two-year budget approved by the Legislature last session and will reveal how lawmakers intend to spend a budget surplus that has grown to more than $600 million.

Infrastructure improvements, highlighted by the storm damage over the past few weeks, remain the priority, but several lawmakers also believe tax relief is still possible.

ISSUE WATCH

Affordable housing: Gov. Linda Lingle told homeless advocates that the administration would start taking proposals for up to $20 million in new state money for shelter upgrades and other services for the homeless. The governor said she was moving ahead even though the Legislature has yet to approve the money. Lawmakers, meanwhile, discussed whether trailers could be used to house the homeless as hundreds were swept out of parks and beaches on O'ahu and Maui.

Meanwhile, bills regarding the session's other key issues — education, energy and tax relief — are still alive and poised for action at second crossover in mid-April.

OTHER ACTIONS OF NOTE

Aloha Stadium: The Lingle administration is asking lawmakers for $25 million next fiscal year as part of a four-year, $129 million plan to repair the rusting stadium. Russ Saito, the state comptroller, told the Senate Ways and Means Committee that corrosion at the stadium could compromise its structural integrity and pose a health and safety risk if not repaired.

Saito said the administration would talk to private investors about the prospect of a new stadium but predicted it would take seven to 10 years to build.

Welfare money: The state Department of Human Services is complaining that the House trimmed its request to spend federal welfare money by more than $25 million, down to $118 million. Over the past few sessions, the department and lawmakers have been unable to agree on how to spend millions in federal welfare money. As the spat continues, about $140 million in federal welfare money meant for the poor sits unused in a reserve fund.

Race fans: Dozens of dirt track racing fans waving checkered flags protested at the Capitol on Thursday in opposition to bills that would provide tax credits to help develop a new racetrack in West O'ahu. Organizers claim the developer does not support dirt track racing. The tax credit bills stalled last session and have not been brought back so far this session.

OVERHEARD

"We are grateful to Mrs. Bush for wanting to learn more about the valuable natural resources of the Northwestern Hawaiian Islands."

— Gov. Lingle, accepting an invitation from first lady Laura Bush to attend a White House screening, set for Wednesday, of "Voyage to Kure," a documentary on the island chain by explorer Jean-Michel Cousteau.

COMING UP

Friday is second decking, the deadline for bills to be in final form 48 hours before House and Senate crossover votes.

Have a tip for the Capitol bureau? Call 525-8070 or e-mail ddepledge@honoluluadvertiser.com.