The state is about to try a $634 million bond issue again after postponing a planned September sale because of financial turmoil at the time.

Fitch Ratings said the issue is planned for Dec. 1, roughly 10 weeks after the sale was originally to take place on Sept. 23.

The state delayed the September sale, saying it would have to pay too high of an interest rate to tempt buyers made skittish by tumult in the financial markets. The planned sale was set to take place about a week after the Lehman Brothers Holdings filed the biggest bankruptcy in U.S. history.

Scott Kami, administrator of the financial services division of the state Department of Budget and Finance, wasn't immediately available for comment yesterday, but has said the state was delaying the bond issue until market conditions improved.

The bond issue includes $300 million of tax-exempt general obligation bonds, $308.5 million of bonds to refinance those issued earlier at higher rates and $26 million of taxable bonds to help with the purchase of the Kukui Gardens housing project.

Gov. Linda Lingle's administration wants to increase public works spending to help the economy as it goes through a tourism downturn. It wants to start work on public buildings, school repairs and improvements to harbors and airports.

Fitch affirmed its "AA" ratings for state debt, saying the state has sound financial operations, though it noted the economy and tax take is weakening.

Moody's Investors Service also affirmed its "Aa2" ratings on the issue, saying the state historically has been fiscally conservative and that its finances are sound despite lower revenue growth.