The state House yesterday approved a $10.7 billion supplemental budget for the next fiscal year, which reflects slower revenue growth and is slightly less than Gov. Linda Lingle proposed in December.

The general fund portion of the budget, over which lawmakers have the most discretion, is $5.3 billion, also slightly less than the governor proposed. Lawmakers pared the governor's budget largely through 4 percent reductions in general-fund discretionary spending in each state department and through eliminating state positions that have been vacant for at least eight months.

Lawmakers and the administration are looking at modest spending increases next fiscal year because of the state's slowing economy. The state Council on Revenues is expected to release its latest forecast tomorrow, which, if the revenue outlook declines again, will likely lead to more conservative spending as the budget moves to the state Senate.

Even with slower revenue growth, the state remains on track to have a healthy budget surplus at the end of the fiscal year in June.