State House and Senate budget negotiators last night agreed to a $10.7 billion operating budget and $1.4 billion in spending on capital improvement projects, figures that are less than Gov. Linda Lingle proposed because of the state's slowing economy.

The budget contains $5.3 billion in general fund spending — where lawmakers have the most control — and includes spending restrictions among state departments and almost no grants-in-aid to nonprofit community groups.

"We have to live within our means, and I think we have," said state Sen. Rosalyn Baker, D-5th (W. Maui, S. Maui), the chairwoman of the Senate Ways and Means Committee.

Lawmakers agreed to convert about $111 million in cash for public-school renovations into bond financing, which will allow more time for the projects to be completed, and bumped up capital improvement spending for repair and maintenance projects at the University of Hawai'i higher than Lingle had requested.

Lawmakers had promised to invest in UH this session after administrators and former UH-Manoa football coach June Jones outlined deteriorating conditions and a backlog of repairs.

UH will get $58.5 million in repair and maintenance money, $8.5 million more than Lingle had requested. Lawmakers also agreed to spend $1.2 million for improvements to Cooke Field, $386,000 for repairs at Les Murakami Stadium, and $2.5 million for women's locker room improvements at Manoa. The budget also includes $35.8 million for renovation of the Campus Center, $7.5 million for a new classroom building and $3.7 million for an information technology building.

On the Neighbor Islands, lawmakers agreed to $11.2 million for improvements at Hawai'i Community College, $25 million for a science building at Maui Community College, and $1.6 million for a student services building at UH-Hilo.

But lawmakers did not provide money for campus development at UH-West O'ahu, a library at Windward Community College, and a pharmacy school building at UH-Hilo.