The state Senate passed its version of the supplemental budget today, which, like the state House version, is lower than what was proposed by Gov. Linda Lingle.

The Senate endorsed a $10.7 billion operating budget, with $5.3 billion in general fund spending, a little bit more than the House. House and Senate lawmakers will meet in conference committee to work through their differences.

The Senate version of the budget is $32.4 million less than what Lingle proposed, while the House version is $67 million less. The Senate also commits more money than the House for capital improvement projects.

State Sen. Rosalyn Baker, D-5th (W. Maui, S. Maui), the chairwoman of the Senate Ways and Means Committee, said the Senate reductions come from denying requests for new spending, making adjustments to job vacancies, and reducing discretionary spending in state departments by between 2.5 percent and 5 percent.

Baker also noted that the Senate would restrict the administration's spending of federal welfare money to keep a healthy reserve in the event of an economic downturn. The Senate also only provides about 10 percent of the requests by non-profits for grants-in-aid and 8 percent of capital improvement grants-in-aid requests.

The Senate, however, would spend more than the House on overall state construction spending. "Capital investment should be the engine of recovery rather than a casualty of the downturn," Baker said.

The Senate and House voted on dozens of bills today in preparation of second crossover of legislation between the two chambers on Thursday.