Gov. Linda Lingle predicted yesterday that she could spend $6 million on her re-election campaign next year, breaking the $5.4 million spending record she set in her 2002 victory.

Through the end of June, the Republican governor had spent $1.8 million and still had $2.2 million in cash, according to campaign spending reports.

Lingle has accelerated her fundraising in anticipation of a new state campaign finance law that takes effect in January. The new law will limit out-of-state contributions to no more than 20 percent of donations during each campaign reporting period and prohibits companies with state or county contracts from giving money to candidates unless they set up political action committees.

"I want the people to know we expect a great race next year, talking about the issues, about the future of our state," Lingle said in response to questions from reporters about her campaign and possible Democratic opponents.

Despite months of behind-the-scenes talks, no Democrat has emerged to challenge Lingle, although some within the party expect an announcement within the next several weeks.

The governor's high approval ratings and her sizable fundraising lead give her an advantage going into the election year.

"Democrats will compete with Lingle on the issues, the real value of the campaign," said Tom Brower, communications director for the Democratic Party of Hawai'i. "It's the mana, not the money."

The eventual Democratic candidate could benefit from the party's ties with organized labor and its superior grass-roots network across the Islands. But money will still be a factor, party activists say, especially since a Democratic candidate will start so far behind Lingle in fundraising.

Democratic legislators had written parts of the campaign-finance law specifically to limit Lingle's ability to raise money from the Mainland. Some Democrats were worried she could use her status as the state's first woman governor and first Republican governor in 40 years, along with her White House contacts, to attract national Republican money. Others wanted to ensure that Mainland donors do not have a disproportionate impact on Island politics.

At least three Mainland political action committees have registered with the state this year to raise money for Lingle: the Republican Governors Association Hawai'i PAC; DCI Group of Phoenix, Ariz.; and Health Management Associates of Tempe, Ariz.

DCI Group is a Republican public affairs firm and HMA is a healthcare management group with a subsidiary in Hawai'i. Numerous other Mainland political action committees have registered with the state but did not specify a candidate or cause. It is possible for these PACs to donate to multiple candidates.

"There is no reason why out-of-state influence should be able to infiltrate Hawai'i," said state Rep. Blake Oshiro, D-33rd (Halawa, 'Aiea, Pearlridge), one of the authors of the law.

Oshiro said state Democrats have traditionally not raised much money from the Mainland so he is not concerned the law might now constrain a Democratic candidate for governor.

But some other Democrats have said privately that the law could have a chilling effect on fundraising, especially if a Democrat with a national profile, such as a member of the congressional delegation, were to ever run for governor. The limit also could hurt candidates who need to raise money quickly, either because they enter the race late or because they must match unexpected fundraising prowess by an opponent.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.