With a deal reached in Congress on an economic-stimulus package, the Lingle administration and state lawmakers are hopeful enough federal money will get to Hawai'i in time to make a difference in the state's budget deficit.

Details about how the $789 billion stimulus will reach the states were still largely unknown yesterday, as congressional negotiators, including U.S. Sen. Daniel K. Inouye, D-Hawai'i, worked through the final version of the package. But Hawai'i is expected to benefit from some of the $90 billion in extra federal Medicaid money to provide healthcare for the poor and disabled, and $54 billion in a state fiscal stabilization fund meant for school modernization.

Low- and middle-income taxpayers would also see relief through tax breaks of $400 for individuals and $800 for couples.

Jennifer Sabas, Inouye's chief of staff in Honolulu, said the senator's office should know more details relating to Hawai'i by late today or tomorrow.

Gov. Linda Lingle and state lawmakers working on the state's budget have been reluctant to place too much emphasis on the federal stimulus package, since there is no guarantee the federal money could be used to close the deficit. The state has projected a $75.6 million deficit this fiscal year, a $315.4 million deficit in fiscal year 2010 and a $549.8 million deficit in fiscal year 2011.

Lingle, a Republican, said last week she had not lobbied Congress for the stimulus and agreed with some of the national GOP criticism of the package. But her administration, led by chief of staff Barry Fukunaga, has been tracking its progress.

MORE SPENDING LIMITS

Last month, Georgina Kawamura, the state's budget director, said the administration had hoped an increase in federal Medicaid reimbursements in the stimulus package would be enough for the state to close out the fiscal year in June without any new budget cuts. But uncertainty about how much to expect led the administration to order additional 2 percent spending restrictions on state departments and request a larger cash transfer from the state's rainy day fund.

State Rep. Marcus Oshiro, D-39th (Wahiawa), the chairman of the House Finance Committee, said the critical questions will be how fast the federal money can reach the states and whether the money can be used to supplement or supplant state spending. If there are too many restrictions on the federal money, or if the money is available for programs not immediately suited for Hawai'i, the stimulus package might only have a limited influence on the deficit.

"It will help us," Oshiro said. "This is good news. But we're still waiting to hear the particulars and the details."

For an idea of what might be available for Hawai'i, Inouye said Tuesday that the Senate version of the stimulus package would have provided $587.6 million in formula-based funding for highway and transit, education and social services, and housing and the environment. In addition, Hawai'i would get money from the tax breaks, Medicaid reimbursements and extended unemployment benefits.

WHAT WILL BENEFIT

U.S. Rep. Neil Abercrombie, D-Hawai'i, estimated last month that the House version would target more than $2.3 billion to the Islands.

But the stimulus package was trimmed in conference committee negotiations, and it is not known how much of what remains will be useful to the state.

William Pound, the executive director of the National Conference of State Legislatures, said states would likely benefit most from federal infrastructure, education and Medicaid spending.

Pound, who is visiting the Islands on vacation and will brief lawmakers today on the fiscal condition of states, said more than 40 states are facing deficits.

"If they have reached agreement and the president signs it, the question then will be how quickly does it get spent," Pound said. "The key thing for the states will be to get a significant portion of the money, if they can, in this fiscal year."