"I realize that this will put the Legislature in an awkward position," he said with a smile, "and I'm very sorry."

There was laughter from the audience, members of the Hawaii Society of Corporate Planners who hosted McClain as keynote speaker at their luncheon yesterday, but McClain made it clear he was serious about seeking an increased share of the state's budget.

UH is in the midst of a five-year, phased tuition increase of about 3 percent a year that would raise the cost of undergraduate study at UH-Manoa to $3,504 by 2006.

McClain also touched on a report released yesterday by the UH Economic Research Organization, which showed the university generated more than $1.4 billion in spending last year, money that bolstered the state's economy.

The report linked the amount of money taxpayers spend on the university to an economic boost. For example, for every $1 million in general funds given to UH, 79 jobs are created, according to the study.

In making his case for the investment in higher education, McClain called attention to the university's role in easing some social problems. Training the state's necessary workforce is among its top priorities, he said, pointing to well-documented shortages in teachers and nurses as prime examples.

He also acknowledged other ways of raising revenues: reducing tuition waivers and offering more federally financed scholarships instead; increasing out-of-state tuitions to cover costs; and whittling spending on top-paid administrators.

Two lawmakers who have tangled with UH issues yesterday said they were happy to hear about McClain's comprehensive financial planning. The university will have to convince legislators that the money will be spent fruitfully if it is going to get any more, said state Sen. Norman Sakamoto, chairman of the Senate Education Committee.

"People are willing to support issues that they see as really serving needs," said Sakamoto, D-15th (Waimalu, Airport, Salt Lake).

That was echoed by state Rep. Mark Takai, D-34th (Pearl City, Newtown, Royal Summit), the House Higher Education Committee chairman.

"I think it's good that the university increase its general fund share, but it must be able to demonstrate that the $300 million or so it gets now is being used wisely."

Past practices that have drawn criticism include excessive administrative pay and the creation of new programs without eliminating others, Takai said.

The university has to show that it is "serving the educational pipeline" by producing more teachers, Sakamoto added.

"They need to give us a road map, and not necessarily an academic road map," he said. "It's got to be a map that ordinary people, moms and dads, can read and be convinced that we're paying bus fare and we know where we're going."